Why did HE Equipment Service's operating profit decline sharply in Q4 2024?

H&E Equipment Services' operating profit declined sharply in Q4 2024 due to a combination of factors:

1. **Revenue Decline**: The company's total revenue fell by 4% year-over-year to $384.9 million. This decline was primarily driven by a significant 47% drop in rental equipment sales. Despite a 2.8% increase in rental revenues, supported by the addition of new locations, the overall revenue decline had a negative impact on the operating profit.
2. **Cost Management**: The company's profit margin decreased to 8.1%, down from 12% in the same quarter of the previous year. This reduction in profit margin indicates that the company's cost management efforts were not sufficient to offset the revenue decline.

In summary, H&E Equipment Services' operating profit decline in Q4 2024 was primarily due to a combination of revenue decline and cost management challenges.