What factors drove the changes in Herc Holdings's revenue and profit?

Did Herc Holdings beat or miss consensus estimates last quarter?

What does Herc Holdings do and what are its main business segments?

What is Herc Holdings's latest dividend and current dividend yield?

What were the key takeaways from Herc Holdings's earnings call?

What is the revenue and EPS growth rate for Herc Holdings year over year?

What guidance did Herc Holdings's management provide for the next earnings period?

What is Herc Holdings's gross profit margin?

- **Revenue Growth**: Q3 rental revenue up 30% YoY, driven by H&E acquisition and mega projects.
- **Margin Challenges**: 240bps margin compression from auction sales, targeting 2026 return to normal wholesale channels.
- **Specialty Expansion**: 50 new specialty locations planned, 25% increase in specialty network.
- **Fleet Efficiency**: $1.1B OEC disposals in Q3, targeting $1.2B annualized. 2026 CapEx shift to specialty equipment.
- **Financial Targets**: 2025 adjusted EBITDA ~$1.6B, leverage reduction to 2-3x by end-2027.

**【CEO Summary Section】**
- **Integration Progress**: Completed 90-day systems migration, including ERP consolidation and pricing engine integration. ProControl technology now available across all branches.
- **Market Dynamics**: Mega projects (e.g., LNG, AI infrastructure) driving 48% of national account revenue, while local commercial construction remains constrained by high interest rates.
- **Specialty Expansion**: Planning 50 new specialty locations (25% increase) to support high-margin equipment demand, repurposing 10% of acquired branches.
- **Fleet Strategy**: Disposed $1.1B OEC of underutilized equipment in Q3, targeting $1.2B annualized disposals. Shifting to specialty-focused CapEx allocation.

**【COO Operational Update】**
- **Safety Metrics**: 97%+ perfect safety days across branches,优于行业基准1.0的总可记录伤害率.
- **Fleet Management**: Nearly doubled Q3 disposals vs. prior year, achieving 41% OEC proceeds via auctions. 2026 fleet age target aligned with historical Herc averages.
- **Sales Force**: Stabilized attrition at normalized levels, with 60%+ of new hires from internal training programs.

**【CFO Financial Performance】**
- **Revenue Growth**: Q3 rental revenue +30% YoY (H&E acquisition + mega projects), adjusted EBITDA +24% to $420M.
- **Margin Impact**: 240bps margin compression from auction sales, 150bps from underutilized fleet. REBITDA margin 46% (excludes used sales).
- **Leverage**: 3.8x debt/EBITDA, targeting 2-3x by end-2027 via synergies and free cash flow ($342M YTD).
- **Guidance**: Full-year 2025 adjusted EBITDA ~$1.6B, with Q4 auction sales pressure persisting.

**【Q&A Highlights】**
- **Fleet Rightsizing**: 50% of planned $250M-300M disposals completed in Q3, with 2026 shift to wholesale/retail channels.
- **National Accounts**: 10-15% share of targeted mega projects, no margin dilution due to specialty equipment mix.
- **Branch Consolidation**: No closures of acquired locations; 50 new specialty branches via co-locations and repurposing.
- **Employee Retention**: Attrition stabilized at Herc norms, with 80%+ sales force trained on Herc systems.
- **Pricing Strategy**: Proprietary pricing engine being adopted by H&E sales, targeting 2026 rental rate normalization.

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