Herc Holdings, Inc.: 2Q26 Review; Keeping Dec 26 PT at $165

研报英文原文证据摘录

Herc Holdings, Inc.: 2Q26 Review; Keeping Dec 26 PT at $165

.3% margin), Quarterly Forecasts (FYE Dec)

respectively. We are keeping our Dec 26 PT at $165 based on ~6.5x FY1 EV/ Adj. EPS ($)

EBITDA, which is ~4x below our target multiple for Overweight-rated URI 2025A 2026E 2027E

Q1 1.30 0.21A

and ~1x below Underweight-rated SUNB. We believe this discount relative to Q2 1.97 1.43A

the larger peers is justified considering we expect leverage to remain in the low Q3 2.22 3.74

3x in 2027, which is above both the peers below ~2x. We rate HRI Neutral. Q4 2.07 2.18

FY 7.55 7.56 8.44

Below are some other highlights from the HRI earnings call.

Style Exposure

• End-market conditions remained bifurcated in 2Q, with stable local

activity masking mixed underlying dynamics while national accounts

continued to drive the strongest growth. Interest rate-sensitive commercial

weakness pressured some local markets, while infrastructure, education,

health care, and MRO supported growth in others, and nearby mega-projects

created secondary demand in select local markets. National accounts

continued to benefit from increasing activity across energy, data center, and

manufacturing projects, and the H&E acquisition expanded HRI’s ability to

serve that demand through greater fleet capacity, branch density, scale, and

operating bandwidth. HRI raised its target share of the U.S. mega-project rental

opportunity from 15% to 20% over time, with external data pointing to more

than $800B of U.S. mega-project starts in 2026, historically ~2% of which

converts into rental spend, though revenue realization typically spreads across

3–5+ year project durations. Management emphasized that the company has

begun touching the 15% share level, and sees its position strengthening into a