Revenue: As of FY2025 Q2, the actual value is USD 1.002 B, beating the estimate of USD 981.8 M.EPS: As of FY2025 Q2, the actual value is USD -1.17, missing the estimate of USD 1.71.<h3>Equipment Rental Segment</h3><ul><li>Revenue: Equipment rental revenue increased by $105 million, or 14%, during the second quarter of 2025 compared to the same period in 2024, reflecting an increase in average OEC on rent, including impacts from acquisitions.</li><li>Sales of Rental Equipment: Sales increased by $41 million, or 63%, during the second quarter of 2025 compared to the second quarter of 2024, with a margin decrease from 31% to 19% due to normalization of used equipment pricing.</li><li>Direct Operating Expenses: Increased by $53 million, or 16%, in the second quarter of 2025 compared to the same period in 2024, primarily due to lower fixed cost absorption and acquisition impacts.</li><li>Depreciation: Depreciation of rental equipment increased by $30 million, or 18%, during the second quarter of 2025 compared to the second quarter of 2024, due to increased fleet size from acquisitions.</li><li>Net Income: The company reported a net loss of $35 million for the second quarter of 2025, compared to a net income of $70 million in the same period of 2024.</li></ul><h3>Cash Flow</h3><ul><li>Operating Cash Flow: Generated $412 million in operating cash flow during the six months ended June 30, 2025, a decrease of $146 million compared to the same period in 2024.</li><li>Investing Activities: Cash used in investing activities increased by $3,860 million during the six months ended June 30, 2025, primarily due to acquisition expenditures related to the H&amp;E acquisition.</li><li>Financing Activities: Financing cash flows increased by $3,977 million during the six months ended June 30, 2025, primarily due to new debt issuance to fund the H&amp;E acquisition.</li></ul><h3>Future Outlook and Strategy</h3><ul><li>Core Business Focus: The company plans to leverage the complementary footprint and fleet mix of Herc and H&amp;E to realize significant benefits and synergies, although the integration process may be complex and disruptive.</li><li>Non-Core Business: The company is assessing the potential impacts of the One Big Beautiful Bill Act on its financial position, results of operations, and cash flows.</li></ul><h3>Additional Notes</h3><ul><li>Interest Expense: Increased by $23 million, or 37%, during the second quarter of 2025 compared to the same period in 2024, due to increased borrowings to fund the H&amp;E acquisition.</li><li>Loss on Assets Held for Sale: Recorded a $49 million loss during the second quarter of 2025 to adjust the carrying value of Cinelease net assets to fair value less estimated costs to sell.</li></ul>

Herc | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 1.002 B