Scaling for Sustainable Growth Q1 2026 EARNINGS CONFERENCE CALL April 28, 2026
Q1 2026Herc Holdings Inc. NYSE: HRI 2 Herc Rentals Team and Agenda Agenda Safe Harbor Q1 2026 Overview Q1 Operations Review Q1 Financial Review 2026 Outlook Q&ALarry Silber Chief Executive Officer Aaron Birnbaum President Mark Humphrey Senior Vice President & Chief Financial Officer Leslie Hunziker Senior Vice President Investor Relations, Communications & Sustainability
Q1 2026Herc Holdings Inc. NYSE: HRI 3 Safe Harbor Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, and the Private Securities Litigation Reform Act of 1995. Forward looking statements are generally identified by the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts," "looks," and future or conditional verbs, such as "will," "should," "could" or "may," as well as variations of such words or similar expressions. All forward-looking statements are based upon our current expectations and various assumptions and there can be no assurance that our current expectations will be achieved. You should not place undue reliance on the forward-looking statements. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the cyclical nature of our industry and our dependence on the levels of capital investment and maintenance expenditures by our customers; (2) the competitiveness of our industry, including the potential downward pricing pressures or the inability to increase prices; (3) our dependence on relationships with key suppliers; (4) our heavy reliance on communication networks, centralized information technology systems and third party technology and services and our ability to maintain, upgrade or replace our information technology systems; (5) our ability to respond adequately to changes in technology and customer demands; (6) our ability to attract and retain key management, sales and trades talent; (7) our rental fleet is subject to residual value risk upon disposition; (8) the impact of climate change and the legal and regulatory responses to such change; (9) our ability to execute our strategy to grow through strategic transactions;(10) our significant indebtedness; and (11) our ability to integrate the acquisition of H&E Equipment Services, Inc. into our business and our ability to realize all the anticipated benefits of the transaction. Further information on the risks that may affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and in our other SEC filings. We undertake no obligation to update or revise forward- looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Information Regarding Non-GAAP Financial Measures In addition to results calculated according to accounting principles generally accepted in the United States (“GAAP”), the Company has provided certain information in this presentation that is not calculated according to GAAP (“non-GAAP”), such as adjusted net income, adjusted earnings per diluted share, EBITDA, adjusted EBITDA, adjusted EBITDA margin, REBITDA, REBITDA margin, REBITDA flow-through, free cash flow and adjusted free cash flow. Management uses these non-GAAP measures to evaluate operating performance and period-over-period performance of our core business without regard to potential distortions, and believes that investors will likewise find these non-GAAP measures useful in evaluating the Company’s performance. These measures are frequently used by security analysts, institutional investors and other interested parties in the evaluation of companies in our industry. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to similarly titled measures of other companies. For the definitions of these terms, further information about management’s use of these measures as well as a reconciliation of these non-GAAP measures to the most comparable GAAP financial measures, please see the appendix that accompanies this presentation.
Q1 2026Herc Holdings Inc. NYSE: HRI 4 First Quarter 2026 Overview Larry Silber Chief Executive Officer
Q1 2026Herc Holdings Inc. NYSE: HRI 5 Q1 2026: Delivering on Growth Strategies Optimize branch network for fleet / operating efficiencies at scale • Completed branch optimization program as part of acquisition integration, increasing specialty branch network by 25% • Opened 3 previously planned greenfield locations Enhance fleet mix • Added specialty fleet for mega projects, cross-selling and end-market expansion Support customers’ efficiency goals through data and telematics • Advanced our industry leading digital capabilities: ProControl by Herc Rentals™ Lead through continuous improvement with E3OS • Standardized processes • Committed to superior customer experiences Prioritize Capital and Invest Responsibly • Continued disciplined investments in fleet • Declared regular dividend Strategies to Accelerate ROIC and Increase Shareholder Returns: Grow the Core Expand Specialty Elevate Technology Execute at Highest Level Allocate Capital
Q1 2026Herc Holdings Inc. NYSE: HRI 6 Operations Review Aaron Birnbaum President
Q1 2026Herc Holdings Inc. NYSE: HRI 7 Focusing on Safety Continuing focus on Perfect Days • Q1 26 all branches reported > 96% Perfect Days • Perfect Days are those with no: • OSHA reportable incidents • At-fault moving vehicle accidents • DOT violations Total TTM Recordable Incident Rate is 0.98 — favorable to industry standard of 1.0 Proven safety record is a must-have for customers
Q1 2026Herc Holdings Inc. NYSE: HRI 8 Optimizing Fleet Mix and Lifecycle Performance 1. Original equipment cost based on ARA guidelines 2. Q3 2025 disposals exclude the divestiture of Cinelease OEC of $301 million $74 $314 $423 $266 $183 2025 2026 Q1 Q2 Q3 Q4 Fleet Expenditures at OEC1 $ in millions $234 $253 $375 $342 $281 2025 2026 Q1 Q2 Q3 Q4 Fleet Disposals at OEC1,2 $ in millions • Focus on acquired-fleet optimization: ◦ Expenditures for rotation, mega projects, specialty equipment ◦ Disposals to improve mix to align to customer demand • Q1 26 disposals generated proceeds of ~49% of OEC ◦ Average age of fleet disposals in the quarter of 79 months • Average fleet age of 47 months at March 31, 2026 19% 26% 12% 21% 22% $9.4 billion at OEC1 Material Handling Other Specialty Aerial Earthmoving Fleet Composition
Q1 2026Herc Holdings Inc. NYSE: HRI 9 Delivering Growth and Resiliency through Diversification Q1 Local vs. National Revenue Mix 53% 47% National Q1 Revenue by Customer1 42% 24% 17% 13% 4% Local Commercial Facilities Contractors Infrastructure & Government Other Industrial • Local market expected stable - Infrastructure, government and MRO help offset moderated commercial sector • National account revenue benefiting from diversification and mega project activity • Specialty fleet, service capabilities and scale driving synergies with new, larger account base • Long-term, balanced target of 60% local / 40% national accounts 1. Refer to 10-K for description of industries related to each customer classification.
Q1 2026Herc Holdings Inc. NYSE: HRI 10 Capitalizing on Growth Trends Across Diverse Customer and Project Base Pipeline of new construction and maintenance projects offers wide spectrum of growth opportunities • Banks • Casinos • Hospitality (hotel & motel) • Parking Garages • Religious Building • Retail Facilities • Commercial Warehousing • Education • Facility Maintenance • Healthcare • Data Centers • Sporting Events • TV, Film & Radio • Live Events Contractors (42%) Industrial (24%) Commercial Facilities (13%) Other (4%) • Aerospace • Alternative • Automotive • Energy/ Renewables • Food & Beverage • Agriculture • Chemical Processing • Industrial Manufacturing • Metals & Minerals • Oil & Gas Production • Oil & Gas Pipeline • Oil & Gas Refineries • Pharmaceutical • Power • Pulp. Paper & Wood • Shipbuilding/Yards • Electrical • General Contractors • Mechanical • Remediation & Environmental • Residential • Restoration • Specialty Contractors • Airports • Bridge • Federal Government • Local & State Government • Military Base • Prisons • Railroad & Mass Transportation • Streets, Road & Highway • Sewer & Waste Disposal • Water Supply & Distribution • Utilities Infrastructure & Gov. Direct (17%) Herc Rentals is Well Positioned with Current Trending Opportunities HybridChip Plants Data Centers LNG PlantsRenewables Utilities Healthcare Infrastructure New verticals since 2016 in bold.
Q1 2026Herc Holdings Inc. NYSE: HRI 11 Continued Strength in Key End Markets 1.Source: IIR as of December 2025 2.Source: Dodge Analytics U.S. as of April 2026 3.Source: Dodge Analytics U.S. as of April 2026; mega project defined as total dollar value exceeding $250 million Industrial Spending1 $314 $352 $457 $531 $562 $586 $575 $562 $542 $527 21 22 23 24 25 26E 27E 28E 29E 30E $ in billions Non-Residential Starts2 $305 $443 $418 $453 $481 $489 $510 $544 $578 $610 21 22 23 24 25 26E 27E 28E 29E 30E $ in billions Infrastructure Starts2 $209 $256 $309 $334 $405 $397 $377 $373 $369 $368 21 22 23 24 25 26E 27E 28E 29E 30E $ in billions Mega Project Starts3 $291 $304 $673 $826 23 24 25 26E $ in billions
Q1 2026Herc Holdings Inc. NYSE: HRI 12 Operational Progress in 1H:26 Unlocks 2H:26 Growth Momentum Integration • Expanded regional management & organizational design • Sales territory optimization • Technology integration • Branch network optimization • Fleet & supply chain optimization • Salesforce assimilation for systems & go-to-market strategy • Branch assimilation for systems & Herc operating model • Productivity improvements • Cultural alignment New Foundation • 30% larger business by fleet, people, locations • Fleet optimization, the base for: ◦ improving utilization into seasonal peak ◦ driving revenue growth ◦ expanding synergies Acceleration • 2026 growth-fleet onboarding • New specialty locations gaining momentum • Larger sales force maturing • Efficiencies of scale increasing 2H:25 1H:26 2H:26
Financial Review Mark Humphrey Senior Vice President and Chief Financial Officer
Q1 2026Herc Holdings Inc. NYSE: HRI 14 Q1 2026 Financial Results 1. For a reconciliation to the most comparable GAAP financial measure, see the Appendix beginning on Slide 18 2. REBITDA measures contribution from our core rental business without impact of sales of equipment, parts and supplies 3. Based on ARA guidelines Three Months Ended March 31, $ in millions, except per share data 2026 2025 2026 vs 2025 % Change Equipment Rental Revenue $981 $739 32.7% Total Revenues $1,139 $861 32.3% Net Loss $(24) $(18) (33.3)% Loss Per Diluted Share $(0.72) $(0.63) (14.3)% Adjusted Net Income1 $7 $37 (81.1)% Adjusted Earnings Per Diluted Share1 $0.21 $1.30 (83.8)% Adjusted EBITDA1 $448 $338 32.5% Adjusted EBITDA Margin1 39.3% 39.3% — bps REBITDA1,2 $399 $306 30.4% REBITDA Margin1,2 40.4% 41.1% (70) bps REBITDA YoY Flow-Through1,2 38.3% (36.8)% Average Fleet3 (YoY) 36.4% 9.2% Dollar Utilization3 36.4% 37.6% (120) bps
Q1 2026Herc Holdings Inc. NYSE: HRI 15 Disciplined Capital Management 1. The AR Facility is excluded from current maturities of long-term debt as the Company has the intent and ability to consummate refinancing and extend the term of the agreement. 2. Total liquidity includes cash and cash equivalents and the unused commitments under the ABL Credit Facility and AR Facility. 3. For a definition and calculation, see the Appendix beginning on Slide 18. Maturities As of March 31, 2026 $ in millions $800 $1,650 $600 $1,100 $600 $1,981 $748 $475 2026 2027 2028 2029 2030 2031 2032 2033 2034 $84 Finance Leases 2026-2044 2031 Senior Unsecured Notes AR Facility1 2029 Senior Unsecured Notes ABL Credit Facility Ample liquidity2 of $1.9B provides financial flexibility Net leverage3 of 3.96x Free cash flow3 of $94M for first quarter 2026 Quarterly dividend of $0.70 per share, paid on March 4, 2026 Maintained Credit Ratings Moody's CFR Ba2; S&P BB 2033 Senior Unsecured Notes 2030 Senior Unsecured Notes Term Loan Facility 2034 Senior Unsecured Notes
Q1 2026Herc Holdings Inc. NYSE: HRI 16 2026 Outlook on Track Key 2026 Assumptions: • Specialty penetration, mega projects and synergies drive revenue growth; local markets stable • Fleet dispositions estimated ~50% lower YoY • Fleet efficiency remains a priority, improving into seasonal demand • Revenue synergies estimated at an incremental $100M to $120M • Cost synergies estimated at an incremental $90M for fully realized target of $125M by YE26 • Interest expense will reflect a full year of acquisition debt • Effective tax rate ~25% • Free cash flow in range of $400–$600 million Metric 2025 Actual 2026 Guidance Equipment Rental Revenue $3.8 billion $4.275 billion to $4.4 billion Adjusted EBITDA $1.8 billion $2.0 billion to $2.1 billion Net Rental Equipment Expenditures $649 million $500 million to $800 million Gross Capex $1.1 billion $800 million to $1.1 billion
Q1 2026Herc Holdings Inc. NYSE: HRI 17 Purpose, Vision, Mission and Values Purpose: We equip our customers and communities to build a brighter future
Appendix
Q1 2026Herc Holdings Inc. NYSE: HRI 19 Glossary of Terms Commonly Use in the Industry OEC: Original Equipment Cost which is an operating measure based on the guidelines of the American Rental Association (ARA), which is calculated as the cost of the asset at the time it was first purchased plus additional capitalized refurbishment costs (with the basis of refurbished assets reset at the refurbishment date). Fleet Age: The OEC weighted age of the entire fleet, based on ARA guidelines. Net Fleet Capital Expenditures: Capital expenditures of rental equipment minus the proceeds from disposal of rental equipment. Dollar Utilization ($ UT): Dollar utilization is an operating measure calculated by dividing equipment rental revenue (excluding re-rent, delivery, pick-up and other ancillary revenue) by the average OEC of the equipment fleet for the relevant time period, based on ARA guidelines.
Q1 2026Herc Holdings Inc. NYSE: HRI 20 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through EBITDA, Adjusted EBITDA, and REBITDA—EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of transaction expenses, restructuring and restructuring related charges, spin-off costs, non-cash stock based compensation charges, loss on extinguishment of debt (which is included in interest expense, net), impairment charges, gain (loss) on disposal of a business, impact of the fair value mark-up of acquired fleet, impact of the studio entertainment business and certain other items. REBITDA represents Adjusted EBITDA excluding the gain (loss) on sales of rental equipment and new equipment, parts and supplies. EBITDA, Adjusted EBITDA and REBITDA do not purport to be alternatives to net income as an indicator of operating performance. Additionally, none of these measures purports to be an alternative to cash flows from operating activities as a measure of liquidity, as they do not consider certain cash requirements such as interest payments and tax payments. Adjusted EBITDA Margin, REBITDA Margin and REBITDA Flow-Through—Adjusted EBITDA Margin (Adjusted EBITDA / Total Revenues) is a commonly used profitability ratio. REBITDA Margin (REBITDA / Equipment rental, service and other revenues) and REBITDA Flow- Through (the year-over-year change in REBITDA/the year-over-year change in Equipment rental, service, and other revenues) are useful operating profitability ratios to management and investors.
Q1 2026Herc Holdings Inc. NYSE: HRI 21 Reconciliation of Net Income to Adj. EBITDA and Adj. EBITDA Margin, Rental Adj. EBITDA (REBITDA), REBITDA Margin and Flow-Through Three Months Ended March 31, $ in millions 2026 2025 Net loss $ (24) $ (18) Income tax provision 1 10 Interest expense, net 128 62 Depreciation of rental equipment 242 172 Non-rental depreciation and amortization 73 33 EBITDA 420 259 Non-cash stock-based compensation charges 6 6 Transaction expenses 5 74 Impact of the fair value mark-up of acquired fleet(1) 16 — Other(2) 1 (1) Adjusted EBITDA 448 338 Less: Gain on sales of rental equipment 29 29 Less: Gain on sales of new equipment, parts and supplies 4 3 Less: Impact of the fair value mark-up of acquired fleet(1) 16 — Rental Adjusted EBITDA (REBITDA) $ 399 $ 306 Total revenues $ 1,139 $ 861 Less: Sales of rental equipment 138 105 Less: Sales of new equipment, parts and supplies 13 11 Equipment rental, service and other revenues $ 988 $ 745 Total revenues $ 1,139 $ 861 Adjusted EBITDA $ 448 $ 338 Adjusted EBITDA Margin 39.3 % 39.3 % Equipment rental, service and other revenues $ 988 $ 745 REBITDA $ 399 $ 306 REBITDA Margin 40.4 % 41.1 % YOY Change in REBITDA $ 93 YOY Change in Equipment rental, service and other revenues $ 243 YOY REBITDA Flow-Through 38.3 % (1) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold. (2) Other consists of the restructuring and restructuring related charges and the pre-divestiture impact of the studio entertainment business.
Q1 2026Herc Holdings Inc. NYSE: HRI 22 REBITDA Margin and Flow-Through Quarterly Trend $ in millions Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Net income (loss) $ (18) $ (35) $ 30 $ 24 $ 1 $ (24) Income tax provision (benefit) 10 (11) 8 (7) — 1 Interest expense, net 62 86 134 134 416 128 Depreciation of rental equipment 172 195 246 243 856 242 Non-rental depreciation and amortization 33 45 70 76 224 73 EBITDA 259 280 488 470 1,497 420 Non-cash stock-based compensation charges 6 6 16 6 34 6 Transaction related costs 74 73 38 14 199 5 Loss (gain) on assets held for sale — 49 (1) — 48 — Impact of the fair value mark-up of acquired fleet(1) — 4 7 16 27 16 Other(2) (1) (2) 3 13 13 1 Adjusted EBITDA 338 410 551 519 1,818 448 Less: Gain on sales of rental equipment 29 20 17 25 91 29 Less: Gain on sales of new equipment, parts and supplies 3 7 6 5 21 4 Less: Impact of the fair value mark-up of acquired fleet(1) — 4 7 16 27 16 Rental Adjusted EBITDA (REBITDA) $ 306 $ 379 $ 521 $ 473 $ 1,679 $ 399 Total revenues $ 861 $ 1,002 $ 1,304 $ 1,209 $ 4,376 $ 1,139 Less: Sales of rental equipment 105 106 151 147 509 138 Less: Sales of new equipment, parts and supplies 11 17 18 17 63 13 Equipment rental, service and other revenues $ 745 $ 879 $ 1,135 $ 1,045 $ 3,804 $ 988 REBITDA Margin 41.1 % 43.1 % 45.9 % 45.3 % 44.1 % 40.4 % YOY REBITDA Flow-Through (36.8) % 40.6 % 35.8 % 33.7 % 33.6 % 38.3 % (1) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold. (2) Other consists of restructuring and restructuring related charges, impairment, spin-off costs and the pre-divestiture impact of the studio entertainment business.
Q1 2026Herc Holdings Inc. NYSE: HRI 23 REBITDA Margin and Flow-Through Annual Trend $ in millions 2021 2022 2023 2024 2025 Net income $ 224 $ 330 $ 347 $ 211 $ 1 Income tax provision 67 104 100 80 — Interest expense, net 86 122 224 260 416 Depreciation of rental equipment 420 536 643 679 856 Non-rental depreciation and amortization 68 95 112 127 224 EBITDA 865 1,187 1,426 1,357 1,497 Non-cash stock-based compensation charges 23 27 18 17 34 Impairment 3 3 — — — Transaction related costs 4 7 8 11 199 Loss on assets held for sale / disposal of business — — — 194 48 Impact of the fair value mark-up of acquired fleet(1) — — — — 27 Other(2) — 3 — 4 13 Adjusted EBITDA 895 1,227 1,452 1,583 1,818 Less: Gain (loss) on sales of rental equipment 19 36 94 87 91 Less: Gain on sales of new equipment, parts and supplies 10 15 13 13 21 Less: Impact of fair value mark-up of acquired fleet — — — — 27 Rental Adjusted EBITDA (REBITDA) $ 866 $ 1,176 $ 1,345 $ 1,483 $ 1,679 Total revenues $ 2,073 $ 2,740 $ 3,282 $ 3,568 $ 4,376 Less: Sales of rental equipment 113 125 346 311 509 Less: Sales of new equipment, parts and supplies 31 36 38 37 63 Equipment rental, service and other revenues $ 1,929 $ 2,579 $ 2,898 $ 3,220 $ 3,804 REBITDA Margin 44.8 % 45.7 % 46.4 % 46.1 % 44.1 % YOY REBITDA Flow-Through 47.5 % 48.1 % 53.0 % 42.9 % 33.6 % (1) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold. Reported amounts prior to 2025 have not been restated as the adjustments were immaterial. (2) Other consists of restructuring and restructuring related charges, impairment, spin-off costs and the pre-divestiture impact of the studio entertainment business.
Q1 2026Herc Holdings Inc. NYSE: HRI 24 Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share Three Months Ended March 31, $ in millions 2026 2025 Net loss $ (24) $ (18) Transaction expenses 5 74 Merger related intangible asset amortization(1) 31 — Impact on depreciation related to acquired fleet(2) (12) (1) Impact of the fair value mark-up of acquired fleet(3) 16 — Other(4) 1 — Tax impact of adjustments above(5) (10) (18) Adjusted net income $ 7 $ 37 Diluted shares outstanding 33.4 28.5 Adjusted earnings per diluted share $ 0.21 $ 1.30 Adjusted Net Income and Adjusted Earnings per Diluted Share—Adjusted Net Income represents the sum of net income (loss), transaction expenses, restructuring and restructuring related charges, spin-off costs, loss on extinguishment of debt, impairment charges, gain (loss) on the disposal of a business, merger related intangible asset amortization, impact on depreciation of acquired fleet, impact of the fair value mark up of acquired fleet, income (loss) of the studio entertainment business and certain other items. Adjusted Earnings per Diluted Share represents Adjusted Net Income divided by diluted shares outstanding. Adjusted Net Income and Adjusted Earnings per Diluted Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. (1) Reflects the amortization of the intangible assets acquired in major acquisitions completed since the beginning of 2024. (2) Reflects the impact of extending the useful lives of rental equipment acquired in major acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment. (3) Reflects additional costs recorded in cost of sales of rental equipment associated with the fair value mark-up of rental equipment acquired in major acquisitions and subsequently sold. (4) Other consists of restructuring and restructuring related charges. (5) The tax rate applied for all adjustments is 24.8% in the three months ended March 31, 2026, and 25.0% in the three months ended March 31, 2025 (excluding studio entertainment impact), and reflects the statutory rates in the applicable entities. The tax rate applied for the studio entertainment adjustment was 24.2% in the three months ended March 31, 2025, and reflects the stand-alone annual effective tax rate.
Q1 2026Herc Holdings Inc. NYSE: HRI 25 Calculation of Net Leverage Ratio $ in millions Q1 2025 Q2 2025(1) Q3 2025(1) Q4 2025(1) Q1 2026(1) Long-term debt, net $ 4,026 $ 8,251 $ 8,164 $ 8,021 $ 7,958 (Plus) Current maturities of long-term debt 17 23 26 26 27 (Plus) Unamortized debt issuance costs and debt discount 11 50 49 56 53 (Less) Cash and cash equivalents (48) (53) (61) (52) (43) Net debt $ 4,006 $ 8,271 $ 8,178 $ 8,051 $ 7,995 Trailing twelve-month adjusted EBITDA 1,583 2,200 2,132 2,038 2,017 Net leverage 2.53 x 3.76 x 3.84 x 3.95 x 3.96 x Net Leverage Ratio –The Company has defined its net leverage ratio as net debt, as calculated below, divided by adjusted EBITDA for the trailing twelve- month period. This measure should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. The Company’s definition of this measure may differ from similarly titled measures used by other companies. (1) Trailing twelve-month adjusted EBITDA includes the historical results of Herc and H&E combined and excluding Cinelease studio entertainment for the period.
Q1 2026Herc Holdings Inc. NYSE: HRI 26 Reconciliation of Free Cash Flow Three Months Ended March 31, Year Ended December 31, $ in millions 2026 2025 2025 2024 2023 Net cash provided by operating activities $ 277 $ 171 $ 1,085 $ 1,225 $ 1,086 Rental equipment expenditures (272) (187) (1,097) (1,048) (1,320) Proceeds from disposal of rental equipment 117 94 448 288 325 Net rental equipment expenditures (155) (93) (649) (760) (995) Non-rental capital expenditures (41) (33) (157) (161) (156) Proceeds from disposal of property and equipment 13 4 20 10 15 Other — — — — (15) Free cash flow 94 49 299 314 (65) Acquisitions, net of cash acquired — (11) (4,257) (600) (430) Proceeds from disposal of business, net — — 99 — — Decrease (increase) in net debt, excluding financing activities $ 94 $ 38 $ (3,859) $ (286) $ (495) Free cash flow is not a recognized term under GAAP and should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP. Further, since all companies do not use identical calculations, our definition and presentation of this measure may not be comparable to similarly titled measures reported by other companies. Free Cash Flow—Free cash flow represents net cash provided by (used in) operating activities less rental equipment expenditures and non-rental capital expenditures, plus proceeds from disposal of rental equipment, proceeds from disposal of property and equipment, and other investing activities. Free cash flow is used by management in analyzing the Company’s ability to service and repay its debt, fund potential acquisitions and to forecast future periods. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service debt or for other non-discretionary expenditures.
Q1 2026Herc Holdings Inc. NYSE: HRI 27 Historical Fleet at OEC1 $ in millions FY 2021 FY 2022 FY 2023 FY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Q1 2026 Beginning Balance $ 3,589 $ 4,381 $ 5,637 $ 6,328 $ 7,044 $ 6,879 $ 9,858 $ 9,600 $ 7,044 $ 9,523 Expenditures 725 1,218 1,218 1,077 74 314 423 266 1,077 183 Disposals (281) (322) (813) (723) (234) (253) (375) (342) (1,204) (281) Acquisitions 346 395 303 395 (1) 2,893 — (3) 2,889 — Divestiture — — — — — — (301) — (301) — Foreign Currency / Other 2 (35) (17) (33) (4) 25 (5) 2 18 16 Ending Balance $ 4,381 $ 5,637 $ 6,328 $ 7,044 $ 6,879 $ 9,858 $ 9,600 $ 9,523 $ 9,523 $ 9,441 Proceeds as a percent of OEC 41.8 % 44.4 % 44.2 % 44.9 % 44.8 % 43.5 % 41.4 % 45.1 % 43.4 % 48.7 % 1. Original equipment cost based on ARA guidelines.
Q1 2026Herc Holdings Inc. NYSE: HRI 28 For additional information, please contact: Leslie Hunziker SVP Investor Relations, Communications & Sustainability leslie.hunziker@hercrentals.com 239-301-1675