Who Owns Herc Rentals Company?

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Who Owns Herc Rentals?

Understanding Herc Rentals' ownership is key to grasping its strategy and operations. A major shift occurred when it spun off from The Hertz Corporation, becoming an independent entity on July 1, 2016.

This separation allowed Herc Rentals to concentrate solely on its equipment rental business, moving away from its former parent's car rental focus.

Herc Rentals, established in 1965 as Hertz Equipment Rental Corporation, is now a leading North American equipment rental provider. As of June 30, 2025, the company operates around 622 branches across the U.S. and Canada, employing approximately 10,200 individuals. For the full year 2024, Herc Holdings Inc., the parent company, reported revenues of about $3.6 billion. Investors interested in analyzing its market position might find a Herc Rentals BCG Matrix useful.

Herc Rentals' journey began in 1965 as Hertz Equipment Rental Corporation (HERC), a fully owned segment of The Hertz Corporation. This structure meant that HERC was not founded by individuals with direct equity but was an integral part of its parent company's operations.

Origins as a Subsidiary

HERC was established as a wholly-owned subsidiary of The Hertz Corporation. This initial setup meant its ownership was entirely tied to its parent company.

No Individual Founders

There were no individual founders with personal equity stakes at HERC's inception. Its operations and assets were part of the larger Hertz corporate framework.

Parent Company's Strategic Vision

The early growth and strategic direction of HERC were determined by Hertz Global Holdings. The aim was to broaden Hertz's rental services beyond vehicles.

Integrated Financial Performance

As a subsidiary, HERC's financial performance contributed directly to Hertz's overall revenue. In 2013, HERC generated over $1.5 billion in revenue, making up 14% of Hertz's total earnings.

No External Early Investors

During this initial phase, there were no angel investors, early backers, or friends and family who acquired stakes in HERC. It was not an independently financed entity.

Consolidated Ownership

Discussions of vesting schedules, buy-sell agreements, or initial ownership disputes are not applicable to this period. Ownership was fully consolidated under The Hertz Corporation.

The early days of Herc Rentals saw its operations fully integrated within The Hertz Corporation, meaning its ownership structure was straightforwardly that of a subsidiary. This arrangement meant that Hertz Global Holdings dictated the strategic direction and capital allocation for HERC, which contributed significantly to the parent company's financial performance. For instance, in 2013, HERC's revenue reached over $1.5 billion, representing a substantial 14% of Hertz's total revenue. This period did not involve external investors or complex ownership arrangements, as HERC was not an independent entity seeking outside capital. Understanding this foundational period is key to grasping the subsequent evolution of Herc Rentals' ownership, as detailed in its Brief History of Herc Rentals.

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The ownership journey of Herc Rentals saw a significant transformation with its spin-off from Hertz Global Holdings. This strategic move, finalized on July 1, 2016, established Herc Rentals Inc. as an independent entity, trading on the New York Stock Exchange under the ticker symbol 'HRI'. This separation was instrumental in providing Hertz with approximately $2 billion and reducing its overall debt burden.

Following its independence, Herc Rentals has been able to focus on strategies tailored to the equipment rental sector. This includes substantial investments in its fleet, with over $1 billion allocated in 2023 and a projected $700 million to $900 million for gross fleet expenditures in 2025. The company has also pursued an active acquisition strategy, integrating nine new companies in 2024, which expanded its operational footprint by 28 locations. A key development was the acquisition of H&E Equipment Services on June 2, 2025, which broadened Herc's North American presence to 613 locations and boosted pro forma 2024 total revenues to $5.1 billion, showcasing a clear path in its Growth Strategy of Herc Rentals.

Key Investors in Herc Rentals

Institutional investors are the dominant holders of Herc Rentals stock, reflecting broad market confidence in the company's standalone strategy.

• Vanguard Group Inc. holds 3,066,892 shares.
• Capital World Investors increased its stake by 435.8%.
• FMR LLC expanded its holdings by 69.0%.
• Norges Bank established a new position valued at approximately $183,786,000.

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The Board of Directors for Herc Holdings Inc. guides the company's strategic path and corporate governance. For the annual meeting on May 16, 2024, the Board put forward 8 director nominees. Patrick D. Campbell holds the position of Non-executive Chairman of the Board, while Lawrence H. Silber serves as President, Chief Executive Officer, and a Director, having led the company since its spin-off in 2016.

Herc Holdings Inc. employs a one-share-one-vote system for its common stock, ensuring equal rights for all common stockholders regarding dividends and liquidation assets, barring any preferred stock stipulations. There are no indications of differentiated voting structures like dual-class shares or special voting rights that would concentrate control. The company's financial strategy for 2024 prioritizes reinvestment through organic expansion and acquisitions, alongside returning value to shareholders via quarterly dividends and share repurchases. A quarterly dividend of $0.70, representing a 5% increase, was declared, payable to shareholders of record as of February 18, 2025. The Board's proposals, including director nominations, are subject to a non-binding advisory vote. As of October 18, 2024, there were 28,404,593 shares of common stock outstanding.

Understanding Herc Rentals' Ownership and Governance

The ownership structure of Herc Rentals is tied to its publicly traded status, with voting power distributed among common stockholders. The Board of Directors plays a crucial role in shaping the company's direction and ensuring shareholder interests are represented.

• Herc Holdings Inc. is a publicly traded entity.
• Voting power is based on a one-share-one-vote principle.
• The Board of Directors oversees strategic decisions.
• Shareholders receive returns through dividends and buybacks.
• Understanding the Revenue Streams & Business Model of Herc Rentals provides context for ownership value.

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Over the past few years, Herc Rentals has been actively expanding its operations and fleet, significantly altering its market presence. This strategic growth, fueled by acquisitions and substantial fleet investments, indicates a dynamic period for the company's ownership and operational structure.

The acquisition of H&E Equipment Services in June 2025 marked a significant expansion, increasing Herc Rentals' North American footprint to 613 locations. This move is projected to contribute to pro forma 2024 total revenues of $5.1 billion. The company's financial performance in 2024 showed robust growth, with total revenues reaching approximately $3.6 billion, a 9% increase year-over-year, and equipment rental revenue up 11% to $3.189 billion. The first quarter of 2025 saw total revenues rise by 7% to $861 million, with a notable 18% increase in total revenues to $1,002 million in the second quarter of 2025 compared to the prior year.

Institutional Investor Confidence

Institutional ownership in Herc Rentals stands at a substantial 98.8% as of August 12, 2024. Major investors like Vanguard Group Inc. and Capital World Investors have increased their stakes, reflecting strong confidence in the company's trajectory.

Fleet Modernization and Specialization

Herc Rentals is prioritizing investment in its rental fleet, with plans for $700 million to $900 million in gross expenditures for 2025. The focus is on expanding its specialty equipment offerings, which constituted 23% of the fleet by late 2024.

Financial Performance and Outlook

The company reported strong financial results for 2024 and the first half of 2025. Herc Rentals anticipates moderate rental revenue growth of 4% to 6% for 2025, supported by its diversified business model and focus on large-scale projects.

Shareholder Value and Strategy

Herc Rentals continues to return value to its shareholders through dividends, declaring a quarterly dividend of $0.70 for Q1 2025. The company's strategic focus on mega projects and specialty equipment positions it well for continued growth, as detailed in discussions on the Marketing Strategy of Herc Rentals.

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