Capital intensity remains a primary concern, as evidenced by a CapEx/Revenue ratio that peaked at 34.7% in 2025Q4, consistently consuming operating cash flow and contributing to erratic free cash flow generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 1.23B | 1.12B | 1.23B | 1.09B | 917M | 743M | 610.9M | 635.6M | 559.1M | 341.7M | 449.7M | 498.1M | 469.2M | 572.7M | 410.2M | 2.23B | 2.21B | 1.77B | 2.1B | -4.08M | -16.76M |
| Operating CF Margin % | - | 25.57% | 34.33% | 33.09% | 33.47% | 35.84% | 34.3% | 31.8% | 28.28% | 19.48% | 28.92% | 29.68% | 26.5% | 33% | 25.51% | 26.91% | 29.21% | 24.99% | 24.58% | -0.05% | -0.21% |
| Operating CF Growth % | 49.76% | -8.65% | 12.8% | 18.43% | 23.42% | 21.62% | -3.89% | 13.68% | 63.62% | -24.02% | -9.72% | 6.16% | -18.07% | 39.61% | -81.63% | 1.12% | 24.43% | -15.29% | 51460.34% | 75.66% | - |
| Net Income | -5M | 1M | 211M | 347M | 330M | 224M | 73.7M | 47.5M | 69.1M | 160.3M | -19.7M | 111.3M | 89.7M | 98.1M | 61.4M | 195.73M | -30.66M | -111.34M | -1.21B | 264.56M | 131.41M |
| Depreciation & Amortization | 1.19B | 1.08B | 806M | 755M | 631M | 488M | 466.4M | 470.1M | 444.8M | 430.4M | 395.3M | 420.9M | 415.1M | 394.2M | 361.3M | 1.88B | 1.85B | 2B | 2.26B | 0 | 505K |
| Stock-Based Compensation | 34M | 34M | 17M | 18M | 27M | 23M | 16.4M | 19.5M | 13.4M | 10.1M | 5.5M | 2.7M | 1.4M | 5.3M | 4.8M | 31.09B | 36.56B | 35.46B | 28.02B | 0 | 0 |
| Deferred Taxes | 1M | -9M | 59M | 89M | 83M | 53M | 11.9M | 10.7M | -10.5M | -228.4M | 12.3M | 22.3M | 33.4M | 33.5M | 9.5M | 68.14M | -26.12M | 111.23M | -234.81M | -40M | -15.73M |
| Other Non-Cash Items | 126M | 110M | 194M | -24M | 25M | 18M | 60M | 116.2M | 54.5M | 93.6M | 94.1M | -29.8M | 42.4M | 32.7M | 18.9M | 139.72M | 263.74M | -68.93M | 1.54B | -267.6M | -132.95M |
| Working Capital Changes | -121M | -97M | -62M | -99M | -179M | -63M | -17.5M | -28.4M | -12.2M | -124.3M | -37.8M | -29.3M | -112.8M | 8.9M | -45.7M | -80.99M | 110.55M | -188.84M | -293.09M | -1M | 1.04M |
| Change in Receivables | -77M | -46M | -62M | -98M | -172M | -92M | -24.6M | -38.3M | -29.9M | -131.6M | -59.2M | -102.1M | -70.8M | 158.4M | 13.22M | -79.85M | -7.46M | 38.63M | -329.71M | 26M | -31K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.8M | -2.1M | -20.3M | -11M | -8.2M | -7.9M | -13.5M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 10M | 36M | 2M | 7M | -23M | 23M | -6.4M | -12.9M | -1.7M | -10M | 9.2M | -5.2M | -28.8M | 42.9M | -2.1M | -1.14M | 118.01M | -227.48M | 36.62M | -1.03M | 1.08M |
| Cash from Investing | -4.88B | -4.83B | -1.51B | -1.58B | -1.68B | -960M | -207.5M | -463.6M | -567M | -403M | -398.4M | -389.8M | -429.3M | -589.5M | -769.4M | -2.19B | -943.57M | -1.29B | -1.46B | 0 | -1M |
| Capital Expenditures | -1.11B | -1.25B | -1.05B | -1.32B | -1.17B | -594M | -344.1M | -638.4M | -849M | -576M | -516.1M | -676.9M | -658.2M | -734.8M | -816.9M | 53.26M | 37.38M | 38.21M | 0 | 0 | 0 |
| CapEx % of Revenue | 23.81% | 28.66% | 29.37% | 40.22% | 42.63% | 28.65% | 19.32% | 31.94% | 42.95% | 32.83% | 33.19% | 40.33% | 37.18% | 42.34% | 50.79% | 0.64% | 0.49% | 0.54% | - | - | - |
| Acquisitions | -3.68B | -3.69B | -600M | -430M | -515M | -431M | -21.1M | -4.2M | 282M | 166M | 121.1M | 126.4M | 0 | 0 | -196.6K | -227.08M | -47.57M | -76.42M | -70.92M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 54M | 119M | 137M | 169M | 1M | 65M | 157.7M | 179M | 282M | 173M | 117.7M | 160.7M | 228.9M | 145.3M | 244.1M | -1.99B | -936.87M | -1.25B | -1.39B | 0 | -1M |
| Cash from Financing | 3.78B | 3.81B | 299M | 512M | 785M | 220M | -406M | -167.1M | -4.2M | 77.5M | -55M | -107.2M | -34M | 10.3M | 337.6M | -1.49B | 133.75M | -129.07M | -695.32M | 1.87M | 19.48M |
| Debt Issued (Net) | 3.89B | 3.92B | 390M | 724M | 987M | 239M | -410.6M | -125.1M | -1.9M | 75.8M | 2.09B | -353.6M | 45.1M | 102.1M | 195M | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -8M | -2M | 7M | -113M | -111M | 5M | 0 | 0 | 2M | 1.1M | 0 | -604.5M | 0 | -554.7M | 4.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -90M | -87M | -77M | -73M | -68M | -15M | 0 | 0 | 0 | 0 | -2.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15.47B |
| Share Repurchases | -15M | -8M | 0 | -120M | -115M | 0 | 0 | 0 | 0 | 0 | 0 | -604.5M | 0 | -554.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -11M | -18M | -21M | -26M | -23M | -9M | 4.6M | -42M | -4.3M | -6.8M | -2.13B | 852.7M | -79.1M | 462.9M | 138.3M | -1.49B | 133.75M | -129.07M | -695.32M | 1.87B | 15.49B |
| Net Change in Cash | 130M | 104M | 12M | 17M | 19M | 2M | 0 | 5.2M | -13.7M | 17.5M | -4.1M | -3.2M | 3.5M | -7.8M | -21.9M | -1.44B | 1.39B | 391.38M | -135.94M | -2.21M | 1.72M |
| Free Cash Flow | 150M | -135M | 16M | -390M | -355M | 102M | 225.4M | -59.7M | -289.9M | -234.3M | -66.4M | -178.8M | -189M | -162.1M | -406.7M | 2.29B | 2.25B | 1.81B | 2.1B | -4.08M | -16.76M |
| FCF Margin % | 3.22% | -3.08% | 0.45% | -11.88% | -12.96% | 4.92% | 12.65% | -2.99% | -14.67% | -13.35% | -4.27% | -10.65% | -10.68% | -9.34% | -25.29% | 27.55% | 29.7% | 25.53% | 24.58% | -0.05% | -0.21% |
| FCF Growth % | 341.94% | -943.75% | 104.1% | -9.86% | -448.04% | -54.75% | 477.55% | 79.41% | -23.73% | -252.86% | 62.86% | 5.4% | -16.59% | 60.14% | -117.79% | 1.81% | 23.87% | -13.47% | 51460.34% | 75.66% | - |
| FCF per Share | 4.50 | -4.30 | 0.56 | -13.59 | -11.75 | 3.36 | 7.67 | -2.05 | -10.03 | -8.19 | -2.35 | -6.32 | -6.68 | -5.73 | -14.37 | 102.82 | 109.05 | 97.63 | 129.87 | -0.25 | -1.38 |
| FCF Conversion (FCF/Net Income) | -30.00x | 1119.00x | 5.81x | 3.13x | 2.78x | 3.32x | 8.29x | 13.38x | 8.09x | 2.13x | -22.83x | 4.48x | 5.23x | 5.84x | 6.68x | 4.93x | -45.97x | -14.08x | -1.74x | -0.02x | -0.14x |
| Interest Paid | 416M | 419M | 258M | 221M | 114M | 83M | 92.4M | 130.6M | 129.3M | 131.7M | 70.7M | 27.7M | 46.9M | 35.2M | 33.8M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -2M | 0 | 12M | 30M | 22M | 23M | 5M | 7.9M | 13.4M | 5.5M | 2.9M | 10.1M | 23.6M | 17.6M | 14.4M | 0 | 0 | 0 | 0 | 0 | 0 |
Capital intensity and leverage
As evidenced by the provided financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently turning negative, such as the -11.54 figure in 2026Q1, indicating that reported earnings are currently failing to capture the underlying cash reality.
The persistent disconnect between net income and operating cash flow suggests that non-cash charges and accounting adjustments are significantly distorting the company's true economic performance. Investors should monitor whether this divergence is a temporary byproduct of aggressive fleet expansion or a structural issue regarding the quality of earnings.
Based on reported quarterly figures, free cash flow margins have exhibited extreme instability, swinging from a positive 20.7% in 2026Q1 to a negative 7.6% in 2025Q3, which highlights the company's difficulty in maintaining consistent cash generation amidst heavy capital expenditure requirements.
The inability to sustain positive free cash flow suggests that the business model is highly sensitive to the timing of fleet investments and cyclical demand shifts. This volatility warrants further investigation into whether the company can achieve self-funding status without relying on external financing to support its operational scale.
According to recent financial statements, the company maintains a high capital intensity, with CapEx/Revenue ratios peaking at 34.7% in 2025Q4, reflecting a massive ongoing commitment to fleet renewal that consistently consumes the majority of generated operating cash flow.
The high level of capital expenditure relative to revenue suggests that the company is in a perpetual cycle of reinvestment to maintain its competitive position in the rental market. This heavy reliance on capital spending may limit the company's ability to deleverage or return capital to shareholders during periods of economic contraction.
As reported in the cash flow statements, working capital changes have been consistently negative over several periods, including an $82 million outflow in 2025Q3, which indicates that the company is struggling to optimize its cash conversion cycle while scaling its operations.
The recurring cash outflows from working capital suggest that the company is likely facing pressure from either inventory build-ups or delayed collections from its industrial customer base. This trend may indicate that the company's growth is being achieved at the expense of liquidity, which could become a liability if market conditions deteriorate.
Quick answers to the most common questions about buying HRI stock.
Herc Holdings Inc. (HRI) generated $1.12B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Herc Holdings Inc. (HRI) reported negative free cash flow of $135.0M in 2025, indicating capital requirements exceeded cash from operations.
Herc Holdings Inc. (HRI) spent $1.25B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Herc Holdings Inc. (HRI) returned $87.0M to shareholders via cash dividends and spent $8.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.