In recent years, H&E Equipment Services has undergone a significant shift in its business strategy. The company, based in Baton Rouge, has decided to focus more on its equipment rental business, which has become its fastest-growing segment. To reflect this change, the company will rebrand as H&E Rentals while maintaining its legal name.
Founded in 1961 as a distribution company, H&E has transitioned to a pure play rental business over the years. The majority of the company’s revenues now come from equipment rental, with around 80% of its earnings coming from this segment and the remaining 20% from sales of new and rental equipment. Despite some growth through acquisitions in the equipment rental space, most of H&E’s expansion has been organic, with the company opening about 140 branches in 30 states. Barber anticipates opening 12 to 15 more locations in 2024, emphasizing that the company is still in growth mode.
H&E’s recent efforts have paid off as evidenced by its Q1 earnings report showing a 15.2% increase in revenues from the previous year, totaling $371.4 million. Equipment rental accounted for a significant portion of this revenue at $295.3 million. H&E’s strong Q1 performance builds on its record-setting 2023 results where total revenues approached $1.5 billion, an 18% increase from the previous year.
In conclusion, H&E Equipment Services is shifting its focus towards its equipment rental business and rebranding as H&E Rentals to reflect this change in strategy while maintaining its legal name. With steady growth through organic expansion and acquisitions and strong Q1 performance, it seems that the company is still very much committed to growth mode.
