After opening six new branches in the spring, H&E Equipment Services ended the second quarter with 149 locations across 31 states.
The company’s branch footprint has expanded by 45% over the last 36 months, with 23 new branches either being opened or acquired in the past year, according to its Q2 earnings report.
Founded in 1961 as a distribution company, H&E in recent years has repositioned itself as a pure play rental business. Despite challenging market conditions, the repositioning has seemingly paid off for the company.
Last quarter, H&E Equipment’s revenues increased 4.5% to $376.3 million. Total equipment rental revenues increased 7.2%, while rental revenues increased 6.5%. Sales of rental equipment decreased 11.9% from last year.
“We reiterate our view of a more moderate level of spending and project starts as the construction industry continues to transition to a lower level of activity compared to levels in 2022 and 2023,” says CEO Brad Barber. “Higher project financing costs and more stringent lending standards have led to curtailed spending, especially among smaller contractors. Conversely, we are encouraged by the continued growth in mega projects and increased infrastructure project funding.”
