H&E Equipment Services Reports Record Financial Performance

H&E Equipment Services, Inc. (NASDAQ: HEES) has reported its fourth-quarter and full-year 2023 results, revealing record strategic expansion, impressive revenue growth, and steady margin appreciation contributing to another year of record financial performance. The company's total revenues for the fourth quarter increased by 9.3% to $385.8 million compared to $353.1 million in the same period the previous year. Net income totaled $53.5 million compared to $51.2 million, and adjusted EBITDA increased by 6.5% to $185.2 million from $173.9 million in the fourth quarter of 2022.

Brad Barber, Chief Executive Officer of H&E, highlighted the company's accomplishments, stating, "Strong execution of strategic initiatives and resilient non-residential activity resulted in healthy financial metrics throughout the year. Total revenues in the fourth quarter improved 9.3% compared to the year-ago quarter, while rental revenues grew 14.5% over the same period, resulting in a rental margin of approximately 54.2%. For the full year, total revenues set a company record of just under $1.5 billion, representing an 18.1% increase compared to total revenues in the previous year."

Barber also detailed the company's strategic growth initiatives for 2024, including plans to slow gross fleet expenditures to a range of $450 million to $500 million and the addition of 12 to 15 new locations in its branch expansion program. He also mentioned that the outlook for the equipment rental industry remains encouraging, with optimistic commentary from customers regarding pending construction opportunities in 2024.

In terms of financial performance, the company reported that total equipment rental revenues increased by 14.9% to $316.9 million in the fourth quarter of 2023 compared to $275.7 million in the year-ago quarter. Gross profit increased by 16.9% to $186.3 million, with a gross margin of 48.3% compared to 45.1% over the same period of comparison. The original equipment cost of the company’s rental fleet at the end of the fourth quarter of 2023 was approximately $2.8 billion, representing an 18.3% increase from the end of the fourth quarter of 2022.

The company's shares have moved 0.6% today, and are now trading at a price of $54.86.

The full 8-K submission is available here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.