Herc Holdings Inc (HRI) 2025 Q1 法說會逐字稿

Hello, and welcome to the Herc Holdings Q1 earnings call and webcast. (Operator Instructions) I would like to turn the call over to Leslie Hunziker, Head of Investor Relations. Leslie, please go ahead.

您好，歡迎參加 Herc Holdings 第一季財報電話會議和網路廣播。（操作員指示）我想將電話轉給投資者關係主管 Leslie Hunziker。萊斯利，請繼續。

Thank you, operator, and good morning, everyone. Today, we're reviewing our first quarter 2025 results with comments on operations and our financials including our VB industry and our strategic outlook. The prepared remarks will be followed by an open Q&A.

謝謝接線員，大家早安。今天，我們將回顧 2025 年第一季的業績，並對我們的營運和財務狀況（包括我們的 VB 產業和策略展望）發表評論。準備好的發言之後將進行公開問答。

Earlier today, our press release and presentation slides were furnished and our 10-Q is filed with the SEC. All are posted on the Events page of our IR website. Now let's move on to our Safe Harbor and GAAP reconciliation on slide 3. This call will include forward-looking statements. These statements are based as we see it today and therefore, involve risks and uncertainties.

今天早些時候，我們的新聞稿和簡報幻燈片已經準備好，我們的 10-Q 已提交給美國證券交易委員會 (SEC)。所有內容均發佈在我們 IR 網站的「活動」頁面上。現在讓我們繼續討論幻燈片 3 上的安全港和 GAAP 對帳。本次電話會議將包括前瞻性陳述。這些聲明是基於我們今天所看到的情況，因此涉及風險和不確定性。

I would caution you that our actual results could differ materially from forward-looking statements made on this call. You should also refer to the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2024.

我要提醒您，我們的實際結果可能與本次電話會議中所做的前瞻性陳述有重大差異。您還應參閱我們截至 2024 年 12 月 31 日的 10-K 表年度報告中的「風險因素」部分。

In addition to the financial results presented on a GAAP basis, we'll be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations to these non-GAAP measures to the closest GAAP equivalent can be found in the conference call materials.

除了按照 GAAP 呈現的財務結果外，我們還將討論我們認為有助於評估公司經營業績的非 GAAP 資訊。這些非 GAAP 指標與最接近的 GAAP 指標的對帳可以在電話會議資料中找到。

A replay of this call can be accessed via dial-in or through the webcast on our website. Replay instructions were included in our earnings release this morning. We have not given permission for any other recording of this call and do not approve or sanction any transcribing of the call.

您可以透過撥入或透過我們網站上的網路廣播收聽本次通話的重播。我們今天早上發布的收益報告中包含了重播說明。我們未授權對本次通話進行任何其他錄音，也不批准或認可對本次通話進行任何轉錄。

Finally, please mark your calendars to join our management meetings at the Bank of America Industrials Conference in New York on May 13, and the KeyBanc Industrial Conference in Boston on May 29. We hope to see you at one of these events.

最後，請在日曆上標記好參加我們 5 月 13 日在紐約舉行的美國銀行工業會議和 5 月 29 日在波士頓舉行的 KeyBanc 工業會議的管理會議。我們希望在這些活動中見到您。

This morning, I'm joined by Larry Silber, President and Chief Executive Officer; Aaron Birnbaum, Senior Vice President and Chief Operating Officer; and Mark Humphrey, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Larry.

今天上午，與我一起參加會議的還有總裁兼首席執行官拉里·西爾伯 (Larry Silber)、高級副總裁兼首席營運官亞倫·伯恩鮑姆 (Aaron Birnbaum) 和高級副總裁兼首席財務官馬克·漢弗萊 (Mark Humphrey)。我現在將電話轉給拉里。

Thank you, Leslie, and good morning, everyone. Our first quarter results reflect the strength and resiliency of our diversified business model and best-in-class talent. Team Herc have demonstrated remarkable flexibility and disciplined leadership in a macro environment characterized by divergent trends between strength in national accounts from new large project development and challenges in the local market related to prolonged elevated interest rates.

謝謝你，萊斯利，大家早安。我們第一季的業績反映了我們多元化業務模式和一流人才的實力和彈性。在宏觀環境下，Herc 團隊展現了卓越的靈活性和嚴謹的領導力，這種環境的特點是，新的大型專案開發為國家帶來了強勁的業績，而長期高利率給當地市場帶來了挑戰。

The team also executed very well navigating demand volatility in the recent quarter resulting from unusually cold weather in late January and mid-February in the southern states, which caused us to temporarily close some of our branches and further impacted daily and weekly local rentals during that period.

該團隊還出色地應對了最近一個季度的需求波動，這是由於南部各州 1 月底和 2 月中旬的異常寒冷天氣造成的，這導致我們暫時關閉了部分分支機構，並進一步影響了該期間的每日和每周本地租金。

Despite the headwinds, we continue to leverage our broad capabilities, capture new opportunities and focus on what we control, while maintaining a strong commitment to safety and serving our customers. With utilization snapping back in March and incremental upside from 2024 acquisitions and strong mega project activity, we delivered equipment rental revenue growth of approximately 5% in the quarter, excluding the Cinelease business, which is currently held for sale.

儘管面臨阻力，我們仍將繼續利用我們廣泛的能力，抓住新的機遇，專注於我們所控制的領域，同時堅定地致力於安全和服務客戶。隨著 3 月份利用率的回升以及 2024 年收購和強勁的大型專案活動帶來的增量上升，我們在本季度實現了設備租賃收入增長約 5%，不包括目前正在出售的 Cinelease 業務。

We continue to follow our playbook, leveraging branch network scale, our broad fleet mix, technology leadership, and capital and operating discipline to position us to manage across the cycle and generate sustainable growth over the long term.

我們將繼續遵循我們的策略，利用分支網路規模、廣泛的機隊組合、技術領導地位以及資本和營運紀律，使我們能夠管理整個週期並實現長期可持續成長。

Now let's turn to slide number 4 for a rundown on these growth strategies. As you know, in the first quarter, we executed a merger agreement to acquire H&E Equipment Services and its 160 US branch locations to expand our scale, geographic coverage and long-term opportunities.

現在讓我們翻到第 4 張投影片來了解這些成長策略。如您所知，在第一季度，我們簽署了一項合併協議，收購了 H&E Equipment Services 及其在美國的 160 家分支機構，以擴大我們的規模、地理覆蓋範圍和長期機會。

Integrating this acquisition will be our primary focus over the next several years. And therefore, as stated, we are pausing other M&A initiatives for the time being and completing the remaining in-flight greenfields. Of those, we opened three new facilities in the quarter.

整合此次收購將是我們未來幾年的主要工作重點。因此，如前文所述，我們暫時暫停其他併購計劃，並完成剩餘的在建綠地專案。其中，我們在本季開設了三家新工廠。

The H&E acquisition like others before helped to drive revenue and fleet efficiencies in key metropolitan areas in line with our urban market growth strategy. In addition to its desirable locations, H&E brings complementary fleet categories, valuable new team members with a strong cultural fit and greater local account presidents while improving our national account capabilities.

與先前的其他收購一樣，H&E 的收購有助於推動主要大都市地區的收入和車隊效率，符合我們的城市市場成長策略。除了理想的地理位置外，H&E 還帶來了互補的車隊類別、具有強大文化契合度的寶貴新團隊成員以及更優秀的本地客戶總裁，同時提升了我們的全國客戶能力。

At its core, the acquisition strategy for H&E is no different than the strategy used for the other 50-plus acquisitions we've completed. And while it's our largest, we view this as quite manageable. Moving on to our fleet mix strategy.

從本質上講，H&E 的收購策略與我們完成的其他 50 多項收購所採用的策略沒有什麼不同。儘管這是我們最大的項目，但我們認為這是可以管理的。繼續討論我們的車隊組合策略。

We're continuing to increase specialty fleet CapEx to be able to cross-sell our expert solutions to acquire GenRent customers to capture share of wallet opportunities and to support the incremental demand from mega projects. Specialty Solutions are a resilient product addressing urgent supplemental and critical demand situations.

我們將繼續增加專業車隊的資本支出，以便能夠交叉銷售我們的專家解決方案來獲得 GenRent 客戶，從而抓住錢包份額機會並支持大型項目的增量需求。專業解決方案是一種能夠解決緊急補充和關鍵需求狀況的彈性產品。

Technology is another important value driver for HERC. We continue to advance our proprietary an internal applications for pricing, fleet management logistics and transportation, while delivering more value to our customers through our industry-leading pro-control accountant platform.

技術是 HERC 的另一個重要價值驅動因素。我們繼續推進我們專有的定價、車隊管理物流和運輸內部應用程序，同時透過我們行業領先的專業控制會計平台為我們的客戶提供更多價值。

Finally, we are disciplined stewards of capital by strategically managing fleet investments to drive at and taking a targeted agile approach to addressing demand trends we are focused on efficiency and driving higher returns on our investments.

最後，我們是嚴謹的資本管理者，透過策略性地管理車隊投資來推動並採取有針對性的敏捷方法來應對需求趨勢，我們專注於效率並提高投資回報。

Now on slide number 5, I want to take just a minute to preempt some of your questions about the current demand environment and the potential impact of tariffs on our business. Also, I'll provide a quick update on progress towards the closing of the acquisition.

現在在第 5 張投影片上，我想花一點時間來回答你們關於當前需求環境以及關稅對我們業務的潛在影響的一些問題。此外，我將簡要介紹收購完成的進度。

First, as we've stated, the operating landscape continues to be a tale of two contrasting trends. Our national account business is growing, fueled by federal and private funding for large construction projects like data centers, manufacturer insuring and LNG facilities. We are not seeing any emerging cancellation trends or changes in the level of activity or scope of projects for 2025.

首先，正如我們所說，經營狀況仍呈現兩種截然不同的趨勢。我們的國家帳戶業務正在成長，這得益於聯邦政府和私人對資料中心、製造商保險和液化天然氣設施等大型建設項目的資助。我們沒有看到任何新的取消趨勢或 2025 年活動水準或專案範圍的變化。

And we are not seeing any unusual level of delays outside the normal course for modifying designs, juggling permit or securing labor. It's too early to tell how that unfolds as developers get clarity around the administration's policy outcomes.

我們並沒有看到任何因修改設計、處理許可證或確保勞動力而導致的超出正常程序的異常延誤。由於開發商對政府的政策結果還不太清楚，因此現在判斷事情將如何發展還為時過早。

We've already seen some incremental insuring announcements from chips and pharmaceutical manufacturers. But we'll have to wait and see how all of that plays out. Today, it seems it's business as usual for the large national accounts. On the local landscape, there continues to be challenges and we'll start anniversarying those here in the second quarter.

我們已經看到一些晶片和製藥製造商發布了增量保險公告。但我們還得拭目以待，看看這一切將如何發展。如今，大型國家帳戶的業務似乎一切如常。從當地情況來看，挑戰仍然存在，我們將在第二季開始紀念這些挑戰。

While there are ongoing opportunities in facility maintenance, municipal and infrastructure projects and the stalwart education and health care end markets, other more interest rate-sensitive jobs continue to be on hold, restricting overall local account growth.

雖然設施維護、市政和基礎設施項目以及穩固的教育和醫療保健終端市場仍存在持續的機遇，但其他對利率更敏感的工作仍然處於擱置狀態，從而限制了整體本地帳戶的增長。

With interest rates remaining high, it's not getting any better, but it continues to be manageable for those of us with diverse end markets, customers, product offerings and geographic coverage. If you don't have other opportunities to pivot to, it's definitely a challenging local operating environment.

由於利率仍然很高，情況並沒有好轉，但對於我們這些擁有多樣化終端市場、客戶、產品供應和地理覆蓋範圍的人來說，情況仍然是可控的。如果你沒有其他機會，那麼這絕對是一個充滿挑戰的在地營運環境。

Having said that, there's no real significant change for us in the local marketplace. When it comes to tariffs, we don't expect any direct impact to our procurement costs in 2025. When we source the vast majority of our fleet domestically and orders of pricing for this year have already been secured.

話雖如此，但對我們來說，當地市場並沒有真正的重大變化。就關稅而言，我們預計 2025 年的採購成本不會受到任何直接影響。當我們在國內採購絕大多數船隊時，今年的定價訂單已經得到保證。

Regarding any indirect impact that might stem from our customers tariff exposure, again, it's too early to tell but for the national account projects already underway and those that are scheduled to launch this year, as far as we know now, there have been no changes to existing plans.

至於可能因我們的客戶關稅風險而產生的任何間接影響，現在下結論還為時過早，但對於已經在進行的國家帳戶項目和計劃於今年啟動的項目，據我們目前所知，現有計劃沒有變化。

Strategic investments, process improvements and enterprise-wide cost management are where we're focused as we were to successfully navigate this dynamic operating cycle. Now to quickly update you on the acquisition. There's nothing really new to report if you've been following our filings. Last week, we refiled our HSR application in order to give the FTC more time to complete their review process.

為了成功駕馭這個動態營運週期，我們專注於策略投資、流程改善和企業範圍的成本管理。現在向大家快速通報收購情況。如果您一直關注我們的文件，那麼就沒有什麼新消息需要報告。上週，我們重新提交了 HSR 申請，以便讓 FTC 有更多時間完成審查流程。

We've been working closely with them and answer your questions and supplying requested data in a timely fashion. The bottom line is that we will be supportive of the process and are confident that with a combined 6% share nationally, we won't have any unmanageable areas of concern.

我們一直與他們密切合作，及時回答您的問題並提供所需數據。底線是，我們將支持這一進程，並相信憑藉全國 6% 的綜合份額，我們不會遇到任何難以控制的擔憂領域。

Sometimes these things just take time. As you know, the S-4 has been filed related to the new shares we'll be issuing. We received the first round of comments from the SEC and address those in an amended filing on Friday.

有時這些事情只是需要時間。如您所知，我們已經提交了與我們將要發行的新股相關的 S-4 文件。我們收到了美國證券交易委員會的第一輪評論，並在周五的修改文件中對這些評論進行了處理。

So that process is going smoothly, and we have no concerns here either. The way the tender offering works is that we need to complete the regulatory review and have a majority of the shares tendered before closing.

所以這個過程進展很順利，我們也沒有任何擔憂。要約收購的運作方式是，我們需要完成監管審查，並在交易結束前完成大部分股份的要約收購。

So our focus continues to be getting through the regulatory process as expeditiously as possible. Finally, we started preparing for the integration based on a targeted midyear closing. Our integration management office is led by one of our most senior field executives.

因此，我們的重點仍然是盡快完成監管流程。最後，我們開始根據目標年中收尾準備整合。我們的整合管理辦公室由我們最資深的現場主管之一領導。

Our integration team, which includes leaders, HR, IT and field operations has organized around the drivers of value and the operating model. I'm pleased with the work that's being done. At the same time, we say it a lot, and we say it with emphasis. We cannot take our eyes off running our business. It's my job to make sure we've got the bandwidth to be able to successfully deliver on our commitments.

我們的整合團隊由領導、人力資源、IT 和現場營運人員組成，圍繞著價值驅動因素和營運模式進行組織。我對正在進行的工作感到滿意。同時，我們常常說這句話，並且會強調這句話。我們不能忽視經營我們的業務。我的工作是確保我們有足夠的頻寬來成功地履行我們的承諾。

The integration team has clear roles and responsibilities and we've engaged the Boston Consulting Group to support our cultural integration and change management initiatives. That will allow our operators to focus on our customers and our business communication is going to be a key to a successful outcome.

整合團隊有明確的角色和職責，我們聘請了波士頓顧問集團來支持我們的文化整合和變革管理計畫。這將使我們的營運商能夠專注於我們的客戶，而我們的業務溝通將成為成功的關鍵。

So that will be a priority all along the way. Now I'll turn the call over to Aaron, who will take a little -- talk a little bit more about operating trends, and then Mark will take you through the first quarter business performance drivers. Aaron?

因此這將是我們始終關注的重點。現在我將把電話交給 Aaron，他將會稍微談談營運趨勢，然後 Mark 將向大家介紹第一季的業務績效驅動因素。亞倫？

Thanks, Larry, and good morning, everyone. I first want to thank our team for their continued tremendous efforts, leveraging areas of upside and executing strategically and with agility. Just like in any best-in-class culture, they continue to prioritize customer success and a safety first focus. Safety is at the core of everything we do.

謝謝，拉里，大家早安。首先，我要感謝我們的團隊持續做出的巨大努力，充分利用優勢領域並策略性、敏捷地執行。正如任何一流的文化一樣，他們繼續將客戶成功和安全第一放在首位。安全是我們所做一切的核心。

As you can see on slide 7, our major internal safety program focuses on perfect days, and we strive for 100% perfect days throughout the organization. In the first quarter, on a branch by branch measurement, all of our operations achieved at least 96% of days as perfect. Equally notable, our total reportable incident rate remains better than the industry's benchmark of 1.0, reflecting our high standards and commitment to the safety of our people and our customers.

正如您在第 7 張投影片上看到的，我們的主要內部安全計畫專注於完美的日子，我們力爭在整個組織內實現 100% 的完美日子。在第一季度，以分行衡量，我們所有營運的完美天數都達到至少 96%。同樣值得注意的是，我們的總可報告事故率仍然高於行業基準 1.0，這反映了我們的高標準和對員工和客戶安全的重視。

Turning to slide 8. We are successfully addressing the needs of both local contracts and. Despite the slowdown of local project starts as interest rates remain elevated, we are expanding in select regions where infrastructure, education, local utilities and facility maintenance repair projects are underway.

翻到幻燈片 8。我們成功地滿足了當地合約和的需求。儘管由於利率居高不下導致當地項目開工速度放緩，但我們仍在正在進行基礎設施、教育、當地公用事業和設施維護維修項目的選定地區進行擴張。

On the actual account side, government and private funding for new large mega projects is still quite robust. We're continuing to end our targeted end to 15% share of the project opportunities with several new mega projects on deck this year and the 2024 projects still ramping up.

從實際帳戶來看，政府和私人對新的大型特大專案的資金投入仍然相當強勁。我們將繼續實現 15% 專案機會份額的目標，今年將有數個新的大型專案啟動，2024 年的專案也仍在加緊推進。

Moving to slide 9. As you know, we've laid out a net fleet CapEx plan for 2025 that's roughly 35% lower year-over-year at the midpoint of our guide. Continuing to improve fleet efficiency and address the dynamic market is the intended goal.

移至幻燈片 9。如您所知，我們制定了 2025 年淨機隊資本支出計劃，根據指南中期數據，該計劃同比下降約 35%。預期目標是繼續提高車隊效率並應對動態市場。

And we'll do that by aligning equipment category classes with demand, digesting the 2024 acquired fleet and remaining agile with expenditures given the overall health of the supply chain. In keeping with those priorities, in the first quarter, we spent roughly 55% less on new fleet than in the prior year quarter. 2025 fleet investments are targeted for the typical replacement fleet, certain mega project needs and growth in specialty categories.

我們將透過調整設備類別與需求、消化 2024 年收購的機隊以及在供應鏈整體健康狀況下保持支出彈性來實現這一目標。為了實現這些優先事項，第一季我們在新機隊上的支出比去年同期減少了約 55%。 2025 年機隊投資的目標是典型的替換機隊、某些大型專案需求以及專業類別的成長。

We also disposed of 56% more fleet on an OEC basis last quarter versus a year ago to rotate older equipment and pull the 2024 acquired fleet for optimal equipment quality, mix and utilization. At the same time, we continue to actively shift sales into the higher return retail and wholesale channels, helping to level set values in a stabilizing used equipment market.

與去年同期相比，上個季度我們還以 OEC 方式處置了 56% 以上的機隊，以輪換舊設備並收回 2024 年收購的機隊，從而實現最佳設備質量、組合和利用率。同時，我們繼續積極將銷售轉移到回報率更高的零售和批發管道，幫助穩定的二手設備市場穩定價值。

In the first quarter, we realized proceeds of 45% of OEC on our equipment dispositions. You can see our fleet composition at OEC on the right side of the page. Total fleet was $6.9 billion as of March 31, 2025, with specialty fleet representing about 24% of the total.

第一季度，我們透過設備處置實現了 45% 的 OEC 收益。您可以在頁面右側看到我們在 OEC 的船隊組成。截至 2025 年 3 月 31 日，機隊總價值為 69 億美元，其中特種機隊約佔總價值的 24%。

Excluding the Cinelease assets, our base fleet is about $6.7 billion and our higher-margin specialty fleet would be about 20% of that with plenty of room to continue to grow. Having a diversified offering that includes specialty fleet is an advantage for us in addressing the comprehensive needs of both local and national account customers.

不計入 Cinelease 資產，我們的基礎機隊價值約為 67 億美元，而利潤率較高的特種機隊價值約為其中的 20%，並且還有很大的成長空間。擁有包括專業車隊在內的多樣化服務對於我們滿足本地和全國客戶的綜合需求具有優勢。

and delivering value-added expert solutions to meet these customers' critical or emergency requirements provides another degree of operating resilience for our business. Speaking with the topic of resiliency, let's turn to slide 10, where you can see that despite the uncertain sentiment swirling in the general market, industrial spending and nonresidential construction starts still show plenty of opportunity for growth built on the foundation of mega project development and infrastructure investments.

並提供增值專家解決方案來滿足這些客戶的關鍵或緊急需求，為我們的業務提供了另一個程度的營運彈性。談到彈性這個話題，讓我們翻到第 10 張投影片，您可以看到，儘管整個市場中瀰漫著不確定的情緒，但工業支出和非住宅建築開工仍然顯示出在大型項目開發和基礎設施投資基礎上建立的大量成長機會。

Taking a look at the updated industrial spending forecast at the top left, Industrial Info Resources is projecting 2025 to be another strong year of capital and maintenance spending at $503 billion. Dodge's forecast for nonresidential construction starts in 2025 is estimated to increase 8% to $482 billion. Additionally, there's another $357 billion in infrastructure projects forecasted for 2025.

查看左上角的最新工業支出預測，工業資訊資源公司預計 2025 年將是資本和維護支出又一個強勁的一年，支出將達到 5,030 億美元。道奇預測，2025 年非住宅建築開工額預計將成長 8%，達到 4,820 億美元。此外，預計 2025 年還將有價值 3,570 億美元的基礎設施項目。

That's also an 8% increase over 2024. The dotted line on these charts reflects growth over pre-pandemic peak levels. You can see that this year and the next three years are currently projected to be some of the strongest periods of activity that this industry has seen.

這也比 2024 年成長了 8%。這些圖表上的虛線反映了相對於疫情前高峰水準的成長。您可以看到，今年和未來三年預計將是該行業活動最活躍的時期。

We've also included a trend chart for mega project starts in the upper right quadrant. That gives you a snapshot of the year-to-year growth of the largest construction project starts in North America over the last two years and for 2025.

我們也在右上象限加入了大型專案啟動趨勢圖。這為您提供了過去兩年以及 2025 年北美最大建築項目開工的逐年增長概況。

The chart continues to show a substantial number of mega projects launching this year with a total dollar value exceeding $250 million. We estimate we're only in the early to middle innings of the multiyear opportunity, depending on the project type, whether it's infrastructure, LNG, data centers, et cetera. And as we've stated, our goal is to capture 10% to 15% of these opportunities.

圖表繼續顯示，今年啟動的大型計畫數量眾多，總價值超過 2.5 億美元。我們估計，我們僅處於多年期機會的早期到中期，具體取決於專案類型，無論是基礎設施、液化天然氣、資料中心等等。正如我們所說，我們的目標是抓住其中的 10% 到 15% 的機會。

We don't take the chart out beyond this year because visibility is less clear for actual start dates of those projects still in the planning phases, but there is an additional $2 trillion in the mega project pipeline. Of course, there is some overlap in projects among these four data sets, but no matter how you look at it, for companies with the safety record, product breadth, technologies and capabilities to service customers at the national account level, the opportunities for growth remain significant.

我們不會將圖表延伸到今年以後，因為尚不清楚那些仍處於規劃階段的專案的實際開始日期，但還有另外 2 兆美元的大型專案正在籌備中。當然，這四組數據在專案上存在一些重疊，但無論如何，對於擁有安全記錄、產品廣度、技術和能力在國家帳戶層級服務客戶的公司來說，成長機會仍然很大。

Turning to slide 11. I'll state the obvious. Diversification is an important strategy for fostering sustainable growth and navigating economic cycles. As Herc is diversified into new end markets, geographies and products and services over the last nine years, we have reduced our reliance on a single industry or customer.

翻到第 11 張投影片。我要說的是顯而易見的事。多樣化是促進永續成長和引領經濟週期的重要策略。隨著 Herc 在過去九年中不斷向新的終端市場、地理和產品和服務多元化發展，我們減少了對單一產業或客戶的依賴。

We've become more resilient to downturns and more adaptable to emerging opportunities like the mega project developments, technology advancements that support customer productivity and the secular shift from ownership to rental, especially in the specialty category classes. We believe we're well positioned to manage dynamic markets and the integration of H&E will further bolster our capabilities and therefore, our opportunities.

我們對經濟衰退的抵禦能力更強，對新興機會的適應能力更強，例如大型專案開發、支援客戶生產力的技術進步以及從所有權到租賃的長期轉變，尤其是在專業類別中。我們相信，我們有能力管理動態市場，而 H&E 的整合將進一步增強我們的能力，從而增強我們的機會。

With that, I'll pass the call on to Mark.

說完這些，我就把電話轉給馬克。

Thanks, Aaron, and good morning, everyone. I'm starting on slide 13 with a summary of our key metrics for the first quarter. For clarification, these are our GAAP results that include Cinelease, which, as has been discussed, is classified as assets held for sale. I'll just make a couple of quick points here before turning the focus to the core results. In the first quarter, rental revenue increased 2.8% and adjusted EBITDA was flat at $339 million.

謝謝，Aaron，大家早安。我從第 13 張投影片開始總結我們第一季的關鍵指標。為了澄清起見，這些是我們的 GAAP 結果，其中包括 Cinelease，正如已經討論過的，它被歸類為持有待售資產。在將焦點轉向核心結果之前，我只想在這裡簡單談幾點。第一季度，租金收入成長 2.8%，調整後 EBITDA 持平於 3.39 億美元。

We recorded a net loss in the first quarter related to $74 million of H&E transaction costs. However, on an adjusted basis, net income was $37 million. We have nothing new to report on the sale of Cinelease as we continue our negotiations toward a deal.

我們在第一季錄得與 7,400 萬美元 H&E 交易成本相關的淨虧損。然而，經調整後，淨收入為 3,700 萬美元。由於我們正在繼續就交易進行談判，因此關於 Cinelease 的出售我們沒有什麼新消息可以報導。

Let's move to slide 14. Here, we outline our core financial results, which exclude Cinelease from both periods in order to give you a better sense of how the base business performed in the quarter. A full reconciliation of quarterly performance metrics can be found on slide 24 in the appendix of our presentation.

讓我們翻到第 14 張投影片。在這裡，我們概述了我們的核心財務結果，將 Cinelease 排除在兩個時期之外，以便讓您更好地了解本季度基礎業務的表現。在我們簡報附錄的第 24 張投影片中可以找到季度績效指標的完整對帳。

For the first quarter, equipment rental revenue was up 4.9% year-over-year, in line with our internal expectations, made up of increases in both rate and OEC fleet on rent, partially offset by an unfavorable mix primarily resulting from equipment inflation year-over-year. For clarification, when it comes to revenue, fleet inflation is in the mix to adjust the volume measured at OEC dollars to a unit metric.

第一季度，設備租賃收入年增 4.9%，符合我們的內部預期，由租金和 OEC 租賃船隊數量的增長組成，但主要由於設備同比通膨導致的不利組合部分抵消了這一增長。需要澄清的是，當談到收入時，船隊通貨膨脹會以 OEC 美元衡量的數量調整為單位指標。

[REBITDA] during the first quarter was up slightly, but REBITDA margin and flow-through were under pressure from one less calendar day in February compared with 2024 and a greater contribution this year from less efficient acquisitions in greenfields versus last year.

第一季度的 [REBITDA] 略有上升，但由於 2 月份日曆天數與 2024 年相比少了一個，而且今年綠地收購效率較低，對 REBITDA 利潤率和流通量造成壓力，與去年相比，今年的貢獻更大。

Also, the local market weakness hadn't started until the second quarter last year, so we had a tougher comp this first quarter managing the fixed cost absorption, including the increased insurance expense year-over-year.

此外，當地市場疲軟直到去年第二季才開始，因此我們在第一季面臨更嚴峻的管理固定成本吸收的挑戰，包括同比增長的保險費用。

We'll anniversary that in the second quarter. Adjusted EBITDA increased by higher revenue from sales of used equipment, which generate a lower margin and rental revenue. Trailing 12-month ROIC for the core business declined 110 basis points to 9.8% at the end of the quarter.

我們將在第二季度慶祝這一周年紀念日。調整後的 EBITDA 因二手設備銷售收入增加而增加，但二手設備產生的利潤率和租金收入較低。本季末，核心業務過去 12 個月的 ROIC 下降了 110 個基點，至 9.8%。

The variance year-over-year relates to the impact of the local market slowdown and inefficiencies associated with new acquisitions in greenfields. Over time, the maturation of newer locations, greater fleet efficiency from our prudent onboarding of new fleet and the recovery in the local market will drive ROIC improvement.

與去年同期相比的差異與當地市場放緩以及綠地新收購帶來的效率低下有關。隨著時間的推移，新地點的成熟、我們審慎引入新車隊帶來的更高機隊效率以及當地市場的復甦將推動 ROIC 的改善。

Shifting to capital management on slide 15. You can see that we generated $49 million of free cash flow in the first quarter on higher operating cash flow and disciplined net capital expenditures. Our current leverage ratio is 2.5x. We remain confident in our business model and are committed to increasing shareholder value. First quarter, we declared a quarterly dividend in brings to Herc.

轉向第 15 張投影片上的資本管理。您可以看到，由於營運現金流增加且淨資本支出受到控制，我們在第一季產生了 4,900 萬美元的自由現金流。我們目前的槓桿率為2.5倍。我們對自己的商業模式充滿信心，並致力於提升股東價值。第一季度，我們宣布向 Herc 派發季度股息。

The two most frequently asked questions we're getting from investors are about the durability of the revenue synergy target and the path to deleveraging post close. When it comes to revenue synergies and evaluating these opportunities we brought position across customer accounts.

投資人最常問的兩個問題是收入協同目標的持久性和交易結束後去槓桿的途徑。當談到收入協同效應和評估這些機會時，我們會考慮客戶帳戶中的地位。

For our base case, we're confident in our ability to achieve the revenue synergies over the three-year integration period with the expectation of 20% captured in year one, primarily focused around general rental cross-selling and then ramping up to 60% in year two with specialty cross-selling and the balance in year three.

對於我們的基本情況，我們有信心在三年的整合期內實現收入協同效應，預計第一年實現 20% 的收入協同效應，主要集中在一般租賃交叉銷售，然後在第二年通過專業交叉銷售將這一比例提高到 60%，第三年實現平衡。

Regarding the path to deleveraging, the revenue and cost synergies are also expected to drive higher free cash flow conversion given that our EBITDA flow-through will be meaningfully higher than existing margins with relatively lower capital to achieve that EBITDA, reflecting better utilization of existing fleet and a purchasing shift to higher utilization specialty fleet. The combined entity will be capitalized to maintain financial strength and flexibility.

關於去槓桿的途徑，收入和成本協同效應也有望推動更高的自由現金流轉換，因為我們的 EBITDA 流轉將顯著高於現有利潤率，而實現 EBITDA 所需的資本相對較少，這反映了現有車隊的更好利用和採購轉向利用率更高的特種車隊。合併後的實體將進行資本化，以保持財務實力和靈活性。

All in all, we're excited about all of the opportunities ahead and believe the combination with H&E will create benefits for shareholders, employees and customers. With that, operator, we'll take our first question.

總而言之，我們對未來的所有機會感到興奮，並相信與 H&E 的合併將為股東、員工和客戶創造利益。接線員，我們就來回答第一個問題。

(Operator Instructions)

（操作員指示）

Jerry Revich, Goldman Sachs.

高盛的傑瑞·雷維奇。

Mark, I'm wondering if you could just continue the conversation. You mentioned in April, the results were in line with your expectations for the full year guide. So I think just pulling the pieces together, that implies dollar utilization turned north of 40%. In April, can you just comment on that? Is that the magnitude of recovery that you saw in April because that's what -- to get the full year run rate if that's linear over the coming quarters.

馬克，我想知道你是否可以繼續談話。您在四月提到，業績符合您對全年指南的預期。所以我認為，把這些因素綜合起來，就代表美元利用率已超過 40%。四月份，您能對此發表評論嗎？這是您在四月看到的復甦幅度嗎？因為如果未來幾季的復甦呈線性成長，那麼就可以得到全年的運行率。

I think that's what the math would imply. So is that what you saw in April? Or are you banking on a continued.

我認為這就是數學所暗示的。這就是你在四月看到的嗎？或者你希望它能持續下去。

Great question, Jerry, and that's really spot on. I guess maybe I'd go a step further and say that really the dollar utilization improved in March to that at the levels that we're comping against from prior year. So that is essentially what's carried through at least through the first half-ish of April.

傑瑞，這個問題問得好，而且非常正確。我想也許我應該更進一步說，3 月的美元利用率確實有所提高，達到了與去年同期相當的水平。因此，這基本上就是至少在四月上半月所持續的情況。

And so I think then you would expect sort of the normalized cadence of dollar utilization as you work your way through the quarters where you would have a normal build from Q1 into Q2 and to build from Q3 into Q4 and then stabilizing at or around that level for 4Q.

因此，我認為，隨著您逐步推進，您會預期美元利用率會呈現某種正常化的節奏，即從第一季度到第二季度呈現正常增長，從第三季度到第四季度呈現正常增長，然後在第四季度穩定在該水平或附近。

Super. Appreciate the color. And then, Larry, can I ask in terms of the pricing discipline that you're seeing in the industry, can you just comment on that? Obviously, everyone's seeing just general cost inflation and the industry data, I think, has been pretty mixed. One indicator showed a modest contraction in pricing in March.

極好的。欣賞色彩。然後，拉里，我可以問一下，就您在行業中看到的定價原則而言，您能對此發表評論嗎？顯然，每個人都看到的只是整體成本通膨，而我認為行業數據相當複雜。一項指標顯示，3月價格出現小幅收縮。

Can you just talk about what you're seeing in the market? And what's your view on the industry pricing discipline that you're seeing based on all of the indicators you track?

您能談談您在市場上看到的情況嗎？根據您追蹤的所有指標，您對所看到的行業定價紀律有何看法？

Yes. Well, as you know, we stopped reporting on pricing per se in any detail. But I would tell you that we continue to feel comfortable that there is discipline. The industry is not overfleeted, and we'll have to adjust according to what happens in the local market. But generally, we're seeing fairly constant and stable pricing.

是的。嗯，如你所知，我們不再詳細報道定價本身。但我想告訴你們，我們仍然對紀律感到放心。這個行業並沒有過度擁擠，我們必須根據當地市場的情況進行調整。但總體而言，我們看到的價格相當穩定。

Rob Wertheimer, Melius Research.

Rob Wertheimer，Melius Research。

I wonder if you could talk a little bit more about your -- your EBITDA margin performance in the quarter and maybe give us a range of revenue scenarios that you need in order to post positive margin. Maybe just talk about the factors that led to the margin decline. And then where do you kind of need to be above stall speed on margin? Maybe that's the day in February, maybe that's great. Maybe that's -- let me just talk to about margin dynamics on different revenue scenarios.

我想知道您是否可以再多談談您本季的 EBITDA 利潤率表現，並且可以給我們提供實現正利潤率所需的一系列收入情景。也許只是談論導致利潤率下降的因素。那麼，您需要在什麼情況下保持高於失速速度的裕度呢？也許那是二月的一天，也許那很棒。也許那是──讓我只談談不同收入情境下的利潤動態。

Yes. I mean I think that you're sort of staring at, right, quarter-to-quarter, you have sort of 150 basis points sort of detriment. But the reality is that's occurring in Q1, lowest revenue quarter. The reality is that's about $10 million.

是的。我的意思是，我認為你正盯著，對吧，每個季度，你有 150 個基點的損失。但實際情況是，這發生在第一季度，也就是收入最低的季度。實際情況是，這個數字約為 1000 萬美元。

So at the end of the day, we're not talking about huge dollars even though the margin profile certainly looks bigger than that when you're just talking about 150 basis points, but it's happening in Q1. Obviously, that is quarter of the season. And I think the other thing that is sort of comp is the fact that there is one less calendar day in '25s Q1 versus '24s Q1, which took bit of an extra day.

所以，歸根結底，我們談論的並不是巨額美元，儘管當你談論 150 個基點時，利潤率肯定看起來比這要大，但它發生在第一季。顯然，這只是賽季的四分之一。我認為另一件類似的事情是，25 年第一季比 24 年第一季少了一天日曆日，而 25 年第一季則多出了一天。

Okay. I got it. And then expense lead through the year, you didn't change your CapEx outlook or you we're a little bit conservative. I think you touched on this in 1Q. All else equal, are you trying to be a little bit more tactical this year in case the environment weakens or is that just random ran variance?

好的。我得到了它。然後，在全年的費用領先下，您沒有改變您的資本支出前景，或者我們有點保守。我認為您在第一季已經提到過這一點。在其他條件相同的情況下，今年您會嘗試採取更多戰術以防環境變弱，或者這只是隨機運行的變化？

I don't know whether that's a signal that you're being more cautious on fleet deployment and I'll stop.

我不知道這是否表明你在艦隊部署方面更加謹慎，我會停止。

I don't think there's any signaling in it. It was just sort of reacting to the quarter and how it plays out, right? We talked about sort of the choppiness of the demand profile in both January and February. And so I think gross CapEx adds to -- from an OEC perspective were about $75 million I don't think there's anything to read through to that because at the end of the day, I think by the end of the second quarter, we'll probably be somewhere in that 45% of the CapEx guide. So it's that actually halfway through it.

我認為其中沒有任何信號。這只是對本季及其表現的反應，對嗎？我們討論了一月份和二月需求狀況的波動。因此，我認為從 OEC 的角度來看，總資本支出增加了約 7,500 萬美元，我認為這沒什麼好解讀的，因為到第二季末，我們可能會達到資本支出指南的 45% 左右。所以實際上已經完成一半了。

As a reminder, two and three are the big CapEx adds as we build into season and Q1 and four are sort of the disposition quarters sort of all in. So I don't think, Rob, you would read anything into that other than just sort of the choppiness that started the quarter.

提醒一下，隨著我們進入這個季節，第二季和第三季是資本支出的大幅增加，而第一季和第四季是處置季度。所以羅布，我認為除了本季初的波動之外，你不會從中解讀出任何其他東西。

Thank you.

謝謝。

Tami Zakaria, JPMorgan.

摩根大通的塔米·扎卡里亞。

My first question is, I think there's some general talks about a potential macro slowdown later this year or possibly a recession even given all the tariff conversations. I was wondering, does your current guide embed a recession scenario in it? If not, how should we think about the possibility of that?

我的第一個問題是，我認為，儘管存在各種關稅問題，但人們普遍認為今年稍後宏觀經濟可能會放緩，甚至可能出現經濟衰退。我想知道，您目前的指南是否包含經濟衰退情境？如果不是，我們該如何看待這種可能性？

No. I mean I think the guide as it sits today is sort of what we see today and that is sort of a no-growth local market environment, which we stated when we released guidance and the backfill to that is growth in the infrastructure and mega project environment. If the macro were to change significantly, then that theoretically could cause us to sort of change our guide too.

不。我的意思是，我認為今天的指南就是我們今天所看到的，這是一個無成長的本地市場環境，我們在發布指南時就指出了這一點，而對此的補充是基礎設施和大型專案環境的成長。如果宏觀發生重大變化，那麼理論上也可能導致我們改變指南。

Understood. That's helpful. And then related to the pending acquisition, I know you laid out some synergy targets I was wondering, was there any customer attrition embedded in that synergy target. Sometimes there's some natural customer churn after major acquisitions like that between two parties. So was anything like that embedded in your synergy target or not really?

明白了。這很有幫助。然後與即將進行的收購相關，我知道您列出了一些協同目標，我想知道，該協同目標中是否存在客戶流失。有時，在雙方進行類似這樣的重大收購後，自然會出現一些客戶流失。那麼，您的協同目標中是否存在類似內容？

No, there absolutely was. We assumed a 10% disenergy customer churn, which we took sort of when you think about the guide, the revenue synergy guide, about 60% of that churn was year one and 40% of that churn was in the second year post close.

不，絕對有。我們假設客戶流失率為 10%，當你考慮指南、收入協同指南時，我們會得出這樣的結論：大約 60% 的客戶流失發生在第一年，而 40% 的客戶流失發生在交易結束後的第二年。

Is that 10% sort of close to normally you would see in a year or higher than that?

10% 是否接近您一年內通常看到的水平，或更高？

Ask me that question one more time, Tami?

再問我一次這個問題吧，塔米？

Is that 10% churn that you just mentioned baked into the synergy target, is that the normal rate of churn? Or is that elevated versus what you see normally?

您剛才提到的 10% 的客戶流失率是否包含在協同目標中，這是正常的客戶流失率嗎？或者與你通常看到的相比，這是否有所升高？

Yes. I would say it's probably right in line. I would also tell you that, that's above sort of the normalized attrition rate that the rental companies sort of experience on a year-to-year basis.

是的。我想說這可能正好符合。我還要告訴你，這高於租賃公司逐年經歷的正常流失率。

Great. Thank you.

偉大的。謝謝。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Good morning. I wanted to think about mega projects being key to supporting the 5% growth outlook in the mega project start level being over 2x the last couple of years, [leading to] my question, megaprojects when you are the primary supplier or a large supplier with the starts pick up, what you have in hand, is that enough to support a sustained sort of mid-single-digit growth outlook beyond this year?

早安.我想考慮大型專案是支持 5% 成長前景的關鍵，因為大型專案啟動水準是過去幾年的 2 倍多，[導致] 我的問題是，當您是大型專案的主要供應商或大型供應商時，隨著開工率的上升，您手中擁有的資金是否足以支持今年以後持續的中等個位數成長前景？

Yes, our pipeline, where we sit now versus the kind of the growth trajectory we've had in the Mega success from last year and then how we look out forward. It is enough to keep us in the guide range of 5% growth for the enterprise.

是的，我們的管道，我們現在所處的位置與我們去年取得的巨大成功的成長軌跡相比，以及我們對未來的展望。這足以讓我們維持在企業5%成長的指導範圍內。

Okay. Okay. That's helpful. And then flipping to the local markets. Is your strategy for capturing business in the local markets.

好的。好的。這很有幫助。然後轉向當地市場。這是您在當地市場開拓業務的策略。

Is it different than it was in 2024? You've talked about disciplined pricing, but I'm curious if your go-to-market approach is changing in any way to make sure you keep that share.

它與 2024 年的情況有何不同？您談到了嚴格的定價，但我很好奇，您的行銷方式是否會有所改變，以確保保住這一份額。

Well, we have a comprehensive go-to-market strategy, which is attributed to our local sales team in the field. And we updated that a couple of years ago. So it hasn't changed from 2024 but the go-to-market strategy gives incentives for acquiring new business, revenue health, like diversifying your rental across our specialty businesses. things of that nature. So it hasn't changed since '24 and it's the same go-to-market that we'll use when the H&E acquisition is brought on board.

嗯，我們有一個全面的市場進入策略，這歸功於我們當地的銷售團隊。幾年前我們就對其進行了更新。因此，從 2024 年開始它就沒有改變，但進入市場的策略為獲取新業務、收入健康提供了激勵，例如透過我們的專業業務實現租賃多元化。諸如此類的事情。因此，它自 24 年以來就沒有改變過，而且當我們收購 H&E 時，我們也會採用相同的市場進入方式。

Okay, that's helpful.

好的，這很有幫助。

Kyle Menges, Citi Group.

花旗集團的 Kyle Menges。

Thank you. I was hoping if you could provide some color on just what you're seeing in the core end markets. I know you touched on it a little bit, but maybe just color on what you're hearing from customers, both national and local post Liberation Day and just have had tariffs entered the conversation at this point? And just what are you hearing from customers on tariffs and how that could maybe impact projects or CapEx this year?

謝謝。我希望您能提供一些有關您在核心終端市場看到的情況。我知道您稍微提到了這一點，但也許您只是根據解放日後您從全國和地方客戶那裡聽到的消息，討論關稅問題了嗎？您從客戶那裡聽到了什麼有關關稅的消息？這可能會對今年的專案或資本支出產生什麼影響？

Well, I'll answer in two different ways. First, from the larger national accounts that are doing the big projects, especially like mechanical, general contractors, electric contractors. They have plenty of work. that's going to continue on, we believe the local markets, of course, have slowed down. So if you have local contractors, they're probably feeling a slower pace of construction activity.

好吧，我會用兩種不同的方式來回答。首先，來自承接大型專案的較大的國家帳戶，特別是機械、總承包商、電力承包商。他們有很多工作要做。這種情況還會持續下去，我們相信當地市場當然已經放緩。因此，如果您有當地承包商，他們可能會感覺到建築活動的節奏變慢。

As it relates to the tariff activity, it's really early for us to get that kind of pull. So we're not hearing much from our contractor base about them changing their direction. We're certainly not seeing an abundance of delays of projects. So it's really just early in that phase, but we're paying close attention to that. And it's -- as we all know, it's a moving target right now, but we're paying close attention to it.

由於它與關稅活動有關，我們現在獲得這種拉動還為時過早。因此，我們並沒有從承包商那裡聽到太多關於他們改變方向的消息。我們確實沒有看到大量項目延期的情況。所以現在還處於早期階段，但我們正在密切關注這一點。眾所周知，它現在是一個不斷變化的目標，但我們正在密切關注它。

Got it. Understandable. And then on margins, equipment rental margins were a little bit light in the quarter. I understand it was just lower fixed cost absorption. And I guess how much was also related to weather and some branch shutdowns in the quarter?

知道了。可以理解。就利潤率而言，本季設備租賃利潤率有點低。我理解這只是較低的固定成本吸收。我猜想其中有多少與本季度的天氣和一些分支機構的關閉有關？

And then just any other cost pressures that were maybe unexpected in the quarter that we should be thinking about or paying attention to?

那麼本季還有哪些其他可能出乎意料的成本壓力是我們應該考慮或關注的嗎？

No. I mean I think that, one the reduced margin comparably over Q1 of 2024 was certainly anticipated, right? I think as Q1 of last year, the used equipment market continued to sort of moderate as you work your way through 2024. And I think it just shows primarily through the proceeds percentage last year, it was 49%, and this year, it was closer to 45%. So you think about sort of a 10%-ish reduction there.

不。我的意思是，我認為，與 2024 年第一季相比，利潤率的下降肯定是可以預料到的，對嗎？我認為，從去年第一季開始，二手設備市場將持續保持溫和態勢，直到 2024 年。我認為這主要透過去年的收益百分比來體現，去年的收益百分比為 49%，而今年的收益百分比接近 45%。所以你認為那裡的減少量大約是 10%。

I think the good news on that front is that we view the used equipment market has stabilized. It's sort of been that way through the back half of 2024 and into Q1. So I think that sort of coupled with fixed costs that in Q1, it's your most exposed quarter because it's your smallest revenue quarter.

我認為這方面的好消息是，我們認為二手設備市場已經穩定下來。2024 年下半年至第一季的情況大致如此。因此，我認為，加上固定成本，第一季是你們最容易受到影響的季度，因為這是你收入最小的季度。

I mentioned in my prepared remarks, we hadn't crossed over sort of the increased insurance expense that we talked about last year Q2. So that was a comparable or comp that wasn't necessarily there last year Q1. And then just general, MA and greenfield activity and covering off that fixed cost component is more exposed in Q1 because the revenue is certainly less.

我在準備好的發言中提到，我們還沒有討論去年第二季談到的增加保險費用的問題。因此，這是一個可比的或比較的，但去年第一季並不一定存在。然後，一般來說，MA 和綠地活動以及覆蓋固定成本部分在第一季更容易受到影響，因為收入肯定較少。

Got it. Thank you guys.

知道了。謝謝你們。

Thank you.

謝謝。

Ken Newman, KeyBanc Capital Markets.

肯‧紐曼 (Ken Newman)，KeyBanc 資本市場。

Morning, Ken.

早安，肯。

Maybe my first question, Mark, just thinking about the flow-through. Obviously, there's a lot of moving pieces that you talked through just now. Is it fair to say that flow through also normalized in March? And are we back to that more normalized, call it, 40% to 50% type of range in the second quarter here?

馬克，也許我的第一個問題只是考慮流程。顯然，您剛才談到了很多令人感動的事情。是否可以說三月的流量也恢復正常了？那麼，第二季我們是否會回到更正常化的 40% 到 50% 的區間呢？

Yes, I think that's fair to say. I think that like it's sort of -- it falls into place once sort of the demand normalizes, which we saw in March, and that was sort of the results sort of across the board. I mentioned earlier, flow through, et cetera.

是的，我認為這樣說是公平的。我認為，一旦需求恢復正常，情況就會好轉，就像我們在三月看到的那樣，這是全面的結果。我之前提到過，流通等等。

Got it. That's helpful. And then for my follow-up, I did want to ask what's driving the confidence that local account activity stays stable through year-end? I think you guys are acknowledging that the visibility within that market still remains kind of choppy. You're not seeing -- it seems somewhat stable.

知道了。這很有幫助。然後，作為我的後續問題，我確實想問一下，是什麼推動了人們對本地帳戶活動在年底前保持穩定的信心？我想你們都承認該市場的可見度仍然有些不穩定。你沒有看到——它看起來有點穩定。

My guess is that local account rental revenue was down year-over-year in 1Q and if that's right, I think it's the first time since 2020. So one, is that the right way to think about it? And then secondly, what's driving the confidence that, that stays stable through year-end?

我的猜測是，第一季本地帳戶租賃收入同比下降，如果正確的話，我認為這是自 2020 年以來的第一次。那麼，這是正確的思考方式嗎？其次，是什麼推動了這種信心，使其在年底保持穩定？

Yes. Look, I think our confidence comes to the diversification of our business. and the new verticals and the new markets that we've entered as well as the addition of our specialty business into the local genre companies that we've acquired that give us ample opportunity to continue seeing that be positive for us.

是的。看，我認為我們的信心來自於我們業務的多元化。我們進入的新垂直領域和新市場，以及將我們的專業業務添加到我們收購的本地類型公司中，這些都為我們提供了充足的機會，讓我們繼續看到這對我們有利。

And I don't think it was down over last year Q1. So we are -- look, it's a -- we're operating at a relatively low level. And I think we continue to add capability as well as diversification that will keep us in good stead there.

我認為它與去年第一季相比並沒有下降。所以我們——你看——我們的營運水準相對較低。我認為，我們將繼續增強能力並實現多樣化，這將使我們在那裡保持良好地位。

Mig Dobre, Baird.

米格·多布雷，貝爾德。

Just a question on margin as well. Sorry, we keep going back to this topic. But as mega projects are becoming maybe a bigger part of the mix, is this mix negative from a margin standpoint for your business?

這只是關於保證金的一個問題。抱歉，我們又回到這個話題了。但是，隨著大型專案在業務組合中所佔的比例越來越大，從利潤率的角度來看，這種組合是否對您的業務產生負面影響？

No, it is not. I think sort of the mega project profitability profile is right in line with, as we've talked about it now for, I don't know, probably four or five quarters at a minimum. I think the margin pressure in Q1 is right -- is back to what I said earlier in terms of sort of the not crossing over, anniversarying over a couple of things that happened in -- or didn't happen in Q1 last year that happened in Q2 through Q4 and into Q1 of this year. And then the other component of that is just sort of the lowest, slowest quarter that we have and the fixed cost that we have to overcome in that in a slowing M&A and acquisition environment.

不，不是。我認為大型專案的獲利狀況與我們目前討論的一致，我不知道，可能至少是四、五個季度。我認為第一季的利潤壓力是正確的——回到我之前所說的，即沒有跨越、紀念去年第一季發生或沒有發生的幾件事，這些事情發生在第二季、第四季和今年第一季。而另一個因素就是我們所處的這個季度業績最低、最慢，而且在併購和收購環境放緩的情況下，我們必須克服固定成本。

Yes. Okay. So that's interesting because the H&E's experience with mega project is a little bit different. In their case, if I remember correctly, they sort of called that out as being a bit of a headwind to margin because pricing was different. So I'm curious how your business is maybe structured in this regard different than H&E and how you plan to adjust that post acquisition?

是的。好的。這很有趣，因為 H&E 在大型專案方面的經驗有點不同。就他們的情況而言，如果我沒有記錯的話，他們認為這對利潤率有點不利，因為定價不同。所以我很好奇，您的業務結構在這方面與 H&E 有何不同，以及您計劃如何在收購後進行調整？

Yes. I mean I think, Mig, our business is much different than H&E's. I mean there similarities are both renting core fleet, but our breadth of products in the general rental category is much broader so we can answer the call more often on a mega project and then the specialty fleet, which worked just much more along in our journey than H&E.

是的。我的意思是，我認為，米格，我們的業務與 H&E 的業務有很大不同。我的意思是，它們的相似之處在於都租賃核心車隊，但我們在一般租賃類別中的產品範圍要廣泛得多，因此我們可以更頻繁地響應大型項目的請求，然後是專業車隊，這在我們的旅程中比 H&E 發揮了更大的作用。

That really is the difference maker when you go into these big mega projects. And it really neutralizes the price you give for volume on the general rental fleet, you get the specialty fleet, which gives you the premium financial returns, and therefore, your stake in a mega project looks a lot like our core business overall and you're getting that flow and extended utilization, time utilization of the fleet over time. We like it.

當你參與這些大型專案時，這確實是決定性因素。它實際上抵消了您在普通租賃車隊上為數量支付的價格，您可以獲得專業車隊，從而為您帶來優質的財務回報，因此，您在大型項目中的股份看起來很像我們的核心業務，而且您可以獲得流量和延長的利用率，以及車隊隨著時間的推移的時間利用率。我們喜歡它。

I see. If I may squeeze one final one. Leverage is, obviously on a lot of people's mind, especially after you announced this large acquisition. So I'm curious, maybe you can comment on how you think about pro forma leverage profile once the transaction is closed.

我懂了。如果我可以再擠最後一個的話。顯然，很多人都在考慮槓桿問題，尤其是在你們宣布這次大規模收購後。所以我很好奇，也許您可以評論一下交易結束後您對備考槓桿情況的看法。

And maybe given what's been communicated through the stock price and also the uncertain macroeconomic environment, how do you think about bringing that leverage down post close? What's the plan here, maybe one to two years out? And what are some of the levers that you can pull to maybe accelerate that process?

也許考慮到股票價格所傳達的訊息以及不確定的宏觀經濟環境，您如何考慮在收盤後降低槓桿率？這裡的計劃是什麼？大概一到兩年後？您可以採取哪些措施來加速這項進程？

Yes. No, great question. I think sort of the entry or exit point, however you want to look at that is probably just north of the 3.5x range. As we've stated, we believe that we'll be back inside our 2x to 3x leverage profile within 24 months. I think your question is if the macro does, in fact, change on us post close, then it's really just running the playbook that we would run in a downside scenario.

是的。不，這個問題問得好。我認為入口點或出口點，無論如何看待，可能都在 3.5 倍範圍的北部。正如我們所說，我們相信我們將在 24 個月內回到 2 倍到 3 倍的槓桿率水平。我認為你的問題是，如果巨集確實在我們關閉後發生變化，那麼它實際上只是運行我們在下行情況下會運行的劇本。

However you want to think about how deep that downside scenario is, right? We would cut CapEx, age the fleet, sell off excess fleet and then begin to evaluate the variable cost structure of the business to continue to protect our margin profile.

但你想想想這種不利情況的程度有多深，對嗎？我們將削減資本支出、老化車隊、出售多餘的車隊，然後開始評估業務的變動成本結構，以繼續保護我們的利潤率。

Yes. And additionally, I'll remind you, Mig, maybe I don't know you were following us back when we spun from Herc, we were levered at 4.3x with a totally broken company, and we were able to bring that leverage down quite significantly in a pretty short period of time. In this environment, neither company is a broken company. We are running two excellent companies, and we expect to be able to perform as we've stated.

是的。另外，我要提醒你，米格，也許我不知道你在我們從 Herc 分離出來時就關注我們了，當時我們的槓桿率是 4.3 倍，公司已經完全破產，而我們能夠在很短的時間內大幅降低槓桿率。在這種環境下，這兩家公司都不算破產。我們經營著兩家優秀的公司，我們希望能夠像我們所說的那樣表現。

Thank you. Good luck.

謝謝。祝你好運。

That concludes our question and answer session. I will now hand it over to Leslie Hunziker, for closing remarks. Leslie.

我們的問答環節到此結束。現在我將把時間交給 Leslie Hunziker 來做結束語。萊斯利。

Thank you for joining us on the call today. We look forward to updating you on our progress in the quarters to come. Of course, if you have any further questions, please don't hesitate to reach out to us. Have a great day.

感謝您今天參加我們的電話會議。我們期待在未來幾季向您通報我們的進展。當然，如果您有任何其他問題，請隨時與我們聯繫。祝你有美好的一天。

That concludes today's call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。