Herc Holdings Inc.

Panzecar, VP of Investor Relations. Lisa, go ahead.

Thank you, operator, and good morning, everyone. Today, we're reviewing our second quarter 2025 results with comments on operations and our financials, including our view of the industry and our strategic outlook. The prepared remarks will be followed by an open Q&A. Let me remind you that today's call will include forward-looking statements. These statements are based on the environment as we see it today, and are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, the factors identified in the press release, our Form 10Q, and our most recent annual report on Form 10K, as well as other filings with the SEC. Today, we are reporting financial results on a gap basis, which include H&E results for June in each of the three and six-month periods for 2025. In addition, we'll be discussing non-gap information that we believe is useful in evaluating the company's operating performance. Reconciliation for these non-gap measures to the closest gap equivalent can be found in the conference call materials. This morning, I'm joined by Larry Silver, 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.

Thank you, Leslie, and good morning, everyone. It's been a busy time since our last earnings call. During the second quarter, we successfully completed the acquisition of H&E Equipment Services. Since then, integration activities have been underway to validate financial, operational, and cultural assumptions, identify key talent, mitigate risks, and ensure a smooth transition for all stakeholders. One of our early priorities was to set up an integration management office and clearly define roles and responsibilities within the integration process. This successfully ensured minimal disruption to the rest of our employees' daily responsibilities and allowed HRC sales and operations staff to remain focused and productive through the transaction process. In a dynamic environment, like the one we operate in today, where underlying local and national demand trends are bifurcated, this was critical. The local markets continue to see pressure as more commercial projects come to completion, while new projects in that sector remain on pause due to prolonged higher interest rates. The good news is that our local sales professionals are experienced, determined hunters using the full suite of HRC's product offering, reputation for service excellence, and industry-leading technology platforms to create opportunities and win new accounts. On the other side of the coin, national account demand remains strong and we continue to capture our targeted 10 to 15% share of the mega project activity. There, we're supporting customer success with differentiated specialty solutions, large and very general rental offering, and a full service fleet management, including maintenance, logistics, safety training, and utilization insights. In the quarter, excluding Sinalese, HRC legacy branches continue to outpace overall market expansion driven by growth in both national and local account revenue. I want to thank all of Team HRC colleagues for bringing their best efforts every day for the collaboration and support you've shown your colleagues, old and new, and for keeping your eye on the ball and embracing the changes that bring opportunity and growth. As you can imagine, HRC's biggest growth opportunity today and over the next three years stems from the scale and synergies we gained through the H&E acquisition. Let's move to slide five for some perspective on how the integration has progressed. Since we closed the transaction, our teams have been working tirelessly to successfully bring the two companies together. As reported in the first quarter, H&E's financial performance was impacted in part by disruptions to their employee base during the bidding process, and we saw those distractions continue through the close of the deal in early June. Since then, meeting the team and immediately putting in place comprehensive communications that address their most critical questions have gone a long way in stabilizing our acquired workforce. In the field, HRC RBPs and district managers have visited all of the acquired branches multiple times, getting to know the new organization. I've personally visited over 40 H&E and HRC locations throughout the West, South, Midwest, and Northeast over the last couple of months, and ARIAN's covered even more of our network. Additionally, we've remapped the operating regions and optimized the Salesforce territories to address our now larger footprint. In doing so, we added two RVP positions, which were filled by H&E field leaders. We're also adding key management positions to our sales organization to drive revenue synergies and develop our mid-market capability where we know H&E excels. Our new field structure has been cascaded to employees throughout the organization. At the same time, we're managing staffing priorities. Our fleet team completed its assessment of H&E's assets by market, category class, brands, utilization rates, and equipment aids. Based on the outcome, updated plans for incremental dispositions, as well as the addition of specialty fleet or synergies, is considered in our net fleet capex guidance, which Mark will take you through in a minute. Most exciting is that the fleet sharing and sales referrals are already taking place. Let me give you just a couple of examples. One of our new sales reps recently was contacted by a customer of his, who currently is running a mega project. The customer asked his rep if he could provide the fleet needed for this large job, now that H&E was part of HIRC. This wasn't a project that H&E could have previously supported with its more limited product offering, and HIRC didn't have a relationship with this contractor. It's a clear example of the whole being greater than the sum of its parts. And our national account project pipeline just got a bit bigger. In another example, we hosted joint branch manager sales leader town halls in Dallas and Houston about a week after we closed. In each meeting, we asked the room if anyone had a story of renting equipment that they wouldn't have been able to rent just a few days earlier. Almost every hand went up. One person said they were able to fill a request for a special aerial attachment. Another said they were working on a generator deal where H&E previously didn't carry the size of generator the customer needed. It seemed that everyone had a story and there were lots of excitement in the room. That's really what this is about, and it's one of the reasons we're confident in our revenue synergy target. Behind the scenes, we're checking all the boxes, training for standardizing processes for things like logistics, maintenance, and safety is also underway. And governance policies, including things like the customer and supplier contract approvals have been communicated and controls are in place across the joint organization. Our next major initiative is the technology integration. We've got systems cut over planned in geographic phases throughout the third quarter and expect to be done by the end of September. We've invested significant time and attention in adding capacity to the herd system, data testing capabilities, data migration, and of course, security. And putting together training processes, mentoring structures, on-site extra support, and a dedicated hypercare team. We feel good about the plan. Our initial cut over took place two weeks ago and it went very well. Our second phase is next week, and we feel very confident that it will be equally successful. At that time, nearly 45% of the acquired locations will be fully integrated onto Herd's industry-leading technology platform. The takeaway here is that our new organization is working well and we're off to a great start as a combined company and we're well positioned to capture the synergy of the acquisition while continuing to deliver on our long-term growth strategies which are outlined on slide six. As we've said, integrating this acquisition will be our primary focus. And therefore, we are pausing other M&A initiatives for the time being and completing the remaining in-flight greenfields. In the first half of the year, we added 11 new facilities, of which eight were opened in the second quarter. Capitalizing on the secular shift from ownership to rental, particularly in the specialty market, and yielding greater value from megaprojects through specialty solutions is a key focus for us. Further, cross-selling specialty gear is an important component of the revenue synergies with H&E. In line with this strategy, we've continued to over-index our gross capex plans towards specialty as a percent of our fleet composition long-term. We're also planning to repurpose general rental branches into pro-solutions facilities beginning this year to support specialty equipment capacity with 160-plus acquired locations. While we work through the integration of H&E, we'll 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. Now I'll turn the call over to Aaron, who will talk a little bit more about operating trends, and then Mark will take you through the second quarter business performance drivers and transaction adjustments. Aaron?