Herc Holdings Inc.

Thank you for standing by. My name is JL and I will be your conference operator today. At this time, I would like to welcome everyone to the Herc Holdings Inc. fourth quarter and full year 2025 earnings call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Leslie Hunsucker, Head of Investor Relations. You may begin.

Thank you, Operator, and good morning, everyone. Today, we're reviewing our fourth quarter and full year 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 includes 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 and our annual report on Form 10-K, as well as other filings with the SEC. Today we are reporting financial results on a GAAP basis, which includes H&E results for June through December of 2025. In addition, 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. Finally, please mark your calendars to join our first quarter management meetings at the Barclays 43rd Annual Industrial Select Conference and Citi's Global Industrial Tech and Mobility Conference in Miami tomorrow and Thursday. Then we'll be back in Miami on March 3rd for the J.P. Morgan Leverage Finance Conference. And last, we'll be attending the J.P. Morgan Industrial Conference in Washington, D.C. on March 17th. This morning, I'm joined by Larry Silberg, Chief Executive Officer, Aaron Birnbaum, President, 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. 2025 was a truly transformational year for our company. In June, we completed the largest acquisition in our industry's history, a milestone that expands our scale, strengthens our capabilities, and accelerates our long-term growth strategy. From day one, our focus has been on thoughtful integration, moving with urgency where it matters, while remaining disciplined in preserving the strengths of both organizations. I'm extremely pleased with how well the collective TeamHERC has executed against our integration priorities in the eight months since closing. Employees across the company stepped up with extraordinary effort and commitment. Successfully integrating a transaction of this size while continuing to serve customers at the highest levels requires focus, collaboration, and execution, and our teams have delivered. The integration action taken in the fourth quarter further bolstered the critical work done in the third quarter where we expanded our field operating structure to 10 U.S. regions, adding key leadership roles to ensuring operating continuity and scalability, completed a comprehensive sales territory optimization exercise to restructure coverage, and transitioned the acquired branches under HERC's technology stack in record time. As you can see on slide five, during the fourth and first quarter seasonal shoulder periods, We've continued our focus on four key priorities to complete the integration of the acquired assets. This work positions us to ramp into peak season from a new, stronger foundation, allowing us to execute more effectively and drive accelerated growth in the back half of the year. First, the branch network optimization. One of our core integration priorities is expanding specialty solutions capabilities across a combined network to support the cross-selling opportunities created by the acquisition. We've made great progress selectively consolidating general rental equipment within facilities in the same market to open up space for standalone specialty branches, while in other general rental locations, we're adding specialty fleet to expand branch capabilities. Through these actions, we'll increase the number of standalone or co-located specialty branches by approximately 25%. As of the fourth quarter, we've completed 80% of the planned branch optimization, which will be finished next month. Integrating the fleet was another critical milestone following the acquisition. Right out of the gate, we began a comprehensive restructuring of the combined assets, addressing size, age, category classes, and brands, to ensure alignment with customer demand and market opportunities. By year end, the fleet was realigned with the right equipment in the right locations. This positions us well as we move through 2026 with a stronger product portfolio and enhanced flexibility, while setting us up to be able to improve time utilization as we scale our sales force and as demand evolves seasonally across regions and markets. Along that vein, Salesforce assimilation is showing good progress. Integrating the sales organization has been a major focus since the transaction closed. We've been scaling the sales team to align with larger market opportunity while investing in training, leadership support, and deeper adoption of our CRM systems, sales models, and our broader fleet offering. We're now seeing improvement in proficiency across the go-to-market strategy and pricing systems, which is beginning to translate into more consistent execution, better customer engagement, and early cross-selling success. Productivity improvement and cost efficiencies across the entire organization are the fourth area of focus. By operating from unified systems and aligning to standardized processes, we're already recognizing meaningful results. On a pro forma basis, employee productivity increased year over year in 2025. New team members across the organization are becoming more adept on our logistics and operating systems, resulting in more consistent execution. And we're leveraging Hertz broader fleet offering to capture synergies by reducing external sourcing and bringing re-rent activity back in line with our historical levels. As a result of these actions and the progress we've made in eliminating redundant costs, optimizing procurement, and streamlining corporate functions, cost synergies are now tracking ahead of plan. On slide six, equally important to our integration success is our unwavering commitment to safety across the combined organization. Safety is at the core of everything we do. And as an immediate priority, we onboarded 2,500 new HERC team members into our health and safety program in the second half of last year. Our major internal safety program focuses on perfect days, and we strive for 100% perfect days throughout the organization. In 2025, on a branch by branch measurement, all of our operations achieved over 97% of days as perfect. Also notable, our total recordable incident rate remains better than the industry benchmark of 1.0, reflecting our high standards and commitment to safety of our people and our customers. As we continue to work through the integration of H&E, we are following the same playbook that has served us well over time, positioning the business to perform across the cycle and generate sustainable long-term growth. While there's still work to do, the progress we've made to date gives us confidence that the combined company is on track to deliver the operational and financial benefits of a large-scale acquisition while accelerating our strategic growth plan which is summarized on slide seven. Over the course of the last year, we made meaningful progress expanding our footprint through the acquisition and strategic greenfield openings, adding scale and gaining share in key geographies. We also continued to direct a greater portion of our gross capital investment toward higher return specialty fleet, supporting revenue synergies and advancing our goal of increasing specialty as a percentage of our total fleet. At the same time, we strengthened our digital capabilities to maintain our market leadership in innovation and support of our customers' productivity. Our digital revenue grew by more than 50% last year, with HercReynolds.com giving our customers an easy way to reserve gear 24-7. Our acquired customer base has full access to ProControl and is already using it to order equipment, manage fleet, and handle account activities. And when it comes to telematics, today approximately 80% of eligible gear is equipped, providing utilization and performance metrics to help reduce downtime and drive job site efficiency, all visible within our pro control system. Further, our E3OS business operating system continues maturing, helping to drive greater consistency and efficiency across the organization for our customers. Throughout all of this, Capital discipline remains a management imperative. We are investing responsibly, prioritizing returns, and strengthening the foundation of the business while integrating a transformational acquisition and sharpening our strategic focus. Now, I'll turn the call over to Mark. We'll take you through the recent financial performance and 2026 guidance, and then Aaron will talk about macro trends and operating initiatives supporting our growth plans for this year. Mark?