Citing ongoing strength in non-residential construction markets, H&E Equipment Services says it saw a 7.5 percent increase in total revenues and a 2.2 percent increase in average rental rates compared with the the same quarter last year.
“Our customers remain optimistic with solid visibility into their project pipelines for the remainder of this year and into 2020,” says Brad Barber, H&E CEO and president. This has lead to a 71.2 percent utilization rate and a 20.9 percent increase in rental revenues from the same period last year.
“Our outlook remains positive as we continue to see broad-based demand across our entire footprint encompassing all product types,” Barber adds. “The Gulf Coast remains strong and a new wave of large projects are being announced as anticipated. We believe the secular shift toward equipment rentals will continue. We remain focused on improving all areas of our business with an emphasis on growth in rental. We plan to execute this growth through same-store market share improvement, acquisitions and warm-start branch openings.”
Other 2Q highlights:
Rental fleet: The original acquisition costs of the company’s rental fleet was $1.9 billion at the end of the second quarter. This is an increase of $260.3 million from the same period last year.
New equipment sales decreased 21.8 percent to $53.6 million compared with a year ago.
Used equipment sales increased 12.4 percent to $36.1 million during the quarter, compared with 2Q 2018.