H&E Equipment Services Rebrands as H&E Rentals: Focusing on its Fast-Growing Rental Business

H&E Equipment Services, based in Baton Rouge, has recently shifted its focus to its equipment rental business. This fast-growing segment has become the company’s main source of revenue, with around 80% of it coming from rentals and the remaining 20% from new and rental equipment sales. The company plans to rebrand as H&E Rentals to reflect this change in strategy while maintaining its legal name.

Founded in 1961 as a distribution company, H&E has transitioned into a pure play rental business over the years by selling off its crane and earthmoving divisions. CEO Brad Barber explains that most of H&E’s expansion has been organic, with the company opening about 140 branches in 30 states. In 2024, the company anticipates opening 12 to 15 more locations while still being in growth mode.

H&E’s recent efforts have paid off, as evidenced by its Q1 earnings report showing a 15.2% increase in revenues compared to the previous year, totaling $371.4 million. Equipment rental accounted for a significant portion of this revenue at $295.3 million. The company’s strong Q1 performance builds on its record-setting 2023 results where total revenues approached $1.5 billion, an impressive 18% increase from the previous year.