In recent years, Baton Rouge-based H&E Equipment Services has shifted its focus to its equipment rental business, which has become its fastest-growing segment. As a result, the company will rebrand as H&E Rentals to reflect this change in business strategy while maintaining its legal name. Founded in 1961 as a distribution company, H&E has transitioned to a pure play rental business over the years, divesting its distribution business by selling off its crane and earthmoving divisions.
H&E’s CEO Brad Barber explains that the majority of the company’s revenues now come from equipment rental, with about 80% coming from this segment and the remaining 20% from sales of new and rental equipment. Despite some growth through acquisitions in the equipment rental space, most of H&E’s expansion has been organic, with the company opening about 140 branches in 30 states. Barber anticipates opening 12 to 15 more locations in 2024, emphasizing that the company is still in growth mode.
The recent efforts of H&E have paid off, as evidenced by its Q1 earnings report showing a significant increase in revenues from the previous year. Equipment rental accounted for a significant portion of this revenue at $295.3 million. Additionally, H&E’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.