Herc Holdings (HRI) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Additionally, some of our customers may delay capital investment and maintenance even when favorable conditions exist in their industries or marketsNew
2. 02Our industry is highly competitive, and competitive pressures or not timely identifying and responding to customer needs, expectations or trends could lead to a decrease in our market share or in the prices that we can charge
3. 03We may fail to realize all of the anticipated benefits of the acquisition of H&E Equipment Services, Inc. ("H&E") or those benefits may take longer to realize than expectedNew
4. 04Integration of H&E into our business may be difficult, costly and time-consuming, and the anticipated benefits and cost savings of the acquisition may not be realizedNew
5. 05ITEM lA. RISK FACTORS (continued)100% rewritten
6. 06We may encounter additional integration-related costs, fail to realize all of the benefits anticipated, or be subject to other factors that adversely affect our preliminary estimates regarding the combined companyNew
7. 07We are dependent on our relationships with key suppliers to obtain equipment for our business
8. 08A widespread outbreak of an illness or any other communicable disease, or any other public health crisis, could adversely affect our business, results of operations and financial condition84% rewritten
9. 09and confidential personal information (collectively, sensitive information). In addition, our customers regularly transmit sensitive information to us via the Internet and through other electronic meansNew
10. 10Failure to maintain, upgrade or replace our IT systems could materially adversely affect us24% rewritten
11. 11We may fail to respond adequately to changes in technology and customer demands
12. 12We face intense competition, including from our own suppliers, that may lead to downward pricing or an inability to increase prices
13. 13Our success depends on our ability to attract and retain key management, sales and trades talent, while supporting the onboarding and career development of our team members
14. 14Due to seasonality, especially in the construction industry, any occurrence that disrupts rental activity during our peak periods could materially adversely affect our results of operations, liquidity and cash flows
15. 15Some or all of our deferred tax assets could expire if we experience an “ownership change” as defined in Section 382 of the Internal Revenue Code (the "Code")

Other Operational Risks

1. 16Any decline in our relationships with our key national account customers or the amount of equipment they rent from us could materially adversely affect our business, financial position, results of operations and cash flows
2. 17Our rental fleet is subject to residual value risk upon disposition and may not sell at the prices we expect
3. 18We incur maintenance and repair costs associated with our rental fleet that could have a material adverse effect on our financial condition, results of operations, liquidity and cash flows in the event these costs are greater than anticipated
4. 19We are exposed to a variety of claims and losses arising from our operations, and our insurance may not cover all or any portion of such claims
5. 20Environmental, health, and safety laws and regulations and the costs of complying with them, or any change to them impacting our markets, could materially adversely affect our financial position, results of operations and cash flows21% rewritten
6. 21Climate change and legal or regulatory responses thereto may have a long-term negative impact on our business and results of operations
7. 22Part of our strategy includes pursuing strategic transactions, which could be difficult to identify and implement, and could disrupt our business or change our business profile significantly
8. 23We may face issues with our union employees

Risks Related to the Spin-Off and Our Separation from New Hertz

1. 24We and New Hertz have assumed and will share responsibility for certain liabilities in connection with the Spin-Off, any of which could have a material adverse effect on our business, financial condition and results of operations67% rewritten

Risks Related to Our Significant Indebtedness

1. 25Our significant level of indebtedness exposes or makes us more vulnerable to a number of risks that could materially adversely affect our financial condition, results of operations, cash flows, liquidity and ability to compete
2. 26Substantially all of our consolidated assets secure certain of our indebtedness, which could materially adversely affect our business and holders of our debt and equity
3. 27The amount of borrowings permitted under our revolving credit facility may fluctuate significantly, which may adversely affect our liquidity, results of operations and financial position
4. 28An increase in interest rates or in our borrowing margin would increase the cost of servicing our debt and could reduce our profitability
5. 29Despite our current level of indebtedness, we may still be able to incur substantially more debt. This could further exacerbate the risks described above

Risks Related to the Securities Markets and Ownership of Our Common Stock

1. 30Provisions of our Certificate of Incorporation and our By-Laws could discourage potential acquisition proposals and could deter or prevent a change in control