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. The company has decided to rebrand as H&E Rentals to reflect this change in business strategy, while maintaining its legal name.
H&E was founded in 1961 as a distribution company and has since transitioned to a pure play rental business, divesting its distribution business by selling off its crane and earthmoving divisions. CEO Brad Barber explains that the majority of H&E’s revenues, around 80%, now come from equipment rental, with the remaining 20% coming 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 company’s recent efforts have paid off, as evidenced by its Q1 earnings report showing a 15.2% increase in revenues from the previous year, totaling $371.4 million. Equipment rental accounted for a significant portion of this revenue at $295.3 million. H&E’s strong Q1 performance builds on its record-setting 2023 results, where total revenues approached $1.5 billion, an 18% increase from the previous year.