Founded in 1961, H&E is one of the largest and fastest-growing equipment rental companies in the nation, serving customers from coast to coast. The Company’s construction rental fleet is among the industry’s youngest and most versatile. It is primarily utilized in the heavy construction and industrial sectors and consists of aerial work platforms, earthmoving equipment, material handling, general equipment, and other specialty lines. By maintaining a superior mix of equipment, H&E can address the diverse needs of customers in a variety of end markets including, but not limited to, commercial construction, non-residential, multifamily residential, industrial, and oil and gas.

H&E manages an expanding branch network located in many high-growth geographies including locations throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest, and Mid-Atlantic regions. By executing our strategic growth plan, we continue to expand our network of branch locations, thereby improving the availability of rental products to our customers to meet their specific needs. We anticipate opening additional locations, with the ability to open more if the market conditions and opportunities are favorable.

Additionally, we are focused on continuing to identify, evaluate, and pursue acquisitions that meet our selection criteria. Acquiring rental companies to complement our existing business broadens our geographic footprint and increases our density in existing markets, and it allows us to enter new markets where feasible expansion opportunities may exist.

In 2022, we completed the process of transforming H&E to a pure-play rental company while virtually eliminating exposure to the unpredictability inherent in distribution activities. We have continued to improve the management of the life cycle of our rental equipment and have made substantial investments in our enterprise resource planning system to digitize operations and the rental process. With a modern, scalable, secure, flexible, and integrated core technology platform, we have a customer-centered approach to becoming the easiest company in our industry to do business with and have positioned our business for growth.

Company History

Head & Engquist Equipment LLC, a wholly owned subsidiary of Gulf Wide Industries LLC and ICM Equipment Company LLC, combined in June 2002 to form H&E Equipment Services LLC. In connection with our initial public offering on January 31, 2006, H&E Equipment Services LLC was converted to H&E Equipment Services Inc. (d/b/a “H&E Rentals”) (NASDAQ: HEES), a Delaware corporation. For more information, see Company History.

Business Segments

We have four reportable segments because we derive our revenues from four business activities: (1) equipment rentals; (2) sales of rental equipment; (3) sales of new equipment; and (4) parts, service, and other revenues. Our primary segment is equipment rentals. These segments are based upon how we allocate resources and assess performance.

• Equipment Rentals. - Our rental operation is our principal focus and we primarily rent our core types of construction and industrial equipment. We have a well-maintained rental fleet and a dedicated sales team. We actively manage the size, quality, age and composition of our rental fleet based on our analysis of key measures such as time utilization (a reflection of equipment usage based on customer demand and calculated as our fleet’s original equipment cost on-rent divided by our fleet’s total original equipment cost, averaged over the time period), rental rate trends and targets, rental equipment dollar utilization, and maintenance and repair costs, which we closely monitor. Given the use of these measures by management, we believe that investors’ understanding of our performance is enhanced by the disclosure of the measures as it allows investors to view performance from management’s perspective. Additionally, we maintain fleet quality through quality control inspections and our parts and services operations.
• Sales of Rental Equipment - Our used equipment sales are generated primarily from sales from our rental fleet. Sales of our rental fleet equipment allow us to manage the size, quality, composition and age of our rental fleet, and provide us with a profitable distribution channel for the disposal of rental equipment.
• Sales of New Equipment - We sell equipment through a professional sales force. While sales of new equipment are impacted by the availability of equipment from the manufacturer, we believe our relationship with some of our key suppliers improves our ability to obtain equipment.
• Parts, Service and Other - Our parts business provides parts to our own rental fleet and sells parts for the equipment we sell. In order to provide timely parts and services support to our rental fleet as well as our customers, we maintain a parts inventory. Our services operation provides maintenance and repair services to our own rental fleet and for our customers’ equipment at our facilities as well as at our customers’ locations. Our other revenues relate to costs primarily related to ancillary charges associated with equipment maintenance and repair services.