H&E Equipment Services is a pure-play equipment rental company that rents construction and industrial equipment to contractors and other customers on daily, weekly, or monthly terms. The rental fleet consists of roughly 63,600 pieces of equipment, including aerial work platforms, earthmoving equipment, telehandlers, and specialty lines, deployed across 156 branch locations in 31 states. Customers are primarily non-residential construction contractors, industrial facilities, and infrastructure projects, with no meaningful customer concentration. H&E sells directly through a field sales force supported by its proprietary digital platform, CONNECT, which lets customers reserve equipment and manage contracts. The core business model is straightforward: rental revenue scales with fleet size, physical utilization, and rental rates. The business carries high fixed costs — fleet depreciation, branch costs, and technician labor — creating meaningful operating leverage in both directions. Beyond rentals, H&E sells used equipment out of its fleet as a fleet rotation tool, distributes new equipment from brands like JLG and Skyjack, and provides parts and repair services, though these are ancillary to the rental business. H&E has been aggressively expanding its branch network since 2021, opening 12 to 18 greenfield locations per year, which creates near-term cost drag but builds long-term revenue capacity. Management is targeting large multi-year construction projects — data centers, semiconductor fabs, and energy infrastructure — as a source of more stable, high-volume demand. H&E also operates an early-stage pump and power specialty rental business. Herc is in the process of acquiring H&E, with the deal expected to close in mid-2025.