Non-residential improvements give H&E a push

Improving non-residential activity, together with energy and chemical sector business on the Gulf Coast, helped H&E Equipment Services post a 14.3% increase in second quarter revenues to US$280.4 million. Net profits were up 45.5% to $15.7 million for the three months to 30 June.

Both the company’s rental and sales businesses performed well, with rental revenues up 18% to $98.8 million, the result of strong physical utilisation on a fleet that is growing in size. Rental prices were up 2.1% compared the same quarter a year ago.

John Engquist, H&E Equipment Services’ chief executive officer, said the business had performed well in the second quarter, with the business able to “capitalise on the improving trends in non-residential construction, especially the escalating activity in the energy and chemical sectors along the Gulf Coast.

“The momentum in our rental business continued as strong physical utilisation combined with fleet investment and increased rates drove higher revenues and solid margin improvement.”

Mr Engquist said the outlook for the business remained positive for the balance of the year, with the company continuing to invest in its fleet “as well as pinpointed greenfield and organic expansion”.