Strategic Acquisition of Progressive Roofing as a Growth Platform in Commercial Roofing Market
Completed acquisition in July 2025, establishing a new platform in the $75 billion commercial roofing services market.
Aligns with core strengths, expands installation services, and increases exposure to non-cyclical, non-discretionary revenue.
Progressive's pipeline includes larger deals, with some deals in the pipeline of significant size.
Management expects the acquisition to be accretive to margins and sees opportunities for cross-selling and project synergies, especially in data centers and industrial projects.
Initial integration efforts include sharing best practices and developing an M&A pipeline for further growth.
Strong Performance and Strategic Focus on Heavy Haul Segment
Generated approximately $138 million in heavy haul revenue in Q2 2025, a 9% increase year-over-year.
Heavy haul volume increased by 4%, and revenue per load increased by 5%.
Heavy haul's share of load revenue increased from 33% in Q2 2024 to 35% in Q2 2025.
Management emphasized the segment's domestic focus and resilience, with no tariff-related headwinds expected in the near term.
Jim Applegate highlighted the broad-based demand across industries like machinery, electrical equipment, and data centers, supporting continued growth.
Successful Integration of H&E Acquisition and Synergy Realization
Herc completed the acquisition of H&E Equipment Services in Q2 2025, with integration activities focused on financial, operational, and cultural assumptions.
Integration management office established to ensure minimal disruption and focus on key talent retention.
Early signs of synergy include fleet sharing, cross-referrals, and expanded project pipeline, with examples of new mega project support and joint town halls.
Technology integration is progressing with phased system cutovers planned through September, aiming for 45% of acquired locations on Herc's platform by then.
Dafinchi