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.
Data Center Market Expansion and Product Innovation
Gates has significantly increased its involvement in the data center cooling market, with program involvement and revenue from this segment growing rapidly from a small base.
The company introduced new products such as the universal quick disconnect fitting and scaled up its electric pump portfolio to meet higher flow requirements.
Negotiations are underway with a major hyperscaler for 2026 supply, indicating a strategic focus on high-growth data center opportunities.
The momentum in product development and commercial coverage in data centers is expected to lead to a revenue inflection over the next few years.
Management sees the liquid cooling market expansion as a key secular growth opportunity, with potential revenues exceeding $150 million in the near term.
The company is actively building relationships with infrastructure providers and engineering firms, aiming for additional design wins.
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.
Strategic Collaboration with TotalEnergies for Data Fabric Deployment
Emerson announced a strategic partnership with TotalEnergies to deploy its industrial data fabric across TotalEnergies facilities.
The data fabric will continuously collect, store, and contextualize millions of real-time data points, providing secure and unified data access.
This initiative supports operational optimization and accelerates AI implementation, forming a foundational element of Emerson's enterprise operations platform.
Dafinchi