H&E Equipment Services declares quarterly cash dividend

BATON ROUGE, La. - H&E Equipment Services, Inc. (NASDAQ: HEES), a major provider of rental equipment in the United States, announced on Monday that its Board of Directors has declared a regular quarterly cash dividend. The company will pay a dividend of $0.275 per share of common stock on September 13, 2024, to shareholders of record as of the close of business on August 28, 2024.

Established in 1961, H&E Equipment Services operates one of the youngest and most versatile fleets in the industry, offering a wide range of equipment including aerial work platforms, earthmoving and material handling machinery, and other specialized equipment.

The company caters to a diverse set of markets and maintains a presence across multiple regions including the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest, and Mid-Atlantic.

The press release also contained forward-looking statements regarding the company's expectations and beliefs about future events. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect the company's performance include general economic conditions, industry trends, supply chain disruptions, and the impact of global events such as pandemics on business operations.

Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on current information and assumptions. The company is under no obligation to update such statements in light of new information or future events.

This dividend announcement is part of H&E Equipment Services' ongoing commitment to providing value to its stockholders. The information regarding the dividend and the company's operations is based on a press release statement from H&E Equipment Services, Inc.

In other recent news, H&E Equipment Services has reported a 4.5% increase in total revenues, reaching $376.3 million in its second quarter of 2024. This growth occurred despite an 11.9% decrease in the sale of rental equipment and lower non-residential spending. The company's rental revenues saw an increase of 7.2% to $275.5 million, attributed to rental rates and expansion initiatives.

H&E Equipment Services has expanded its branch network to 31 states, marking a 45% growth since mid-2021. The company has opened 15 new locations and completed three acquisitions, focusing on regions with strong construction activity. Despite these expansions, H&E expects utilization rates to face challenges and anticipates pressure on EBITDA margins in the latter half of the year.

In the face of these challenges, H&E remains optimistic about growth opportunities presented by mega projects and increased infrastructure spending. The company plans to continue its geographic expansion, targeting high-growth construction regions, and aims to generate meaningful free cash flow in 2024. While it's too early for precise predictions, H&E expresses optimism about the outlook for 2025.

InvestingPro Insights

In light of H&E Equipment Services, Inc.'s (NASDAQ: HEES) recent dividend declaration, a closer look at the company's financial metrics provides additional context for investors. According to InvestingPro data, the company has a market capitalization of approximately $1.6 billion and is trading at a P/E ratio of 9.94. This valuation comes in the context of a 12.8% revenue growth over the last twelve months as of Q2 2024, indicating a solid expansion in the company's top-line performance.

Notably, H&E Equipment Services has maintained dividend payments for 11 consecutive years, a testament to its financial stability and commitment to shareholder returns. This consistency is crucial for income-focused investors, especially considering the company's dividend yield stands at 2.48% as of the latest data. Additionally, with a gross profit margin of 46.34%, the company demonstrates a strong ability to control costs and generate earnings.

InvestingPro Tips highlight that while analysts have revised their earnings expectations downwards for the upcoming period, the company is still expected to be profitable this year. Furthermore, the company's stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance. For those looking for more comprehensive analysis, there are 9 additional InvestingPro Tips available at https://www.investing.com/pro/HEES, offering deeper insights into H&E Equipment Services' financial health and market performance.

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