From Distribution to Rental: H&E Equipment Services Embraces New Sub-Brand and Continues Growth in Equipment Rentals

In recent years, Baton Rouge-based H&E Equipment Services has shifted its focus to its equipment rental segment, which has become its fastest-growing business. The company, founded in 1961 as a distribution company, has now positioned itself as a pure play rental business. While the legal name of the company remains the same, a new sub-brand, H&E Rentals, has been introduced to reflect this change in strategy.

H&E began divesting itself of its distribution business in 2021 with the sale of its crane business and finalized the divestiture in 2022 with the sale of its earthmoving business. Currently, about 80% of the company’s revenues come from equipment rental, with sales of new equipment and rental equipment making up the remaining 20%. CEO Brad Barber describes the transition as moving from a distribution business to a hybrid business to now a pure play rental business.

Despite some growth being attributed to acquisitions in the equipment rental space, H&E has seen organic growth by opening its own locations across the U.S. With approximately 140 branches in 30 states, the company plans to open 12 to 15 more locations in 2024. The recent business strategy seems to be working, as evidenced by the 15.2% increase in revenues reported in the first quarter of this year, totaling $371.4 million. Equipment rental accounted for $295.3 million in revenue.

Following a record-setting year in 2023, with total revenues just under $1.5 billion, H&E Equipment Services continues to focus on growth and expansion. CEO Brad Barber emphasizes that the company is still in growth mode, with a commitment to expanding its presence in