H&E Equipment Services Expects FY24 Capital Investment Of $350M-$400M, Down From Prior Outlook Of $450M-$500M
Portfolio Pulse from Benzinga Newsdesk
H&E Equipment Services (HEES) has revised its FY24 capital investment forecast to $350M-$400M, down from the previously projected $450M-$500M. The company plans to continue its branch expansion strategy, aiming to open 12 to 15 new locations in 2024. This adjustment comes as equipment availability from manufacturers normalizes. HEES also highlights its growth through acquisitions, including the recent purchase of Precision Rental and the pending acquisition of four locations in Montana, which will bring its total to 145 branches across 30 states by the second quarter of 2024.
April 30, 2024 | 11:17 am
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H&E Equipment Services revises FY24 capital investment down to $350M-$400M from $450M-$500M, plans 12-15 new branches, and grows through acquisitions, aiming for 145 branches across 30 states by Q2 2024.
The reduction in capital investment forecast by HEES could signal a cautious approach to spending, potentially due to a normalization in equipment availability. However, the continued expansion through new branches and acquisitions, such as Precision Rental and the pending Montana locations, indicates a strong growth strategy. This mixed signal could lead to a neutral short-term impact on the stock price, as investors weigh the reduced spending against the expansion efforts.
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