Herc Holdings (HRI) saw its stock plummet 5.86% in pre-market trading on Tuesday following the release of its first-quarter 2025 earnings report. The equipment rental company reported unexpected losses and weaker-than-anticipated adjusted earnings per share, overshadowing a revenue beat.

Herc reported a net loss of $18 million, or $0.63 per share, for Q1 2025, a significant downturn from the $65 million profit, or $2.29 per share, recorded in the same quarter last year. The company's adjusted earnings per share came in at $1.30, falling well short of analysts' expectations of $2.26. This disappointing performance was primarily attributed to increased depreciation expenses and direct operating costs.

Despite the earnings miss, Herc's revenue showed growth, rising 7% year-over-year to $861 million, surpassing the consensus estimate of $849.44 million. However, investors seemed more focused on the company's bottom-line performance and future outlook. Herc's full-year guidance, projecting equipment rental revenue growth between 4% and 6%, raised concerns about potential challenges in demand, particularly noting that many interest-rate sensitive infrastructure projects remained on hold. This cautious outlook, combined with the unexpected quarterly loss, likely contributed to the sharp pre-market decline in Herc's stock price.