Shares of Herc Holdings (HRI) plummeted 7.63% in pre-market trading on Tuesday following the release of disappointing first-quarter 2025 results and a cautious outlook. The equipment rental company reported a surprise net loss and provided full-year guidance that fell short of analysts' expectations, raising concerns about the company's near-term prospects.

Herc swung to a net loss of $18 million, or $0.63 per share, in the first quarter, compared to a profit of $65 million, or $2.29 per share, in the same period last year. The company's adjusted earnings per share came in at $1.30, significantly below the $2.21 estimate. While revenue rose 7% to $861 million, beating the consensus estimate of $849.44 million, the bottom-line performance overshadowed this positive aspect.

Adding to investor concerns, Herc provided a cautious outlook for 2025, projecting equipment rental revenue growth of 4% to 6%. The company also noted uneven demand for machinery, with many interest-rate sensitive infrastructure projects still on hold. CEO Larry Silber described the 2025 operating landscape as "a tale of two disparate economic trends," highlighting the challenges Herc faces in the current economic environment. The market's negative reaction reflects worries about Herc's ability to navigate these challenges and maintain profitability in the coming quarters.