McGrath RentCorp (NASDAQ:MGRC) Issues Quarterly Earnings Results

McGrath RentCorp (NASDAQ:MGRC) announced its quarterly earnings results on Wednesday. The financial services provider reported $2.00 EPS for the quarter, beating analysts’ consensus estimates of $1.89 by $0.11, FiscalAI reports. McGrath RentCorp had a net margin of 16.75% and a return on equity of 12.85%. The firm had revenue of $274.61 million during the quarter, compared to analysts’ expectations of $273.25 million.

Here are the key takeaways from McGrath RentCorp’s conference call:

• Third-quarter total revenue rose 7% to $275 million, while Adjusted EBITDA increased 10% to $106 million, supported by growth in rental operations and a strong Enviroplex quarter.
• TRS-RenTelco rental revenue grew 26%, with utilization reaching a 20-year high of 71.9% at quarter-end. Management cited a potentially multiyear opportunity from AI infrastructure, data centers, semiconductor R&D, and aerospace and defense, prompting increased fleet investment.
• Mobile Modular bookings increased more than 20% year over year, and rental revenue per unit on rent rose 8%, leaving a favorable pricing tailwind as the fleet turns over. More than 80% of year-to-date modular capital expenditures were deployed under contracts with initial average terms exceeding 30 months.
• New modular equipment sales were below expectations because customer projects are taking longer to complete due to permitting, site-readiness, and subcontractor delays. The company lowered its full-year revenue outlook to $945 million-$960 million, although it maintained its Adjusted EBITDA midpoint.
• Portable Storage remained pressured by weak demand in smaller local commercial construction projects; rental revenue fell 3%, Adjusted EBITDA declined 20%, and utilization was 59.1%. Education demand was also weaker year to date, while management said improvement in these areas is likely to be gradual.

McGrath RentCorp Stock Performance

Shares of MGRC opened at $119.60 on Friday. McGrath RentCorp has a 52 week low of $94.99 and a 52 week high of $125.83. The firm has a market cap of $2.92 billion, a P/E ratio of 18.43, a price-to-earnings-growth ratio of 1.20 and a beta of 0.47. The firm’s 50-day simple moving average is $113.71 and its 200 day simple moving average is $113.94.

McGrath RentCorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be paid a $0.4950 dividend. The ex-dividend date is Friday, October 16th. This represents a $1.98 dividend on an annualized basis and a yield of 1.7%. McGrath RentCorp’s dividend payout ratio is 30.51%.

Insiders Place Their Bets

In other news, VP John P. Skenesky sold 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $120.41, for a total value of $240,820.00. Following the transaction, the vice president owned 10,634 shares of the company’s stock, valued at approximately $1,280,439.94. This represents a 15.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Philip Hawkins sold 4,435 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $120.91, for a total value of $536,235.85. Following the transaction, the chief executive officer owned 13,371 shares in the company, valued at approximately $1,616,687.61. This trade represents a 24.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 13,935 shares of company stock worth $1,639,856 over the last three months. Insiders own 1.40% of the company’s stock.

More McGrath RentCorp News

Here are the key news stories impacting McGrath RentCorp this week:

• Positive Sentiment: McGrath reported third-quarter revenue of $274.6 million, up 7% year over year, and adjusted earnings of $2.00 per share. EPS exceeded the $1.89 consensus estimate, while revenue also topped expectations of $273.25 million. McGrath Announces Results for Third Quarter 2026
• Positive Sentiment: Management highlighted continued demand from data-center projects, helping lift quarterly profitability. The company expects 2026 adjusted EBITDA of $365 million to $373 million and raised its gross rental-equipment capital-expenditure outlook to $270 million-$290 million, signaling investment in future rental capacity. McGrath signals 2026 adjusted EBITDA and capital expenditure outlook
• Neutral Sentiment: Sidoti’s updated estimates imply continued earnings growth: $6.38 EPS for 2026, $6.90 for 2027 and $7.25 for 2028. However, the changes were mixed, with the firm raising its 2026 estimate and Q4 2027 forecast while lowering estimates for Q4 2026, several 2027 quarters and full-year 2027.
• Negative Sentiment: McGrath forecast 2026 revenue of $945 million-$960 million, below the FactSet estimate of $963.2 million. The lower-than-expected revenue outlook, combined with higher capital spending, could raise concerns about near-term growth conversion and returns on investment. McGrath 2026 revenue outlook

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “hold (c+)” rating on shares of McGrath RentCorp in a report on Monday. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $140.00.

McGrath RentCorp Company Profile

McGrath RentCorp was a business-to-business rental company that provided modular buildings, portable storage, electronic test equipment and related products. Its modular building offerings served customers needing temporary or permanent space, including classrooms, offices, healthcare facilities and other commercial or institutional applications.

Through brands such as Mobile Modular, the company rented relocatable buildings and portable storage units, while its TRS-RenTelco business provided electronic test and measurement equipment to telecommunications, electronics, aerospace, defense and other industrial customers.