Key Highlights

  • Consensus EPS of 1.89 compares with second-quarter diluted EPS of 1.37, against 1.46 a year earlier.
  • Consensus revenue of USD 273.25 million compares with second-quarter revenues of USD 221.1 million, against USD 235.6 million.
  • Management guided 2026 revenue of USD 955 million to USD 985 million, keeping the previous midpoint.
  • Rental operations revenue was USD 172.5 million, up 6%, while TRS-RenTelco revenue was USD 42.6 million, up 17%.

McGrath RentCorp (NASDAQ:MGRC) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.89 on revenue of USD 273.25 million, and the company has a market capitalization of USD 2.89 billion.

McGrath RentCorp rents modular buildings, portable storage and electronic test equipment through Mobile Modular, Portable Storage and TRS-RenTelco. Second-quarter revenues were USD 221,112 thousand against USD 235,616 thousand, and net income was USD 33,672 thousand against USD 35,973 thousand.

Estimates Against Second-Quarter Results and 2026 Guidance

The EPS estimate of 1.89 is above the second-quarter diluted EPS of 1.37, which compared with 1.46 a year earlier, and the estimates table does not state its EPS basis. The revenue estimate of USD 273.25 million is above the USD 221,112 thousand reported.

Management guided 2026 revenue of USD 955 million to USD 985 million, keeping the midpoint, and adjusted EBITDA of USD 363 million to USD 375 million. Gross rental equipment capital expenditures are guided at USD 200 million to USD 220 million, up from USD 180 million to USD 200 million.

What Management Guided and What It Left Open

Management said the guidance reflects TRS performance offsetting Portable Storage weakness, and that some sales shifted to the second half of the year. It put Mobile Modular inventory center costs higher by USD 2.1 million to prepare equipment for second-half shipments.

Management left open local commercial construction markets, saying challenging demand conditions kept Portable Storage utilization below the prior year. It gave no third-quarter earnings range.

Segment Revenue and Utilization Detail

Mobile Modular revenue was USD 150.4 million, down 4%, with rental revenue up 2% and sales revenue down USD 9.3 million. TRS-RenTelco revenue was USD 42.6 million, with rental margin of 48% against 44% and utilization of 68.1% against 64.8%. Portable Storage revenue was USD 23.5 million, up 1%.

Mobile Modular utilization was 70.1% against 73.7%, and average monthly rent per unit was USD 922, up 7%. Enviroplex revenue was USD 4.6 million against USD 19.9 million on project timing. Rental operations revenue was USD 172.5 million, up 6%.

Earnings Lines, Cash Flow and Leverage

Adjusted EBITDA was USD 82.8 million, down 4%. Gross profit was USD 107,907 thousand against USD 110,714 thousand, and operating income was USD 53,285 thousand against USD 57,171 thousand. Income before income taxes was USD 46,134 thousand against USD 49,457 thousand.

Net cash from operating activities was USD 106 million against USD 110 million, and funded debt to adjusted EBITDA was 1.65 to 1. The company repurchased 250,000 shares for USD 27.5 million. The quarterly dividend was 0.495 per share against 0.485. The estimates table lists a market capitalization of USD 2.89 billion.

Comparisons to Make in the Report

Reported EPS against 1.89 and revenues against USD 273.25 million are the headline comparisons. Other markers are TRS-RenTelco demand, Portable Storage utilization and the guidance ranges.