0001193125-26-191428
SEC filingMcGrath RentCorp reported Q1 2026 total revenues of $198.5 million, up 2% year-over-year, with net income of $27.0 million or $1.10 diluted EPS, down from $28.2 million or $1.15 last year.
McGrath RentCorp's Q1 2026 results showed modest top-line growth with total revenues up 2% to $198.5 million, primarily from a 5% rise in rental operations to $162.2 million, offsetting a 13% drop in sales to $34.0 million. Rental strength was evident across segments: Mobile Modular rental revenues grew 4% to $81.4 million amid commercial demand and initiatives like Mobile Modular Plus, though higher preparation costs (up 15%) pressured gross profit down 3%. Portable Storage rentals edged up 1% to $16.3 million despite soft construction, but costs surged 38%, compressing margins. TRS-RenTelco excelled with 13% rental growth to $28.9 million, fueled by data center buildouts, boosting Adjusted EBITDA 16% to $20.9 million. Overall, income from operations fell 5% to $43.4 million due to elevated selling and administrative expenses (up 5% to $53.5 million) and cost pressures. Adjusted EBITDA dipped 1% to $74.1 million. CEO Phil Hawkins highlighted steady progress and rental growth despite market challenges, noting potential macro uncertainties but focus on execution. The company reaffirmed FY2026 guidance for $945-995 million revenue and $360-378 million Adjusted EBITDA, signaling confidence. Balance sheet remains solid with rental equipment net at $1.44 billion, supporting $180-200 million capex plans. Dividend raised to $0.495 per share continues 35-year streak.