McGrath RentCorp (NASDAQ:MGRC) Announces Earnings Results

Posted by Brenda Bartman on Jul 31st, 2026

McGrath RentCorp (NASDAQ:MGRC – Get Free Report) issued its earnings results on Wednesday. The financial services provider reported $1.37 EPS for the quarter, missing the consensus estimate of $1.47 by ($0.10), FiscalAI reports. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.49%. The firm had revenue of $221.11 million during the quarter, compared to analyst estimates of $236.51 million.

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

Rental operations revenue increased 6% year over year, led by Mobile Modular and TRS-RenTelco. Mobile Modular utilization improved sequentially for the first time since 2022, while units on rent rose for four consecutive months.
TRS-RenTelco remained a major growth driver, with rental revenue up 17%, adjusted EBITDA up 29%, utilization reaching 68.9%, and strong demand from data centers, aerospace and defense, and semiconductor customers. The company raised planned rental-equipment CapEx to support continued growth.
Total revenue fell 6% to $221 million and adjusted EBITDA declined 4% to $83 million, primarily because lower Mobile Modular and Enviroplex sales offset rental growth. Enviroplex revenue dropped to $4.6 million from $19.9 million due to project completions shifting into the second half.
Portable Storage continued to face weak demand in smaller local commercial construction markets, with flat rental revenue, utilization declining to 58.3%, and adjusted EBITDA down 23%. Management does not expect a meaningful non-residential construction recovery this year.
The company maintained the midpoints of its 2026 revenue and adjusted EBITDA outlook, now forecasting revenue of $955 million to $985 million and adjusted EBITDA of $363 million to $375 million. Gross rental-equipment CapEx increased to $200 million to $220 million, while net leverage remained moderate at 1.65 times adjusted EBITDA.

McGrath RentCorp Stock Performance

McGrath RentCorp stock opened at $115.66 on Friday. The business’s fifty day moving average is $115.56 and its two-hundred day moving average is $113.40. The firm has a market cap of $2.84 billion, a P/E ratio of 18.68, a P/E/G ratio of 1.19 and a beta of 0.43. McGrath RentCorp has a 52 week low of $94.99 and a 52 week high of $127.68.

McGrath RentCorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be paid a $0.495 dividend. The ex-dividend date of this dividend is Friday, July 17th. This represents a $1.98 dividend on an annualized basis and a yield of 1.7%. McGrath RentCorp’s payout ratio is currently 31.88%.

Analysts Set New Price Targets

Separately, Weiss Ratings raised shares of McGrath RentCorp from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, McGrath RentCorp has a consensus rating of “Moderate Buy” and a consensus price target of $141.50.

Check Out Our Latest Stock Report on McGrath RentCorp

Key Headlines Impacting McGrath RentCorp

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

Positive Sentiment: Rental operations revenue increased 6% year over year to $172.5 million in the second quarter, while TRS-RenTelco rental revenue rose 17% to $31.8 million. Management also raised planned gross rental capital expenditures to $200 million-$220 million, signaling continued investment in fleet growth. McGrath outlines 2026 revenue guidance and rental capital expenditures
Positive Sentiment: Sidoti raised its estimates for third-quarter and fourth-quarter 2026 EPS to $1.85 and $2.00, respectively, from $1.79 and $1.94. Its FY2026 EPS forecast also increased to $6.32 from $6.29, keeping estimates close to the $6.35 consensus. McGrath RentCorp analyst estimates
Positive Sentiment: Despite some quarterly reductions, Sidoti still projects FY2027 EPS of $7.01, indicating expected earnings growth from its FY2026 estimate and providing a longer-term earnings-growth narrative. McGrath RentCorp FY2027 estimates
Neutral Sentiment: Management’s 2026 revenue outlook is $955 million-$985 million, compared with the $967.3 million analyst consensus. The range is broad but includes consensus, while the company forecast adjusted EBITDA of $363 million-$375 million. McGrath Announces Results for Second Quarter 2026
Negative Sentiment: Second-quarter EPS of $1.37 missed the $1.47 consensus, and revenue of $221.1 million fell 6% year over year and missed expectations of approximately $236.5 million. Net income declined to $33.7 million from $36.0 million, while sales revenue dropped 34% to $46.4 million. McGrath misses second-quarter earnings and revenue estimates
Negative Sentiment: Sidoti reduced its Q1 2027 EPS estimate to $1.17 from $1.18, Q2 2027 to $1.63 from $1.81, and FY2027 to $7.01 from $7.07, suggesting some pressure on longer-term earnings expectations. McGrath RentCorp earnings call highlights

Insider Buying and Selling

In other news, CAO David M. Whitney sold 3,783 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $113.65, for a total value of $429,937.95. Following the completion of the sale, the chief accounting officer directly owned 6,533 shares in the company, valued at approximately $742,475.45. This trade represents a 36.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Joseph F. Hanna sold 7,500 shares of McGrath RentCorp stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $120.64, for a total value of $904,800.00. Following the completion of the transaction, the director directly owned 151,549 shares of the company’s stock, valued at $18,282,871.36. This represents a 4.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,051 shares of company stock valued at $3,486,240 in the last 90 days. 1.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McGrath RentCorp

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. boosted its position in McGrath RentCorp by 0.7% during the second quarter. American Century Companies Inc. now owns 12,263 shares of the financial services provider’s stock worth $1,422,000 after purchasing an additional 85 shares during the period. California State Teachers Retirement System raised its position in shares of McGrath RentCorp by 0.5% in the second quarter. California State Teachers Retirement System now owns 22,696 shares of the financial services provider’s stock valued at $2,632,000 after purchasing an additional 119 shares during the period. Neuberger Berman Group LLC lifted its stake in shares of McGrath RentCorp by 6.9% during the 4th quarter. Neuberger Berman Group LLC now owns 1,948 shares of the financial services provider’s stock worth $204,000 after buying an additional 126 shares during the last quarter. Osaic Holdings Inc. lifted its stake in shares of McGrath RentCorp by 1.0% during the 4th quarter. Osaic Holdings Inc. now owns 15,596 shares of the financial services provider’s stock worth $1,636,000 after buying an additional 149 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of McGrath RentCorp by 0.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 66,748 shares of the financial services provider’s stock worth $7,004,000 after buying an additional 175 shares during the period. Institutional investors and hedge funds own 92.05% of the company’s stock.

About McGrath RentCorp

(Get Free Report)

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.