McGrath Reports Q4 Revenue of $256.8M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy MGRC?
Reports Q4 revenue $256.8M, consensus $254.32M. Joe Hanna, President and CEO of McGrath, made the following comments: "We were pleased with our strong fourth quarter results. The 5% increase in companywide revenues and 14% increase in Adjusted EBITDA were driven by Mobile Modular and TRS-RenTelco. Modular rental revenues increased 2% compared to last year, with growth driven by our commercial customer base. We continued to make progress with our long-term modular growth initiatives, Mobile Modular Plus and Site Related Services, and broadening our geographic coverage. Used equipment sales and Site Related Services contributed to higher gross profit for the quarter. Portable Storage rental revenues grew 3%, benefiting from some incremental seasonal retail business. Commercial construction project activity remained soft, but we are hopeful that market demand conditions for this segment are showing signs of stabilization. TRS-RenTelco had an impressive quarter, as improved market conditions supported rental revenue growth of 13% over last year and strong used equipment sales. Demand was robust throughout the quarter, with a very modest seasonal slowdown at year end. I appreciate the deep commitment, engagement and execution from our McGrath team members to deliver solid results for the year despite challenging non-residential construction demand conditions faced by our Modular and Portable Storage businesses. These results demonstrate the resilience of our people and our strategy. I am encouraged by our start to 2026 and confident that our teams are very focused on building on last year's progress."
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Analyst Views on MGRC
Wall Street analysts forecast MGRC stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 110.950
Low
143.00
Averages
143.00
High
143.00
Current: 110.950
Low
143.00
Averages
143.00
High
143.00
About MGRC
McGrath RentCorp is a business-to-business rental company in North America. The Company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. Mobile Modular segment provides modular buildings in the United States. It provides prefabricated customizable modular buildings, mobile office trailers, portable classrooms, portable sales office buildings, prefab restrooms and more for rent, lease and sale. Portable Storage segment’s rental inventory is comprised of steel containers, which are used to provide a temporary storage solution that is delivered to the customer’s location. TRS-RenTelco segment rents and sells general purpose and communications test equipment. TRS-RenTelco segment’s general purpose test equipment rental inventory includes oscilloscopes, amplifiers, analyzers (spectrum, network and logic), signal source and power source test equipment. Enviroplex segment manufactures modular buildings used primarily as classrooms in California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Financial Performance: AptarGroup reported a 14% year-over-year sales increase in its fourth-quarter report for 2025, with all core segments showing growth, and it has increased dividends for 32 consecutive years, currently yielding 1.29%, indicating strong financial health.
- Sustainability Commitment: AptarGroup is committed to sourcing 100% of its electricity needs from renewable resources by 2030, aligning with the Science Based Targets Initiative, which attracts environmentally conscious investors, and it is expected that its pharma segment will continue to grow robustly, particularly in injectables and consumer healthcare solutions.
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- Dividend Increase: McGrath RentCorp has declared a quarterly dividend of $0.495 per share, representing a 2.1% increase from the previous dividend of $0.485, indicating the company's ongoing improvement in cash flow and profitability.
- Yield Metrics: The forward yield of this dividend stands at 1.7%, reflecting the company's commitment to shareholder returns while providing investors with a relatively stable income source amidst market fluctuations.
- Payment Details: The dividend is payable on April 30, with a record date of April 16 and an ex-dividend date also set for April 16, ensuring that shareholders receive their earnings in a timely manner.
- Market Implications: This dividend increase is likely to boost investor confidence in McGrath RentCorp, potentially driving its stock price higher and attracting more income-seeking investors to the company.
See More
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- Strong Earnings Performance: McGrath RentCorp reported a Q4 GAAP EPS of $2.02, beating expectations by $0.28, indicating robust profitability in the current market.
- Steady Revenue Growth: The company achieved Q4 revenue of $256.76 million, a 5.4% year-over-year increase, surpassing market expectations by $2.44 million, demonstrating sustained business momentum.
- Positive 2026 Outlook: McGrath RentCorp anticipates total revenue for 2026 to be between $945 million and $995 million, reflecting growth compared to $944 million in 2025, showcasing management's confidence in future market conditions.
- Increased Capital Expenditure Plans: The company expects capital expenditures for rental equipment in 2026 to range from $180 million to $200 million, significantly up from $143 million in 2025, indicating a commitment to investing in business expansion.
See More
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- Revenue Expectations: The anticipated revenue for Q4 is $254.32 million, representing a 4.4% year-over-year increase, which highlights the company's stable demand and market share growth in the rental industry.
- Performance Consistency: Over the past year, MGRC has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating the company's consistent financial performance and market confidence.
- Industry Conference Participation: MGRC will also present at the Barclays 43rd Annual Industrial Select Conference, further enhancing its visibility and influence among investors in the industry.
See More
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See More
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