McGrath Rentcorp (MGRC)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$951.0M

Revenue growth

2.1%

Net income, last twelve months

$159.3M

Earnings per share

$6.49

Gross margin

48.8%

Operating margin

25.7%

Net margin

16.8%

Free cash flow

$209.8M

Return on equity

12.5%

Market value

$2.9B

Price to earnings

18.2x

Dividend yield

1.7%

Cash

$1.0M

Debt

$618.3M

Debt to equity

0.48

Shares outstanding

24.4M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 29 July 2026.

• Revenue fell 6% year on year. Total revenues were $221.1 million, down 6% from $235.6 million in the second quarter of 2025.
• Rental revenue grew while sales fell. Rental operations revenues rose 6% to $172.5 million, while sales revenues fell 34% to $46.4 million.
• Net income and EPS declined. Net income was $33.7 million, or $1.37 per diluted share, against $36.0 million, or $1.46. The company attributed the decline mainly to lower gross profit on sales.
• Operating income and Adjusted EBITDA fell. Income from operations fell 7% to $53.3 million. Adjusted EBITDA fell 4% to $82.8 million, with a 37% margin in both periods.
• Mobile Modular rental revenue up 2%. Mobile Modular rental revenues rose 2% to $81.9 million, and rental related services rose 8% to $34.8 million. Division Adjusted EBITDA fell 4% to $50.7 million.
• Mobile Modular sales fell 23%. Mobile Modular sales fell 23% to $31.2 million on lower new equipment sales. Gross margin on those sales was 36%, against 32% a year earlier.
• TRS-RenTelco rental revenue up 17%. TRS-RenTelco rental revenues rose 17% to $31.8 million, and Adjusted EBITDA rose 29% to $25.0 million. Management said the business benefited from data center buildout projects.
• Portable Storage rental flat, earnings down. Portable Storage rental revenues were flat at $16.9 million, and Adjusted EBITDA fell 23% to $7.6 million. Selling and administrative expenses rose 12%.
• Enviroplex sales dropped sharply. Enviroplex sales were $4.6 million, against $19.9 million a year earlier. Its Adjusted EBITDA was a loss of $0.5 million.
• Sales projects shifted to second half. Delays caused several new sales projects to shift into the second half of the year, lowering second-quarter sales at Enviroplex and Mobile Modular.
• Shipments exceeded returns monthly. Shipments exceeded returns in every month of the quarter, and average Mobile Modular utilization improved slightly from the first quarter.
• Large commercial projects drove momentum. Management cited positive business momentum, particularly with large commercial projects and progress with regional expansion efforts.
• Preparation, trucking and sales costs rose. Management said higher equipment preparation, trucking and sales coverage costs continued to pressure margins during the quarter.
• Mobile Modular direct costs rose 9%. Other direct costs of Mobile Modular rental rose 9% to $26.1 million, while its selling and administrative expenses rose 2% to $37.4 million.

Revenue by segment

As the company reports it in the segment note of its annual report.

By business, FY2025

By product, FY2025

Company events

The newest 8-K filings of 170 held.

Every filing

The newest filings with the SEC of 439 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

297 funds held it at 30 Jun 2026: 156 added and 67 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• United Rentals, Inc. (URI): revenue $17.5B, market value $72.9B
• Sunbelt Rentals Holdings, Inc. (SUNB): revenue –, market value $34.0B
• AerCap Holdings N.V. (AER): revenue $8.5B, market value $24.4B
• Custom Truck One Source, Inc. (CTOS): revenue $2.0B, market value $2.4B
• Prog Holdings, Inc. (PRG): revenue –, market value $1.2B
• Upbound Group, Inc. (UPBD): revenue $4.7B, market value $987.6M

What the company does

McGrath RentCorp is a California corporation organized in 1979, with corporate offices in Livermore, California. It describes itself as a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers and electronic test equipment. Its primary emphasis is equipment rentals, and it also sells equipment in the normal course of business. At 31 December 2025 it had 1,306 employees and four reportable segments. Its common stock trades on the NASDAQ Global Select Market under the symbol MGRC.

How the business is organised

The four reportable segments are Mobile Modular (modular buildings), Portable Storage (storage containers), TRS-RenTelco (electronic test equipment) and Enviroplex, which manufactures modular buildings used mainly as classrooms in California. In 2025 they contributed 66%, 12%, 16% and 6% respectively of pre-tax income from continuing operations. Over the past three years, modulars, storage containers and electronic test equipment made up about 68%, 14% and 18% of rental operations revenues. The segments share senior management and back-office functions for financing, human resources, insurance, marketing, information technology and accounting systems.

How it makes money

The company buys rental equipment and recovers its cost through rents and, later, through sales of used equipment. Rental and rental related services made up approximately 70% of total revenues in 2025. Sales and other revenues made up approximately 30%. Rental revenue is recognised on a straight-line basis over the lease term. Sales revenue is recognised when equipment is delivered and installed.

The company says its products last long relative to the rental term. Modulars have an estimated life of eighteen years against a typical rental term of twelve to twenty-four months. Containers have an estimated life of twenty-five years against three to twelve months. Test equipment has an estimated life of one to eight years against one to six months. The company says the original investment is recovered in approximately four years for modulars, and approximately three years each for containers and test equipment.

Modular buildings

Mobile Modular rents modulars for classrooms, temporary offices, construction field offices, restroom buildings, health care clinics and child care facilities. It buys new units from various manufacturers who build to its design specifications, and in 2025 it bought 27% of its new units from one manufacturer. At 31 December 2025 it owned 41,722 modulars, and fleet utilization was 70.7%. Units are serviced at regional sales and inventory centers that handle repair, modification and refurbishment. Customers arrange permits, insurance, transport, site preparation and installation.

Schools are the largest market. Mobile Modular rents and sells classrooms in California, Florida, Georgia, Louisiana, Maryland, North Carolina, the Pacific Northwest, South Carolina, Texas, Virginia and Washington, D.C. Enviroplex builds portable classrooms to the requirements of the California Division of the State Architect and sells them directly to California public school districts and other educational institutions. Most classrooms ship in the second and third quarters, ahead of the school year.

Portable storage containers

Portable Storage rents steel storage containers, which are 8 feet wide and from 8 to 53 feet long, with 20-foot and 40-foot units the most common. It also rents office containers, often called ground level offices. At 31 December 2025 it owned 42,262 containers, with utilization of 59.0%. Rentals usually run one to twelve months, at monthly rates typically between 2% and 4% of original acquisition cost. Containers are depreciated over 25 years to a 62.5% residual value. The company serves customers in construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education and healthcare, through branches covering the West, Pacific Northwest, Northeast, Mid-Atlantic, Southeast and Midwest.

Electronic test equipment

TRS-RenTelco rents and sells general purpose and communications test equipment to companies in the aerospace, defense, communications, manufacturing and semiconductor industries. It operates from Grapevine, Texas, which houses the inventory and calibration laboratories, and from Dollard-des-Ormeaux, Canada, which serves the Canadian market. Original cost of inventory at 31 December 2025 was 78% general purpose and 22% communications equipment. Keysight Technologies, Rhode & Schwarz and Tektronix made most of the general purpose equipment, and the rest came from over 60 other manufacturers.

Rentals typically run one to six months at monthly rates between 2% and 10% of the manufacturers' list price. Equipment is depreciated over 1 to 8 years with no residual value. Utilization was 63.2% at year end, and about 22% of the division's 2025 revenues came from equipment sales. Its calibration laboratory is ISO 9001-2015 registered, and customer care specialists support customers 24 hours a day, 7 days a week.

Competition and people

Some competitors are larger or have greater financial resources, and local firms may have a stronger presence in their areas. Competition turns on availability, price, service, reliability and product quality.

Of the 1,306 employees, 148 are administrative and executive personnel. Operations staff number 725 at Mobile Modular, 206 at Portable Storage, 131 at TRS-RenTelco and 96 at Enviroplex. None are covered by a collective bargaining agreement. The company offers training and a tuition reimbursement program. It is subject to environmental, transportation, anti-corruption, health and safety and other laws, and says compliance costs are not material.

*From McGrath RentCorp's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/752714/000119312526071463/mgrc-20251231.htm)*

From the company's 10-K.