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McGrath RentCorp Q1 2025 Earnings Report
McGrath RentCorp reported solid first quarter results with increased total revenues, net income, and EPS.
Key Takeaways
McGrath RentCorp announced total revenues of $195.4 million for the first quarter of 2025, a 4% increase from the prior year. Net income rose to $28.2 million, or $1.15 per diluted share, up from $22.8 million, or $0.93 per diluted share, in the first quarter of 2024. Adjusted EBITDA increased 3% to $74.5 million.
Total revenues increased 4% to $195.4 million compared to the first quarter of 2024.
Net income for the first quarter of 2025 was $28.2 million, up from $22.8 million in the same period last year.
Diluted EPS increased to $1.15 from $0.93 in the first quarter of 2024.
Adjusted EBITDA grew 3% to $74.5 million, reflecting solid operational performance.
McGrath RentCorp
McGrath RentCorp
McGrath RentCorp Revenue by Segment
Revenue by Segment
Mobile Modular Revenue
CapyFin.comPortable Storage Revenue
CapyFin.comTRS-RenTelco Revenue
CapyFin.comEnviroplex Revenue
CapyFin.com Forward Guidance
McGrath RentCorp is updating its financial outlook for the full-year 2025, expecting total revenue between $920 million and $960 million, Adjusted EBITDA between $343 million and $355 million, and gross rental equipment capital expenditures between $115 million and $125 million.
Positive Outlook
- Solid first quarter results with growth in rental operations and sales revenues.
- Modular business was a key contributor to overall company performance.
- Growth in Mobile Modular Plus and Site Related Services initiatives.
- Strong quarter for new modular sales in the education market for Enviroplex.
- TRS-RenTelco had a positive start to the year with slight year-over-year rental revenue increase.
Challenges Ahead
- Softer market demand conditions than a year ago for modular business.
- Weak demand conditions in Portable Storage, resulting in 13% lower rental revenues.
- Weaker demand in Portable Storage was broad-based across regions.
- Lower commercial construction project activity impacted Portable Storage.
- General economic uncertainty and recent tariff actions lead to a more cautious business outlook for the second half of the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income