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Jun 30, 2025
McGrath RentCorp Q2 2025 Earnings Report
McGrath RentCorp reported an 11% increase in total revenues and a significant rise in net income for the second quarter of 2025, driven by strong performance in rental operations and sales.
Key Takeaways
McGrath RentCorp delivered a strong second quarter in 2025, with total revenues climbing 11% year-over-year to $235.6 million. Net income saw a substantial increase to $36.0 million, or $1.46 per diluted share, up from $20.6 million in the prior year, reflecting robust growth in both rental operations and sales, despite some challenging market conditions in certain segments.
Total revenues increased by 11% to $235.6 million in Q2 2025 compared to Q2 2024, driven by higher rental operations and sales revenues.
Net income significantly rose to $36.0 million ($1.46 per diluted share) in Q2 2025, up from $20.6 million ($0.84 per diluted share) in the same period last year.
Mobile Modular rental revenues increased 5% year-over-year, while TRS-RenTelco rental revenues grew 7%, indicating strong performance in these key divisions.
Portable Storage rental revenues decreased 5% from the prior year, although showing sequential improvement from Q1, reflecting ongoing challenges in commercial construction.
Revenue by Segment
Forward Guidance
For the full-year 2025, McGrath RentCorp has updated its financial outlook, slightly increasing the lower end of its total revenue guidance and narrowing its Adjusted EBITDA guidance range.
Positive Outlook
- Total revenue guidance for full-year 2025 increased to $925 million to $960 million (previously $920 million to $960 million).
- Adjusted EBITDA guidance for full-year 2025 narrowed to $347 million to $356 million (previously $343 million to $355 million), indicating increased confidence.
- The company's outlook is incrementally more positive as it enters the second half of the year.
- Continued focus on disciplined operational execution to capitalize on market opportunities.
- Demand conditions in Portable Storage showed some improvement compared to the first quarter.
Challenges Ahead
- Softer market demand conditions for modular rentals compared to a year ago.
- Reduced new equipment capital spending due to current utilization levels, impacting future fleet growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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