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Jun 30
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.
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
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.
- Increased operating expenses for the quarter due to focus on preparing available fleet for new shipments.
- Lower commercial construction project activity continued to make demand conditions challenging for Portable Storage.
- Ongoing economic uncertainty despite positive signs in the overall demand environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income