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Sep 30, 2025
McGrath RentCorp Q3 2025 Earnings Report
Delivered steady rental revenue growth across all segments despite lower overall sales revenue.
Key Takeaways
McGrath RentCorp reported total revenue of $256.4 million for Q3 2025, down 4% year-over-year due to lower sales revenue, but with rental operations growing 4% to $178.1 million. Net income was $42.3 million, or $1.72 per diluted share, and Adjusted EBITDA was $96.5 million. All three major segments—Mobile Modular, Portable Storage, and TRS-RenTelco—posted rental growth.
Total revenue decreased 4% to $256.4 million due to lower sales activity.
Rental operations revenue rose 4% to $178.1 million, showing strength across segments.
Adjusted EBITDA decreased 7% year-over-year to $96.5 million.
Net income was $42.3 million, or $1.72 per diluted share.
Revenue by Segment
Forward Guidance
For FY2025, McGrath raised its total revenue outlook to $935–$955 million and expects Adjusted EBITDA between $350 million and $357 million, supported by stable rental growth and disciplined capital spending.
Positive Outlook
- Raised full-year revenue guidance to $935–$955 million.
- Raised Adjusted EBITDA guidance to $350–$357 million.
- Strong rental demand in all segments, especially TRS-RenTelco.
- Improving market conditions in Portable Storage.
- Ongoing efficiency gains and cost control.
Challenges Ahead
- Lower sales revenue impacted total revenue growth.
- Rising operating costs due to higher labor and material expenses.
- Slight margin compression in Modular and Storage divisions.
- Challenging market demand conditions in certain regions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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