McGrath Reports Q4 Revenue of $256.8M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy MGRC?
Reports Q4 revenue $256.8M, consensus $254.32M. Joe Hanna, President and CEO of McGrath, made the following comments: "We were pleased with our strong fourth quarter results. The 5% increase in companywide revenues and 14% increase in Adjusted EBITDA were driven by Mobile Modular and TRS-RenTelco. Modular rental revenues increased 2% compared to last year, with growth driven by our commercial customer base. We continued to make progress with our long-term modular growth initiatives, Mobile Modular Plus and Site Related Services, and broadening our geographic coverage. Used equipment sales and Site Related Services contributed to higher gross profit for the quarter. Portable Storage rental revenues grew 3%, benefiting from some incremental seasonal retail business. Commercial construction project activity remained soft, but we are hopeful that market demand conditions for this segment are showing signs of stabilization. TRS-RenTelco had an impressive quarter, as improved market conditions supported rental revenue growth of 13% over last year and strong used equipment sales. Demand was robust throughout the quarter, with a very modest seasonal slowdown at year end. I appreciate the deep commitment, engagement and execution from our McGrath team members to deliver solid results for the year despite challenging non-residential construction demand conditions faced by our Modular and Portable Storage businesses. These results demonstrate the resilience of our people and our strategy. I am encouraged by our start to 2026 and confident that our teams are very focused on building on last year's progress."
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Analyst Views on MGRC
Wall Street analysts forecast MGRC stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 114.640
Low
143.00
Averages
143.00
High
143.00
Current: 114.640
Low
143.00
Averages
143.00
High
143.00
About MGRC
McGrath RentCorp is a business-to-business rental company in North America. The Company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. Mobile Modular segment provides modular buildings in the United States. It provides prefabricated customizable modular buildings, mobile office trailers, portable classrooms, portable sales office buildings, prefab restrooms and more for rent, lease and sale. Portable Storage segment’s rental inventory is comprised of steel containers, which are used to provide a temporary storage solution that is delivered to the customer’s location. TRS-RenTelco segment rents and sells general purpose and communications test equipment. TRS-RenTelco segment’s general purpose test equipment rental inventory includes oscilloscopes, amplifiers, analyzers (spectrum, network and logic), signal source and power source test equipment. Enviroplex segment manufactures modular buildings used primarily as classrooms in California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
McGrath RentCorp Q1 2026 Earnings Call Insights
- Revenue Growth: McGrath RentCorp reported a 2% year-over-year increase in total revenues to $199 million in Q1 2026, despite a 1% decline in adjusted EBITDA to $74 million, demonstrating resilience in challenging market conditions.
- Rental Revenue Performance: Mobile Modular's rental revenues grew by 4%, while TRS saw a significant 13% increase, indicating strong performance in commercial market segments, particularly in supporting data center construction projects.
- Cost Pressures: Inventory center costs rose by $3.2 million, compressing rental margins from 60% last year to 56%, reflecting challenges in managing high operating costs that may impact future profitability.
- Future Outlook: The company maintains its full-year revenue guidance between $945 million and $995 million, although geopolitical developments in the Middle East and rising energy prices may introduce uncertainties affecting project timelines, with management remaining cautiously optimistic about market prospects.
See More
McGrath (MGRC) Q1 2026 Earnings Transcript
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McGrath RentCorp Q1 Earnings Analysis
- Earnings Performance: McGrath RentCorp reported Q1 GAAP EPS of $1.10, missing expectations by $0.01, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $198.5 million, reflecting a 1.6% year-over-year increase and beating market expectations by $0.31 million, suggesting a resilient business performance despite challenges.
- Future Outlook: McGrath RentCorp has set a revenue target of $945 million to $995 million for 2026, demonstrating confidence in future growth, particularly driven by CEO succession and modular expansion strategies.
- Market Reaction: Despite the revenue beat, the earnings miss may put short-term pressure on the stock price, prompting investors to closely monitor the company's strategic execution and market adaptability.
See More
McGrath RentCorp to Announce Q1 Earnings on April 29
- Earnings Announcement Schedule: McGrath RentCorp is set to release its Q1 2023 earnings on April 29 after market close, with consensus EPS estimate at $1.13, reflecting a 1.7% year-over-year decline, and revenue estimate at $198.19 million, indicating a 1.4% year-over-year increase.
- Historical Performance Review: Over the past year, McGrath RentCorp has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating its stable profitability and market performance.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward revisions, while revenue estimates have had no upward revisions and one downward revision, indicating a cautious market outlook on the company's future performance.
- Future Outlook: McGrath RentCorp has set a revenue target of $945 million to $995 million for 2026, highlighting the strategic focus on CEO succession and modular expansion, and despite recent stock price declines, the company remains considered attractive.
See More
McGrath RentCorp Announces Q1 2026 Financial Results Release Plans
- Earnings Release Plan: McGrath RentCorp plans to release its Q1 2026 financial results after market close on April 29, 2026, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 5:00 PM ET on April 29, 2026, to discuss the financial results, which is expected to attract significant attention from investors and analysts, thereby enhancing market confidence.
- Sustainability Commitment: McGrath RentCorp's rental products and services are part of the circular supply economy, helping customers work more efficiently and sustainably manage their environmental footprint, reflecting the company's strategic positioning in environmental stewardship.
- Shareholder Return History: Since its founding in 1979, the company has increased dividends for 35 consecutive years, showcasing its strong financial stability and commitment to shareholders, further solidifying its rare standing among publicly listed companies.
See More
River Road Acquires New Position in AptarGroup with 917,670 Shares
- New Investment Position: River Road Asset Management disclosed in an SEC filing dated February 24, 2026, that it acquired 917,670 shares of AptarGroup (NYSE:ATR) valued at $111.92 million, marking a new investment position that reflects confidence in the company's future growth potential.
- Asset Management Proportion: This acquisition represents 1.23% of River Road's 13F reportable assets under management as of December 31, 2025, highlighting the significance of AptarGroup within its diversified investment portfolio.
- Financial Performance: AptarGroup reported a 14% year-over-year sales increase in its fourth-quarter report for 2025, with all core segments showing growth, and it has increased dividends for 32 consecutive years, currently yielding 1.29%, indicating strong financial health.
- Sustainability Commitment: AptarGroup is committed to sourcing 100% of its electricity needs from renewable resources by 2030, aligning with the Science Based Targets Initiative, which attracts environmentally conscious investors, and it is expected that its pharma segment will continue to grow robustly, particularly in injectables and consumer healthcare solutions.
See More
McGrath RentCorp Q1 2026 Earnings Call Insights
- Revenue Growth: McGrath RentCorp reported a 2% year-over-year increase in total revenues to $199 million in Q1 2026, despite a 1% decline in adjusted EBITDA to $74 million, demonstrating resilience in challenging market conditions.
- Rental Revenue Performance: Mobile Modular's rental revenues grew by 4%, while TRS saw a significant 13% increase, indicating strong performance in commercial market segments, particularly in supporting data center construction projects.
- Cost Pressures: Inventory center costs rose by $3.2 million, compressing rental margins from 60% last year to 56%, reflecting challenges in managing high operating costs that may impact future profitability.
- Future Outlook: The company maintains its full-year revenue guidance between $945 million and $995 million, although geopolitical developments in the Middle East and rising energy prices may introduce uncertainties affecting project timelines, with management remaining cautiously optimistic about market prospects.
See More
McGrath (MGRC) Q1 2026 Earnings Transcript
See More
McGrath RentCorp Q1 Earnings Analysis
- Earnings Performance: McGrath RentCorp reported Q1 GAAP EPS of $1.10, missing expectations by $0.01, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $198.5 million, reflecting a 1.6% year-over-year increase and beating market expectations by $0.31 million, suggesting a resilient business performance despite challenges.
- Future Outlook: McGrath RentCorp has set a revenue target of $945 million to $995 million for 2026, demonstrating confidence in future growth, particularly driven by CEO succession and modular expansion strategies.
- Market Reaction: Despite the revenue beat, the earnings miss may put short-term pressure on the stock price, prompting investors to closely monitor the company's strategic execution and market adaptability.
See More
McGrath RentCorp to Announce Q1 Earnings on April 29
- Earnings Announcement Schedule: McGrath RentCorp is set to release its Q1 2023 earnings on April 29 after market close, with consensus EPS estimate at $1.13, reflecting a 1.7% year-over-year decline, and revenue estimate at $198.19 million, indicating a 1.4% year-over-year increase.
- Historical Performance Review: Over the past year, McGrath RentCorp has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating its stable profitability and market performance.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and two downward revisions, while revenue estimates have had no upward revisions and one downward revision, indicating a cautious market outlook on the company's future performance.
- Future Outlook: McGrath RentCorp has set a revenue target of $945 million to $995 million for 2026, highlighting the strategic focus on CEO succession and modular expansion, and despite recent stock price declines, the company remains considered attractive.
See More
McGrath RentCorp Announces Q1 2026 Financial Results Release Plans
- Earnings Release Plan: McGrath RentCorp plans to release its Q1 2026 financial results after market close on April 29, 2026, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 5:00 PM ET on April 29, 2026, to discuss the financial results, which is expected to attract significant attention from investors and analysts, thereby enhancing market confidence.
- Sustainability Commitment: McGrath RentCorp's rental products and services are part of the circular supply economy, helping customers work more efficiently and sustainably manage their environmental footprint, reflecting the company's strategic positioning in environmental stewardship.
- Shareholder Return History: Since its founding in 1979, the company has increased dividends for 35 consecutive years, showcasing its strong financial stability and commitment to shareholders, further solidifying its rare standing among publicly listed companies.
See More
River Road Acquires New Position in AptarGroup with 917,670 Shares
- New Investment Position: River Road Asset Management disclosed in an SEC filing dated February 24, 2026, that it acquired 917,670 shares of AptarGroup (NYSE:ATR) valued at $111.92 million, marking a new investment position that reflects confidence in the company's future growth potential.
- Asset Management Proportion: This acquisition represents 1.23% of River Road's 13F reportable assets under management as of December 31, 2025, highlighting the significance of AptarGroup within its diversified investment portfolio.
- Financial Performance: AptarGroup reported a 14% year-over-year sales increase in its fourth-quarter report for 2025, with all core segments showing growth, and it has increased dividends for 32 consecutive years, currently yielding 1.29%, indicating strong financial health.
- Sustainability Commitment: AptarGroup is committed to sourcing 100% of its electricity needs from renewable resources by 2030, aligning with the Science Based Targets Initiative, which attracts environmentally conscious investors, and it is expected that its pharma segment will continue to grow robustly, particularly in injectables and consumer healthcare solutions.
See More
