McGrath RentCorp reported total revenue of $256.8 million for the fourth quarter of 2025, a 5% year‑over‑year increase that exceeded the consensus estimate of $254.19 million and fell short of the higher estimate of $259.4 million. The 5% growth was driven primarily by a 6% rise in rental‑operations revenue, while the company’s Mobile Modular and TRS‑RenTelco divisions contributed the bulk of the earnings lift.
Net income reached $49.8 million, or $2.02 per diluted share, beating the consensus EPS estimate of $1.74 by $0.28 (a 16% beat). The earnings outperformance was largely attributable to strong performance in the Mobile Modular and TRS‑RenTelco segments, which saw adjusted EBITDA increases of 13% and 21% respectively, coupled with disciplined cost management that helped preserve margins despite modest inflationary pressures.
The company declared a quarterly dividend of $0.495 per share, a $0.01 increase from the prior year and the 35th consecutive dividend increase in its history. The dividend hike comes as President and CEO Joe Hanna announced his retirement, with COO Phil Hawkins slated to succeed him, underscoring management’s confidence in the company’s ongoing dividend policy.
McGrath RentCorp guided for fiscal 2026 revenue of $945 million to $995 million and adjusted EBITDA of $360 million to $378 million. The guidance reflects management’s belief that demand in the Mobile Modular and TRS‑RenTelco segments will continue to support growth, while acknowledging headwinds in the non‑residential construction market that could temper overall revenue momentum.
Segment‑level analysis shows that Mobile Modular’s adjusted EBITDA grew 13% year‑over‑year, driven by higher rental revenues and rental‑related services, though fleet utilization dipped slightly. TRS‑RenTelco’s EBITDA rose 21% thanks to robust demand from data‑center, aerospace/defense, and semiconductor customers. In contrast, Portable Storage experienced a 3% decline in EBITDA, reflecting intensified competition in that space. These mixed segment results illustrate the company’s ability to generate growth in high‑margin areas while managing competitive pressures in legacy lines.
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