Business
McGrath RentCorp Announces Results for First Quarter 2026
McGrath RentCorp Announces Results for First Quarter
About this update from Mcgrath Rentcorp
LIVERMORE - McGrath RentCorp ('McGrath' or the 'Company') (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced total revenues for the quarter ended March 31, 2026 of $198.5 million, an increase of 2% compared to the first quarter of 2025. The Company reported net income of $27.0 million, or $1.10 per diluted share, for the first quarter of 2026, compared to net income of $28.2 million, or $1.15 per diluted share, for the first quarter of 2025. FIRST QUARTER 2026 YEAR-OVER-YEAR COMPANY HIGHLIGHTS: Rental operations revenues increased 5% to $162.2 million. Sales revenues decreased 13% to $34.0 million. Total revenues increased 2% to $198.5 million. Income from operations decreased 5% to $43.4 million. Adjusted EBITDA1 decreased 1% to $74.1 million. Dividend rate of $0.495 per share for the first quarter 2026. On an annualized basis, this dividend represents a 1.6% yield on the April 28, 2026 close price of $120.04 per share.Phil Hawkins, President and CEO of McGrath, made the following comments: 'We made steady progress in the first quarter, with rental revenue growth in each of our operating segments, despite some challenging market demand conditions. Sales revenues for the quarter were lower than a year ago, primarily due to lower sales at Enviroplex compared to a strong first quarter last year. Modular rental revenues increased 4% compared to last year, with growth from our commercial customer base. We continued to make progress with our long-term modular growth initiatives, Mobile Modular Plus and Site Related Services, and with broadening our geographic coverage. Operating expenses increased as we prepared available fleet to satisfy new shipments. Portable Storage rental revenues grew 1%, which was encouraging as commercial construction project activity remained soft. However, higher costs for equipment preparation and sales coverage compressed margins in the quarter. TRS-RenTelco had an impressive start to the year, as improved market conditions supported 13% rental revenue growth. Demand was robust throughout the quarter, and the business benefited from projects supporting buildout of new data centers. Overall, we are pleased with our start to the year. Recent developments in the macro environment may create some uncertainty and could result in project delays. While we currently do not expect a significant i...