McGrath RentCorp (NASDAQ:MGRC) Announces Earnings Results, Beats Expectations By $0.28 EPS

McGrath RentCorp (NASDAQ:MGRC) announced its quarterly earnings data on Wednesday. The financial services provider reported $2.02 earnings per share for the quarter, topping analysts’ consensus estimates of $1.74 by $0.28, FiscalAI reports. McGrath RentCorp had a net margin of 15.62% and a return on equity of 12.59%. The firm had revenue of $256.76 million during the quarter, compared to analyst estimates of $254.32 million.

Here are the key takeaways from McGrath RentCorp’s conference call:

• CEO transition: Joe Hanna will retire effective April 3 and Phil Hawkins (COO since 2004) will succeed him, with the board emphasizing continuity and confidence in Phil’s leadership.
• Q4 2025 results: Total revenue rose 5% to $257 million and Adjusted EBITDA increased 14% to $105 million, led by strong performance at Mobile Modular and TRS?RenTelco.
• 2026 guidance: Management expects full?year revenue of $945–$995 million, Adjusted EBITDA of $360–$378 million, and gross rental equipment CapEx of $180–$200 million; Mobile Modular is expected to grow EBITDA, Portable Storage to be roughly flat, and TRS to contribute higher EBITDA.
• Growth initiatives: Company is prioritizing geographic expansion, ramping Mobile Modular Plus and Site Related Services, expanding sales coverage, and increasing targeted CapEx—TRS momentum is supported by data center, aerospace/defense, and semiconductor demand.
• Capital allocation and balance sheet: Board declared the quarterly cash dividend (continuing the 35th consecutive annual increase); net borrowings were $515 million with funded debt ~1.42x LTM Adjusted EBITDA, and management remains active but disciplined on tuck?in M&A.

McGrath RentCorp Trading Up 1.1%

NASDAQ MGRC traded up $1.21 during trading on Wednesday, hitting $115.69. The company had a trading volume of 99,875 shares, compared to its average volume of 130,802. The company’s fifty day moving average is $111.73 and its 200-day moving average is $113.06. McGrath RentCorp has a one year low of $94.99 and a one year high of $128.41. The company has a market cap of $2.85 billion, a price-to-earnings ratio of 19.58, a price-to-earnings-growth ratio of 1.10 and a beta of 0.51.

McGrath RentCorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were given a dividend of $0.485 per share. This represents a $1.94 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Friday, January 16th. McGrath RentCorp’s payout ratio is presently 32.83%.

Insider Activity

In related news, SVP Gilda Malek sold 829 shares of the business’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $107.29, for a total transaction of $88,943.41. Following the transaction, the senior vice president owned 4,068 shares in the company, valued at $436,455.72. The trade was a 16.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.40% of the stock is owned by corporate insiders.

Institutional Trading of McGrath RentCorp

Several large investors have recently bought and sold shares of MGRC. EverSource Wealth Advisors LLC raised its position in shares of McGrath RentCorp by 767.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 269 shares of the financial services provider’s stock worth $31,000 after acquiring an additional 238 shares in the last quarter. Danske Bank A S bought a new stake in shares of McGrath RentCorp during the third quarter valued at approximately $47,000. Strs Ohio purchased a new stake in McGrath RentCorp in the first quarter worth $56,000. Voleon Capital Management LP bought a new position in McGrath RentCorp in the third quarter worth $204,000. Finally, Neuberger Berman Group LLC lifted its position in McGrath RentCorp by 6.9% during the fourth quarter. Neuberger Berman Group LLC now owns 1,948 shares of the financial services provider’s stock valued at $204,000 after buying an additional 126 shares during the period. 92.05% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on MGRC shares. Weiss Ratings restated a “hold (c+)” rating on shares of McGrath RentCorp in a report on Tuesday, January 27th. Barclays assumed coverage on shares of McGrath RentCorp in a report on Wednesday, February 11th. They issued an “overweight” rating and a $140.00 target price on the stock. Finally, Zacks Research raised shares of McGrath RentCorp from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 15th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $141.50.

McGrath RentCorp Company Profile

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.