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

McGrath RentCorp (NASDAQ:MGRC) posted its quarterly earnings results on Wednesday. The financial services provider reported $2.02 EPS 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 business had revenue of $256.76 million during the quarter, compared to analysts’ expectations 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 Stock Up 1.1%

NASDAQ MGRC traded up $1.21 during trading hours on Wednesday, reaching $115.69. 99,875 shares of the company were exchanged, compared to its average volume of 143,514. The stock has a market capitalization of $2.85 billion, a P/E ratio of 19.37, a P/E/G ratio of 1.12 and a beta of 0.51. McGrath RentCorp has a 1 year low of $94.99 and a 1 year high of $128.41. The business’s 50 day simple moving average is $111.92 and its 200-day simple moving average is $113.08.

McGrath RentCorp Dividend Announcement

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

Insiders Place Their Bets

In other news, SVP Gilda Malek sold 829 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $107.29, for a total transaction of $88,943.41. Following the completion of the sale, the senior vice president owned 4,068 shares in the company, valued at $436,455.72. This trade represents a 16.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.40% of the stock is currently owned by insiders.

Institutional Trading of McGrath RentCorp

A number of large investors have recently bought and sold shares of MGRC. Channing Capital Management LLC increased its holdings in shares of McGrath RentCorp by 39.1% in the fourth quarter. Channing Capital Management LLC now owns 836,894 shares of the financial services provider’s stock worth $87,815,000 after purchasing an additional 235,311 shares during the period. Alyeska Investment Group L.P. grew its position in McGrath RentCorp by 752.5% during the fourth quarter. Alyeska Investment Group L.P. now owns 237,506 shares of the financial services provider’s stock worth $24,922,000 after buying an additional 209,646 shares in the last quarter. Raymond James Financial Inc. increased its stake in McGrath RentCorp by 102.8% in the 3rd quarter. Raymond James Financial Inc. now owns 303,205 shares of the financial services provider’s stock worth $35,566,000 after acquiring an additional 153,701 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of McGrath RentCorp by 1,139.8% in the 2nd quarter. Ameriprise Financial Inc. now owns 116,890 shares of the financial services provider’s stock valued at $13,555,000 after acquiring an additional 107,462 shares in the last quarter. Finally, Snyder Capital Management L P boosted its position in shares of McGrath RentCorp by 22.5% during the 4th quarter. Snyder Capital Management L P now owns 469,048 shares of the financial services provider’s stock valued at $49,217,000 after acquiring an additional 86,035 shares during the last quarter. 92.05% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Barclays began coverage on McGrath RentCorp in a research note on Wednesday, February 11th. They issued an “overweight” rating and a $140.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of McGrath RentCorp in a research note on Tuesday, January 27th. Finally, Zacks Research upgraded shares of McGrath RentCorp from a “strong sell” rating to a “hold” rating in a report on Thursday, January 15th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, McGrath RentCorp presently has a consensus rating of “Moderate Buy” and a consensus price target of $141.50.

About McGrath RentCorp

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.