McGrath RentCorp (NASDAQ:MGRC) Issues Earnings Results

McGrath RentCorp (NASDAQ:MGRC) released its quarterly earnings data on Wednesday. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.03), FiscalAI reports. McGrath RentCorp had a return on equity of 13.21% and a net margin of 16.55%.The firm had revenue of $198.54 million during the quarter, compared to the consensus estimate of $239.04 million.

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

• Total company revenues rose 2% to $199 million while Adjusted EBITDA was essentially flat (-1%) at $74 million; management cited rental revenue growth across divisions offset by higher equipment preparation costs and weaker Enviroplex sales.
• Mobile Modular rental revenue grew 4% and average revenue per unit on rent rose 7% to $889, but utilization fell to 70% and inventory‑prep costs increased ~$3.2 million, compressing rental margins to 56% from 60%.
• TRS‑RenTelco showed strong momentum with revenues up 11% to $39 million and Adjusted EBITDA up 16% to $21 million, rental revenue +13% and Q1 utilization at 66.1% (highest Q1 since 2021), driven in part by data‑center projects.
• Enviroplex sales declined 51% to $3.7 million and the segment swung to an Adjusted EBITDA loss of $1.1 million versus a $0.4 million profit a year ago, representing a clear drag on results.
• Management increased rental equipment CapEx to support geographic expansion and TRS demand, ended the quarter with net borrowings of $546 million (funded debt/TTM Adj. EBITDA 1.51x), returned $12 million in dividends and repurchased $12 million of stock in March, and left full‑year guidance unchanged.

McGrath RentCorp Stock Down 1.0%

Shares of McGrath RentCorp stock opened at $118.80 on Thursday. The stock’s fifty day moving average is $110.87 and its two-hundred day moving average is $109.95. The company has a market capitalization of $2.92 billion, a PE ratio of 18.71, a price-to-earnings-growth ratio of 1.17 and a beta of 0.49. McGrath RentCorp has a 52 week low of $94.99 and a 52 week high of $128.41.

McGrath RentCorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th will be given a $0.495 dividend. This is a boost from McGrath RentCorp’s previous quarterly dividend of $0.49. The ex-dividend date of this dividend is Thursday, April 16th. This represents a $1.98 annualized dividend and a yield of 1.7%. McGrath RentCorp’s dividend payout ratio is currently 31.18%.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Zacks Research raised McGrath RentCorp from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 15th. Weiss Ratings reissued a “hold (c+)” rating on shares of McGrath RentCorp in a research report on Friday, April 24th. Finally, Barclays initiated coverage on McGrath RentCorp in a research report on Wednesday, February 11th. They set an “overweight” rating and a $140.00 target price on the stock. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $141.50.

More McGrath RentCorp News

Here are the key news stories impacting McGrath RentCorp this week:

• Positive Sentiment: Q1 revenue grew 2% year‑over‑year to $198.5 million, showing underlying top‑line resilience despite the miss on expectations. McGrath Announces Results for First Quarter 2026
• Neutral Sentiment: The company gave FY2026 revenue guidance of $945.0M–$995.0M (consensus ~ $967.7M). The range brackets consensus — providing flexibility but leaving EPS guidance unclear in the release, which keeps investor reaction mixed. McGrath Announces Results for First Quarter 2026
• Neutral Sentiment: Management transition: coverage flagged that a new CEO is taking the helm, which is a material governance item investors will monitor for strategic direction and execution risk. McGrath RentCorp earnings in focus as new CEO takes the helm
• Neutral Sentiment: Full earnings call transcript, slides and press release are available for investors wanting detail on margins, unit economics and portfolio trends. McGrath RentCorp (MGRC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Q1 EPS was $1.10 vs. the $1.13 consensus (a $0.03 miss) and revenue of $198.5M materially missed the ~$239M analyst estimate — the revenue shortfall is the primary near‑term negative catalyst. McGrath (MGRC) Q1 Earnings Lag Estimates
• Negative Sentiment: Net income and EPS declined versus the prior year (net income $27.0M vs $28.2M a year ago), highlighting margin/volume pressure that investors will scrutinize for signs of recovery. McGrath Announces Results for First Quarter 2026

Hedge Funds Weigh In On McGrath RentCorp

Several hedge funds have recently bought and sold shares of MGRC. EverSource Wealth Advisors LLC grew its position in McGrath RentCorp by 767.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 269 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 238 shares during the last quarter. Danske Bank A S bought a new position in McGrath RentCorp in the 3rd quarter valued at $47,000. Strs Ohio bought a new position in McGrath RentCorp in the 1st quarter valued at $56,000. Voleon Capital Management LP bought a new position in McGrath RentCorp in the 3rd quarter valued at $204,000. Finally, Neuberger Berman Group LLC lifted its holdings in shares of McGrath RentCorp by 6.9% in the 4th quarter. Neuberger Berman Group LLC now owns 1,948 shares of the financial services provider’s stock worth $204,000 after buying an additional 126 shares during the period. Institutional investors own 92.05% of the company’s stock.

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.