McGrath RentCorp (NASDAQ:MGRC) Releases Quarterly 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 EPS for the quarter, topping analysts’ consensus estimates of $1.74 by $0.28, FiscalAI reports. McGrath RentCorp had a return on equity of 13.41% and a net margin of 16.55%.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 Stock Performance

MGRC stock traded down $3.16 during midday trading on Friday, reaching $111.78. 40,783 shares of the company’s stock traded hands, compared to its average volume of 131,956. McGrath RentCorp has a 52 week low of $94.99 and a 52 week high of $128.41. The company has a 50-day moving average price of $112.06 and a two-hundred day moving average price of $113.09. The firm has a market capitalization of $2.75 billion, a PE ratio of 17.60, a price-to-earnings-growth ratio of 1.13 and a beta of 0.51.

McGrath RentCorp Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th will be paid a $0.495 dividend. The ex-dividend date is Thursday, April 16th. This is a positive change from McGrath RentCorp’s previous quarterly dividend of $0.49. This represents a $1.98 dividend on an annualized basis and a yield of 1.8%. McGrath RentCorp’s dividend payout ratio is presently 30.55%.

Insider Buying and Selling at McGrath RentCorp

In other McGrath RentCorp news, SVP Gilda Malek sold 829 shares of the firm’s stock in a transaction on Monday, December 15th. The stock was sold at an average price of $107.29, for a total value of $88,943.41. Following the transaction, the senior vice president owned 4,068 shares in the company, valued at approximately $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 accessible through the SEC website. 1.40% of the stock is currently owned by company insiders.

Institutional Trading of McGrath RentCorp

Several hedge funds have recently modified their holdings of MGRC. EverSource Wealth Advisors LLC boosted its stake in McGrath RentCorp by 767.7% in the second 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 in the last quarter. Danske Bank A S acquired a new stake in shares of McGrath RentCorp in the 3rd quarter valued at about $47,000. Strs Ohio purchased a new position in McGrath RentCorp during the 1st quarter worth approximately $56,000. Voleon Capital Management LP acquired a new position in McGrath RentCorp during the third quarter worth approximately $204,000. Finally, Virtu Financial LLC acquired a new position in McGrath RentCorp during the third quarter worth approximately $213,000. 92.05% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently commented on MGRC shares. Barclays initiated coverage on shares of McGrath RentCorp in a research note on Wednesday, February 11th. They issued an “overweight” rating and a $140.00 price objective on the stock. Zacks Research raised shares of McGrath RentCorp from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 15th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of McGrath RentCorp in a research report on Tuesday, January 27th. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, 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.