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McGrath RentCorp (MGRC) investor relations material
McGrath RentCorp Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 revenues rose 11% year-over-year to $235.6M, with net income up 74% to $36.0M and adjusted EBITDA up 3% to $86.5M.
Growth was led by Mobile Modular and TRS-RenTelco, with improved sales at Enviroplex and lower interest expense from reduced debt.
Portable Storage showed sequential rental revenue improvement but a year-over-year decline.
Two tuck-in acquisitions completed in Q2 to support modular and storage growth strategies.
Dividend increases continued, with 2 million shares authorized for repurchase.
Financial highlights
Q2 2025 gross profit was $110.7M, up 7% year-over-year; adjusted EBITDA margin was 37%.
Interest expense for Q2 2025 was $7.8M, down from $13.0M prior year, due to lower rates and debt.
Six-month revenues were $431.0M (+8% YoY), with net income up 48% to $64.2M.
Operating cash flow for the first six months was $109.7M, down from $138.6M prior year.
Dividend per share for Q2 2025 was $0.485, up 2% year-over-year.
Outlook and guidance
2025 revenue guidance raised to $925M–$960M; adjusted EBITDA expected at $347M–$356M.
Gross rental equipment capex projected at $115M–$125M for the year.
Management expresses cautious optimism for the second half of 2025 amid mixed demand.
Expect similar adjusted EBITDA in Q3 and Q4, with sales gross profit more balanced across both quarters.
Company expects to maintain sufficient liquidity through operational cash flows and credit lines.
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