McGrath RentCorp (MGRC) investor relations material

Executive summary

• Rental operations revenues increased 6% year-over-year, led by Mobile Modular and TRS-RenTelco, despite a 6% decrease in total company revenues and a 4% decline in adjusted EBITDA due to lower new equipment sales and project delays at Enviroplex and Mobile Modular.

• TRS-RenTelco delivered 17% rental revenue growth and 29% adjusted EBITDA growth, with strong demand from data centers, aerospace, defense, and semiconductors.

• Mobile Modular saw 2% rental revenue growth and 11% higher bookings, with sequential improvement in utilization, driven by large commercial projects and geographic expansion.

• Portable storage rental revenues were flat amid challenging local commercial construction markets, while Mobile Modular Plus revenues rose 15% year-over-year.

• Net income for Q2 2026 was $33.7 million ($1.37 per diluted share), down from $36.0 million ($1.46 per diluted share) in Q2 2025, primarily due to lower gross profit on sales.

Financial highlights

• Total revenues for Q2 2026 were $221.1 million, down 6% year-over-year; adjusted EBITDA was $82.8 million, down 4%.

• Rental operations revenues increased 6% to $172.5 million, while sales revenues fell 34% to $46.4 million.

• Mobile Modular revenues decreased 4% to $150.4 million; adjusted EBITDA also fell 4% to $50.7 million.

• TRS-RenTelco revenues rose 17% to $42.6 million, with adjusted EBITDA up 29% to $25.0 million; rental margins improved to 48%.

• Net cash from operating activities was $106 million year-to-date; $124 million invested in rental equipment purchases.

Outlook and guidance

• 2026 revenue guidance is $955–$985 million; adjusted EBITDA guidance is $363–$375 million.

• Gross rental equipment CapEx increased to $200–$220 million to support TRS growth.

• Modular business expected to remain strong; TRS performance to offset portable storage weakness; Enviroplex to perform similarly to 2024.

• Management notes ongoing macroeconomic uncertainty due to inflation, interest rates, and geopolitical risks, which could impact customer project timing and demand.