McGrath RentCorp (MGRC) investor relations material

Executive summary

• Total revenues for Q1 2026 increased 2% year-over-year to $198.5 million, with adjusted EBITDA down 1% to $74.1 million and net income declining 4% to $27.0 million, mainly due to higher costs and lower margins in certain segments.

• Rental revenue grew across all divisions, led by Mobile Modular and TRS-RenTelco, despite challenging market conditions and margin compression in Portable Storage.

• Modular strategic growth initiatives, strong TRS-RenTelco demand, and ongoing geographic expansion were key drivers.

• Higher equipment preparation expenses, increased selling and administrative costs, and lower Enviroplex sales pressured profitability.

• Dividend declared at $0.495 per share, up 2% from the prior year, marking 35 consecutive years of increases.

Financial highlights

• Rental operations revenues rose 5% to $162.2 million, while sales revenues fell 13% to $34.0 million; gross profit was flat at $96.9 million.

• Adjusted EBITDA margin for Q1 2026 was 37%; net cash from operations was $42.4 million, down from $53.9 million year-over-year.

• Mobile Modular revenues up 2% to $134.4 million; adjusted EBITDA down 1% to $47.2 million.

• TRS-RenTelco revenues up 11% to $38.7 million; adjusted EBITDA up 16% to $20.9 million.

• Portable Storage revenues up 3% to $21.9 million; adjusted EBITDA down 17% to $7.1 million.

Outlook and guidance

• Full-year 2026 revenue expected between $945 million and $995 million, with adjusted EBITDA guidance of $360 million to $378 million.

• Gross rental equipment capital expenditures projected at $180 million to $200 million.

• Activity levels in April consistent with Q1; guidance reaffirmed.

• Management remains cautious about macroeconomic and geopolitical risks impacting future results.