McGrath RentCorp (MGRC) investor relations material

Executive summary

• Q3 2025 rental operations revenues rose 4% year-over-year to $178.1 million, while total revenues declined 4% to $256.4 million, reflecting an 18% drop in sales revenues and ongoing market uncertainties.

• Adjusted EBITDA for Q3 2025 decreased 7% to $96.5 million; net income was $42.3 million, and diluted EPS was $1.72, both significantly lower than Q3 2024 due to a prior-year merger termination payment.

• Booked orders increased during the quarter, providing positive momentum into Q4.

• Strategic focus remains on Mobile Modular and TRS-RenTelco, with growth initiatives and expanded service offerings contributing to performance.

• For the nine months ended September 30, 2025, consolidated revenues increased 3% to $687.5 million, while net income fell 45% due to a prior-year one-time merger gain.

Financial highlights

• Q3 2025 total revenues: $256.4 million (-4% year-over-year); rental operations revenues: $178.1 million (+4%); sales revenues: $76.1 million (-18%).

• Adjusted EBITDA: $96.5 million (-7% year-over-year); adjusted EBITDA margin for Q3 2025 was 38%.

• Net cash from operating activities year-to-date was $175 million; cash balance at September 30, 2025 was $7.3 million.

• Rental equipment purchases were $92 million, down from $167 million last year; capital expenditures for the nine months totaled $124.8 million.

• Interest expense decreased to $8.2 million for Q3 2025 and $24.1 million for the nine months, reflecting lower rates and debt levels.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $935–$955 million; adjusted EBITDA expected between $350–$357 million; gross rental equipment capital expenditures forecasted at $120–$125 million.

• Management remains focused on strategic growth, regional expansion, and tuck-in acquisitions.

• Ongoing macroeconomic uncertainty, including inflation, interest rate volatility, and geopolitical risks, may affect customer confidence and project timing.