McGrath RentCorp (MGRC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 7% YoY to $274.6M, net income increased 15% to $48.8M, diluted EPS rose 16% to $2.00, and Adjusted EBITDA increased 10% to $106.5M.

• Higher rental operations revenue and sales, led by TRS-RenTelco demand, were partly offset by softer Portable Storage conditions and lower Mobile Modular new equipment sales.

Financial highlights

• Q3 gross profit rose 10% to $130.9M; rental operations revenue increased 6% to $189.5M and sales revenue rose 9% to $82.9M.

• Nine-month revenue was $694.3M, up 1%; net income was $109.5M, up 3%, and Adjusted EBITDA was $263.4M, up 2% excluding the property-sale gain.

• Q3 selling and administrative expenses increased 8% to $56.9M; the effective tax rate was 26.0% versus 27.7%, and the effective interest rate was 5.31% versus 5.81%.

Outlook and guidance

• FY26 revenue guidance was reduced to $945M–$960M from $955M–$985M, primarily due to lower Mobile Modular new equipment sales.

• Adjusted EBITDA guidance narrowed to $365M–$373M from $363M–$375M, with the midpoint unchanged; rental strength supports expectations.

• Gross rental equipment CapEx guidance increased to $270M–$290M from $200M–$220M to support Mobile Modular and TRS-RenTelco rental momentum.

• Customer permitting, site-readiness and subcontractor delays pushed modular sales projects out; management expects to set 2027 sales targets cautiously.