McGrath RentCorp (NASDAQ:MGRC) Issues Earnings Results, Beats Expectations By $0.28 EPS

McGrath RentCorp (NASDAQ:MGRC) issued its earnings results on Wednesday. The financial services provider reported $2.02 EPS for the quarter, beating analysts’ consensus estimates of $1.74 by $0.28, FiscalAI reports. The business had revenue of $256.76 million during the quarter, compared to analyst estimates of $254.32 million. McGrath RentCorp had a return on equity of 12.59% and a net margin of 15.62%.

Here are the key takeaways from McGrath RentCorp’s conference call:

• CEO transition: Joe Hanna will retire effective April 3 and Phil Hawkins (COO since 2004) will succeed him, with the board emphasizing continuity and confidence in Phil’s leadership.
• Q4 2025 results: Total revenue rose 5% to $257 million and Adjusted EBITDA increased 14% to $105 million, led by strong performance at Mobile Modular and TRS‑RenTelco.
• 2026 guidance: Management expects full‑year revenue of $945–$995 million, Adjusted EBITDA of $360–$378 million, and gross rental equipment CapEx of $180–$200 million; Mobile Modular is expected to grow EBITDA, Portable Storage to be roughly flat, and TRS to contribute higher EBITDA.
• Growth initiatives: Company is prioritizing geographic expansion, ramping Mobile Modular Plus and Site Related Services, expanding sales coverage, and increasing targeted CapEx—TRS momentum is supported by data center, aerospace/defense, and semiconductor demand.
• Capital allocation and balance sheet: Board declared the quarterly cash dividend (continuing the 35th consecutive annual increase); net borrowings were $515 million with funded debt ~1.42x LTM Adjusted EBITDA, and management remains active but disciplined on tuck‑in M&A.

McGrath RentCorp Stock Performance

NASDAQ:MGRC traded up $1.21 on Wednesday, hitting $115.69. The stock had a trading volume of 99,875 shares, compared to its average volume of 130,802. McGrath RentCorp has a 1 year low of $94.99 and a 1 year high of $128.41. The firm’s fifty day simple moving average is $111.73 and its two-hundred day simple moving average is $113.06. The stock has a market cap of $2.85 billion, a P/E ratio of 19.58, a price-to-earnings-growth ratio of 1.10 and a beta of 0.51.

McGrath RentCorp Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were paid a $0.485 dividend. The ex-dividend date was Friday, January 16th. This represents a $1.94 annualized dividend and a yield of 1.7%. McGrath RentCorp’s dividend payout ratio (DPR) is 32.83%.

Analyst Upgrades and Downgrades

MGRC has been the subject of several recent research reports. Barclays began coverage on McGrath RentCorp in a report on Wednesday, February 11th. They set an “overweight” rating and a $140.00 price objective for the company. Zacks Research upgraded shares of McGrath RentCorp from a “strong sell” rating to a “hold” rating in a report on Thursday, January 15th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of McGrath RentCorp in a research report on Tuesday, January 27th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $141.50.

Insider Activity

In other news, SVP Gilda Malek sold 829 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $107.29, for a total value of $88,943.41. Following the completion of the transaction, the senior vice president directly owned 4,068 shares of the company’s stock, valued at $436,455.72. This represents a 16.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McGrath RentCorp

A number of hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its position in McGrath RentCorp by 767.7% in the second quarter. EverSource Wealth Advisors LLC now owns 269 shares of the financial services provider’s stock worth $31,000 after acquiring an additional 238 shares during the period. Danske Bank A S bought a new stake in shares of McGrath RentCorp during the 3rd quarter valued at $47,000. Strs Ohio purchased a new stake in shares of McGrath RentCorp in the first quarter worth about $56,000. Voleon Capital Management LP purchased a new stake in McGrath RentCorp in the 3rd quarter worth approximately $204,000. Finally, Neuberger Berman Group LLC boosted its stake in McGrath RentCorp by 6.9% during the fourth quarter. Neuberger Berman Group LLC now owns 1,948 shares of the financial services provider’s stock valued at $204,000 after buying an additional 126 shares during the period. 92.05% of the stock is currently owned by institutional investors.

McGrath RentCorp Company Profile

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.