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MGRC

McGrath RentCorp

MGRC

McGrath RentCorp • NASDAQ
$103.08 ▼ -0.77% (-0.80)
Market Cap $2.54 B
52w High $129.93
52w Low $94.99
Dividend Yield 1.93%
P/E 17.47
Volume 44.93K
Outstanding Shares 24.61M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $256.443M ▲ $52.54M ▼ $42.297M ▲ 16.494% ▲ $1.72 ▲ $93.663M ▲
Q2-2025 $235.616M ▲ $53.543M ▲ $35.973M ▲ 15.268% ▲ $1.46 ▲ $83.591M ▲
Q1-2025 $195.416M ▼ $50.869M ▼ $28.209M ▼ 14.435% ▼ $1.15 ▼ $71.972M ▼
Q4-2024 $243.746M ▼ $51.669M ▲ $38.949M ▼ 15.979% ▼ $1.59 ▼ $87.447M ▼
Q3-2024 $266.758M $49.297M $149.317M 55.975% $6.08 $242.155M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $7.256M ▲ $2.351B ▲ $1.155B ▼ $1.196B ▲
Q2-2025 $1.469M ▼ $2.327B ▲ $1.164B ▲ $1.163B ▲
Q1-2025 $3.392M ▲ $2.242B ▼ $1.106B ▼ $1.136B ▲
Q4-2024 $807K ▼ $2.307B ▲ $1.184B ▼ $1.123B ▲
Q3-2024 $4.056M $2.286B $1.192B $1.094B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $42.298M ▲ $65.071M ▲ $-26.453M ▲ $-32.831M ▼ $5.787M ▲ $53.457M ▲
Q2-2025 $35.972M ▲ $55.812M ▲ $-58.895M ▼ $1.16M ▲ $-1.923M ▼ $38.183M ▼
Q1-2025 $28.209M ▼ $53.882M ▲ $-2.703M ▲ $-48.594M ▼ $2.585M ▲ $49.89M ▲
Q4-2024 $38.949M ▼ $36.779M ▼ $-9.937M ▼ $-30.091M ▲ $-3.249M ▲ $8.659M ▼
Q3-2024 $149.312M $198.967M $-6.933M $-197.374M $-5.34M $171.098M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Enviroplex
Enviroplex
 $0 ▲$10.00M ▲$20.00M ▲$40.00M ▲
Mobile Modular
Mobile Modular
 $170.00M ▲$130.00M ▼$160.00M ▲$470.00M ▲
Portable Storage
Portable Storage
 $20.00M ▲$20.00M ▲$20.00M ▲$70.00M ▲
Trs Ren Telco
Trs Ren Telco
 $30.00M ▲$40.00M ▲$40.00M ▲$110.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Over the past five years, McGrath RentCorp has grown its revenue steadily, with an especially strong step-up in the most recent couple of years. Profitability has improved even faster than sales: both gross and operating margins have widened, and earnings have climbed meaningfully, suggesting better pricing, higher utilization of the rental fleet, or a richer mix of business. The company now converts a much larger share of its revenue into net income than it did earlier in the period. The main risk to this picture is the inherently cyclical nature of its end markets—construction, education, and telecom equipment—which could pressure growth and margins in a weaker economy.

Balance Sheet

Balance Sheet The balance sheet shows a business that has scaled up materially, with a larger asset base driven by fleet growth and acquisitions. Debt rose as the company expanded but has begun to ease back more recently, while shareholders’ equity has built up consistently, reflecting retained profits. Overall leverage looks manageable for a rental company, though this is still a capital-intensive model that depends on ongoing access to financing. The near-zero reported cash balance suggests the company relies heavily on credit facilities and internal cash generation, which works well in stable markets but is a point to watch in a downturn.

Cash Flow

Cash Flow Cash generation has been solid over time but somewhat uneven year to year. Operating cash flow dipped in the middle of the period despite rising earnings, likely due to working capital swings and integration activity. Free cash flow turned negative during the heaviest investment years as the company poured money into new rental assets and growth projects, then swung back to clearly positive once that spending moderated. This pattern fits a growth-oriented rental model: strong underlying cash potential, but with sizeable and sometimes lumpy outlays for fleet expansion that can temporarily suppress free cash flow.

Competitive Edge

Competitive Edge McGrath RentCorp holds a strong niche position as a diversified business-to-business rental provider. Its mix of modular buildings, specialized test equipment, and classroom manufacturing spreads risk across several end markets and creates multiple growth paths. A wide North American footprint, long-standing customer relationships, and expertise in managing and refurbishing rental fleets create real barriers for smaller or less specialized rivals. Turnkey offerings—such as modular solutions that include installation and services—make it easier for customers to choose McGrath over coordinating multiple vendors. The main competitive risks are from large generalist rental firms pushing further into modular solutions, and from shifts in public and private construction and technology spending that can reshape demand patterns.

Innovation and R&D

Innovation and R&D The company is not a heavy traditional R&D spender but has been practical and effective in how it uses technology. Digital tools like e-signatures and self-service kiosks have streamlined paperwork and made the rental process faster and simpler for customers. Investments in IT systems, online portals, and fleet management aim to improve utilization, lower downtime, and enhance service quality rather than chase flashy new tech. Strategically, McGrath is leaning into sustainability and the circular nature of rental assets, and it is using acquisitions—especially in modular space—to deepen and densify its network. The upside is steady, low-drama operational improvement; the trade-off is that its innovations are mostly incremental and could, in theory, be copied by well-funded competitors over time.

Summary

Taken together, McGrath RentCorp looks like a steadily growing, specialized rental platform with improving profitability and a disciplined—though necessarily capital-heavy—financial model. Revenue and earnings have risen strongly, the balance sheet has expanded but remains reasonably sound, and cash flows show that the business can fund itself over the cycle while still investing for growth. Its edge comes from diversification across segments, strong customer relationships, operational know-how in managing complex fleets, and thoughtful use of digital tools rather than headline-grabbing technology. Key uncertainties to monitor include economic cycles in construction and education, integration of acquisitions, the balance between growth spending and free cash flow, and how effectively McGrath can maintain pricing power and utilization if competitors intensify their push into its niche markets.

NEWS

October 23, 2025 · 4:01 PM UTC

McGrath Announces Results for Third Quarter 2025

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September 25, 2025 · 4:01 PM UTC

McGrath Third Quarter Earnings and Conference Call Scheduled for October 23, 2025

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September 19, 2025 · 4:01 PM UTC

McGrath Declares Quarterly Dividend

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