McGrath RentCorp

McGrath RentCorp is a business-to-business rental company operating in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, and electronic test equipment through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. Mobile Modular provides modular buildings for uses such as classrooms, temporary offices, sales offices, construction field offices, restroom buildings, health care clinics, childcare facilities, and office spaces. Portable Storage offers steel containers for temporary storage to construction, retail, commercial and industrial, energy and petrochemical, manufacturing, education, and healthcare markets. TRS-RenTelco rents and sells general purpose electronic test equipment, including oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment, primarily for aerospace, defense, electronics, industrial, research, and semiconductor industries, as well as communications test equipment for fiber, copper, and wireless networks. Enviroplex manufactures and sells portable classrooms directly to public school districts and other educational institutions in California. The company was incorporated in 1979 and is based in Livermore, California.

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McGrath RentCorp Reports 6% Revenue Decline but Rental Operations Show Strength

McGrath RentCorp reported total revenue of $221 million for the second quarter of 2026, a 6% decrease year-over-year, while adjusted EBITDA fell 4% to $83 million. Rental operations revenue increased 6%, driven by a 2% rise in Mobile Modular rental revenue and a 17% jump in TRS-RenTelco rental revenue, though Mobile Modular rental margins compressed to 55% from 58% and portable storage rental revenue was flat at $17 million with utilization dropping to 58.3%. The company saw a positive inflection in Mobile Modular utilization, which improved sequentially for the first time since 2022, and TRS-RenTelco benefited from strong demand in data centers, aerospace and defense, and semiconductors. Total revenue was weighed down by a sharp decline in Enviroplex sales revenue to $4.6 million from $19.9 million a year ago, as several large sales projects were pushed to the second half due to site readiness issues. McGrath RentCorp maintained a strong balance sheet with a leverage ratio of 1.65 times and provided a full-year 2026 total revenue outlook of $955 million to $985 million and adjusted EBITDA of $363 million to $375 million.

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