--- title: "McGrath RentCorp | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 198.54 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284689212.md" datetime: "2026-04-30T03:57:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284689212.md) - [en](https://longbridge.com/en/news/284689212.md) - [zh-HK](https://longbridge.com/zh-HK/news/284689212.md) --- # McGrath RentCorp | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 198.54 M Revenue: As of FY2026 Q1, the actual value is USD 198.54 M, beating the estimate of USD 198.19 M. EPS: As of FY2026 Q1, the actual value is USD 1.1, missing the estimate of USD 1.1098. EBIT: As of FY2026 Q1, the actual value is USD 49.9 M. #### Consolidated Financial Performance (Three Months Ended March 31) - **Total Revenues**: $198.5 million in 2026, up from $195.4 million in 2025, representing a 2% increase. - **Net Income**: $27.0 million in 2026, down from $28.2 million in 2025, representing a 4% decrease. - **Gross Profit**: $96.9 million in 2026, up from $96.4 million in 2025, representing a $0.5 million increase. - **Selling and Administrative Expenses**: $53.4 million in 2026, up from $50.8 million in 2025, representing a 5% increase, primarily due to $1.8 million higher employee salaries and benefits and $0.8 million higher marketing and administrative expenses. - **Interest Expense**: $6.5 million in 2026, down from $8.1 million in 2025, representing a 20% decrease, primarily due to $47.3 million lower average debt levels and a lower effective interest rate (4.96% in 2026 vs. 5.70% in 2025). - **Adjusted EBITDA**: $74.1 million in 2026, down from $74.5 million in 2025, representing a 1% decrease. - **Effective Tax Rate**: 26.7% in 2026, compared to 24.6% in 2025. - **Cash Dividends Declared Per Share**: $0.495 in 2026, up from $0.485 in 2025. #### Cash Flow (Three Months Ended March 31) - **Net Cash Provided by Operating Activities**: $42.4 million in 2026, down from $53.9 million in 2025, primarily due to $17.9 million lower cash from prepaid expenses and other assets, partially offset by higher cash flows from accounts payable and accrued expenses. - **Net Cash Used in Investing Activities**: $41.0 million in 2026, up from $2.7 million in 2025, primarily due to $33.4 million higher rental equipment purchases and $4.0 million higher purchases of property, plant, and equipment. - **Net Cash Provided by (Used in) Financing Activities**: $0.7 million provided in 2026, compared to - $48.6 million used in 2025, primarily due to increased borrowings under bank lines of credit. #### Segment Performance (Three Months Ended March 31) ##### Mobile Modular - **Total Revenues**: $134.4 million in 2026, up 2% from $131.9 million in 2025, driven by higher rental operations revenues, partially offset by lower sales and other revenues. - **Gross Profit**: $64.7 million in 2026, down 1% from $65.5 million in 2025. - **Rental Revenues Gross Profit**: $45.8 million in 2026, down 3% from $47.1 million in 2025, due to lower gross margin (56% in 2026 vs. 60% in 2025) despite higher rental revenues. - **Rental Related Services Gross Profit**: $11.0 million in 2026, up 13% from $9.7 million in 2025, due to higher site-related services revenues and improved gross margin (36% in 2026 vs. 33% in 2025). - **Sales Gross Profit**: $6.6 million in 2026, down 8% from $7.1 million in 2025, due to lower new and used equipment sales and slightly lower gross margin (31% in 2026 vs. 32% in 2025). - **Selling and Administrative Expenses**: $35.2 million in 2026, up 3% from $34.0 million in 2025, due to higher employee salaries and benefits and allocated corporate services expense. - **Pre-tax Income**: $24.1 million in 2026, down 4% from $25.0 million in 2025. - **Rental Equipment Acquisitions**: $29.9 million in 2026, up from $4.4 million in 2025. - **Period End Utilization**: 69.8% in 2026, down from 74.3% in 2025. - **Average Utilization**: 70.0% in 2026, down from 74.6% in 2025. - **Average Monthly Rental Rate**: 2.80% in 2026, up from 2.73% in 2025. ##### Portable Storage - **Total Revenues**: $21.9 million in 2026, up 3% from $21.3 million in 2025, driven by higher rental operations and sales revenues, partially offset by lower other revenues. - **Gross Profit**: $13.1 million in 2026, down 6% from $13.9 million in 2025. - **Rental Revenues Gross Profit**: $13.1 million in 2026, down 3% from $13.5 million in 2025, due to lower gross margin (80% in 2026 vs. 84% in 2025). - **Rental Related Services Gross Profit**: - $0.8 million in 2026, compared to - $0.3 million in 2025, reflecting lower gross margins (negative 20% in 2026 vs. negative 8% in 2025). - **Sales Gross Profit**: $0.6 million in 2026, up from $0.4 million in 2025, due to higher sales revenues and improved gross margins (36% in 2026 vs. 33% in 2025). - **Selling and Administrative Expenses**: $8.4 million in 2026, up 11% from $7.6 million in 2025, primarily due to higher employee salaries and benefits. - **Pre-tax Income**: $4.0 million in 2026, down 26% from $5.4 million in 2025. - **Rental Equipment Acquisitions**: $1.2 million in 2026, up from $0.4 million in 2025. - **Period End Utilization**: 58.8% in 2026, down from 61.0% in 2025. - **Average Utilization**: 58.6% in 2026, down from 60.2% in 2025. - **Average Monthly Rental Rate**: 3.81% in 2026, comparable to 3.82% in 2025. ##### TRS-RenTelco - **Total Revenues**: $38.7 million in 2026, up 11% from $35.0 million in 2025, primarily due to higher rental operations revenues. - **Gross Profit**: $18.3 million in 2026, up 23% from $14.9 million in 2025. - **Rental Revenues Gross Profit**: $12.9 million in 2026, up 25% from $10.3 million in 2025, due to higher rental revenues and improved gross margin (45% in 2026 vs. 40% in 2025). - **Sales Gross Profit**: $4.4 million in 2026, up 19% from $3.7 million in 2025, due to improved gross margin (55% in 2026 vs. 47% in 2025) on slightly higher sales revenues. - **Selling and Administrative Expenses**: $8.0 million in 2026, up 7% from $7.4 million in 2025. - **Pre-tax Income**: $9.3 million in 2026, up 51% from $6.2 million in 2025. - **Rental Equipment Acquisitions**: $12.3 million in 2026, up from $4.8 million in 2025. - **Period End Utilization**: 68.2% in 2026, up from 64.9% in 2025. - **Average Utilization**: 66.1% in 2026, up from 61.6% in 2025. - **Average Monthly Rental Rate**: 4.38% in 2026, up from 4.09% in 2025. ##### Enviroplex - **Total Revenues**: $3.5 million in 2026, down from $7.2 million in 2025. - **Gross Profit**: $0.8 million in 2026, down from $2.2 million in 2025. - **Pre-tax Income**: - $0.5 million in 2026, down from $0.9 million in 2025. #### Outlook McGrath RentCorp’s business outlook indicates ongoing macroeconomic challenges, including volatile interest rates, inflation, and geopolitical instability, which may cause customers to delay or re-evaluate projects. These factors make accurate forecasting difficult and could materially impact the company’s operating results. On April 1, 2026, McGrath RentCorp expanded its Mobile Modular operations by acquiring a regional provider of temporary modular space solutions for $11.4 million, subject to a $1.3 million holdback payment, in the mid-west region of the United States. ### Related Stocks - [MGRC.US](https://longbridge.com/en/quote/MGRC.US.md) ## Related News & Research - [McGrath RentCorp Expands and Extends Revolving Credit Facility](https://longbridge.com/en/news/286000079.md) - [McGrath RentCorp (MGRC) Expected to Announce Quarterly Earnings on Wednesday](https://longbridge.com/en/news/283605816.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md) - [Crombie Reit Announces May 2026 Monthly Distribution | CROMF Stock News](https://longbridge.com/en/news/286603129.md)