McGrath RentCorp (Nasdaq: MGRC) announced its financial results for the third quarter ended September 30, 2026, in a press release filed with the SEC on October 28, 2026. The company reported total revenues of $274.6 million for the quarter, representing a 7% increase compared to the same period in 2025. Net income for the quarter was $48.8 million, or $2.00 per diluted share, up from $42.3 million, or $1.72 per diluted share, in the prior year.
Key highlights for the third quarter of 2026 include:
- Total Revenues: Increased 7% to $274.6 million.
- Rental Operations: Increased 6% to $189.5 million.
- Sales Revenues: Increased 9% to $82.9 million.
- Income from Operations: Increased 11% to $73.9 million.
- Adjusted EBITDA: Increased 10% to $106.5 million.
The company paid a dividend of $0.495 per share for the third quarter of 2026. On an annualized basis, this represents a 1.7% yield based on the October 27, 2026, closing price of $119.56 per share.
McGrath operates through three primary divisions: Mobile Modular, Portable Storage, and TRS-RenTelco. Mobile Modular reported Adjusted EBITDA of $62.6 million, a decrease of 3% year-over-year, while Portable Storage reported Adjusted EBITDA of $7.4 million, a decrease of 20%. In contrast, TRS-RenTelco reported a significant increase in Adjusted EBITDA of 27% to $25.7 million, driven by a 26% increase in rental revenues, largely attributed to demand for data center buildouts.
Regarding the remainder of 2026, the company updated its financial outlook. Total revenue guidance was lowered to a range of $945 million to $960 million, down from the previous range of $955 million to $985 million. Adjusted EBITDA guidance was narrowed to a range of $365 million to $373 million. The company also increased its expected gross rental equipment capital expenditures to a range of $270 million to $290 million to support rental operations momentum.
