olivLaw · US equity research
McGrath RentCorp MGRC
Services-Equipment Rental & Leasing, NEC · SIC 7359 · Vertical: Services-Equipment Rental & Leasing, NEC (SIC 7359)
McGrath RentCorp rents modular classroom buildings, portable storage containers and electronic test equipment to business customers, with a model built on fast recovery of fleet investment. Consolidated revenues in fiscal 2025 were 944.2 million USD, while the pace slowed in the second quarter of 2026, making equipment sales a closely watched line.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, McGrath RentCorp (MGRC) stock was 127.48 USD (−4.05% on the day), with market capitalisation 3.1 bn USD, P/E 19.6 on diluted EPS of 6.49 USD over the last 12 months, dividend yield 1.55%, beta 0.70, 52-week range 95.60–132.92 USD. Latest reported quarter (Q3 2026): revenue of 274.6 m USD (+7.1% YoY), net income of 48.8 m USD (+15.4% YoY), diluted EPS 2.00 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 64.6
- strong (55–70)
- Bollinger (20, 2)
- 105.12 – 131.81
- in the upper half of the band · %B 0.84 · band width 22.5%
- SMA 50 / 200
- 114.96 / 114.39
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 3.97 / 2.37
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.1% | −5.9% | +14.0 pp | — |
| 3 months | +4.7% | −4.6% | +9.3 pp | — |
| 6 months | +11.5% | +0.2% | +11.3 pp | — |
| Year to date | +21.5% | +7.4% | +14.1 pp | — |
| 1 year | +18.4% | +8.2% | +10.2 pp | +31.5% |
| 3 years | +25.2% | +68.4% | −43.2 pp | +42.6% |
| 5 years | +61.1% | +56.5% | +4.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 243.7 m | 195.4 m | 235.6 m | 256.4 m | 256.8 m | 198.5 m | 221.1 m | 274.6 m |
| Cost of revenue | 129.0 m | 99.0 m | 124.9 m | 137.2 m | 128.2 m | 101.7 m | 113.2 m | 143.7 m |
| Gross profit | 114.8 m | 96.4 m | 110.7 m | 119.3 m | 128.6 m | 96.9 m | 107.9 m | 130.9 m |
| SG&A | 51.7 m | 50.9 m | 53.5 m | 52.5 m | 54.4 m | 53.5 m | 56.4 m | 56.9 m |
| Operating income | 63.1 m | 45.6 m | 57.2 m | 66.7 m | 74.2 m | 43.4 m | 53.3 m | 73.9 m |
| Depreciation & amortisation | 26.6 m | 26.4 m | 26.3 m ≈ | 27.0 m ≈ | 27.4 m | 27.8 m | 28.5 m ≈ | 29.7 m ≈ |
| Interest expense | 8.9 m | 8.2 m | 7.8 m | 8.2 m | 6.5 m | 6.5 m | 7.1 m | 8.0 m |
| Pre-tax income | 52.0 m | 37.4 m | 49.5 m | 58.5 m | 67.7 m | 36.9 m | 46.1 m | 66.0 m |
| Income tax | 13.0 m | 9.2 m | 13.5 m | 16.2 m | 17.9 m | 9.8 m | 12.5 m | 17.2 m |
| Net income | 38.9 m | 28.2 m | 36.0 m | 42.3 m | 49.8 m | 27.0 m | 33.7 m | 48.8 m |
| Diluted EPS | 1.58 ≈ | 1.15 | 1.46 | 1.72 | 2.02 ≈ | 1.10 | 1.37 | 2.00 |
| Operating cash flow | 36.8 m | 53.9 m | 55.8 m ≈ | 65.1 m ≈ | 80.9 m | 42.4 m | 63.3 m ≈ | 72.3 m ≈ |
| Capex | 4.2 m | 4.0 m | 17.6 m ≈ | 11.6 m ≈ | 11.1 m | 8.0 m | 11.4 m ≈ | 18.6 m ≈ |
| Dividends paid | 11.7 m | 12.1 m | 11.9 m ≈ | 11.9 m ≈ | 11.9 m | 12.5 m | 12.2 m ≈ | 12.1 m ≈ |
| Share repurchases | — | — | — | — | — | 11.9 m | 15.5 m ≈ | 6.8 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 68 percentile of its own 40-quarter history (min 7.4, median 17.5, max 24.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 498.3 m | 570.2 m | 572.6 m | 534.6 m | 635.7 m | 831.8 m | 910.9 m | 944.2 m |
| Revenue YoY | +7.9% | +14.4% | +0.4% | −6.6% | +18.9% | +30.9% | +9.5% | +3.7% |
| Net income | 79.4 m | 96.8 m | 102.0 m | 89.7 m | 115.1 m | 174.6 m | 231.7 m | 156.3 m |
| Net income YoY | −48.4% | +21.9% | +5.3% | −12.0% | +28.4% | +51.7% | +32.7% | −32.5% |
| Diluted EPS | 3.24 | 3.93 | 4.16 | 3.66 | 4.70 | 7.12 | 9.43 | 6.35 |
| Diluted EPS YoY | −48.9% | +21.3% | +5.9% | −12.0% | +28.4% | +51.5% | +32.4% | −32.7% |
| net % | 15.9% | 17.0% | 17.8% | 16.8% | 18.1% | 21.0% | 25.4% | 16.6% |
| Free cash flow | 127.0 m | 175.9 m | 166.8 m | 193.1 m | 176.8 m | 51.4 m | 334.1 m | 211.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 295.0 k USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.2 bn USD
- Total assets
- 2.4 bn USD
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 13.2%
- ROA
- 6.7%
- FCF margin
- 22.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 572.6 m | 534.6 m | 635.7 m | 831.8 m | 910.9 m | 944.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 308.8 m | 287.3 m | 345.5 m | 438.2 m | 475.5 m | 489.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 263.7 m | 247.3 m | 290.2 m | 393.6 m | 435.4 m | 455.0 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 123.0 m | 123.1 m | 142.9 m | 207.5 m | 200.4 m | 211.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 140.8 m | 124.3 m | 147.3 m | 189.7 m | 244.3 m | 243.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 94.6 m | 106.7 m | 111.3 m | 109.4 m | 107.5 m | 107.1 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 235.4 m ≈ | 231.0 m ≈ | 258.6 m ≈ | 299.1 m ≈ | 351.7 m ≈ | 350.7 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 8.8 m | 8.2 m | 12.2 m | 40.6 m | 47.2 m | 30.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 132.0 m | 115.8 m | 134.7 m | 149.5 m | 313.6 m | 213.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 30.1 m | 30.7 m | 31.4 m | 37.6 m | 81.9 m | 56.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 102.0 m | 89.7 m | 115.1 m | 174.6 m | 231.7 m | 156.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 4.16 | 3.66 | 4.70 | 7.12 | 9.43 | 6.35 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 24.5 m | 24.5 m | 24.5 m | 24.5 m | 24.6 m | 24.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividend per share | 1.68 | 1.74 | 1.82 | 1.86 | 1.90 | 1.94 | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.2 m | 1.5 m | 957.0 k | 877.0 k | 807.0 k | 295.0 k | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | — | — | — | 8.0 m | 14.3 m | 8.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 136.2 m | 135.3 m | 138.7 m | 154.3 m | 182.3 m | 218.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 28.2 m | 132.4 m | 106.4 m | 323.2 m | 323.2 m | 332.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 7.1 m | 47.0 m | 35.4 m | 64.6 m | 54.3 m | 46.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 1.3 bn | 1.6 bn | 1.7 bn | 2.2 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 593.1 m | 863.9 m | 903.9 m | 1.3 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 682.6 m † | 732.0 m † | 803.9 m † | 933.8 m † | 1.1 bn † | 1.2 bn † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 180.5 m | 195.7 m | 194.4 m | 95.3 m | 374.4 m | 255.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 13.7 m | 2.7 m | 17.6 m | 44.0 m | 40.2 m | 44.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 166.8 m ≈ | 193.1 m ≈ | 176.8 m ≈ | 51.4 m ≈ | 334.1 m ≈ | 211.3 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -53.0 m | -351.7 m | -131.4 m | -391.9 m | -150.8 m | -127.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | -128.5 m | 156.2 m | -63.5 m | 296.4 m | -223.7 m | -129.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividends paid | 39.8 m | 42.2 m | 44.3 m | 45.6 m | 46.8 m | 47.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | 13.6 m | — | — | — | — | — | SEC (XBRL)· 23 Feb 2021verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 74 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 3.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Quality90
- Growth85
- Balance sheet100
- Returns53
- Valuation56
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 25.49 – 121.23 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E49.40 – 121.23 (Mid 76.59)8 companies used · median multiple 11.8x · quartiles 7.6x – 18.7xAER, EQPT, KPLT, PRG, SUNB, TRTN-PA, UPBD, URI
- Dividend discount (DDM)25.49 – 34.28 (Mid 29.24)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 74/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 16.8% | 80 (vs peers) | 10% |
| FCF conversion · Quality | 131.7% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 14.1% | 100 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 10.5% | 70 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 8.7x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 19.6x | 33 (vs peers) | 16% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.8% | 84 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.6% | 22 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 23.2% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth85/100 · 2/2 factors with a value
- Quality90/100 · 2/3 factors with a value
- Returns53/100 · 2/2 factors with a value
- Valuation56/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
McGRATH RENTCORP (MGRC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 944.2 m USD in 2025; YoY growth 3.7%; net margin 16.8%; ROE 12.9%.
The estimated value range is 37.45–77.76 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 52.91 USD, the price of 127.48 USD leaves a potential of -58.5% (value / price − 1) and a margin of safety of -140.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 74/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 16.8%
- FCF conversion: 131.7%
- Revenue CAGR 3Y: 14.1%
- EPS CAGR 3Y: 10.5%
- Interest coverage: 8.7x
- FCF yield: 6.8%
- Payout ratio (FCF): 23.2%
What contradicts it
- Shareholder yield (distributions): 1.6%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Current ratio, EV/EBITDA.
Versus the vertical median
Services-Equipment Rental & Leasing, NEC (SIC 7359) · same industry (4-digit SIC) · compared with 10 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| URIUnited Rentals, Inc. | 64.6 bn | 22.6 | 30.6% | 16.3% | +4.9% | +28% / +119% |
| SUNBSunbelt Rentals Holdings, Inc. | 31.2 bn | 22.4 | 18.2% | 12.1% | +3.4% | unavailable / unavailable |
| AERAerCap Holdings N.V. | 27.7 bn | 7.8 | 21.1% | 44.0% | +6.5% | +24% / +144% |
| MGRCMcGRATH RENTCORP | 3.1 bn | 19.6 | 12.9% | 16.8% | +3.7% | +18% / +25% |
| TRTN-PATriton International Limited | 2.5 bn | 4.9 | 18.8% | 854.3% | +22.4% | −6% / −5% |
| CTOSCustom Truck One Source, Inc. | 2.1 bn | 70.4 | 3.7% | 1.4% | +7.9% | +46% / +60% |
| PRGProg Holdings, Inc. | 1.5 bn | 10.5 | 20.0% | 5.5% | +0.4% | +35% / +43% |
| UPBDUpbound Group, Inc. | 1.5 bn | 13.1 | 15.5% | 2.4% | +8.7% | +39% / −15% |
| EQPTEquipmentShare.com Inc | 1.1 bn | 17.4 | 7.4% | 1.3% | +16.3% | unavailable / unavailable |
| KPLTKatapult Holdings, Inc. | 49.1 m | 7.0 | — | 5.4% | +18.0% | +59% / −10% |
| EHGOEShallGo Inc. | — | — | -117.3% | -69.4% | +21.1% | −66% / unavailable |
1- and 3-year price returns: for MGRC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 83.23 Total return -33% · Per year -33% | 146.53 Total return 17% · Per year 17% | 219.87 Total return 75% · Per year 75% |
| 3 years | 97.12 Total return -19% · Per year -7% | 190.77 Total return 56% · Per year 16% | 311.88 Total return 152% · Per year 36% |
| 5 years | 113.32 Total return -3% · Per year -1% | 248.35 Total return 107% · Per year 16% | 442.39 Total return 263% · Per year 29% |
- Exit P/E± 47.69
- Net margin± 33.38
- Annual revenue growth± 25.09
- Annual dilution± 2.81
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
In brief
McGrath RentCorp rents modular classroom buildings, portable storage containers and electronic test equipment to business customers, with a model built on fast recovery of fleet investment. Consolidated revenues in fiscal 2025 were 944.2 million USD, while the pace slowed in the second quarter of 2026, making equipment sales a closely watched line.
SWOT
Strengths
- Leading position in classroom modular rental in California and Florida, and a maintained fleet with good residual value on sale 1.
- Business model in which investment is recovered quickly through rents, supported by maintenance that extends equipment life 1.
- Long history of annual dividend increases, described as a rare distinction among listed companies 3.
Weaknesses
Opportunities
Risks
- Dependence on school budgetshigh
A large part of modular revenue depends on public school funding. Changes in state budgets could directly affect demand and pricing 2.
- Residual value riskmedium
Resale value of used equipment can fall below book value, and sales below projections would weigh on results 1.
- Supplier dependencemedium
The company has no long-term purchase contracts with suppliers and relies on third parties to build equipment to its specifications 1.
- Acquisitions and integrationmedium
Future acquisitions could bring integration difficulties, goodwill impairment and pressure on borrowing capacity 1.
- Leadership transitionlow
The change of chief executive could create uncertainty among investors, customers and employees during the handover 1.
Investment thesis
What would need to be true (bull case)
- If the rental divisions keep growing and fleet utilization improves, results could support the revised 2026 outlook 3.
- Demand from data center projects and large commercial jobs could sustain growth at TRS-RenTelco and Mobile Modular 3.
- The fleet model, with long asset lives and quick investment recovery, provides a base of cash generation for capital spending and dividends 1.
What would break the thesis
- If school funding falls or projects are delayed, demand for classroom modulars could weaken significantly 2.
- The drop in equipment sales in the second quarter of 2026 shows that revenues can be volatile from one quarter to the next 3.
- Container margins have been squeezed by costs, and weak construction activity could prolong that pressure 3.
What to watch
- Delivery against the revised full-year revenue and Adjusted EBITDA outlooknext 10-Q
- Timing of delayed equipment sales at Enviroplex and Mobile Modular, shifted into the second halfQ3 2026
- Recovery in commercial construction activity for the Portable Storage division2026
- Public school funding budgets and their effect on modular demandnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results), 10-Q (28 Oct 2026).
The business
McGrath RentCorp is a business-to-business rental company based in Livermore, California, listed on NASDAQ under the symbol MGRC. It has three rental divisions: relocatable modular buildings, portable storage containers and electronic test equipment. Rental is the primary emphasis, though equipment sales occur in the normal course of business. The model relies on recovering investment quickly through rents, followed by sales of equipment that have recovered a high share of the original cost 1.
The operating structure rests on large regional sales and inventory centers that spread costs across a broad installed customer base. The company had 1,306 employees at year-end 2025, with no collective bargaining agreements 1. In February 2026 the chief executive's retirement was announced and the role passed to the former chief operating officer 1.
Segments
Mobile Modular
The largest segment, renting and selling modular buildings, especially classrooms for public and private schools in California, Florida and Texas. It contributed 66% of pre-tax income in fiscal 2025 1. In the second quarter of 2026 rental revenues rose 2% while sales fell 23% 3.
TRS-RenTelco
The electronic test equipment rental division, serving customers in aerospace, defense, communications and semiconductors. Its share of pre-tax income rose to 16% in 2025 1. In the second quarter of 2026 rental revenues grew 17%, helped by projects supporting new data centers 3.
Portable Storage
Rental of steel storage containers, with demand tied to construction and commercial activity. In the second quarter of 2026 rental revenues were flat and margins were pressured by higher equipment preparation and trucking costs 3.
Market context
The US modular building rental market has equipment on rent or available for rent with an aggregate original cost of over 5.0 billion USD 1. Educational demand depends on shifting school populations, state construction funding and class size policies. If school funding falls, temporary classroom projects could be postponed, while schools may prefer modular solutions over permanent construction 2.
For containers and test equipment, demand follows construction, energy, manufacturing and communications infrastructure cycles. Management's 2026 outlook calls for total revenue between 955 and 985 million USD and Adjusted EBITDA between 363 and 375 million USD 3.
Trends
- Public school fundingmixed
State funding and class size reduction programs directly drive demand for modular classrooms. Changes in funding could affect revenues from this segment 2.
- Data center projectstailwind
Projects for new data centers supported profitable growth at TRS-RenTelco in the second quarter of 2026 3.
- Commercial construction activityheadwind
Soft construction activity limited Portable Storage revenues and kept pressure on margins 3.
- Timing of equipment salesheadwind
Delays in several sales projects moved revenue into the second half of the year, making sales harder to forecast quarter to quarter 3.
Competitive position
The company describes the modular building market as service-intensive and locally based, where fleet quality, delivery speed and customer support are key factors 1. Specific competitors are not named in the source texts, so the analysis is limited to the factors the company lists.
In containers and test equipment, the company's advantage comes from operating scale and the ability to redeploy equipment quickly. Transport and preparation costs can, however, narrow that advantage in weaker periods 3.
- WillScot Mobile Mini
Company named in the source texts as party to a merger agreement terminated in 2024; the sources do not confirm a US listing.
- Regional classroom modular providers
Local competition in the states where the company operates, described through the need for local regulatory expertise and regional presence.
- Portable storage container rental firms
Competitors in the portable container segment, where the company cites presence in construction and commercial markets.
- Electronic test equipment providers
Competitors in the TRS-RenTelco division serving aerospace, defense and semiconductor customers; not named in the source texts.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Resilient Cash Flows and Organic Drivers Position McGrath RentCorp (MGRC) for Long-Term GrowthYahoo Finance — News · 22 Sept 2026 · EN
- Guvernul confirmă că Ilie Bolojan şi Oana Ţoiu au vorbit cu Michael McGrath despre Legea ANI. De ce au cerut analiza de urgenţăAntena 3 CNN · 03 Sept 2026 · RO
- Atletism: Spaniolii Maria Perez și Paul McGrath, campioni europeni la semimaraton marș la BirminghamAgerpres · 15 Aug 2026 · RO
- Cătălin Predoiu a avut o întrevedere cu Michael McGrathJuridice.ro · 29 Jun 2026 · RO
- Dynamic pricing ban off the menu in upcoming digital fairness rules, McGrath saysEuractiv · 23 Jun 2026 · RO
The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report28 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report05 Jun 2026Shareholder vote
- Current report11 May 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report29 Apr 2026
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / McGrath RentCorp · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / McGrath RentCorp · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / McGrath RentCorp · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.