McGrath RentCorp stock posts Q3 growth but trims revenue outlook

Published on 11/03/2026 at 02:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

McGrath RentCorp stock follows stronger third-quarter rental demand. Management lowered revenue guidance while keeping the adjusted EBITDA midpoint intact.

McGrath RentCorp advances in Q3

Third-quarter revenue rose 7 percent year over year, while net income increased to USD 48.8 million.
TRS-RenTelco delivered strong rental growth, while weaker modular equipment sales prompted a lower full-year revenue outlook.
Capital spending guidance rose as McGrath RentCorp expands rental capacity in its strongest businesses.

MGRC, US5805891091, Illustration mit AI erstellt.

McGrath RentCorp reported stronger third-quarter results on October 28, 2026, but lowered its full-year revenue outlook as modular equipment sales remained weaker. The company said in a release carried by Financial Times that revenue for the quarter ended September 30 increased 7 percent year over year to USD 274.6 million.

Net income rose to USD 48.8 million from USD 42.3 million, while diluted earnings per share increased to USD 2.00 from USD 1.72. Income from operations increased 11 percent to USD 73.9 million, and adjusted EBITDA rose 10 percent to USD 106.5 million.

Rental demand drives mixed segments

Rental operations revenue increased 6 percent to USD 189.5 million. TRS-RenTelco was the strongest growth contributor, with rental revenue up 26 percent to USD 35.4 million and adjusted EBITDA up 27 percent to USD 25.7 million. Management linked demand to projects supporting new data-center construction.

Mobile Modular rental revenue increased 4 percent, but sales revenue fell 10 percent to USD 47.1 million. Portable Storage rental revenue declined 3 percent, while its adjusted EBITDA fell 20 percent to USD 7.4 million. The contrasting segment trends leave rental operations as the central driver of the company outlook.

Lower revenue range, higher investment

McGrath lowered its 2026 revenue outlook to USD 945 million to USD 960 million from USD 955 million to USD 985 million. The adjusted EBITDA range narrowed to USD 365 million to USD 373 million, leaving the midpoint unchanged, while gross rental equipment capital expenditure guidance increased to USD 270 million to USD 290 million from USD 200 million to USD 220 million.

McGrath RentCorp stock traded at 117.00 euros on Lang & Schwarz at 11:00 p.m. CET on Monday, November 2. Investors will weigh the stronger rental trend against softer modular sales and the higher investment requirement. A dated Xetra comparison is not used here.

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Business model and market position

McGrath RentCorp is a North American business-to-business rental company headquartered in Livermore, California. Its operations cover modular buildings and portable storage through Mobile Modular, electronic test equipment through TRS-RenTelco, and containment and classroom solutions through its other business lines. The company serves commercial, industrial, construction, education, communications and technology customers with rental and related services.