McGrath Announces Results for Fourth Quarter 2025 and Announces 35th Annual Dividend Increase

McGrath RentCorp ("McGrath" or the "Company") (NASDAQ:MGRC), a leading business-to-business rental company in North America, today announced total revenues for the quarter ended December 31, 2025 of $256.8 million, an increase of 5% compared to the fourth quarter of 2024. The Company reported net income of $49.8 million, or $2.02 per diluted share, for the fourth quarter of 2025, compared to net income of $38.9 million, or $1.58 per diluted share, for the fourth quarter of 2024.

Total revenues for the full year ended December 31, 2025 increased to $944.2 million, an increase of 4%, from $910.9 million in 2024, with adjusted EBITDA increasing $10.7 million, or 3%, to $362.5 million. Net income for the year ended December 31, 2025 was $156.3 million, or $6.35 per diluted share, compared to $231.7 million, or $9.43 per diluted share, in 2024. Excluding the $180.0 million merger termination payment received from WillScot Mobile Mini in 2024 and $63.2 million in transaction costs incurred, net of provision for income taxes, the Company's reported full year 2025 net income increased $10.9 million, or 7%, and diluted earnings per share increased $0.43, or 7%.

The Company also announced that the board of directors declared a cash dividend of $0.495 per share for the upcoming quarter ending March 31, 2026, a quarterly increase of $0.01, or 2%, over the prior year period. The cash dividend will be payable on April 30, 2026 to all shareholders of record on April 16, 2026. This marks 35 consecutive years the Company has increased its annual dividend.

FOURTH QUARTER 2025 YEAR-OVER-YEAR COMPANY HIGHLIGHTS:

• Rental operations revenues increased 6% to $170.0 million.
• Sales revenues increased 5% to $84.4 million.
• Total revenues increased 5% to $256.8 million.
• Income from operations increased 18% to $74.2 million.
• Adjusted EBITDA¹ increased 14% to $104.9 million.
• Dividend rate of $0.485 per share for the fourth quarter 2025. On an annualized basis, this dividend represents a 1.7% yield on the February 24, 2026 close price of $114.48 per share.

Joe Hanna, President and CEO of McGrath, made the following comments:

"We were pleased with our strong fourth quarter results. The 5% increase in companywide revenues and 14% increase in Adjusted EBITDA were driven by Mobile Modular and TRS-RenTelco.

Modular rental revenues increased 2% compared to last year, with growth driven by our commercial customer base. We continued to make progress with our long-term modular growth initiatives, Mobile Modular Plus and Site Related Services, and broadening our geographic coverage. Used equipment sales and Site Related Services contributed to higher gross profit for the quarter.

Portable Storage rental revenues grew 3%, benefiting from some incremental seasonal retail business. Commercial construction project activity remained soft, but we are hopeful that market demand conditions for this segment are showing signs of stabilization.

TRS-RenTelco had an impressive quarter, as improved market conditions supported rental revenue growth of 13% over last year and strong used equipment sales. Demand was robust throughout the quarter, with a very modest seasonal slowdown at year end.

I appreciate the deep commitment, engagement and execution from our McGrath team members to deliver solid results for the year despite challenging non-residential construction demand conditions faced by our Modular and Portable Storage businesses. These results demonstrate the resilience of our people and our strategy. I am encouraged by our start to 2026 and confident that our teams are very focused on building on last year's progress."

DIVISION HIGHLIGHTS:

All comparisons presented below are for the quarter ended December 31, 2025 to the quarter ended December 31, 2024 unless otherwise indicated.

MOBILE MODULAR

For the fourth quarter of 2025, the Company's Mobile Modular division reported Adjusted EBITDA of $68.7 million, an increase of $7.7 million, or 13%, when compared to the same quarter in 2024.

• Rental revenues increased 2% to $83.3 million, depreciation expense increased 7% to $11.1 million, and other direct costs increased 3% to $19.1 million, which resulted in a comparable gross profit on rental revenues of $53.1 million.
• Rental related services revenues increased 10% to $35.5 million, primarily attributable to higher site related services and repair revenues, with associated gross profit increasing 23% to $14.2 million.
• Sales revenues decreased 1% to $55.4 million, due to lower new equipment sales, partly offset by higher used equipment sales. Gross margin on sales was 34% in 2025 compared to 26% in 2024, resulting in a 32% increase in gross profit on sales revenues to $18.8 million. The higher gross margin on sales was primarily attributed to a higher mix of used versus new sales during the quarter.
• Selling and administrative expenses decreased $0.6 million to $36.7 million, when compared to the prior year.

PORTABLE STORAGE

For the fourth quarter of 2025, the Company's Portable Storage division reported Adjusted EBITDA of $9.6 million, a decrease of $0.3 million, or 3%, when compared to the same quarter in 2024.

• Rental revenues increased 3% to $17.3 million, depreciation expense increased 6% to $1.1 million, and other direct costs increased 16% to $1.7 million, which resulted in an increase in gross profit on rental revenues of 2% to $14.5 million.
• Rental related services revenues increased 8% to $4.2 million, primarily attributable to higher delivery and return delivery activities, with gross loss increasing $0.4 million to $0.5 million in 2025.
• Sales revenues increased $0.3 million to $2.1 million, primarily from higher used equipment sales. Gross margin on sales was 37% compared to 36% in 2024, resulting in a 24% increase in gross profit on sales revenues to $0.8 million.
• Selling and administrative expenses increased $0.2 million to $7.6 million, when compared to the prior year.

TRS-RENTELCO

For the fourth quarter of 2025, the Company's TRS-RenTelco division reported Adjusted EBITDA of $23.1 million, an increase of 21%, when compared to the same quarter in 2024.

• Rental revenues increased 13% to $28.7 million, depreciation expense decreased 4%, and other direct costs increased 22%, resulting in a 26% increase in gross profit on rental revenues to $12.7 million. The rental revenue increase was primarily due to strengthened end markets, resulting in higher average rental equipment on rent and higher average monthly rental rates when compared to the prior year.
• Sales revenues increased 42% to $10.3 million and gross profit on sales revenues increased 58% to $6.6 million.
• Selling and administrative expenses increased 12%, to $7.7 million, when compared to the prior year.

FINANCIAL OUTLOOK:

For the full-year 2026, the Company expects:

ABOUT MCGRATH:

McGrath RentCorp (NASDAQ:MGRC) is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath's operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions. The Company's rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 45 years of experience, McGrath's success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company's long-term financial success and supported 35 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.

McGrath is headquartered in Livermore, California. Additional information about McGrath and its businesses is available at mgrc.com and investors.mgrc.com.

You should read this press release in conjunction with the financial statements and notes thereto included in the Company's latest Forms 10-K, 10-Q and other SEC filings. You can visit the Company's web site at www.mgrc.com to access information on McGrath RentCorp, including the latest Forms 10-K, 10-Q and other SEC filings.

CONFERENCE CALL NOTE:

As previously announced in its press release of January 16, 2026, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on February 25, 2026 to discuss the fourth quarter 2025 results. To participate in the teleconference, dial 1-800-274-8461 (in the U.S.), or 1-203-518-9814 (outside the U.S.), or to listen only, access the simultaneous webcast at the investor relations section of the Company's website at https://investors.mgrc.com/. A replay will be available for 7 days following the call by dialing 1-800-839-5152 (in the U.S.), or 1-402-220-2694 (outside the U.S.). In addition, a live audio webcast and replay of the call may be found in the investor relations section of the Company's website at https://investors.mgrc.com/events-and-presentations.

FORWARD-LOOKING STATEMENTS:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding McGrath RentCorp's expectations, strategies, prospects or targets are forward-looking statements. These forward-looking statements also can be identified by the use of forward-looking terminology such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "plan," "predict," "project," or "will," or the negative of these terms or other comparable terminology. In particular, the discussion under the heading "Financial Outlook" and Mr. Hanna's comments about the commercial construction market project activity showing signs of stabilization and the team's ability to build upon 2025's progress, are forward looking. ​

These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected including: our expectations around continued business momentum entering 2026; the continued impact of tariff actions and macroeconomic factors, including fiscal policy uncertainty, government budgetary constraints, or other political or regulatory developments; health of the education and commercial markets in our modular building division; competition within the modular business; the activity levels in the semiconductor and general purpose and communications test equipment markets at TRS-RenTelco; the activity levels in commercial construction projects and impact on Portable Storage segment; continued execution of our strategic performance improvement initiatives; our ability to successfully increase prices to offset cost increases; our ability to effectively manage our rental assets; and our ability to retain and attract talent and uncertainty associated with the Chief Executive Officer transition, as well as the other factors disclosed under "Risk Factors" in the Company's 2025 Form 10-K and other SEC filings.

Forward-looking statements are made only as of the date hereof and are based on management's reasonable assumptions, however these assumptions can be wrong or affected by known or unknown risks and uncertainties. No forward-looking statement can be guaranteed, and subsequent facts or circumstances may contradict, obviate, undermine or otherwise fail to support or substantiate such statements. Except as otherwise required by law, we assume no obligation to update any of the forward-looking statements contained in this press release.