Mcgrath Rentcorp ( (MGRC) ) has released its Q2 earnings. Here is a breakdown of the information Mcgrath Rentcorp presented to its investors.
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McGrath RentCorp is a prominent business-to-business rental company in North America, specializing in modular solutions and electronic test equipment rental services. In its latest earnings report for the second quarter of 2025, McGrath RentCorp announced a total revenue of $235.6 million, marking an 11% increase compared to the same period in 2024. The company also reported a net income of $36.0 million, or $1.46 per diluted share, up from $20.6 million, or $0.84 per diluted share, in the previous year.
Key highlights from the report include a 5% increase in rental operations revenues to $163.5 million and a significant 28% rise in sales revenues to $69.8 million. The company’s income from operations saw a 5% increase to $57.2 million, while Adjusted EBITDA grew by 3% to $86.5 million. The dividend rate was set at $0.485 per share, representing a 1.7% yield based on the recent share price.
The Mobile Modular division experienced a 5% increase in rental revenues, although its Adjusted EBITDA slightly decreased. The Portable Storage division faced a 5% decline in rental revenues, while TRS-RenTelco enjoyed a 7% increase in rental revenues, driven by improved market demand. Despite some challenges, the company remains optimistic about future opportunities.
Looking ahead, McGrath RentCorp has updated its financial outlook for the full year 2025, expecting total revenues between $925 million and $960 million and Adjusted EBITDA between $347 million and $356 million. The company is focused on disciplined operational execution to capitalize on market opportunities in the second half of the year.