McGrath RentCorp reports Q3 EPS $1.72, consensus $1.82

Reports Q3 revenue $256.4M, consensus $266.62M. Joe Hanna, President and CEO of McGrath, made the following comments: “We delivered solid third quarter results, with rental revenue growth in each of our operating segments, despite some challenging market demand conditions. Sales revenues for the quarter were lower than a year ago, but cumulatively higher year to date reflecting a more balanced contribution by quarter than last year. Modular rental revenues increased 2% compared to last year, with growth from our commercial customer base. Given current utilization levels, we reduced rental equipment capital spending and focused on preparing available fleet to satisfy new shipments which increased operating expenses for the quarter. Portable Storage rental revenues grew 1%, which was its first year over year growth since the first quarter of 2024. We are encouraged that market conditions for this segment are showing signs of stabilization despite soft commercial construction project activity. TRS-RenTelco had a strong quarter, with rental revenues up 9% over last year. Consistent with the second quarter, improvement in market demand conditions was broad-based across customer segments. I am pleased with our year-to-date progress. We have delivered business growth, lowered our capital spending to align with market conditions, increased contributions from our modular services offerings, and broadened our geographic sales coverage. We have good momentum entering the fourth quarter and we remain focused on delivering a strong finish to the year.”