McGrath RentCorp (MGRC) investor relations material

Executive summary

• CEO transition announced: Joe Hanna retiring, Phil Hawkins (Philip B. Hawkins) to succeed as CEO in April 2026, ensuring strategic continuity and leadership stability.

• 2025 total revenue reached $944.2 million, up 4% year-over-year, with strong contributions from Mobile Modular and TRS-RenTelco.

• Adjusted EBITDA for 2025 was $362.5 million, a 3% increase year-over-year, with a margin of 38%.

• Board declared the 35th consecutive annual dividend increase, reflecting ongoing commitment to shareholder returns.

• Excluding 2024's merger termination payment and related costs, full-year net income rose 7% year-over-year.

Financial highlights

• Q4 2025 total revenues increased 5% year-over-year to $257 million; rental operations up 6%, sales revenues up 5%.

• Q4 Adjusted EBITDA rose 14% to $105 million; Mobile Modular Adjusted EBITDA up 13% to $68.7 million.

• TRS-RenTelco Q4 revenues up 19% to $40.6 million, Adjusted EBITDA up 21% to $23.1 million.

• Portable Storage Q4 rental revenues up 3% to $17.3 million, but Adjusted EBITDA down 3% due to lower margins.

• Full-year net income was $156.3 million, or $6.35 per diluted share, versus $231.7 million, or $9.43 per share, in 2024 (2024 included a $180 million one-time gain).

Outlook and guidance

• 2026 total revenue expected between $945 million and $995 million; Adjusted EBITDA between $360 million and $378 million.

• Gross rental equipment capital expenditures projected at $180–$200 million for 2026, with increased investment in new markets and TRS.

• Management projects another year of profitable growth in 2026, with optimism about stabilization in commercial construction and strong momentum.

• SG&A expense forecasted at $225–$229 million; interest expense at $26–$29 million.