McGrath RentCorp (MGRC) Barclays 43rd Annual Industrial Select Conference summary

Executive transition and leadership

• Philip B. Hawkins will become CEO and President effective April 3, 2026, succeeding Joe Hanna, who will retire but remain on the board; the transition is supported by a well-developed succession plan and confidence in Hawkins' leadership.

• Joe Hanna highlighted his 23-year tenure, during which revenues doubled and stock price tripled; he will continue to serve on the board.

• Leadership team emphasized continuity, collaborative culture, and consistent management and capital allocation.

• No strategic pivot is planned; the current strategy will continue under new leadership.

• Commitment to disciplined execution, operational excellence, and long-term shareholder value remains a priority.

Business overview and market positioning

• Focus is on modular solutions, including modular buildings, portable storage, and electronics, with 75-80% of attention on modulars.

• Differentiators include strong customer service, ability to handle large, complex projects, and deep regulatory expertise, especially in education.

• About one-third of business is education-focused, with the rest in commercial, industrial, and government sectors; rental revenue mix is 66% commercial, 34% education.

• Company excels in large, long-duration projects, particularly mega projects and data centers, while smaller projects remain weak.

• Diverse customer base of ~21,000, with 99% of revenues from North America.

Financial performance and outlook

• Q3 2025 total revenues were $256.4M (-4% YoY), with adjusted EBITDA at $96.4M (-7% YoY); 2025 outlook updated to total revenues of $935M–$955M and adjusted EBITDA of $350M–$357M.

• Modular business showed revenue growth through disciplined pricing and increased service attachment; average revenue per unit on rent increased 6% year-over-year.

• Rental operations revenues grew 4% YoY in Q3 2025, with Mobile Modular and TRS-RenTelco segments showing positive rental revenue growth.

• Recent break fee from a terminated acquisition provided $85-86 million net, strengthening the balance sheet and supporting future investments.

• Capital allocation remains disciplined, with a focus on organic growth and selective M&A; 34 consecutive years of dividend increases and a 2 million share repurchase authorization.