Equipment rental firm McGrath Q3 revenue misses expectations

Mcgrath Rentcorp

23/10/2025 21:10

Overview

McGrath RentCorp Q3 2025 revenue decreased 4% yr/yr, missing analyst expectations

Adjusted EBITDA for Q3 2025 decreased 7% to $96.5 mln

Rental operations revenue increased 4% to $178.1 mln in Q3 2025

Outlook

Company updates full-year 2025 revenue forecast to $935-$955 mln

McGrath revises 2025 adjusted EBITDA forecast to $350-$357 mln

Company lowers gross rental equipment capital expenditures to $120-$125 mln

Result Drivers

RENTAL REVENUE GROWTH - Rental operations revenue increased 4% to $178.1 mln, driven by growth in all operating segments

SALES REVENUE DECLINE - Sales revenues decreased 18% to $76.1 mln, impacting total revenue

MODULAR RENTAL GROWTH - Modular rental revenues increased 2%, with growth from commercial customers

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$256.4 mln
$266.61 mln (4 Analysts)
Q3 EPS
$1.72
Q3 Net Income
$42.29 mln
Q3 Dividend
$0.48


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy."

Wall Street's median 12-month price target for McGrath RentCorp is $145.50, about 16.9% above its October 21 closing price of $120.92

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw35pFFna

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)