McGrath RentCorp Q1 revenue rises, net income slips

Mcgrath Rentcorp

29/04/2026 21:11

Overview

US equipment rental firm's Q1 revenue rose 2% yr/yr, rental operations up 5%

Q1 net income and EPS declined slightly from prior year

Company cited higher costs and lower sales revenue as factors compressing margins

Outlook

Company expects 2026 revenue between $945 mln and $995 mln

Company sees 2026 Adjusted EBITDA of $360 mln to $378 mln

Company anticipates 2026 gross rental equipment capex of $180 mln to $200 mln

Result Drivers

HIGHER COSTS - Co said increased material and labor costs to prepare equipment for shipment and higher selling and administrative expenses compressed margins

SOFT SALES - Lower sales revenues, particularly at Enviroplex and in new and used equipment sales, weighed on results

TRS-RENTELCO DEMAND - Strong demand in TRS-RenTelco segment, supported by data center buildout projects, drove rental revenue growth

Company press release: ID:nBwc72x19a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$1.10
Q1 Net Income
$27.03 mln
Q1 Dividend
$0.50


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $142.50, about 18.7% above its April 28 closing price of $120.04

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)