McGrath RentCorp Q2 revenue falls as Enviroplex and Mobile Modular sales drop

Mcgrath Rentcorp

29/07/2026 21:10

Overview
US rental company's Q2 revenue fell 6% yr/yr as sales revenue declined sharply
Adjusted EPS and net income both declined, mainly due to lower gross profit on sales
Rental operations revenue rose 6% yr/yr, offset by higher costs and weak sales

Outlook
McGrath now sees 2026 revenue at $955 mln to $985 mln, versus $945 mln to $995 mln prior
Company expects 2026 adjusted EBITDA of $363 mln to $375 mln, up from $360 mln to $378 mln prior
Gross rental equipment capital expenditures for 2026 now expected at $200 mln to $220 mln, up from $180 mln to $200 mln

Result Drivers
SALES REVENUE DECLINE - Co said lower sales at Enviroplex and Mobile Modular, due to project delays, led to a 34% drop in sales revenue
STRONG RENTAL DEMAND - TRS-RenTelco rental revenue rose 17% on robust demand, especially from data center buildout projects
COST PRESSURES - Higher costs for equipment preparation, trucking and sales coverage weighed on margins, especially in Portable Storage

Company press release: ID:nBw3gqymKa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$1.37
 
Q2 Net Income
 
$33.67 mln
 
Q2 Dividend
 
$0.49
 

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 $146.00, about 21.7% above its July 28 closing price of $119.98
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
July 28 - Herc Holdings beats Q2 revenue estimates, lifts 2026 outlook
July 28 - Avis Budget Q2 revenue misses estimates amid booking trends shift
July 29 - CBRE raises profit forecast as data center expansion boosts real estate services demand

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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.)