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Mcgrath Rentcorp (MX:MGRC)
:MGRC
Mexico Market
EarningsQ2 2026 Earnings Report

Mcgrath Rentcorp (MGRC) Q2 2026 Earnings Report

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MX:MGRC Q2 2026 EPS Results

Actual EPS$32.60
Consensus EPS$25.58
Beat/MissBeat by +$7.03
One Year Ago EPS$25.33

MX:MGRC Q2 2026 Revenue Results

Actual Revenue$3.84B
Expected Revenue$4.10B
Beat/MissMissed by -$267.26M
YoY Revenue Growth-6.16%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:MGRC Upcoming Earnings
Mcgrath Rentcorp's next earnings date is estimated for October 22, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:MGRC Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call conveyed a mixed but constructive tone: clear operational inflection points and strong performance at TRS and improving modular rental trends underpin confidence (rental revenue growth, higher revenue per unit, and sequential utilization improvement). These positives are partially offset by meaningful near-term headwinds — a sharp decline in Enviroplex sales, weakness in portable storage, lower total revenues and modestly lower adjusted EBITDA — driven largely by project timing and soft local construction markets. Management maintained guidance midpoints, increased targeted CapEx for growth areas, and highlighted balance sheet flexibility, suggesting cautious optimism but balanced risks.
Company Guidance
Management left midpoints unchanged but tightened full-year 2026 guidance, now forecasting total revenue of $955–$985 million and adjusted EBITDA of $363–$375 million, while increasing gross rental equipment CapEx to $200–$220 million to support incremental TRS investment. They expect continued strength in Mobile Modular and stronger-than-expected TRS to offset weaker portable storage and Enviroplex (Enviroplex expected to be similar to 2024); Q2 results supporting the outlook included total revenues of $221 million and adjusted EBITDA of $83 million, Mobile Modular revenues of $150 million (adjusted EBITDA $51M) with average utilization ~70.1% (ended the quarter ~70.6%), TRS revenues of $43 million (up 17%) and adjusted EBITDA $25 million (up 29%) with utilization ~68.1% (ended 68.9%). Financial flexibility cited to execute the plan: net borrowings $590 million, funded debt / LTM adjusted EBITDA 1.65x, year-to-date rental equipment purchases $124 million (vs. $50M prior year), net cash from operations $106 million YTD, $25 million of dividends paid and $27 million of share repurchases YTD, with management focused on disciplined execution, capital allocation and opportunistic M&A.
Rental Operations Growth
Rental operations revenues increased 6% year-over-year, driven by Mobile Modular and TRS RenTelco momentum; company emphasized rental operations growth despite weaker sales.
TRS RenTelco Strong Performance
TRS revenues up 17% to $43M and adjusted EBITDA up 29% to $25M; rental revenues rose 17% to $32M, rental margins expanded to 48% (from 44%), average utilization improved to 68.1% (from 64.8%), and sales revenues increased 13% to $8.7M with gross margins rising to 66% (from 47%).
Mobile Modular Operational Inflection
Mobile Modular rental revenues grew 2% and bookings increased 11% year-over-year; utilization improved sequentially (70.0% Q1 to 70.6% end of Q2), units on rent increased for four consecutive months, and monthly revenue per unit on rent rose 7% to $922; Mobile Modular Plus revenues rose to $10.5M from $9.2M.
Revenue per Unit and Pricing Tailwind
Revenue-per-unit trends favorable: monthly revenue per unit on rent increased 7% to $922; average monthly revenue per unit for shipments over the last 12 months also reported up 7% (transcript figure cited as $12.52).
Balance Sheet & Capital Allocation Flexibility
Strong cash generation (operating cash flow $106M YTD), net borrowings of $590M and funded debt / LTM adjusted EBITDA at 1.65x enabled $25M of dividends, $27M in share repurchases (250k shares YTD), continued organic investment, and capacity for M&A.
Increased Investment to Support Growth
Rental equipment purchases increased materially to $124M from $50M (up ~148%) to fund modular geographic expansion and higher TRS demand; company raised gross rental equipment CapEx guidance to $200M–$220M for 2026.
Guidance Maintained with More Visibility
Management kept midpoints of full-year revenue and adjusted EBITDA guidance unchanged while tightening ranges: revenue $955M–$985M and adjusted EBITDA $363M–$375M, reflecting confidence that TRS strength and modular momentum will offset weaker segments.

MX:MGRC Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 22, 2026
2026 (Q3)
32.83 / -
29.844―
2026 (Q2)
25.58 / 32.60
25.33328.70% (+7.27)
2026 (Q1)
19.29 / 19.09
19.954-4.35% (-0.87)
2025 (Q4)
29.71 / 35.05
27.41527.85% (+7.63)
2025 (Q3)
31.54 / 29.84
32.447-8.02% (-2.60)
2025 (Q2)
21.20 / 25.33
14.57573.81% (+10.76)
2025 (Q1)
15.93 / 19.95
16.13723.66% (+3.82)
2024 (Q4)
25.80 / 27.41
22.55721.54% (+4.86)
2024 (Q3)
22.04 / 32.45
28.62913.33% (+3.82)
2024 (Q2)
21.69 / 14.57
19.78-26.32% (-5.21)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed