McGrath RentCorp Q3 revenue rises on strong TRS-RenTelco demand
Overview
Business-to-business rental firm's Q3 revenue rose 7% year-over-year
Q3 net income and EPS increased from a year earlier
Company lowered full-year revenue outlook due to weaker Mobile Modular equipment sales
Outlook
Company lowers 2026 total revenue outlook to $945-$960 mln from $955-$985 mln
Gross rental equipment capital expenditures now expected at $270-$290 mln for 2026, up from $200-$220 mln
Result Drivers
RENTAL OPERATIONS - Higher rental operations, particularly at Mobile Modular and TRS-RenTelco, drove revenue growth
TRS-RENTELCO DEMAND - Strong demand at TRS-RenTelco, especially from data center buildout projects, contributed to results
PORTABLE STORAGE WEAKNESS - Lower rental revenues and higher costs in Portable Storage segment pressured margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $2 | ||
Q3 Net Income | $48.80 mln | ||
Q3 Dividend | $0.49 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $145.28, about 21.5% above its October 27 closing price of $119.56
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Oct 28 - Nevada unions, politicians caught between AI job creation and destruction
Oct 27 - Extra Space Storage Q3 core FFO rises; lifts 2026 outlook on stronger same-store performance
Oct 27 - Logistics firm Landstar System's Q3 revenue rises 25%, beats estimates
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.)