The Q2 miss and guidance trim suggest near-term headwinds from project delays and soft commercial construction, but the strong rental operations growth (especially TRS-RenTelco) provides a floor. Monitor the Q3 earnings call for updates on Enviroplex sales pipeline and Portable Storage margin recovery. The $27.5M in share repurchases signals management's view of undervaluation, but the lowered guidance midpoint warrants caution.
Price Chart
Executive Summary
McGrath RentCorp reported Q2 2026 total revenue of $221.1M (-6% YoY) and diluted EPS of $1.37 (-6.2% YoY), missing consensus estimates of $1.46 EPS and $236.5M revenue. The miss was driven by a 34% decline in sales revenue, particularly at Enviroplex and Mobile Modular, partially offset by 6% growth in rental operations revenue. The company narrowed its full-year 2026 revenue guidance to $955-985M (from $945-995M) and Adjusted EBITDA guidance to $363-375M (from $360-378M), while raising capex guidance to $200-220M. The TRS-RenTelco segment was a bright spot with 17% rental revenue growth, but weakness in Portable Storage (Adjusted EBITDA -23%) and Enviroplex (operating loss) weighed on results. The stock is likely to trade down on the revenue miss and lowered guidance midpoint, though the rental operations strength provides some offset.
Key Financial Metrics
Key Facts
- Total revenue $221.1M, -6% YoY vs $235.6M in Q2 2025
- Diluted EPS $1.37 vs $1.46 YoY, missing consensus of $1.46
- Rental operations revenue +6% to $172.5M, driven by TRS-RenTelco +17%
- Sales revenue -34% to $46.4M, primarily due to lower Enviroplex and Mobile Modular sales
- Adjusted EBITDA -4% to $82.8M from $86.5M
- Full-year 2026 revenue guidance narrowed to $955-985M (previous $945-995M)
- Full-year 2026 Adjusted EBITDA guidance narrowed to $363-375M (previous $360-378M)
- Gross rental equipment capex guidance raised to $200-220M (previous $180-200M)
- Portable Storage Adjusted EBITDA -23% to $7.6M; Enviroplex operating loss of $0.6M
- TRS-RenTelco Adjusted EBITDA +29% to $25.0M on strong data center demand
- Company repurchased $27.5M of common stock in H1 2026
Financial Impact
Revenue miss of ~$15M vs consensus; EPS miss of ~$0.09 vs consensus; guidance midpoint lowered by ~$5M on revenue and ~$2M on EBITDA
Risk Factors
- Further weakness in Enviroplex and Mobile Modular sales if project delays persist
- Portable Storage margin compression from higher trucking and labor costs
- Macroeconomic headwinds from tariff uncertainty and non-residential construction softness
- Higher capex guidance ($200-220M) could pressure free cash flow if rental equipment utilization doesn't improve
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-323611 |
| Document: mgrc-20260729.htm | 0001193125-26-323611 |
| Document: 0001193125-26-323611-index-headers.html | 0001193125-26-323611 |
| Document: 0001193125-26-323611-index.html | 0001193125-26-323611 |
| Document: 0001193125-26-323611.txt | 0001193125-26-323611 |
| 8-K Data (Synthetic) | 0001193125-26-323611 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 6w ago | Insider Cluster | $116.65 $111.76 | ▼ −4.19% | ▼ −3.67% | $114.99 (−1.42%) |
Aug 13, 2026 7w ago | Insider Cluster | $122.28 $110.63 | ▼ −9.53% | ▼ −7.54% | $114.99 (−5.96%) |
Aug 13, 2026 7w ago | Insider Cluster | $122.28 $110.63 | ▼ −9.53% | ▼ −7.54% | $114.99 (−5.96%) |
Jul 29, 2026 9w ago | 8-K | $115.00 $113.75 | ▲ +1.09% | ▲ +5.05% | $114.99 (+0.01%) |
Jul 2, 2026 13w ago | Insider Cluster | $117.91 $115.00 | ▼ −2.47% | ▼ −2.05% | $114.99 (−2.48%) |
Jun 16, 2026 15w ago | Insider Cluster | $113.76 $121.02 | ▲ +6.38% | ▲ +5.06% | $114.99 (+1.08%) |
May 19, 2026 19w ago | Insider Cluster | $109.83 $118.19 | ▲ +7.61% | ▲ +6.87% | $114.99 (+4.70%) |
May 11, 2026 20w ago | 8-K | $113.71 $112.96 | ▼ −0.66% | ▲ +1.07% | $114.99 (+1.13%) |
Apr 24, 2026 23w ago | DEFA14A | $118.11 $111.71 | ▼ −5.42% | ▼ −10.37% | $114.99 (−2.64%) |
Feb 25, 2026 31w ago | 8-K | $115.19 $108.97 | ▼ −5.40% | ▼ −0.17% | $114.99 (−0.18%) |
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