The strong TRS-RenTelco performance and raised capex signal confidence in data center-driven demand, but the revenue guidance cut and Portable Storage weakness warrant monitoring. Watch for Q4 execution on Modular new equipment sales and whether the higher capex translates to rental revenue growth in 2027.
Price Chart
Executive Summary
McGrath RentCorp reported Q3 2026 total revenue of $274.6M (+7% YoY) and diluted EPS of $2.00, beating the consensus estimate of $1.84. Rental operations revenue grew 6% to $189.5M, driven by strong TRS-RenTelco (+26% rental revenue) and steady Mobile Modular growth. However, the company narrowed its full-year revenue guidance to $945M-$960M (from $955M-$985M) due to lower Modular new equipment sales, while raising its capex guidance sharply to $270M-$290M to support rental fleet investment.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $274.6M, +7% YoY vs $256.4M
- Diluted EPS $2.00 vs $1.72 YoY, beating consensus of $1.84
- Rental operations revenue $189.5M, +6% YoY
- TRS-RenTelco rental revenue +26% YoY to $35.4M, driven by data center buildout demand
- Mobile Modular rental revenue +4% YoY to $86.9M, but Adjusted EBITDA -3% to $62.6M
- Portable Storage rental revenue -3% YoY to $16.8M, Adjusted EBITDA -20% to $7.4M
- Full-year 2026 revenue guidance narrowed to $945M-$960M from $955M-$985M
- Full-year 2026 Adjusted EBITDA guidance narrowed to $365M-$373M from $363M-$375M
- Gross rental equipment capex guidance raised to $270M-$290M from $200M-$220M
- Operating cash flow $72.3M in Q3, up from $65.1M in Q3 2025
Financial Impact
Revenue +7% YoY, EPS +16% YoY, Adjusted EBITDA +10% YoY
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Mobile Modular | $179.9M | -0.8% |
| Portable Storage | $23.7M | -3.0% |
| TRS-RenTelco | $45.3M | +22.8% |
| Enviroplex | $25.7M | +87.8% |
Risk Factors
- Full-year revenue guidance lowered due to lower Modular new equipment sales
- Portable Storage segment continues to decline with negative rental related services margins
- Sharp increase in capex guidance ($270M-$290M) may pressure free cash flow and leverage
- Selling and administrative expenses growing faster than revenue (8% vs 7% YoY)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-436105 |
| Document: mgrc-20261028.htm | 0001193125-26-436105 |
| Document: 0001193125-26-436105-index-headers.html | 0001193125-26-436105 |
| Document: 0001193125-26-436105-index.html | 0001193125-26-436105 |
| Document: 0001193125-26-436105.txt | 0001193125-26-436105 |
| 8-K Data (Synthetic) | 0001193125-26-436105 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | $118.78 | awaiting T+60 | awaiting T+60 | $118.78 (−0.00%) |
Aug 20, 2026 10w ago | Insider Cluster | $116.65 | awaiting T+60 | awaiting T+60 | $118.78 (+1.83%) |
Aug 13, 2026 11w ago | Insider Cluster | $122.28 | awaiting T+60 | awaiting T+60 | $118.78 (−2.86%) |
Aug 13, 2026 11w ago | Insider Cluster | $122.28 | awaiting T+60 | awaiting T+60 | $118.78 (−2.86%) |
Jul 29, 2026 13w ago | 8-K | $115.00 $117.16 | ▼ −1.88% | ▲ +0.59% | $118.78 (−3.29%) |
Jul 2, 2026 17w ago | Insider Cluster | $117.91 $114.86 | ▼ −2.59% | ▼ −6.15% | $118.78 (+0.74%) |
Jun 16, 2026 19w ago | Insider Cluster | $113.76 $110.40 | ▼ −2.95% | ▼ −6.10% | $118.78 (+4.41%) |
May 19, 2026 23w ago | Insider Cluster | $109.83 $122.28 | ▲ +11.34% | ▲ +6.33% | $118.78 (+8.15%) |
May 11, 2026 24w ago | 8-K | $113.71 $121.75 | ▲ +7.07% | ▲ +2.69% | $118.78 (+4.46%) |
Apr 24, 2026 26w ago | DEFA14A | $118.11 $117.12 | ▼ −0.84% | ▼ −5.62% | $118.78 (+0.57%) |
US Market Status
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