McGrath RentCorp Rents Up, Sales Down

McGrath RentCorp (NASDAQ:MGRC) announced its second-quarter financial performance, highlighting robust growth in rental operations driven by its Mobile Modular and TRS-RenTelco segments. Overall revenue experienced a 6% decrease, totaling $221 million, with adjusted EBITDA falling by 4% to $83 million. This decline was primarily attributed to reduced new-equipment sales and postponed project completions.

Despite the overall revenue dip, the company's rental operations revenue demonstrated a healthy 6% increase. CEO Phil Hawkins noted positive momentum heading into the latter half of 2026, stating that rental revenue growth was achieved within a mixed demand environment.

The Mobile Modular division reported a 4% revenue decrease to $150 million, alongside a 4% dip in adjusted EBITDA to $51 million. However, rental revenue within this segment rose by 2%, supported by commercial clients and a 8% uplift in rental-related services. Bookings saw an 11% increase year-over-year, and average fleet utilization sequentially climbed to 70.1%, ending the quarter at 70.6% as shipments outpaced returns.