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# McGrath Earnings Rise To $2.00 A Share, But Revenue Outlook For Rest Of 2026 Is Cut
- URL: https://www.bullished.co/mcgrath-earnings-rise-to-2-00-a-share-but-revenue-outlook-for-rest-of-2026-is-cut-1b69abe2/
- Published: 2026-10-28T20:19:43.000Z
- Updated: 2026-10-28T20:19:43.000Z
- Description: The rental company trimmed its 2026 revenue range on weaker modular equipment sales and raised its fleet spending plan to $270 million to $290 million.
- Author: Matteo Parrino
- Tags: Earnings, MGRC, Industry: Industrials

[McGrath RentCorp](https://www.bullished.co/tag/mgrc/), a business-to-business rental company with modular building, portable storage and test-equipment units, [earned $48.8 million](https://www.businesswire.com/news/home/20261028841032/en/McGrath-Announces-Results-for-Third-Quarter-2026?ref=bullished.co), or $2.00 a diluted share, in the third quarter, up from $42.3 million, or $1.72, a year earlier. It also lowered its revenue outlook for the rest of 2026 and lifted planned rental equipment spending, the company said Wednesday.

## Revenue up 7%, profit up on rentals and sales

Revenue rose 7% to [$274.6 million](https://wtop.com/national/2026/10/mcgrath-q3-earnings-snapshot/?ref=bullished.co). Rental operations revenue climbed 6% to $189.5 million and sales revenue rose 9% to $82.9 million. Income from operations rose 11% to $73.9 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and certain other items) rose 10% to $106.5 million.

The company attributed the higher profit mainly to better gross profit on rental operations and sales compared with a year earlier. CEO Phil Hawkins said the revenue gain was driven by higher rentals, reflecting "steady progress at Mobile Modular and TRS-RenTelco."

## Test equipment surges, storage slips

TRS-RenTelco, which rents electronic test equipment, posted a 26% rise in rental revenue to $35.4 million, and its adjusted EBITDA rose 27% to $25.7 million. Hawkins said demand stayed "robust" and the unit continued to benefit from projects supporting the buildout of new data centers.

Mobile Modular, which rents relocatable buildings, saw rental revenue rise 4% to [$86.9 million](https://www.businesswire.com/news/home/20261028841032/en/McGrath-Announces-Results-for-Third-Quarter-2026?ref=bullished.co). Its sales revenue fell 10% to $47.1 million on lower new equipment sales, and its adjusted EBITDA slipped 3% to $62.6 million.

Portable Storage rental revenue fell 3% to $16.8 million as demand stayed soft, and the unit's adjusted EBITDA dropped 20% to $7.4 million. Hawkins cited higher costs for equipment preparation, trucking and sales coverage as pressure on margins.

## Lower revenue range, bigger fleet budget

For the remainder of 2026, McGrath now expects total revenue of [$945 million to $960 million](https://wtop.com/national/2026/10/mcgrath-q3-earnings-snapshot/?ref=bullished.co), down from $955 million to $985 million, because of lower Mobile Modular new equipment sales. Its adjusted EBITDA range narrowed to $365 million to $373 million from $363 million to $375 million, with the midpoint unchanged.

Gross rental equipment capital spending is now expected at $270 million to $290 million, up from $200 million to $220 million, to support momentum at Mobile Modular and TRS-RenTelco. Over the first nine months, the company spent $218.7 million on rental equipment, against $91.5 million a year earlier, and notes payable stood at $618.3 million at September 30, up from $514.9 million at the end of 2025.

The company declared a dividend of $0.495 a share, a 1.7% annualized yield on the $119.56 close on October 27.

McGrath scheduled its third-quarter conference call for 5:00 p.m. Eastern on Wednesday.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — MCGRATH RENTCORP (MGRC)](https://www.sec.gov/Archives/edgar/data/0000752714/000119312526436105/mgrc-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit mgrc-ex99\_1.htm — MCGRATH RENTCORP 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000752714/000119312526436105/mgrc-ex99%5F1.htm?ref=bullished.co) — SEC EDGAR
- [McGrath: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/mcgrath-q3-earnings-snapshot/?ref=bullished.co) — wtop.com
- [McGrath Announces Results for Third Quarter 2026](https://www.businesswire.com/news/home/20261028841032/en/McGrath-Announces-Results-for-Third-Quarter-2026?ref=bullished.co) — businesswire.com

### More on McGrath RentCorp

- [McGrath's Classroom Builder Now Supplies 18% Of Pretax Profit As Its Two Biggest Rental Units Earn Less](https://www.bullished.co/mcgraths-classroom-builder-now-supplies-18-of-pretax-profit-as-its-two-biggest-rental-5a384961/)

[All McGrath RentCorp (MGRC) coverage →](https://www.bullished.co/tag/mgrc/)