MGRCNasdaqServices-Equipment Rental & Leasing, NECUS GAAP · USD

McGrath RentCorp

McGrath RentCorp is a U.S.-based business-to-business rental company organized around modular buildings, portable storage containers, and electronic test equipment. It also sells modular classroom buildings in California through Enviroplex, while the core model remains renting equipment and recovering capital through recurring lease income and eventual equipment sales.

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Revenue944m USD
+3.7 %y/y
Operating profit (EBIT)244m USD
−0.3 %y/y
EBIT margin25.8%
−1.0 ppy/y
Net income156m USD
−32.5 %y/y
Free cash flow211m USD
−36.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02004006008001,000m USD2020: 573 m USD2020: EBIT 141 m USD20202021: 617 m USD2021: EBIT 132 m USD20212022: 734 m USD2022: EBIT 147 m USD20222023: 832 m USD2023: EBIT 190 m USD20232024: 911 m USD2024: EBIT 244 m USD20242025: 944 m USD2025: EBIT 244 m USD2025944244
RevenueOperating profit (EBIT)
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Business

Share of revenue
Mobile Modular68 %

Rental and sale of relocatable modular buildings used for classrooms and office space.

Portable Storage14 %

Rental and sale of steel storage containers and ground-level office units.

TRS-RenTelco18 %

Rental and sale of electronic test equipment for general purpose and communications applications.

Enviroplex0 %

Manufacture and sale of modular classroom buildings primarily in California.

Products

Reported · share of revenue
35.0%28.8%28.6%FY2024100 %
  • Non Lease Revenues35.0 %
  • Products28.8 %
  • Non Lease Sales28.6 %
  • Non Lease Rental Related Services5.9 %
  • Other1.1 %
  • Non Lease Other0.5 %

Source: 10-K FY2024, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Customers are mainly businesses, institutions, and public-sector users that need temporary or flexible space or specialized test equipment. Modular buildings serve schools, offices, and project sites; portable storage serves construction and commercial users; and TRS-RenTelco serves aerospace, defense, communications, manufacturing, semiconductor, and other industrial customers. The common buying driver is speed of deployment, flexibility, and avoiding the capital commitment of owning the asset outright.

Education and public-sector modular users

School districts and related users buy modular classrooms and temporary space to address enrollment, renovation, or capacity needs.

Commercial and construction space users

Businesses and contractors rent modular buildings and storage units for temporary offices, jobsite support, and secure storage.

Aerospace, defense, and communications test customers

These customers rent test equipment for R&D, manufacturing, installation, and maintenance work.

Industrial and manufacturing customers

Manufacturers and industrial users rent equipment or storage to support operations and project-based demand.

Strategy

Management is focused on improving service intensity, operational responsiveness, and asset utilization across its rental fleet. The company also emphasizes centralized logistics, calibration, and maintenance for test equipment, plus efficient facilities and infrastructure for modular buildings to support faster delivery and lower service cost. These priorities are meant to defend pricing, improve repeat business, and make the rental model more capital-efficient.

Service-led differentiationShort term

Fast delivery, reliability, and support are key buying criteria in rental markets.

Asset utilization and fleet optimizationMedium term

The business depends on recovering capital through rental income and resale value.

Operational infrastructure advantageMedium term

Centralized servicing and specialized facilities reduce transaction costs and improve turnaround.

Geography

The company is primarily U.S.-focused, with Mobile Modular operating across several major states and TRS-RenTelco serving customers throughout North America and, to a limited extent, other countries. Mobile Modular has a particularly broad footprint in California, Texas, Florida, Georgia, and other large U.S. markets, while TRS-RenTelco is centralized through its Dallas-Fort Worth logistics and calibration hub. Geography matters because the business is local and service-intensive for modular and storage, while test equipment can be served nationally and internationally from a centralized inventory base.

Risks

The business is exposed to cyclical demand, customer budget pressure, and seasonality across its end markets, especially education, construction, and industrial activity. It also faces competitive pricing pressure, supply chain disruption, and tariff/geopolitical uncertainty that can affect equipment costs, utilization, and margins. Because the model is asset-intensive, weak demand or poor fleet timing can reduce returns on rental inventory and increase impairment risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cyclical and seasonal demand1Competitive pressure2Asset impairment and residual value risk3Supply chain and procurement disruption4Tariff and geopolitical uncertainty5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cyclical and seasonal demandImpact: HighLikelihood: Medium

    Rental volumes depend on construction, education, industrial, and project activity, which fluctuate by season and economy.

    ExposureMobile ModularPortable StorageTRS-RenTelco
  2. Competitive pressureImpact: HighLikelihood: Medium

    Competitors may have larger fleets, stronger local presence, or lower prices, which can reduce utilization and pricing power.

    ExposureAll segmentsEspecially TRS-RenTelcoModular rentals
  3. Asset impairment and residual value riskImpact: HighLikelihood: Medium

    The model depends on rental equipment useful lives and resale values; weaker demand or technology obsolescence can hurt returns.

    Exposure: Rental fleet and goodwill/intangibles

  4. Supply chain and procurement disruptionImpact: MediumLikelihood: Medium

    The company must buy and maintain rental inventory; delays or shortages can limit fleet availability and service levels.

    ExposureEquipment purchasesMaintenanceFleet refresh
  5. Tariff and geopolitical uncertaintyImpact: MediumLikelihood: Low

    Trade policy changes can affect equipment costs and customer demand, especially for test equipment and imported components.

    Exposure: TRS-RenTelco and equipment sourcing

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Accounting

Judgemental items
Lease revenue recognition

Straight-line recognition means cash receipts and reported revenue can differ over the lease term.

Impact: Affects revenue timing and deferred income balances

Depreciation and residual value estimates

Rental fleet economics depend on assumed useful lives and resale values.

Impact: Affects depreciation expense, asset carrying values, and margins

Goodwill and intangible impairment

Acquired businesses and reporting units must be tested for impairment using judgmental assumptions.

Impact: Could create non-cash charges if fair value declines

Seasonality and quarterly mix

Rental utilization, sales timing, and maintenance activity can vary materially by quarter.

Impact: Makes quarterly comparisons less stable

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Last updated: 24/09/2026