moneyheap
MGRC · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is McGrath RentCorp (MGRC) stock moving?
McGrath beat on both lines in Q3 2026 (reported Oct 28): EPS of $2.00 versus $1.91 expected and sales of $274.6M versus $273.2M. Revenue rose 7%, income from operations rose 11%, and adjusted EBITDA rose 10% to $106.5M. TRS-RenTelco rental revenue jumped 26% on data-center buildout, while Portable Storage rental fell 3% and margins stayed under pressure from equipment prep, trucking and sales coverage costs. The main negative is the FY2026 sales guidance, trimmed to $945M-$960M from $955M-$985M and below the $965.6M consensus; management tied this to lower Modular new equipment sales. The stock rose from a 118.28 close on Oct 30 to 132.92 on Nov 3 on 4.73M shares, roughly 20 times the prior two weeks' average volume. The news excerpts do not explicitly attribute that move to a specific item. It has since eased to 128.57 on Nov 10, with volume back near 225K. A Nov 2 amendment with PGIM adds Series H senior notes and expands the note facility, though the size is not disclosed in the excerpt. The price is holding well above its pre-earnings level of about 118-119, which supports the post-results gains, but the guidance cut and soft portable storage keep the picture mixed.
News behind the analysis
- McGrath RentCorp Q3 EPS $2.00 Beats $1.91 Estimate, Sales $274.606M Beat $273.246M EstimateQ3 diluted EPS of $2.00 and sales of $274.6M topped analyst estimates of $1.91 and $273.2M.
- McGrath RentCorp Lowers FY2026 Sales Guidance from $955.000M-$985.000M to $945.000M-$960.000M vs $965.574M EstFY2026 sales guidance was cut, with the new range sitting below the $965.6M consensus estimate.
- McGrath RentCorp Q3 2026 Earnings Call TranscriptFull transcript of the Q3 2026 earnings call, held the same day as the results release.
- McGrath Announces Results for Third Quarter 2026Revenue rose 7% to $274.6M and adjusted EBITDA rose 10% to $106.5M; TRS rental revenue grew 26% while Portable Storage rental fell 3%.
- Form 8-K: First Amendment to Second Amended and Restated Note Purchase and Private Shelf AgreementDated Nov 2 with PGIM, the amendment provides for issuance of Series H Senior Notes and increases the aggregate note amount; the size is not in the excerpt.
- Form 10-Q: Quarterly report for the period ended Sep 30, 2026Quarterly report filed with the Q3 2026 results, containing the full financial statements and disclosures.
About Mcgrath Rentcorp
McGrath RentCorp is a California-based business-to-business rental company that leases modular buildings (Mobile Modular), portable storage containers, and electronic test equipment (TRS-RenTelco) across North America. It's distinctive for owning its fleets for a long time, earning high rental margins, and having a long record of paying dividends. Its test-equipment arm has recently grown quickly on demand tied to data centers.
How it makes money
Most of its revenue comes from renting out equipment: roughly 75–80% of a typical quarter is rental operations. Mobile Modular, which rents classrooms, offices and other modular space to schools, construction sites and businesses, is the largest unit. The rest comes from portable storage rentals and TRS-RenTelco, which rents electronic test equipment to telecom, aerospace and data-center customers. Sales of new and used equipment, plus fees for delivery and setup services, bring in the remainder. In late October 2026 the company guided to roughly $945–960 million in revenue for 2026.
What usually moves MGRC
- Modular fleet utilization and rental rates
- Education and construction spending
- Data-center and telecom demand for test equipment
- Rental equipment capital spending and interest rates
- Acquisitions and dividend policy