McGrath RentCorp Q1 FY2026 earnings call

Joe Hanna mentions it's his final earnings call as CEO, Phil Hawkins will succeed him. Discusses fourth quarter and full year 2025 results, Mobile Modular, portable storage, TRS Rentalco performance. Phil Hawkins talks about business outlook and 2026 plans, key drivers for performance, modular business, portable storage, TRS. Keith Pratt shares financial details, fourth quarter and full-year cash flows, financial outlook for 2026 including revenue, adjusted EBITDA, capital expenditures for each business

For the fourth quarter 2025, total company revenues rose 5%. Adjusted EBITDA increased 14%. Mobile Modular: rental revenues increased 2%, adjusted EBITDA increased 13% to $68.7 million, total revenues 2% to $175.8 million. Portable storage: rental revenues increased 3%, adjusted EBITDA $9.6 million, a decrease of 3% compared to prior year. TRS Rentalco: rental revenue grew 13% in Q4, adjusted EBITDA 23.1 million, an increase of 21% compared to last year, total revenues up 19% to 40.6 million

For the full year 2026, currently expect total revenue between $945 and $995 million. Adjusted EBITDA between $360 and $378 million. Gross rental equipment capital expenditures between $180 and $200 million. Mobile Modular expected to grow adjusted EBITDA in 2026, with approx 5 - 8 million higher operating expenses. Portable storage expected performance comparable to 2025. TRS expected to contribute higher adjusted EBITDA, with increased capital investment. Enviroplex expected revenues, margins, and adjusted EBITDA in more normalized level closer to 2024 levels

Questions and answers include discussion on how drivers could take above guidance range, momentum in Mobile Modular Plus and site-related services, drivers of TRS rental revenue growth and visibility to sustain momentum, CEO transition approach differences, strategic initiatives impact, bridge on Mobile Modular adjusted EBITDA growth, monthly revenue per unit drivers, CapEx drivers and cadence, M&A pipeline, geographic expansion details, growth of SRS and Modular Plus, data center support for TRS growth, acquisition activity and CapEx timing