McGrath RentCorp Q4 FY2026 earnings call

• Joe Hanno, outgoing CEO, expressed gratitude to customers, team, board, and shareholders, highlighted Phil Hawkins as successor. • Phil Hawkins discussed business outlook for 2026, key drivers including modular growth initiatives and TRS market recovery, outlined demand environment for various businesses. • Keith Pratt provided financial details, including fourth quarter results, full-year cash flows, and 2026 financial outlook

For the fourth quarter of 2025, total company revenues rose 5%. 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

• Full-year 2026 expected 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 increased operating expenses. • Portable storage expected performance comparable to 2025. • TRS expected to contribute higher adjusted EBITDA in 2026 with increased capital investment

Q: Historically, you guys have guided the initial guide pretty conservatively out of the gate. How do you see the drivers this year that could potentially take you above that guidance range?

A: Keith noted calendar early in year, macro challenges, and each business's initiatives as potential drivers.

Q: Switching gears to your initiatives in Mobile Modular, could you speak to that accelerated momentum you've seen for Mobile Modular Plus and site-related services?

A: Phil said product and service offerings come with the building, and site-related services continue to grow at double-digit rates.

Q: Switching to TRS rental revenue growth really accelerated nicely in the quarter, could you please elaborate on what drove that acceleration and what type of visibility do you have to sustain this momentum into 26?

A: Phil said TRS had growth in general purpose fleet (aerospace, defense, semiconductor) and communications fleet (data centers), with little drop-off in activity through December 31st.

Q: The CEO transition, are there any areas where your approach may differ from Joe's?

A: Phil said current strategy crafted with Joe, Keith, and team, and no near-term changes expected.

Q: Beyond the performance of TRS and EnviroPlex, which strategic initiatives were most impactful in offsetting non-resi headwinds?

A: Geographic expansion was cited as a big driver.

Q: With mobile modular starting 26 lower utilization but guiding to adjusted ebit of growth even with higher operating expenses and capex to prepare fleet, can you walk us through the bridge on that?

A: Ronan was told about geographic expansion, margin impact, and sales piece as key drivers.

Q: On the monthly revenue per unit, could you talk about the drivers there?

A: It was explained about mix-related factors and competition in the modular market.

Q: CapEx or purchases of new rental equipment, is that primarily expanding into new geographies?

A: Phil said primary driver of higher CapEx on modular side is geographic expansion, with some maintenance capex.

Q: When thinking about the geographic expansion, can you give more flavor on how you go to market?

A: It was explained about looking for metro areas, providing all offerings, and megaprojects as anchors.

Q: As far as the timing of investments and timing of CapEx, is there anything we should be thinking about?

A: Phil said generally likely to be front-loaded