$MGRC

MCGRATH RENTCORP

CIK:0000752714|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Rental	$ 131,880	$ 125,985	$ 258,541	$ 246,098
Rental related services	40,617	37,483	76,190	71,399
Rental operations	172,497	163,468	334,731	317,497
Total revenues	221,112	235,616	419,654	431,032
Direct costs of rental operations:
Depreciation of rental equipment	23,228	21,426	45,943	42,931
Rental related services	28,376	25,477	53,493	49,790
Other	34,476	31,519	66,606	59,171
Total direct costs of rental operations	86,080	78,422	166,042	151,892
Costs of sales	27,125	46,480	48,815	71,990
Total costs of revenues	113,205	124,902	214,857	223,882
Gross profit	107,907	110,714	204,797	207,150
Expenses:
Selling and administrative expenses	56,436	53,543	109,924	104,412
Other income, net	(1,814)		(1,814)
Income (loss) from operations	53,285	57,171	96,687	102,738
Interest expense	7,113	7,795	13,613	15,954
Foreign currency exchange loss (gain)	38	(81)	71	(86)
Income before provision for income taxes	46,134	49,457	83,003	86,870
Provision for income taxes	12,462	13,484	22,298	22,689
Net income	$ 33,672	$ 35,973	$ 60,705	$ 64,181
Earnings per share:
Basic	$ 1.38	$ 1.46	$ 2.47	$ 2.61
Diluted	$ 1.37	$ 1.46	$ 2.47	$ 2.61
Shares used in per share calculation:
Basic	24,479	24,611	24,547	24,592
Diluted	24,494	24,618	24,579	24,620
Cash dividends declared per share	$ 0.495	$ 0.485	$ 0.99	$ 0.97
Sales [Member]
Revenues
Revenues	$ 46,355	$ 69,775	$ 80,390	$ 108,701
Other [Member]
Revenues
Revenues	$ 2,260	$ 2,373	$ 4,533	$ 4,834

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net income	$ 60,705	$ 64,181
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	56,280	52,739
Deferred income taxes	6,792	12,764
Provision for credit losses	569	826
Share-based compensation	5,679	5,322
Gain on sale of property, plant and equipment	(1,814)
Gain on sale of used rental equipment	(18,035)	(16,674)
Foreign currency exchange loss (gain)	71	(86)
Amortization of debt issuance costs	5	45
Change in:
Accounts receivable	(8,580)	(15,285)
Inventories	(7,151)	2,007
Prepaid expenses and other assets	(33,578)	(5,270)
Accounts payable	(30)	(8,402)
Accrued liabilities	15,058	2,403
Deferred income	29,721	15,124
Net cash provided by operating activities	105,692	109,694
Cash Flows from Investing Activities:
Purchases of rental equipment	(124,038)	(50,230)
Purchases of property, plant and equipment	(19,397)	(21,621)
Cash paid for acquisition of businesses, net of cash received	(9,385)	(21,947)
Proceeds from sales of used rental equipment	31,646	32,200
Proceeds from sales of property, plant and equipment	2,750
Net cash used in investing activities	(118,424)	(61,598)
Cash Flows from Financing Activities:
Net borrowings (payments) under bank lines of credit	134,966	(17,730)
Principal payment of Series E senior notes	(60,000)
Repurchase of common stock	(27,456)
Taxes paid related to net share settlement of stock awards	(6,032)	(5,684)
Payment of dividends	(24,662)	(24,020)
Net cash provided by (used in) financing activities	16,816	(47,434)
Net increase in cash	4,084	662
Cash balance, beginning of period	295	807
Cash balance, end of period	4,379	1,469
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	13,258	15,982
Net income taxes paid, during the period	19,780	5,786
Dividends accrued during the period, not yet paid	12,543	12,443
Rental equipment acquisitions, not yet paid	19,047	8,658
Business acquisition payments withheld	$ 1,249	$ 1,815

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash	$ 4,379	$ 295
Accounts receivable, net of allowance for credit losses of $2,700 at June 30, 2026 and $2,866 at December 31, 2025	240,022	231,865
Rental equipment, at cost:
Relocatable modular buildings	1,565,877	1,485,794
Portable storage containers	245,641	245,141
Electronic test equipment	358,872	337,100
Rental equipment, gross	2,170,390	2,068,035
Less: accumulated depreciation	(670,655)	(647,137)
Rental equipment, net	1,499,735	1,420,898
Property, plant and equipment, net	247,757	233,492
Inventories	15,178	8,027
Prepaid expenses and other assets	117,000	83,351
Intangible assets, net	41,630	46,605
Goodwill	337,348	332,584
Total assets	2,503,049	2,357,117
Liabilities:
Notes payable	589,895	514,924
Accounts payable	73,643	66,233
Accrued liabilities	131,421	114,764
Deferred income	140,314	110,593
Deferred income taxes, net	322,317	313,580
Total liabilities	1,257,590	1,120,094
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,426 shares as of June 30, 2026 and 24,612 shares as of December 31, 2025	120,228	121,785
Retained earnings	1,125,231	1,115,238
Total shareholders’ equity	1,245,459	1,237,023
Total liabilities and shareholders’ equity	$ 2,503,049	$ 2,357,117