Revenue growth remains highly volatile, fluctuating from a 21.2% expansion in 2023Q4 to a 3.9% contraction in 2025Q3, while gross margins have consistently hovered near the 46% level.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 947.36M | 944.24M | 910.94M | 831.84M | 635.66M | 616.83M | 572.55M | 570.23M | 498.33M | 462.03M | 424.08M | 404.54M | 408.12M | 379.32M | 364.07M | 342.67M | 291.37M | 275.64M | 304.16M | 280.41M | 267.07M | 272.18M | 202.52M | 130.97M | 145.09M | 159.39M | 164.16M | 130M | 135.4M | 135M | 89M |
| Revenue Growth % | 3.14% | 3.65% | 9.51% | 30.86% | 3.05% | 7.73% | 0.41% | 14.43% | 7.86% | 8.95% | 4.83% | -0.88% | 7.59% | 4.19% | 6.25% | 17.6% | 5.71% | -9.38% | 8.47% | 5% | -1.88% | 34.4% | 54.63% | -9.73% | -8.98% | -2.9% | 26.28% | -3.99% | 0.3% | 51.69% | 24.82% |
| Cost of Goods Sold | 512.28M | 509.39M | 475.53M | 438.21M | 376.38M | 350.62M | 308.81M | 304.06M | 265.08M | 255.69M | 239.91M | 227.64M | 225.9M | 210.49M | 195.78M | 175.88M | 160.59M | 154.33M | 168.42M | 149.85M | 145.24M | 114.56M | 82.31M | 67.64M | 97.75M | 55.12M | 61.94M | 45.8M | 53.2M | 57.8M | 19.7M |
| COGS % of Revenue | - | 53.95% | 52.2% | 52.68% | 59.21% | 56.84% | 53.94% | 53.32% | 53.19% | 55.34% | 56.57% | 56.27% | 55.35% | 55.49% | 53.77% | 51.33% | 55.11% | 55.99% | 55.37% | 53.44% | 54.38% | 42.09% | 40.64% | 51.64% | 67.38% | 34.58% | 37.73% | 35.23% | 39.29% | 42.81% | 22.13% |
| Gross Profit | 435.08M | 434.84M | 435.42M | 393.63M | 259.29M | 266.21M | 263.75M | 266.17M | 233.25M | 206.34M | 184.17M | 176.91M | 182.22M | 168.83M | 168.29M | 166.79M | 130.79M | 121.31M | 135.74M | 130.56M | 121.83M | 157.62M | 120.21M | 63.33M | 47.33M | 104.27M | 102.21M | 84.2M | 82.2M | 77.2M | 69.3M |
| Gross Margin % | 45.93% | 46.05% | 47.8% | 47.32% | 40.79% | 43.16% | 46.06% | 46.68% | 46.81% | 44.66% | 43.43% | 43.73% | 44.65% | 44.51% | 46.23% | 48.67% | 44.89% | 44.01% | 44.63% | 46.56% | 45.62% | 57.91% | 59.36% | 48.36% | 32.62% | 65.42% | 62.27% | 64.77% | 60.71% | 57.19% | 77.87% |
| Gross Profit Growth % | - | -0.13% | 10.61% | 51.81% | -2.6% | 0.94% | -0.91% | 14.11% | 13.04% | 12.04% | 4.1% | -2.92% | 7.93% | 0.32% | 0.9% | 27.53% | 7.81% | -10.63% | 3.97% | 7.17% | -22.71% | 31.12% | 89.8% | 33.8% | -54.6% | 2.01% | 21.39% | 2.43% | 6.48% | 11.4% | 12.68% |
| Operating Expenses | 193.2M | 190.75M | 191.15M | 203.92M | 107.94M | 133.79M | 122.99M | 124.79M | 115.77M | 111.61M | 104.91M | 99.95M | 96.86M | 88.77M | 86.28M | 78.13M | 65.55M | 60.24M | 58.06M | 50.03M | 45.5M | 39.82M | 33.7M | 22.63M | 22.1M | 24.95M | 45.7M | 38.6M | 35M | 31.8M | 41.1M |
| OpEx % of Revenue | - | 20.2% | 20.98% | 24.51% | 16.98% | 21.69% | 21.48% | 21.88% | 23.23% | 24.16% | 24.74% | 24.71% | 23.73% | 23.4% | 23.7% | 22.8% | 22.5% | 21.85% | 19.09% | 17.84% | 17.04% | 14.63% | 16.64% | 17.28% | 15.23% | 15.66% | 27.84% | 29.69% | 25.85% | 23.56% | 46.18% |
| Selling, General & Admin | 193.2M | 190.75M | 92.98M | 207.54M | 107.94M | 133.79M | 122.99M | 124.79M | 115.77M | 111.61M | 104.91M | 99.95M | 96.86M | 88.77M | 86.28M | 78.13M | 65.55M | 60.24M | 58.06M | 50.03M | 45.5M | 39.82M | 33.7M | 22.63M | 22.1M | 24.95M | 19.98M | 17.1M | 16.2M | 16M | 27.8M |
| SG&A % of Revenue | - | 20.2% | 10.21% | 24.95% | 16.98% | 21.69% | 21.48% | 21.88% | 23.23% | 24.16% | 24.74% | 24.71% | 23.73% | 23.4% | 23.7% | 22.8% | 22.5% | 21.85% | 19.09% | 17.84% | 17.04% | 14.63% | 16.64% | 17.28% | 15.23% | 15.66% | 12.17% | 13.15% | 11.96% | 11.85% | 31.24% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 98.17M | -3.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 25.72M | 21.5M | 18.8M | 15.8M | 13.3M |
| Operating Income | 241.88M | 244.09M | 244.26M | 189.71M | 151.35M | 132.42M | 140.75M | 141.37M | 117.48M | 94.74M | 79.26M | 76.96M | 85.36M | 80.06M | 82.02M | 88.66M | 65.24M | 61.08M | 77.68M | 80.53M | 76.33M | 73.62M | 54.08M | 40.71M | 25.23M | 52.05M | 56.52M | 45.6M | 47.2M | 45.4M | 28.2M |
| Operating Margin % | 25.53% | 25.85% | 26.81% | 22.81% | 23.81% | 21.47% | 24.58% | 24.79% | 23.57% | 20.51% | 18.69% | 19.02% | 20.92% | 21.11% | 22.53% | 25.87% | 22.39% | 22.16% | 25.54% | 28.72% | 28.58% | 27.05% | 26.7% | 31.08% | 17.39% | 32.65% | 34.43% | 35.08% | 34.86% | 33.63% | 31.69% |
| Operating Income Growth % | - | -0.07% | 28.76% | 25.35% | 14.29% | -5.92% | -0.44% | 20.34% | 24% | 19.53% | 2.99% | -9.84% | 6.62% | -2.38% | -7.5% | 35.91% | 6.81% | -21.37% | -3.54% | 5.51% | 3.68% | 36.14% | 32.84% | 61.32% | -51.51% | -7.91% | 23.94% | -3.39% | 3.96% | 60.99% | -6.62% |
| EBITDA | 350.37M | 351.16M | 351.72M | 299.09M | 262.69M | 239.12M | 235.4M | 230.85M | 199.46M | 173.16M | 160.44M | 161.24M | 166.49M | 156.91M | 154.49M | 156.06M | 127.81M | 124.21M | 138.09M | 134.53M | 123.79M | 120.05M | 88.58M | 55.4M | 43.11M | 81.68M | 82.23M | 67.1M | 66M | 61.2M | 41.5M |
| EBITDA Margin % | 36.98% | 37.19% | 38.61% | 35.95% | 41.33% | 38.77% | 41.11% | 40.48% | 40.02% | 37.48% | 37.83% | 39.86% | 40.79% | 41.37% | 42.43% | 45.54% | 43.87% | 45.06% | 45.4% | 47.98% | 46.35% | 44.11% | 43.74% | 42.3% | 29.71% | 51.24% | 50.09% | 51.62% | 48.74% | 45.33% | 46.63% |
| EBITDA Growth % | 1.73% | -0.16% | 17.6% | 13.86% | 9.86% | 1.58% | 1.97% | 15.74% | 15.19% | 7.93% | -0.5% | -3.15% | 6.1% | 1.57% | -1% | 22.1% | 2.9% | -10.06% | 2.65% | 8.68% | 3.11% | 35.54% | 59.89% | 28.52% | -47.22% | -0.67% | 22.55% | 1.67% | 7.84% | 47.47% | -2.58% |
| D&A (Non-Cash Add-back) | 108.49M | 107.07M | 107.45M | 109.38M | 111.34M | 106.69M | 94.64M | 89.48M | 81.97M | 78.42M | 81.18M | 84.28M | 81.13M | 76.85M | 72.48M | 67.39M | 62.58M | 63.13M | 60.42M | 54M | 47.46M | 46.43M | 34.5M | 14.69M | 17.87M | 29.63M | 25.72M | 21.5M | 18.8M | 15.8M | 13.3M |
| EBIT | 241.88M | 244.09M | 360.89M | 190.02M | 146.92M | 132.21M | 140.75M | 141.37M | 116.99M | 95.07M | 79.26M | 76.96M | 85.36M | 80.06M | 82.02M | 88.66M | 65.24M | 61.08M | 77.68M | 80.53M | 76.33M | 117.8M | 86.5M | 53.45M | 41.03M | 79.31M | 56.52M | 45.6M | 47.2M | 45.4M | 28.2M |
| Net Interest Income | -28.96M | -30.62M | -47.24M | -40.56M | -12.23M | -10.46M | -8.79M | -12.33M | -12.3M | -11.62M | -12.21M | -10.09M | -9.28M | -8.69M | -9.15M | -7.61M | -6.19M | -7.11M | -9.98M | -10.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 28.96M | 30.62M | 47.24M | 40.56M | 12.23M | 10.46M | 8.79M | 12.33M | 12.3M | 11.62M | 12.21M | 10.09M | 9.28M | 8.69M | 9.15M | 7.61M | 6.19M | 7.11M | 9.98M | 10.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -29.34M | -31.01M | 69.39M | -40.25M | -16.66M | -10.66M | -8.71M | -12.25M | -12.79M | -11.29M | -12.33M | -10.58M | -8.8M | -8.69M | -9.15M | -7.61M | -6.19M | -7.11M | -9.98M | -10.72M | -10.76M | -7.89M | -5.19M | -2.67M | -3.98M | -7.08M | -9.51M | -6.9M | -7.3M | -5.1M | -2.9M |
| Pretax Income | 212.54M | 213.08M | 313.65M | 149.46M | 134.69M | 121.76M | 132.04M | 129.13M | 104.69M | 83.45M | 66.93M | 66.38M | 76.56M | 71.37M | 72.87M | 81.06M | 59.05M | 53.97M | 67.7M | 69.81M | 65.57M | 65.73M | 48.89M | 38.04M | 21.25M | 44.97M | 47.01M | 38.7M | 39.9M | 40.3M | 25.3M |
| Pretax Margin % | 22.43% | 22.57% | 34.43% | 17.97% | 21.19% | 19.74% | 23.06% | 22.64% | 21.01% | 18.06% | 15.78% | 16.41% | 18.76% | 18.82% | 20.01% | 23.65% | 20.27% | 19.58% | 22.26% | 24.9% | 24.55% | 24.15% | 24.14% | 29.04% | 14.65% | 28.21% | 28.63% | 29.77% | 29.47% | 29.85% | 28.43% |
| Income Tax | 57.4M | 56.77M | 81.92M | 37.61M | 31.38M | 32.05M | 30.06M | 32.32M | 25.29M | -70.47M | 28.68M | 25.91M | 30.85M | 27.98M | 28.09M | 31.46M | 22.57M | 20.65M | 26.5M | 27.34M | 24.21M | 24.65M | 18.84M | 15.18M | 8.46M | 17.81M | 19.76M | 14.9M | 16M | 16.3M | 9.8M |
| Effective Tax Rate % | 27.01% | 26.64% | 26.12% | 25.16% | 23.3% | 26.32% | 22.77% | 25.03% | 24.15% | -84.44% | 42.85% | 39.03% | 40.3% | 39.2% | 38.55% | 38.81% | 38.22% | 38.26% | 39.14% | 39.16% | 36.92% | 37.5% | 38.54% | 39.9% | 39.8% | 39.6% | 42.04% | 38.5% | 40.1% | 40.45% | 38.74% |
| Net Income | 155.13M | 156.31M | 231.73M | 174.62M | 115.14M | 89.7M | 101.98M | 96.81M | 79.41M | 153.92M | 38.25M | 40.47M | 45.71M | 43.4M | 44.78M | 49.6M | 36.48M | 33.33M | 41.2M | 42.41M | 41.08M | 40.82M | 30M | 22.69M | 12.63M | 26.68M | 27.24M | 22.4M | 23.9M | 24M | 15.5M |
| Net Margin % | 16.38% | 16.55% | 25.44% | 20.99% | 18.11% | 14.54% | 17.81% | 16.98% | 15.93% | 33.31% | 9.02% | 10% | 11.2% | 11.44% | 12.3% | 14.48% | 12.52% | 12.09% | 13.55% | 15.12% | 15.38% | 15% | 14.81% | 17.33% | 8.71% | 16.74% | 16.6% | 17.23% | 17.65% | 17.78% | 17.42% |
| Net Income Growth % | -34.57% | -32.55% | 32.7% | 51.66% | 28.35% | -12.04% | 5.35% | 21.91% | -48.41% | 302.39% | -5.48% | -11.46% | 5.33% | -3.08% | -9.73% | 35.97% | 9.46% | -19.12% | -2.84% | 3.24% | 0.63% | 36.08% | 32.19% | 79.62% | -52.65% | -2.08% | 21.63% | -6.28% | -0.42% | 54.84% | 12.32% |
| Net Income (Continuing) | 155.13M | 156.31M | 231.73M | 111.85M | 103.31M | 89.7M | 101.98M | 96.81M | 79.41M | 153.92M | 38.25M | 40.47M | 45.71M | 43.4M | 44.78M | 49.6M | 36.48M | 33.33M | 41.2M | 42.47M | 41.36M | 40.82M | 30M | 22.69M | 12.63M | 26.68M | 27.24M | 23.8M | 23.9M | 24M | 15.5M |
| Discontinued Operations | 0 | 0 | 0 | 62.77M | 11.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -280K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.48M | 0 | 2.94M | 2.89M | 3.11M | 2.95M | 3.51M | 2.8M | 2.6M | 1.5M | 0 |
| EPS (Diluted) | 6.29 | 6.35 | 9.43 | 7.12 | 4.70 | 3.66 | 4.16 | 3.93 | 3.24 | 6.34 | 1.60 | 1.59 | 1.75 | 1.67 | 1.78 | 2.00 | 1.50 | 1.40 | 1.72 | 1.67 | 1.63 | 1.61 | 1.21 | 0.93 | 0.50 | 1.07 | 1.10 | 0.84 | 0.84 | 0.79 | 0.51 |
| EPS Growth % | -34.72% | -32.66% | 32.44% | 51.49% | 28.42% | -12.02% | 5.85% | 21.3% | -48.9% | 296.25% | 0.63% | -9.14% | 4.79% | -6.18% | -11% | 33.33% | 7.14% | -18.6% | 2.99% | 2.45% | 1.24% | 33.06% | 30.11% | 86% | -53.27% | -2.73% | 30.95% | 0% | 6.33% | 54.9% | 18.6% |
| EPS (Basic) | - | 6.35 | 9.44 | 7.14 | 4.73 | 3.70 | 4.22 | 3.99 | 3.29 | 6.41 | 1.60 | 1.60 | 1.77 | 1.71 | 1.80 | 2.04 | 1.52 | 1.40 | 1.74 | 1.68 | 1.65 | 1.65 | 1.23 | 0.94 | 0.51 | 1.09 | 1.11 | 0.85 | 0.85 | 0.80 | 0.51 |
| Diluted Shares Outstanding | 24.66M | 24.63M | 24.57M | 24.53M | 24.52M | 24.52M | 24.53M | 24.62M | 24.54M | 24.27M | 23.98M | 25.46M | 26.18M | 25.93M | 25.16M | 24.76M | 24.29M | 23.87M | 23.94M | 25.44M | 25.23M | 25.33M | 24.8M | 24.52M | 25.24M | 24.99M | 24.86M | 26.77M | 28.7M | 30.36M | 30.61M |
| Basic Shares Outstanding | 24.62M | 24.6M | 24.54M | 24.47M | 24.35M | 24.22M | 24.16M | 24.25M | 24.14M | 24M | 23.9M | 25.37M | 25.91M | 25.43M | 24.76M | 24.35M | 23.94M | 23.75M | 23.74M | 25.23M | 24.95M | 24.67M | 24.34M | 24.25M | 24.94M | 24.46M | 24.67M | 26.47M | 28.33M | 29.96M | 30.61M |
| Dividend Payout Ratio | - | 30.64% | 20.18% | 26.09% | 38.45% | 47.02% | 39% | 36.71% | 38.96% | 16.16% | 63.91% | 63.7% | 55.9% | 56.28% | 51.65% | 44.86% | 58.64% | 61.26% | 45.06% | 41.67% | 37.64% | 32.01% | 34.87% | 41.83% | 67.03% | 28.42% | 24.5% | 27.23% | 22.59% | 19.17% | 26.45% |
Cyclical Revenue Volatility
According to the reported quarterly income statements, MGRC's revenue growth has fluctuated significantly, ranging from a 21.2% expansion in 2023Q4 to a 3.9% contraction in 2025Q3, suggesting that the company's top-line performance remains highly sensitive to the timing of large-scale project deployments and seasonal demand cycles.
The inconsistent revenue trajectory indicates that MGRC's business model is susceptible to the lumpy nature of its industrial and educational rental contracts. Investors should monitor whether the recent deceleration in growth reflects a structural cooling in demand or merely the timing of project completions within the Enviroplex and Mobile Modular segments.
As reported in financial statements, MGRC has maintained a robust gross margin profile, consistently hovering near the 46% level, which suggests that the company possesses significant pricing power derived from its specialized fleet and the high-barrier-to-entry nature of its technical equipment and modular rental niches.
The ability to sustain these margins despite fluctuating revenue suggests that management is successfully passing through inflationary costs to customers. This pricing discipline appears to be a key differentiator, allowing the firm to preserve profitability even during periods of lower asset utilization.
Based on the provided income statement data, operating margins have oscillated between 21.9% and 29.0% over the last ten quarters, demonstrating that while the company benefits from a fixed-cost base, it lacks the consistent operating leverage required to scale profitability linearly with top-line revenue growth.
The lack of a clear upward trend in operating margins suggests that incremental revenue gains are often offset by rising logistical or maintenance costs associated with fleet management. Analysts should investigate whether this variability is a function of fleet mix shifts or inefficiencies in managing the overhead required to support diverse rental segments.
Analysis of the reported figures reveals that net income has experienced extreme volatility, most notably in 2024Q3 when net margins spiked to 56.0%, indicating that non-operating items or one-time gains are significantly obscuring the underlying operational performance of the core rental business for investors.
The massive discrepancy between operating income and net income in specific periods warrants further investigation into potential asset divestitures or tax anomalies. Investors should focus on normalized EPS metrics to gauge the true earnings power of the company, as the reported net income figures appear unreliable for trend analysis.
Data from recent filings suggests that MGRC's reliance on high-margin, specialized rentals may be vulnerable to competitive encroachment, as evidenced by the recent revenue contraction in 2025Q3, which raises concerns about the long-term durability of the company's current pricing power in a more crowded industrial rental market.
Short-term earnings strength may be masking a gradual erosion of market share in key segments like modular classrooms. If the company fails to modernize its fleet or faces increased competition from national generalists, the current margin profile may prove unsustainable, leading to a potential re-rating of the stock.
Quick answers to the most common questions about buying MGRC stock.
For fiscal year 2025, McGrath RentCorp (MGRC) reported total revenue of $944.2M. This represents a 960.9% increase compared to $89.0M in 1996.
McGrath RentCorp (MGRC) is profitable, generating $156.3M in net income for the fiscal year ending 2025 with a net profit margin of 16.6%.
McGrath RentCorp (MGRC) reported an operating income of $244.1M, resulting in an operating profit margin of 25.9%. This margin reflects the operational efficiency of the business before interest and taxes.
McGrath RentCorp (MGRC) generated $434.8M in gross profit for the year, representing a gross profit margin of 46.1%. This demonstrates the company's core pricing power and production efficiency.