Key Highlights

  • McGrath declared a quarterly cash dividend of $0.495 per share, payable October 30, 2026, to holders of record October 16.
  • The company said 2026 marks over 35 consecutive years in which it has raised its dividend.
  • Second-quarter net income was $33.7 million, or $1.37 per diluted share, on total revenues of $221.1 million.
  • Rental operations revenue increased 6% to $172.5 million, while sales revenue decreased 34% to $46.4 million.

McGrath RentCorp (NASDAQ:MGRC) declared a quarterly cash dividend of $0.495 per common share for the quarter ending September 30, 2026, payable on October 30 to shareholders of record on October 16. The business-to-business rental company, which rents modular buildings, portable storage and electronic test equipment, said 2026 marks over 35 consecutive years in which it has raised its dividend. It announced the declaration on September 18.

Dividend Program and Shareholder Returns

The $0.495 quarterly dividend is payable on October 30, 2026, to shareholders of record on October 16, 2026, which is also the ex-dividend date. The second-quarter release reported a dividend of $0.495 per share for the second quarter of 2026.

The company’s September 18 release states that “the year 2026 marks over 35 consecutive years that McGrath RentCorp has raised its dividend to shareholders.”

In the six months ended June 30, 2026, the company repurchased $27.5 million of common stock. Shares outstanding were 24,426 thousand at June 30, 2026, compared with 24,612 thousand at December 31, 2025.

About the Company

McGrath RentCorp is a business-to-business rental company in North America, founded in 1979 and headquartered in Livermore, California. Its operations are centered on modular solutions through Mobile Modular and Mobile Modular Portable Storage, and its TRS-RenTelco business offers electronic test equipment rental solutions. The company’s shares trade on the Nasdaq.

Financial Performance Behind the Payout

Second-quarter total revenues were $221.1 million, a decrease of 6% from the second quarter of 2025. Net income was $33.7 million, or $1.37 per diluted share, compared with $36.0 million, or $1.46.

Rental operations revenue increased 6% to $172.5 million, and sales revenue decreased 34% to $46.4 million. Income from operations decreased 7% to $53.3 million, and adjusted EBITDA, a non-GAAP measure, decreased 4% to $82.8 million. Other income increased $1.8 million as a result of the sale of a corporate property.

Notes payable were $589.9 million at June 30, 2026, compared with $514.9 million at December 31, 2025.

Rental Segments and Delayed Sales

Chief executive Phil Hawkins said, “Our strong rental operations revenues were the highlight of the second quarter.” Modular rental revenues increased 2% from a year earlier, TRS-RenTelco rental revenue grew 17%, and Portable Storage rental revenues were flat as commercial construction project activity remained soft.

Average utilization was 70.1% at Mobile Modular, compared with 73.7% a year earlier. TRS-RenTelco utilization was 68.1%, compared with 64.8%, and Portable Storage utilization was 58.3%, compared with 61.1%.

Sales revenue at Mobile Modular decreased 23% to $31.2 million, primarily on lower new equipment sales. The company said delays caused several new sales projects to shift to the second half of the year.

Outlook

McGrath updated its full-year 2026 guidance in its second-quarter release. Total revenue is guided at $955 million to $985 million, from $945 million to $995 million. Adjusted EBITDA is guided at $363 million to $375 million, from $360 million to $378 million. Gross rental equipment capital expenditures are guided at $200 million to $220 million, from $180 million to $200 million.

Rental operations revenue, utilization, sales timing, notes payable and the board’s quarterly declarations are the relevant factors for the dividend.