Thu, Apr 24, 8:01 PM (21 days ago)
**McGrath RentCorp (MGRC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $195.4 million, up 4% from $187.8 million in Q1 2024. - **Net Income:** $28.2 million, a 23% increase from $22.8 million in Q1 2024. - **Earnings per Share (EPS):** $1.15, up 23% from $0.93 in Q1 2024. - **Gross Profit:** $96.4 million, a 3% increase from $93.3 million in Q1 2024. - **Operating Income:** $45.6 million, down from $52.1 million in Q1 2024. - **Cash Flow from Operations:** $53.9 million, down from $59.4 million in Q1 2024. **Segment Performance:** - **Mobile Modular:** Revenue up 3% to $131.9 million, gross profit up 6% to $65.5 million. - **Portable Storage:** Revenue down 14% to $21.3 million, gross profit down 18% to $13.9 million. - **TRS-RenTelco:** Revenue up 4% to $35.0 million, gross profit up 7% to $14.9 million. - **Enviroplex:** Revenue up to $7.2 million from $1.7 million in Q1 2024, contributing 2% to pre-tax income. **Key Metrics:** - **Interest Expense:** $8.2 million, down 35% from $12.7 million in Q1 2024. - **Effective Tax Rate:** 24.6% in Q1 2025, compared to 23.6% in Q1 2024. - **Adjusted EBITDA:** $74.5 million, up 3% from $72.1 million in Q1 2024. **Trends and Uncertainties:** - **Macroeconomic Conditions:** Volatile interest rates, inflation, geopolitical landscape, and foreign exchange rate fluctuations impact global economy. - **Legislative and Regulatory Changes:** Tariffs and trade policies introduce uncertainty. - **Customer Behavior:** During economic downturns, customers may delay or re-evaluate projects, affecting engagement with McGrath RentCorp. **Future Operations Impact:** - **Capital Expenditures:** Significant investments required to maintain and grow rental assets. - **Liquidity:** Strong liquidity position with unsecured lines of credit and compliance with financial covenants. - **Share Repurchase Program:** Authorized to repurchase up to 2,000,000 shares, subject to market conditions and management discretion. **Conclusion:** McGrath RentCorp demonstrated solid financial performance in Q1 2025, with increased revenue, net income, and EPS. However, the company faces macroeconomic uncertainties and regulatory changes that could impact future operations. The strong liquidity position and compliance with financial covenants position McGrath RentCorp for continued growth and stability.