McGrath Announces Results for Second Quarter 2026

McGrath Announces Results for Second Quarter 2026 LIVERMORE, Calif.--( BUSINESS WIRE)--McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced total revenues for the quarter ended June 30, 2026 of $221.1 million, a decrease of 6% compared to the second quarter of 2025. The Company reported net income of $33.7 million, or $1.37 per diluted share, for the second quarter of 2026, compared to net income of $36.0 million, or $1.46 per diluted share, for the second quarter of 2025. The decreases in net income and earnings per diluted share for the quarter were primarily attributed to lower gross profit on sales revenues when compared to the second quarter of 2025.

SECOND QUARTER 2026 YEAR-OVER-YEAR COMPANY HIGHLIGHTS:

Phil Hawkins, President and CEO of McGrath, made the following comments:

“Our strong rental operations revenues were the highlight of the second quarter and we were pleased to see momentum building in our two largest rental businesses. Both Mobile Modular and TRS grew rental revenue and improved utilization sequentially while Portable Storage rental revenues were stable. Sales revenues for the quarter were lower than a year ago, due to lower sales at Enviroplex and Mobile Modular, as delays caused several new sales projects to shift to the second half of the year.

Modular rental revenues increased 2% compared to last year, with continued growth from our commercial customer base. We experienced positive business momentum during the quarter, particularly with large commercial projects and progress with our regional expansion efforts. Shipments exceeded returns for each month of the quarter, and average utilization improved slightly from the first to second quarter.

Portable Storage rental revenues were flat as commercial construction project activity remained soft. Higher costs for equipment preparation, trucking and sales coverage continued to pressure margins in the quarter.

TRS-RenTelco had an impressive quarter, as strong market conditions supported 17% rental revenue growth. Demand was robust throughout the quarter, and the business benefited from projects supporting buildout of new data centers.

Overall, we are encouraged by our progress. Modular utilization improvement and execution on our strategic growth initiatives in the quarter set us up well for the second half of the year. While there are still some challenges in the macro environment, we remain focused on the growth levers within our control.”

DIVISION HIGHLIGHTS:

All comparisons presented below are for the quarter ended June 30, 2026 to the quarter ended June 30, 2025 unless otherwise indicated.

MOBILE MODULAR

For the second quarter of 2026, the Company’s Mobile Modular division reported Adjusted EBITDA of $50.7 million, a decrease of $2.3 million, or 4%, when compared to the same quarter in 2025.

PORTABLE STORAGE

For the second quarter of 2026, the Company’s Portable Storage division reported Adjusted EBITDA of $7.6 million, a decrease of $2.2 million, or 23%, when compared to the same quarter in 2025.

TRS-RENTELCO

For the second quarter of 2026, the Company’s TRS-RenTelco division reported Adjusted EBITDA of $25.0 million, an increase of 29% when compared to the same quarter in 2025.

FINANCIAL OUTLOOK:

Based upon the Company's year-to-date results and current outlook for the remainder of the year, the Company is updating its financial outlook. For the full-year 2026, the Company currently expects:

Current

Total revenue:

$945 to $995 million

$955 to $985 million

Adjusted EBITDA 1, 2:

$360 to $378 million

$363 to $375 million

Gross rental equipment capital expenditures:

$180 to $200 million

$200 to $220 million

Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, transaction costs and non-operating transactions. A reconciliation of actual net income to Adjusted EBITDA and Adjusted EBITDA to net cash provided by operating activities can be found at the end of this release.

Information reconciling forward-looking Adjusted EBITDA to the comparable GAAP financial measures is unavailable to the Company without unreasonable effort because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Therefore, no reconciliation to the most comparable GAAP measures is provided. The Company provides Adjusted EBITDA guidance because it believes that Adjusted EBITDA, when viewed with the Company’s results under GAAP, provides useful information for the reasons noted in the reconciliation of actual Adjusted EBITDA to the most directly comparable GAAP measures at the end of this release.

ABOUT MCGRATH:

McGrath RentCorp (Nasdaq: MGRC) is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath’s operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions. The Company’s rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 40 years of experience, McGrath’s success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company’s long-term financial success and supported 35 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.

McGrath is headquartered in Livermore, California. Additional information about McGrath and its businesses is available at mgrc.com and investors.mgrc.com.

You should read this press release in conjunction with the financial statements and notes thereto included in the Company’s latest Forms 10-K, 10-Q and other SEC filings. You can visit the Company’s website at www.mgrc.com to access information on McGrath RentCorp, including the latest Forms 10-K, 10-Q and other SEC filings.

CONFERENCE CALL NOTE:

As previously announced in its press release of June 25, 2026, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on July 29, 2026 to discuss the second quarter 2026 results. To participate in the teleconference, dial 1-800-274-8461 (in the U.S.), or 1-203-518-9814 (outside the U.S.), or to listen only, access the simultaneous webcast at the investor relations section of the Company’s website at https://investors.mgrc.com/. A replay will be available for 7 days following the call by dialing 1-800-839-5203 (in the U.S.), or 1-402-220-2695 (outside the U.S.). In addition, a live audio webcast and replay of the call may be found in the investor relations section of the Company’s website at https://investors.mgrc.com/events-and-presentations.

FORWARD-LOOKING STATEMENTS:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding McGrath RentCorp’s expectations, strategies, prospects or targets are forward-looking statements. These forward-looking statements also can be identified by the use of forward-looking terminology such as “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plan,” “predict,” “project,” or “will,” or the negative of these terms or other comparable terminology. In particular, the discussion under the heading “Financial Outlook” and Mr. Hawkins' comments about being encouraged by the Company's progress, that the Company is set up well for the second half of the year and that the Company remains focused on the growth levers within its business, are forward looking.

These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected including: our expectations around continued business momentum entering the second half of 2026; the continued impact of tariff actions and macroeconomic factors, including fiscal policy uncertainty, government budgetary constraints, other political, geopolitical or regulatory developments; health of the education and commercial markets in our modular building division; competition within the modular business; the activity levels in the semiconductor and general purpose and communications test equipment markets at TRS-RenTelco; the activity levels in commercial construction projects and impact on Portable Storage segment; continued execution of our strategic performance improvement initiatives; our ability to successfully increase prices to offset cost increases; our ability to effectively manage our rental assets; and our ability to retain and attract talent and uncertainty associated with the Chief Executive Officer transition; as well as the other factors disclosed under “Risk Factors” in the Company’s 2025 Form 10-K and other SEC filings.

Forward-looking statements are made only as of the date hereof and are based on management’s reasonable assumptions, however these assumptions can be wrong or affected by known or unknown risks and uncertainties. No forward-looking statement can be guaranteed, and subsequent facts or circumstances may contradict, obviate, undermine or otherwise fail to support or substantiate such statements. Except as otherwise required by law, we assume no obligation to update any of the forward-looking statements contained in this press release.

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

2026

2025

2026

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

Sales

46,355

69,775

80,390

108,701

Other

2,260

2,373

4,533

4,834

Total revenues

221,112

235,616

419,654

431,032

Costs and Expenses

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 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)

(81

)

(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

0.990

0.970

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

June 30,

December 31,

(in thousands)

2026

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

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 and Shareholders' Equity

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

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Six Months Ended June 30,

(in thousands)

2026

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)

(86

)

Amortization of debt issuance costs

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

MCGRATH RENTCORP

BUSINESS SEGMENT DATA (unaudited)

Three months ended June 30, 2026

(dollar amounts in thousands)

Mobile Modular

Portable Storage

TRS-RenTelco

Enviroplex

Consolidated

Revenues

Rental

83,181

16,856

31,843

—

131,880

Rental related services

34,794

4,540

1,283

—

40,617

Rental operations

117,975

21,396

33,126

—

172,497

Sales

31,179

1,853

8,707

4,616

46,355

Other

1,270

270

720

—

2,260

Total revenues

150,424

23,519

42,553

4,616

221,112

Costs and Expenses

Direct costs of rental operations:

Depreciation

11,709

1,104

10,415

—

23,228

Rental related services

22,134

5,352

890

—

28,376

Other

26,052

2,265

6,159

—

34,476

Total direct costs of rental operations

59,895

8,721

17,464

—

86,080

Costs of sales

20,062

1,126

2,926

3,011

27,125

Total costs of revenues

79,957

9,847

20,390

3,011

113,205

Gross Profit

Rental

45,420

13,487

15,269

—

74,176

Rental related services

12,660

(812

)

393

—

12,241

Rental operations

58,080

12,675

15,662

—

86,417

Sales

11,117

727

5,781

1,605

19,230

Other

1,270

270

720

—

2,260

Total gross profit

70,467

13,672

22,163

1,605

107,907

Selling and administrative expenses

37,448

8,488

8,262

2,238

56,436

Income from operations

33,019

5,184

13,901

(633

)

51,471

Other income, net 6

(1,814

)

Interest expense

7,113

Foreign currency exchange gain

Provision for income taxes

12,462

Net income

33,672

Other Information

Adjusted EBITDA 1

50,740

7,588

24,993

(524

)

82,797

Average rental equipment 2

1,421,497

242,947

344,717

Average monthly total yield 3

1.95

2.31

3.08

Average utilization 4

70.1

58.3

68.1

Average monthly rental rate 5

2.78

3.97

4.52

Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.

Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.

Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment.

Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

BUSINESS SEGMENT DATA (unaudited)

Three months ended June 30, 2025

(dollar amounts in thousands)

Mobile Modular

Portable Storage

TRS-RenTelco

Enviroplex

Consolidated

Revenues

Rental

81,909

16,939

27,137

—

125,985

Rental related services

32,172

4,394

917

—

37,483

Rental operations

114,081

21,333

28,054

—

163,468

Sales

40,484

1,712

7,713

19,866

69,775

Other

1,423

301

649

—

2,373

Total revenues

155,988

23,346

36,416

19,866

235,616

Costs and Expenses

Direct costs of rental operations:

Depreciation

10,741

1,038

9,647

—

21,426

Rental related services

20,450

4,304

723

—

25,477

Other

23,990

1,918

5,611

—

31,519

Total direct costs of rental operations

55,181

7,260

15,981

—

78,422

Costs of sales

27,581

1,048

4,072

13,779

46,480

Total costs of revenues

82,762

8,308

20,053

13,779

124,902

Gross Profit

Rental

47,178

13,983

11,879

—

73,040

Rental related services

11,722

194

—

12,006

Rental operations

58,900

14,073

12,073

—

85,046

Sales

12,903

664

3,641

6,087

23,295

Other

1,423

301

649

—

2,373

Total gross profit

73,226

15,038

16,363

6,087

110,714

Selling and administrative expenses

36,777

7,547

7,320

1,899

53,543

Income from operations

36,449

7,491

9,043

4,188

57,171

Interest expense

7,795

Foreign currency exchange gain

(81

)

Provision for income taxes

13,484

Net income

35,973

Other Information

Adjusted EBITDA 1

53,088

9,834

19,314

4,290

86,525

Average rental equipment 2

1,300,787

233,742

330,532

Average monthly total yield 3

2.10

2.42

2.74

Average utilization 4

73.7

61.1

64.8

Average monthly rental rate 5

2.85

3.95

4.22

Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.

Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.

Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment.

Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

BUSINESS SEGMENT DATA (unaudited)

Six months ended June 30, 2026

(dollar amounts in thousands)

Mobile Modular

Portable Storage

TRS-RenTelco

Enviroplex

Consolidated

Revenues

Rental

164,618

33,139

60,784

—

258,541

Rental related services

65,554

8,383

2,253

—

76,190

Rental operations

230,172

41,522

63,037

—

334,731

Sales

52,073

3,458

16,739

8,120

80,390

Other

2,581

469

1,483

—

4,533

Total revenues

284,826

45,449

81,259

8,120

419,654

Costs and Expenses

Direct costs of rental operations:

Depreciation

23,367

2,196

20,380

—

45,943

Rental related services

41,869

9,945

1,679

—

53,493

Other

50,023

4,373

12,210

—

66,606

Total direct costs of rental operations

115,259

16,514

34,269

—

166,042

Costs of sales

34,387

2,149

6,562

5,717

48,815

Total costs of revenues

149,646

18,663

40,831

5,717

214,857

Gross Profit

Rental

91,228

26,570

28,194

—

145,992

Rental related services

23,685

(1,562

)

574

—

22,697

Rental operations

114,913

25,008

28,768

—

168,689

Sales

17,686

1,309

10,177

2,403

31,575

Other

2,581

469

1,483

—

4,533

Total gross profit

135,180

26,786

40,428

2,403

204,797

Selling and administrative expenses

72,612

16,863

16,253

4,196

109,924

Income from operations

62,568

9,923

24,175

(1,793

)

94,873

Other income, net 6

(1,814

)

Interest expense

13,613

Foreign currency exchange loss

Provision for income taxes

22,298

Net income

60,705

Other Information

Adjusted EBITDA 1

97,923

14,728

45,849

(1,576

)

156,924

Average rental equipment 2

1,403,928

242,855

339,564

Average monthly total yield 3

1.95

2.27

2.98

Average utilization 4

70.1

58.4

66.9

Average monthly rental rate 5

2.79

3.90

4.46

Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.

Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.

Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment.

Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

BUSINESS SEGMENT DATA (unaudited)

Six months ended June 30, 2025

(dollar amounts in thousands)

Mobile Modular

Portable Storage

TRS-RenTelco

Enviroplex

Consolidated

Revenues

Rental

160,404

33,014

52,680

—

246,098

Rental related services

61,647

8,025

1,727

—

71,399

Rental operations

222,051

41,039

54,407

—

317,497

Sales

62,974

2,956

15,692

27,079

108,701

Other

2,881

617

1,336

—

4,834

Total revenues

287,906

44,612

71,435

27,079

431,032

Costs and Expenses

Direct costs of rental operations:

Depreciation

21,294

2,070

19,567

—

42,931

Rental related services

40,190

8,237

1,363

—

49,790

Other

44,802

3,445

10,924

—

59,171

Total direct costs of rental operations

106,286

13,752

31,854

—

151,892

Costs of sales

42,926

1,879

8,343

18,842

71,990

Total costs of revenues

149,212

15,631

40,197

18,842

223,882

Gross Profit

Rental

94,308

27,499

22,189

—

143,996

Rental related services

21,457

(212

)

364

—

21,609

Rental operations

115,765

27,287

22,553

—

165,605

Sales

20,048

1,077

7,349

8,237

36,711

Other

2,881

617

1,336

—

4,834

Total gross profit

138,694

28,981

31,238

8,237

207,150

Selling and administrative expenses

70,765

15,101

14,758

3,788

104,412

Income from operations

67,929

13,880

16,480

4,449

102,738

Interest expense

15,954

Foreign currency exchange gain

(86

)

Provision for income taxes

22,689

Net income

64,181

Other Information

Adjusted EBITDA 1

100,719

18,421

37,248

4,653

161,041

Average rental equipment 2

1,292,797

233,501

334,607

Average monthly total yield 3

2.07

2.36

2.62

Average utilization 4

74.2

60.6

63.0

Average monthly rental rate 5

2.79

3.89

4.17

Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.

Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.

Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment.

Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

Reconciliation of Adjusted EBITDA to the most directly comparable GAAP measures

To supplement the Company’s financial data presented on a basis consistent with accounting principles generally accepted in the United States of America (“GAAP”), the Company presents “Adjusted EBITDA”, which is defined by the Company as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, transaction costs, gains on property sales and non-operating transactions. The Company presents Adjusted EBITDA as a financial measure as management believes it provides useful information to investors regarding the Company’s liquidity and financial condition and because management, as well as the Company’s lenders, use this measure in evaluating the performance of the Company.

Management uses Adjusted EBITDA as a supplement to GAAP measures to further evaluate period-to-period operating performance, compliance with financial covenants in the Company’s revolving lines of credit and senior notes and the Company’s ability to meet future capital expenditure and working capital requirements. Management believes the exclusion of non-cash charges and non-recurring transactions, including share-based compensation, transaction costs and gains on property sales is useful in measuring the Company’s cash available for operations and performance of the Company. Because management finds Adjusted EBITDA useful, the Company believes its investors will also find Adjusted EBITDA useful in evaluating the Company’s performance.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of the Company’s profitability or liquidity. Adjusted EBITDA is not in accordance with or an alternative for GAAP and may be different from non−GAAP measures used by other companies. Unlike EBITDA, which may be used by other companies or investors, Adjusted EBITDA does not include share-based compensation charges, transaction costs, gains on property sales and non-operating transactions. The Company believes that Adjusted EBITDA is of limited use in that it does not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and does not accurately reflect real cash flow. In addition, other companies may not use Adjusted EBITDA or may use other non-GAAP measures, limiting the usefulness of Adjusted EBITDA for purposes of comparison. The Company’s presentation of Adjusted EBITDA should not be construed as an inference that the Company will not incur expenses that are the same as or similar to the adjustments in this presentation. Therefore, Adjusted EBITDA should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The Company compensates for the limitations of Adjusted EBITDA by relying upon GAAP results to gain a complete picture of the Company’s performance. Because Adjusted EBITDA is a non-GAAP financial measure, as defined by the SEC, the Company includes in the tables below reconciliations of Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Reconciliation of Net Income to Adjusted EBITDA

(dollar amounts in thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

2026

2025

Net income

33,671

35,973

60,704

64,182

152,830

252,448

Provision for income taxes

12,462

13,484

22,298

22,689

56,382

89,202

Interest expense

7,112

7,795

13,613

15,954

28,281

37,454

Depreciation and amortization

28,456

26,339

56,280

52,739

110,610

106,063

EBITDA

81,701

83,591

152,895

155,564

348,103

485,167

Share-based compensation

2,857

2,779

5,679

5,322

11,582

10,268

Transaction costs 3

155

164

155

475

41,593

Other income, net 4

(1,814

)

—

(1,814

)

—

(1,814

)

—

Gain on merger termination from WillScot Mobile Mini 5

—

(180,000

)

Adjusted EBITDA 1

82,797

86,525

156,924

161,041

358,348

357,028

Adjusted EBITDA margin 2

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

(dollar amounts in thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

2026

2025

Net cash provided by operating activities

63,326

55,812

105,692

109,694

251,683

345,440

Change in certain assets and liabilities:

Accounts receivable, net

17,780

24,919

8,011

14,459

6,075

16,422

Inventories, prepaid expenses and other assets

30,691

11,427

40,729

3,263

34,062

2,193

Accounts payable and accrued liabilities

(39,736

)

(20,522

)

(18,784

)

10,266

(15,147

)

(137,663

)

Deferred income

(24,781

)

(8,050

)

(29,721

)

(15,124

)

(14,925

)

9,664

Amortization of debt issuance costs

)

(22

)

(45

)

(166

)

(107

)

Foreign currency exchange (loss) gain

(38

)

(71

)

(77

)

Gain on sale of used rental equipment

11,103

10,281

18,035

16,674

45,552

36,222

Income taxes paid, net of refunds received

19,505

5,762

19,780

5,786

24,110

46,909

Interest paid

4,948

6,837

13,258

15,982

27,181

37,912

Adjusted EBITDA 1

82,797

86,525

156,924

161,041

358,348

357,028

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues for the period.

Transaction costs include acquisition related legal and professional fees and other costs specific to these transactions.

Other income, net consists of net gains on property, plant and equipment sales that are infrequent in nature and excluded from Adjusted EBITDA.

The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA.