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Here are 1-2 brief analogies for McGrath RentCorp (MGRC):

• It's like United Rentals for temporary modular buildings, portable storage, and specialized containment tanks.
• Think of it as U-Haul for businesses, providing temporary offices, classrooms, and industrial storage solutions.

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• Modular Buildings: Provides rental and sales of temporary and permanent modular buildings used for offices, classrooms, healthcare, and other specialty applications.
• Portable Storage Containers: Offers rental and sales of ground-level storage containers and container offices for various commercial and industrial uses.
• Electronic Test Equipment: Rents and sells a wide range of electronic test and measurement equipment to industries such as aerospace, defense, telecommunications, and general electronics.

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McGrath RentCorp (symbol: MGRC) primarily sells and rents its products and services to other companies (businesses), not individuals.

Based on their public filings, McGrath RentCorp serves a broad and diversified customer base across various industries. They explicitly state that no single customer accounted for more than 10% of their total consolidated revenues in recent fiscal years, meaning they do not have individually major customer companies that are publicly disclosed. Instead, their customer base is composed of numerous companies within the following major categories:

• Construction and Industrial Companies: These customers utilize McGrath's rental services for temporary office space, storage containers, portable offices, and other on-site needs, primarily from their Mobile Modular, Mobile Storage, and Pac-Van segments. This includes a wide range of general contractors, subcontractors, and industrial businesses.
• Educational Institutions: Schools, colleges, and universities are significant customers for McGrath's Mobile Modular segment, renting modular classrooms, administrative offices, and specialized facilities to accommodate growth, renovations, or temporary space requirements.
• Technology, Aerospace, Defense, and Telecommunications Companies: These customers rely on McGrath's TRS-RenTelco segment for the rental of electronic test equipment used in research and development, manufacturing, and field testing for industries such as semiconductor, electronics, aerospace, defense, and telecommunications.
• Commercial Businesses and Government Entities: Various commercial enterprises across numerous sectors, as well as federal, state, and local government agencies, rent modular buildings, storage containers, and other rental equipment for a wide array of operational and project-specific needs.

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• Keysight Technologies (KEYS)
• VIAVI Solutions (VIAV)
• Fortive Corporation (FTV)
• Teledyne Technologies Incorporated (TDY)
• Anritsu (AITUY)

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Joseph F. Hanna President, Chief Executive Officer, and Director

Mr. Hanna has served as President, Chief Executive Officer, and Director of McGrath RentCorp since February 2017, following 14 years in various roles of increasing responsibility. He joined the company in 2003 as Vice President of Operations, becoming Senior Vice President of Operations in 2005 and Chief Operating Officer from 2007 to 2017. Mr. Hanna has played a pivotal role in developing and executing the company's strategic product and geographic expansion. Prior to joining McGrath RentCorp, he gained extensive sales and operations experience, including 12 years at SMC Corporation of America, where he served as Director of Sales and Operations for the Western United States. He is also a veteran, having served as an officer in the United States Army. Mr. Hanna holds a B.S. in Electrical Engineering from the United States Military Academy, West Point.

Keith E. Pratt Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary

Mr. Pratt has been the Executive Vice President and Chief Financial Officer of McGrath RentCorp since February 2017. He joined the company in January 2006 as Vice President and was appointed Chief Financial Officer in March 2006, and Senior Vice President, Chief Financial Officer in June 2007. Before joining McGrath RentCorp, Mr. Pratt served as Senior Vice President and Chief Financial Officer at Advanced Fibre Communications (AFC), a public telecommunications equipment company, from 1999 until its acquisition by Tellabs in late 2004. He also served as Director of Corporate Development at AFC. Earlier in his career, he was Director, Strategy & Business Development Group at Pacific Telesis Group, Inc. Mr. Pratt holds an undergraduate degree in Production Engineering from Cambridge University and an M.B.A. from Stanford University.

Philip B. Hawkins Executive Vice President and Chief Operating Officer

Mr. Hawkins was appointed Chief Operating Officer of McGrath RentCorp in January 2025, where he oversees the company's operational leadership and continues to guide the Mobile Modular businesses. He previously served as Vice President and Division Manager of Mobile Modular.

David M. Whitney Senior Vice President and Chief Accounting Officer

Mr. Whitney was appointed Senior Vice President, Chief Accounting Officer in January 2025. He joined McGrath RentCorp in 2000 as Corporate Controller and was later elected Vice President and Principal Accounting Officer in March 2006. Prior to his tenure at McGrath RentCorp, Mr. Whitney served as Manager of Regional Accounting for The Permanente Medical Group. He holds a B.S. in Accounting from California State University, Hayward, and is a Certified Public Accountant (CPA).

Kristina Van Trease Senior Vice President and Chief Strategy Officer

Ms. Van Trease serves as the Senior Vice President and Chief Strategy Officer for McGrath RentCorp.

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The key risks to McGrath RentCorp (MGRC) include:

1. Economic Downturns and Market Cyclicality: McGrath RentCorp operates in cyclical markets, with its modular and portable storage segments heavily influenced by macroeconomic conditions, particularly non-residential construction activity. Economic slowdowns, elevated interest rates, and general market uncertainties can lead to customers delaying or canceling projects, which directly impacts demand for rental equipment, fleet utilization rates, and the timely collection of payments. Additionally, changes in the U.S. trade environment, including new tariffs and geopolitical economic uncertainties, could reduce trade volume and global economic stability, further affecting the company's business engagements and financial performance.
2. Dependence on Key Business Segments and Operational Performance: A significant portion of McGrath RentCorp's revenue and growth is driven by its Mobile Modular segment. A slowdown in this primary growth engine or increased competitive pressures could adversely affect the company's overall financial results. Furthermore, other divisions like Portable Storage have faced ongoing demand challenges, and the sustained recovery of segments such as TRS-RenTelco is not yet fully established, creating potential downside risks if market demand softens in these areas. Lower utilization rates in these segments mean more capital equipment sits idle, earning no revenue.
3. Supply Chain and Manufacturer Concentration: McGrath RentCorp, particularly its Mobile Modular segment, has shown reliance on a limited number of manufacturers for its modular units in past years. The potential loss of a primary manufacturer could lead to increased purchasing costs, extended lead times for new units, and disruptions to operations until alternative suppliers can scale up production capacity.

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• Modular Buildings Rental: The North American modular space rental market is expected to surge to $6.1 billion by 2030. The U.S. modular construction market, which includes modular building rentals, was estimated at USD 10.53 billion in 2022 and is expected to reach USD 19.17 billion by 2030. In 2024, the U.S. modular construction market reached $20.3 billion. The global modular construction market size was USD 89.44 billion in 2024 and is projected to grow to USD 151.53 billion by 2032.
• Portable Storage Containers Rental: The U.S Portable Storage Container Rental Market was valued at USD 532.42 Million in 2023 and is projected to reach USD 791.42 Million by 2031. The North American portable storage container rental market was approximately $2.5 billion in 2024. The Mobile Storage Services industry in the United States is estimated to reach $6.9 billion in 2025.
• Liquid and Solid Containment Tanks Rental: The global tank container rental market is projected to reach approximately $2.5 billion in 2024 and is expected to grow to over $4.5 billion by 2034. The North American tank container rental market is expected to hold about 30% of the global market share by 2024.
• Electronic Test Equipment Rental: null

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McGrath RentCorp (MGRC) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Expansion of the Mobile Modular Business: The company's Mobile Modular segment is consistently highlighted as a primary growth driver. This involves broadening its portfolio of modular solutions, increasing geographic presence, and offering comprehensive turnkey services. Both commercial and education rental sectors within Mobile Modular are contributing to this expansion.

2. Growth in Rental-Related Services and Mobile Modular Plus: McGrath RentCorp is seeing healthy growth from its rental-related services, particularly through initiatives like "Mobile Modular Plus" and other site-related services. These offerings enhance the value proposition and generate additional revenue streams within the modular segment.

3. Strategic Acquisitions: The company has a history of utilizing strategic acquisitions to expand its market footprint, diversify its revenue streams, and enhance its service capabilities. Recent examples include the acquisitions of Vesta Modular and Brekke Storage, which have added to its fleet and regional operations.

4. Robust Pricing Strategy: McGrath RentCorp's disciplined and strong pricing strategy, particularly within its Mobile Modular segment, is anticipated to be a tailwind for revenue growth and contribute to margin expansion.

5. Healthy Demand in Niche Sectors: While some broader markets like non-residential construction may experience softness, McGrath RentCorp benefits from steady project activity and healthy demand in specific sectors such as energy, data centers, seasonal retail, and education. These areas are expected to continue offering growth opportunities.

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Share Repurchases

• In September 2024, McGrath's Board authorized an expansion of its common stock repurchase program to 2 million shares, following the termination of its merger agreement with WillScot Mobile Mini.
• The timing and specific amounts of these repurchases are subject to prevailing market conditions and management's discretion.

Share Issuance

• In 2023, 2022, and 2021, the exercise of share-based awards by employees resulted in excess tax benefits of $2.7 million, $2.6 million, and $2.5 million, respectively, indicating some issuance of shares through employee compensation.
• As of June 30, 2024, the company had approximately 24.55 million shares outstanding, a slight increase from 24.49 million shares outstanding as of December 31, 2023.

Inbound Investments

• McGrath RentCorp was slated to be acquired by WillScot Mobile Mini Holdings Corp. for an enterprise value of $3.8 billion, including approximately $800 million of net debt, in a transaction announced in January 2024.
• McGrath shareholders were to receive $123.00 in cash or 2.8211 shares of WillScot Mobile Mini common stock per share, with 60% of outstanding shares converting to cash and 40% to stock.
• The proposed merger was mutually terminated in September 2024 due to regulatory challenges with the U.S. Federal Trade Commission, resulting in McGrath receiving a $180 million termination fee.

Outbound Investments

• In February 2023, McGrath RentCorp acquired VESTA Modular, a provider of temporary and permanent modular space solutions, for a cash purchase price of $400 million. This acquisition aimed to expand its modular business, geographic coverage, and product line.
• In May 2021, McGrath acquired Design Space Modular Buildings PNW, LP for a cash purchase price of $260 million, expanding its geographic coverage in the Western U.S. and adding approximately 6,400 rental units to its fleet.
• In July 2023, the company acquired the assets of Inland Leasing and Storage, a regional provider of portable storage solutions in Colorado, adding approximately 600 assets to its portable storage operations.

Capital Expenditures

• McGrath RentCorp has projected its gross rental equipment capital expenditures for fiscal year 2025 to be between $115 million and $125 million. Earlier in 2025, the forecast was between $120 million and $130 million.
• The primary focus of these capital expenditures is on the Mobile Modular segment, supported by prudent equipment purchases in key markets and for fleet preparation.