Filing Flows › McGrath Rentcorp (MGRC) › Q1 2025
McGrath Rentcorp (MGRC) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 24, 2025
McGrath Rentcorp (MGRC) reported revenue of $195M for the first quarter 2025 (Q1 2025), +4% from a year earlier and -20% from the quarter before. Operating margin was 23.3%, net earnings $28.2M (14.4% of revenue).
McGrath Rentcorp, Q1 2025: revenue $195M (+4% year over year), operating margin 23.3%, net earnings $28.2M, operating cash flow $53.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $195M | -20% | +4% |
| Gross profit | $96.4M | -16% | +3% |
| Operating profit | $45.6M | -28% | -13% |
| Net earnings | $28.2M | -28% | +23% |
| Operating cash flow | $53.9M | +47% | -9% |
| Free cash flow | $49.9M | +53% | +46% |
What changed
Revenue was $195.4M in Q1 2025, up 4% year over year and down 20% from the previous quarter. Mobile Modular was the largest line at 68% of revenue. Enviroplex added $5.5M year over year (up 320%), 72% of the total change. Portable Storage declined 14%.
Gross margin was 49.3%, down 0.3 points from a year earlier. Operating profit was $45.6M, a 23.3% margin (down 4.4 points year over year). Operating profit fell $6.5M even though revenue rose $7.6M versus a year earlier, so costs grew faster than sales. Operating expenses grew 24% against revenue growth of 4%. Net earnings were $28.2M, up 23% year over year. The effective tax rate was 24.6%.
Operating cash flow was $53.9M (down 9% year over year), 191% of net earnings. Non-cash charges added back $26.4M of depreciation and amortization and $2.5M of share-based compensation. Working capital and other items used $3.3M. Capital expenditures of $4.0M left free cash flow of $49.9M.
Questions
What was McGrath Rentcorp's revenue in the first quarter 2025?
McGrath Rentcorp (MGRC) reported revenue of $195M for the first quarter 2025 (Q1 2025), +4% from a year earlier and -20% from the quarter before.
Was McGrath Rentcorp profitable in the first quarter 2025?
Operating profit was $45.6M (23.3% of revenue) and net earnings $28.2M.
Source: McGrath Rentcorp 10-Q on SEC EDGAR.