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:

Rental operations revenues increased 6% to $172.5 million.
Sales revenues decreased 34% to $46.4 million.
Total revenues decreased 6% to $221.1 million.
Other income, net increased $1.8 million as a result of the sale of a corporate property.
Income from operations decreased 7% to $53.3 million.
Adjusted EBITDA¹ decreased 4% to $82.8 million.
Dividend rate of $0.495 per share for the second quarter 2026. On an annualized basis, this dividend represents a 1.7% yield on the July 28, 2026 close price of $119.98 per share.

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.

Rental revenues increased 2% to $81.9 million, depreciation expense increased 9% to $11.7 million and other direct costs increased 9% to $26.1 million, which resulted in a decrease in gross profit on rental revenues of 4% to $45.4 million.
Rental related services revenues increased 8% to $34.8 million, primarily attributable to higher delivery and installation revenues, with associated gross profit increasing 8% to $12.7 million.
Sales revenues decreased 23% to $31.2 million, primarily due to lower new equipment sales. Lower sales revenues partly offset by higher gross margin on sales of 36% in 2026, compared to 32% in 2025, resulted in a 14% decrease in gross profit on sales revenues to $11.1 million.
Selling and administrative expenses increased 2% to $37.4 million, when compared to the prior year.

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.

Rental revenues were comparable to 2025 at $16.9 million, depreciation expense increased 6% to $1.1 million, and other direct costs increased 18% to $2.3 million, which resulted in a decrease in gross profit on rental revenues of 4% to $13.5 million.
Rental related services revenues increased 3% to $4.5 million, primarily attributable to higher delivery and return delivery activities. Gross margin on rental related services was negative 18% compared to 2% in 2025, primarily due to higher trucking related costs, resulting in a gross loss on rental related services revenues of $0.8 million.
Sales revenues increased 8% to $1.9 million. Gross margin on sales was comparable to 2025 at 39%, resulting in a $0.1 million increase in gross profit on sales revenues to $0.7 million.
Selling and administrative expenses increased 12% to $8.5 million, when compared to the prior year.

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.

Rental revenues increased 17% to $31.8 million, depreciation expense increased 8% and other direct costs increased 10%, resulting in a 29% increase in gross profit on rental revenues to $15.3 million.
Sales revenues increased 13% to $8.7 million and gross profit on sales revenues increased 59% to $5.8 million, primarily attributed to higher sales margins of 66% in 2026 compared to 47% in 2025.
Selling and administrative expenses increased 13% to $8.3 million, when compared to the prior year.

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:

	Previous	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

1.		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.
2.		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)		38			(81	)		71			(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)		71			(86	)
Amortization of debt issuance costs		5			45
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														38
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	%

1.		Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions.
2.		Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.
3.		Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
4.		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.
5.		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.
6.		During the quarter ended June 30, 2026, the Company sold a corporate property which resulted in a net gain on sale of $1,814, excluding taxes.

MCGRATH RENTCORP
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			90			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	%

1.		Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions.
2.		Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.
3.		Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
4.		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.
5.		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.

MCGRATH RENTCORP
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														71
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	%

1.		Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions.
2.		Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.
3.		Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
4.		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.
5.		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.
6.		During the six months ended June 30, 2026, the Company sold a corporate property which resulted in a net gain on sale of $1,814, excluding taxes.

MCGRATH RENTCORP
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	%

1.		Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions.
2.		Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment.
3.		Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
4.		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.
5.		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		53			155			164			155			475			41,593
Other income, net ⁴		(1,814	)		—			(1,814	)		—			(1,814	)		—
Gain on merger termination from WillScot Mobile Mini⁵		—			—			—			—			—			(180,000	)
Adjusted EBITDA ¹	$	82,797		$	86,525		$	156,924		$	161,041		$	358,348		$	357,028
Adjusted EBITDA margin ²		37	%		37	%		37	%		37	%		38	%		38	%

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		(1	)		(22	)		(5	)		(45	)		(166	)		(107	)
Foreign currency exchange (loss) gain		(38	)		81			(71	)		86			(77	)		34
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

1.		Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions.
2.		Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues for the period.
3.		Transaction costs include acquisition related legal and professional fees and other costs specific to these transactions.
4.		Other income, net consists of net gains on property, plant and equipment sales that are infrequent in nature and excluded from Adjusted EBITDA.
5.		The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260729055837/en/

Keith E. Pratt

EVP & Chief Financial Officer

925-606-9200