McGrath RentCorp 2025年度报告

Letter to Shareholders 202Annual Meeting of ShareholdersNotice and Proxy Statement 202Annual Report on Form 10-K Dear Shareholders, I am pleased to write my first Annual Letter and want to begin by expressing my sincereappreciation for your ongoing investment in McGrath RentCorp (Nasdaq: MGRC). As you mayknow, I assumed the CEO role effective April 3rdof this year, prior to which I served as COO ofMcGrath. 2025 presented its share of challenges across our end markets, yet it also demonstrated thestrength of our strategy and the resilience of our team. Despite a difficult demand environment,we delivered growth in both revenue and profitability. Growth was driven by the strategicinitiatives we highlighted throughout the year. Our disciplined execution and ability to navigateuncertainty, while continuing to invest for the future, remain our greatest strengths that havelong-defined McGrath. Strong Financial Performance For the full year 2025, we reported total revenue of $944 million and adjusted EBITDA of $362million. Total revenues grew 3.7%, even as market conditions remained uneven. Thisperformance reflected the resilience of our rental model, the value of our diversified portfolio,and the traction we continue to see from our growth initiatives. Our teams across each of our businesses - Mobile Modular, Portable Storage, Enviroplex, andTRS-RenTelco - executed with focus and discipline. Our investments in fleet, organic andinorganic expansion, and various initiatives to enhance the customer experience positioned us togrow even in challenging environments. Throughout the year, we continued to deploy capital responsibly, while balancing growthinvestments with shareholder returns. We maintained the financial strength that enables us tooperate from a position of stability and opportunity. Strategic Growth Our long-term strategy remains centered on expanding our modular and portable storagebusinesses. We are strengthening our customer value proposition by increasing our geographicreach and adding modular solutions capabilities such as Mobile Modular Plus, Site-RelatedServices, and Custom Modular Solutions. These initiatives allow us to serve customers in moreplaces and increase profitability. This creates value for both our customers and shareholders. Several differentiators continue to set McGrath apart: •Solutions, not just space.Our Mobile Modular Plus offerings and Site Related Servicesdeliver greater value to customers by simplifying project execution and reducing thenumber of subcontractors our customers need to manage.•In-house production capabilities.Our production centers allow us to customize,refurbish, and maintain our fleet efficiently and at scale.•Deep expertise and local presence.Our sales and operations teams understand localbuilding codes, customer needs, and market dynamics, enabling delivery of fast, high-quality service.•Custom solutions for complex projects.Our nationwide custom modular sales solutionsteam continues to deliver on large, multifaceted projects across industries.•Digital innovation.Our digital tools make it easier for customers to configure buildings,visualize layouts, and select accessories—improving both speed and experience.•Exceptional customer satisfaction.Our customer feedback scores remain among thebest in the industry, reinforcing our commitment to service excellence.Shareholder Letter We have built these capabilities over decades, and they continue to differentiate us and fuel ourlong-term growth trajectory. Disciplined Capital Allocation We remain committed to deploying capital in a disciplined, returns-focused manner. Our strongbalance sheet and resilient cash flow give us the flexibility to invest organically, pursue strategicacquisitions, and return capital to shareholders. As in prior years, our capital allocation decisions reflect current market conditions. With morerental units available as we entered 2025, we prioritized using existing fleet for rental projects.This approach allowed us to meet customer demand while maintaining appropriate leverage andpreserving optionality for future growth opportunities. We invested capital into newer geographicmarkets and highly utilized product categories of more established geographies. Shareholder Focus Our commitment to long-term shareholder value remains our most important goal. Since our IPOin 1984, McGrath shares have delivered an impressive 16% CAGR, assuming reinvestment ofdividends. This achievement reflects decades of disciplined management and consistentexecution. In 2025, we proudly continued our long-standing, now 35-year tradition of prudently, butsteadily increasing dividends to shareholders, supported by strong cash generation and a positiveoutlook for our business. Looking Ahead We remain confident in our long-term vision, strategy, and ability to execute. As we move through 2026, •We will continue to expand our Mobile Modular geographic footprint, investing in salescoverage and selec