McGrath RentCorp (MGRC) shares surged 5.86% in after-hours trading on Thursday following the release of its impressive second-quarter 2025 financial results. The business-to-business rental company not only surpassed analyst expectations but also raised its full-year outlook, instilling confidence in investors.

The company reported earnings per share (EPS) of $1.46 for the quarter ended June 30, significantly beating the analyst consensus estimate of $1.25 by 16.52%. This represents a substantial 75% increase from the $0.84 per share reported in the same quarter last year. McGrath's revenue also exceeded expectations, coming in at $235.6 million, a 10.82% year-over-year increase and 6.75% above the analyst estimate of $220.7 million.

Following these strong results, McGrath RentCorp updated its financial outlook for the full year 2025. The company now expects total revenue to be in the range of $925 to $960 million, up from its previous guidance of $920 to $960 million. Additionally, adjusted EBITDA is anticipated to be between $347 and $356 million, an increase from the earlier projection of $343 to $355 million. This positive revision in the company's outlook, coupled with its robust quarterly performance, likely contributed to the stock's significant after-hours rally.