McGrath RentCorp (MGRC) saw its stock price surge 5.86% in Thursday's trading session following the release of its impressive second-quarter 2025 financial results. The business-to-business rental company reported earnings that significantly exceeded analyst expectations and raised its full-year guidance.
The company reported quarterly earnings of $1.46 per share, surpassing the analyst consensus estimate of $1.25 by 16.52%. This represents a substantial increase of 73.8% compared to the $0.84 per share reported in the same quarter last year. Revenue for the quarter rose to $235.6 million, beating the analyst forecast of $220.7 million by 6.75% and marking a 10.82% increase from the previous year.
McGrath RentCorp's strong performance was driven by growth across its business segments. The company saw a 5% increase in rental operations revenues to $163.5 million, while sales revenues surged by 28% to $69.8 million. Additionally, the company has updated its financial outlook for the full year 2025, now expecting total revenue in the range of $925 to $960 million, up from its previous guidance. This positive revision, coupled with the better-than-expected Q2 results, likely contributed to investor enthusiasm and the subsequent stock price jump.