Financial Data and Key Metrics Changes - Total company revenues increased by 4% to $195.4 million, and adjusted EBITDA increased by 3% to $74.5 million compared to the previous year [23][7]. - Mobile Modular's adjusted EBITDA increased by 10% to $47.6 million, with total revenues rising by 3% to $131.9 million [24][23]. - Rental margins for Mobile Modular improved to 60%, up from 57% a year ago [24]. Business Line Data and Key Metrics Changes - Mobile Modular's rental revenues grew by 3%, while rental-related services revenues increased by 22%, partially offset by an 11% decline in sales revenues [24]. - Portable storage rental revenues declined by 13% to $16.1 million, with rental margins at 84%, down from 87% a year earlier [27]. - TRS RenTelco's total revenues increased by 4% to $35 million, with rental revenues slightly up at $25.5 million, marking the first quarterly increase since Q1 2023 [28]. Market Data and Key Metrics Changes - The architectural billing index and other macro indicators of construction-related demand showed some weakness and project delays [9]. - Average fleet utilization improved to 65%, up from 59% in the previous quarter [13]. Company Strategy and Development Direction - The company remains focused on modular business growth and aims to be a solutions provider to customers [16]. - Expansion into new geographies is a priority, with investments aimed at responsibly growing the top line [18]. - The company has a robust M&A pipeline that is expected to yield results in future quarters [18]. Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential delays in new project starts due to economic uncertainty and tariff impacts [16][61]. - The company expects limited impact from tariffs in 2025, as most of its fleet is owned and prior purchases have mitigated exposure [14][33]. - The overall economic uncertainty could lead to slower decision-making from customers, affecting rental and sales projects in the second half of the year [96]. Other Important Information - First-quarter selling and administrative expenses increased by 1% to $50.9 million, while interest expense decreased by $4.5 million due to lower average interest rates [30]. - The company generated $54 million in net cash from operating activities and reduced debt by $31 million [32]. Q&A Session Summary Question: What are the indications for order flow in the education sector? - Management noted that bookings were light in Q1, but April showed an increase in orders, indicating a positive outlook for education [42][43]. Question: How is the sales team adapting to capture opportunities in larger projects? - Management confirmed that the sales team is motivated and actively pursuing both large and small projects, with good activity levels reported [102]. Question: Is the uptick in TRS RenTelco's rental revenue sustainable? - Management expressed cautious optimism, noting that the increase is not seen as a temporary blip, with delayed projects starting to come online [60]. Question: How does the company plan to manage margins in portable storage? - Management indicated that they are looking at operational efficiencies and pricing strategies to protect margins despite current pressures [84]. Question: What is the company's approach to geographic expansion? - Management emphasized that geographic expansion is a priority, with a focus on building infrastructure and sales capabilities for future growth [113].

Group 1 - McGrath (MGRC) reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.93 per share a year ago, representing an earnings surprise of 12.75% [1] - The company posted revenues of $195.42 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.96%, compared to year-ago revenues of $187.83 million [2] - Over the last four quarters, McGrath has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with McGrath shares down about 8.4% year-to-date, slightly better than the S&P 500's decline of 8.6% [3] - The current consensus EPS estimate for the coming quarter is $1.31 on revenues of $223.53 million, and for the current fiscal year, it is $6.19 on revenues of $954.05 million [7] - The Zacks Industry Rank for Financial - Leasing Companies is currently in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total company revenues increased by 4% to $195.4 million, and adjusted EBITDA increased by 3% to $74.5 million compared to the previous year [5][14] - Mobile Modular's adjusted EBITDA increased by 10% to $47.6 million, with total revenues rising by 3% to $131.9 million [14] - Average fleet utilization improved to 74.6% from 78.7% a year ago, while first-quarter monthly revenue per unit on rent increased by 8% to $831 [15][18] Business Line Data and Key Metrics Changes - Mobile Modular's rental revenues grew by 3%, with both commercial and education rentals showing positive trends [5] - Portable Storage rental revenues declined by 13% to $16.1 million, reflecting ongoing softness in commercial construction [16] - TRS RenTelco's rental revenues increased slightly to $25.5 million, marking the first quarterly increase since Q1 2023 [17] Market Data and Key Metrics Changes - The Architectural Billing Index and other macro indicators indicate some weakness and project delays in construction-related demand [6] - The company noted that while quote activity was up, new rental bookings were below the prior year due to a softer construction market [6][10] Company Strategy and Development Direction - The company remains focused on modular business growth and aims to be a solutions provider to customers, with ongoing efforts to increase revenue per unit [11][12] - Geographic expansion is a priority, with investments in infrastructure expected to yield results in future years [77] - The company has a robust M&A pipeline, indicating plans for strategic acquisitions to enhance rental revenues and offerings [86] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, citing potential delays in project starts due to economic uncertainty [10][20] - The impact of tariffs is expected to be limited, with most cost increases manageable and prior purchases mitigating exposure [9][21] - Overall, the company anticipates a solid performance in Q2, but acknowledges that economic uncertainty could affect project initiation and rental revenues in H2 [22][45] Other Important Information - Selling and administrative expenses increased by 1% to $50.9 million, while interest expenses decreased by $4.5 million due to lower average interest rates [18] - The company paid $12 million in dividends and reduced debt by $31 million during the quarter [19] Q&A Session Summary Question: What are the order flow indications for education rentals? - Bookings were light in Q1, but April has shown an increase in orders, with expectations for a good year in education [27][28] Question: How are larger and smaller project sizes performing in Mobile Modular? - Larger projects are solid, while smaller projects show more uncertainty, with good activity levels but hesitancy from customers [30][31] Question: What is the outlook for TRS RenTelco's demand trends? - Demand has improved, particularly in the semiconductor and computer sectors, with delayed projects starting to materialize [39][40] Question: Why was guidance slightly trimmed? - The adjustment reflects increased caution regarding customer decision-making and potential project delays due to economic uncertainty [41][45] Question: How is the company managing its portable storage units? - The company has a high-quality fleet and is focused on utilizing existing units rather than urgent sales, with no immediate need for action [55][58] Question: What is the company's approach to M&A and talent acquisition? - The company is actively pursuing M&A opportunities and has successfully resumed hiring, finding quality candidates readily available [86][88]

Financial Performance - Consolidated revenues for Q1 2025 increased by $7.6 million, or 4%, to $195.4 million compared to $187.8 million in Q1 2024[69] - Consolidated net income for Q1 2025 rose by $5.4 million, or 23%, to $28.2 million from $22.8 million in Q1 2024, with earnings per diluted share increasing 23% to $1.15[69] - Gross profit for Q1 2025 increased by $3.2 million, or 3%, to $96.4 million, with Mobile Modular's gross profit rising by $3.6 million, or 6%[70] - Adjusted EBITDA for Q1 2025 increased by $2.4 million, or 3%, to $74.5 million[70] - Total gross profit for the three months ended March 31, 2025, increased by $1.0 million, or 7%, to $14.9 million[94] Revenue Breakdown - Mobile Modular's total revenues increased by $4.3 million, or 3%, to $131.9 million in Q1 2025, primarily due to higher rental-related services and rental revenues[71] - Total revenues for Mobile Modular increased by $4.3 million, or 3%, to $131.9 million for the three months ended March 31, 2025, compared to $127.6 million in 2024[73] - Rental related services revenues rose by $5.3 million, or 22%, primarily due to higher delivery and site related services[78] - Portable Storage's total revenues decreased by $3.5 million, or 14%, to $21.3 million for the three months ended March 31, 2025[79] Expenses and Profitability - Selling and administrative expenses increased by 1% to $50.9 million in Q1 2025[70] - Selling and administrative expenses for Portable Storage decreased by $0.3 million, or 3%, to $7.6 million[85] - Rental revenues decreased by $2.3 million, or 13%, due to 10% lower average rental equipment on rent and 3% lower average monthly rental rates, resulting in a gross profit decrease of $2.5 million, or 15%, to $13.5 million in 2025[86] - Average monthly total yield for Portable Storage decreased by 16% to 2.30%[81] Cash Flow and Financing - Net cash provided by operating activities was $53.9 million for the three months ended March 31, 2025, down from $59.4 million in the same period of 2024, representing a decrease of approximately 9.2%[106] - Net cash used in investing activities decreased significantly to $2.7 million in 2025 from $78.1 million in 2024, a reduction of approximately 96.5%[107] - Net cash used in financing activities was $48.6 million in 2025, compared to $19.7 million in net cash provided during 2024, indicating a change of $68.3 million[109] Debt and Compliance - The Company had $650.0 million in unsecured revolving credit facilities, with $311.5 million outstanding and an additional borrowing capacity of $338.5 million as of March 31, 2025[114] - The Company issued $75.0 million of 6.25% Series F Senior Notes, maturing on September 27, 2030, to fulfill tax obligations from a divestiture[119] - The principal balance outstanding under the Series E Senior Notes was $60.0 million as of March 31, 2025[123] - The Company was in compliance with all financial covenants as of March 31, 2025, with no anticipated trends indicating non-compliance[125] Market and Risk Factors - There were no material changes in the Company's market risk exposures from those reported in the 2024 Annual Report[129] - There were no material changes in critical accounting estimates during the three-month period ended March 31, 2025[128] - Contractual obligations and commitments have not changed materially from those included in the 2024 Annual Report[127]

Exhibit 99.1 Contact Keith E. Pratt EVP & Chief Financial Officer 925-606-9200 PRESS RELEASE • Rental operations revenues increased 3% to $154.0 million. • Sales revenues increased 11% to $38.9 million. • Total revenues increased 4% to $195.4 million. • Income from operations was $45.6 million for the first quarter of 2025, compared to $52.1 million in 2024, which included a $9.3 million net gain on sale of a property. Excluding the $9.3 million net gain on sale of a property in 2024, income from operations ...

Group 1 - McGrath RentCorp operates as a diversified rental company, focusing on renting relocatable modular buildings and portable storage containers [1] - The company has a strong track record in its sector, indicating potential for continued performance [1] Group 2 - Crude Value Insights provides an investment service centered on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers benefit from a stock model account, detailed cash flow analyses of exploration and production firms, and live sector discussions [2]

Financial Data and Key Metrics Changes - Total company revenues increased by 10% to $244 million in Q4 2024, while adjusted EBITDA rose by 5% to $92 million compared to the previous year [28][8] - For the full year 2024, both revenue and adjusted EBITDA grew by 10% [13] Business Line Data and Key Metrics Changes - Mobile Modular experienced a strong quarter with rental revenues growing by 8% and sales revenues increasing by 32% [8][29] - Portable Storage rental revenues declined by 15% to $16.7 million, attributed to lower commercial construction activity [11][32] - TRS-RenTelco rental revenues decreased by 9%, reflecting industry-wide slowdowns in test and measurement equipment markets [12][34] Market Data and Key Metrics Changes - Utilization rates dipped year-over-year, ending the quarter at 75.1% [10] - Average fleet utilization for Mobile Modular was 76%, down from 79.7% a year ago [30] Company Strategy and Development Direction - The company is focusing on long-term growth despite challenges, with a commitment to executing strategic initiatives in the Modular business [7][20] - There is an emphasis on increasing sales team coverage and prudent equipment purchases to meet order volumes [20] - The company plans to invest in growing locations and pursuing tuck-in acquisitions to augment growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand conditions in 2025, noting stronger quote activity in January compared to the previous year [16][17] - The company anticipates that the Modular segment will be the primary driver of adjusted EBITDA growth for 2025 [39] - Management acknowledged the challenges in the Portable Storage segment but noted early signs of stabilization [21][42] Other Important Information - The company celebrated its 40th anniversary as a NASDAQ-listed entity and announced a dividend increase for the 34th consecutive year [26] - Phil Hawkins was promoted to Chief Operating Officer to support growth efforts [24] Q&A Session Summary Question: Growth in Modular segment for commercial vs education - Management indicated that both segments grew, with commercial growing by 9% and education by 7% in Q4 [49] Question: Outlook for classroom rentals - Management believes the growth will be balanced and noted improved customer activity compared to the previous year [51][52] Question: Overall business outlook for 2025 - Management expressed a positive outlook for Modular, a challenging position for Portable Storage, and stabilization for TRS [54][55][56] Question: Pricing dynamics in Mobile Modular - Management highlighted a significant gap between average pricing on the fleet and new orders, which is expected to drive margins [60][62] Question: Capital allocation and M&A opportunities - Management remains flexible regarding capital allocation, including potential M&A opportunities and buybacks [78][80] Question: Green shoots for TRS-RenTelco - Management noted consistent bookings outpacing returns, indicating positive momentum in the general purpose and wired communications rentals [112][113]

Core Viewpoint - McGrath (MGRC) reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.49 per share, and showing an increase from $1.30 per share a year ago, indicating a positive earnings surprise of 6.04% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - McGrath's revenues for the quarter ended December 2024 were $243.75 million, which missed the Zacks Consensus Estimate by 1.27%, but increased from $221.59 million year-over-year [2] - The company had a significant earnings surprise of 34.53% in the previous quarter, where it reported earnings of $1.87 per share against an expected $1.39 per share [1] Group 2: Stock Performance and Outlook - McGrath shares have increased approximately 9.3% since the beginning of the year, outperforming the S&P 500's gain of 4.2% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $188.31 million, and for the current fiscal year, it is $6.40 on revenues of $918.57 million [7] Group 3: Industry Context - The Financial - Leasing Companies industry, to which McGrath belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact McGrath's stock performance [5]

Debt and Interest Rates - The majority of the company's indebtedness is subject to variable interest rates, with a $415.4 million balance of variable rate debt outstanding as of December 31, 2024, leading to an annual debt service obligation increase of approximately $4.2 million for each 1% rise in interest rates [122]. - The company is subject to various financial covenants under its credit agreements, which could limit its ability to obtain future financing or make strategic acquisitions [120]. Market Demand and Competition - Significant reductions or delays in funding to public schools have caused a decline in demand and pricing for modular classroom units, which may negatively impact revenues and profitability [123]. - California is the largest market for classroom rentals, heavily reliant on public funding from state and local facility bond measures; failure to pass these measures could materially affect revenues and operating income [124]. - The company faces strong competition in the modular building and portable storage markets, which may prevent it from raising rental fees or sales prices to offset increased costs [139]. - Competition in the rental equipment market is intense, with competitors potentially offering lower prices and better service [151]. Operational Challenges - As of December 31, 2024, 63% of the modular portfolio and 57% of the container portfolio had equipment on rent for periods exceeding the original committed term, indicating potential challenges in remarketing returned units [141]. - Significant increases in raw material and labor costs could raise acquisition costs for new modular rental units and repair costs, negatively impacting profitability [142]. - The company relies on third-party manufacturers for its products, with 18% of modular products purchased from a single manufacturer in 2024, indicating potential risks if this supplier is lost [143]. - Warranty costs may increase, and warranty claims could negatively impact revenues and operating income, with a historical trend of low warranty costs [145]. - The electronic test equipment business is subject to cyclical downturns, which may lead to low demand, excess inventory, and impairment charges [146]. - The company faces risks of equipment becoming obsolete due to changing technology, potentially leading to impairment charges [148]. - The company relies on favorable purchasing terms from manufacturers for rental equipment; unfavorable terms could adversely affect operations [152]. Seasonal Trends - The company's business is impacted by seasonal demand, with the highest rental and sales revenues typically occurring in the second and third quarters [138]. - Seasonal declines in rental activity are expected in December and the first two months of the year, impacting quarterly results [147]. International Operations and Currency Risks - Less than 10% of the company's revenues currently come from foreign operations, but there is potential for growth in international markets [154]. - The company is exposed to currency exchange rate fluctuations, which could negatively impact financial results when converting foreign revenues to U.S. dollars [155]. - The Company formed a wholly owned Canadian subsidiary, TRS-RenTelco Inc., in 2004 and a wholly owned Indian subsidiary, TRS-RenTelco India Private Limited, in 2013 [296]. - The Company began closing its Indian operations in 2017, which subjects it to foreign currency risks due to Canadian operations [296]. - In 2024, the Company experienced minimal impact on net income from foreign exchange rate fluctuations [297]. - The Company does not expect future foreign exchange gains and losses to be significant given the size of its Canadian operations [297]. Regulatory and Tax Considerations - Public policies affecting funding for educational products may change, leading to decreased demand and pricing for the company's offerings [126]. - Changes in tax laws and accounting standards may affect the company's effective tax rate and reported financial results, making future earnings less predictable [157][158]. Product Lifespan - The estimated useful life of the modular product is 18 years with a residual value of 50%, while containers have a useful life of 25 years with a residual value of 62.5% [144].

Financial Performance - Total revenues from continuing operations for Q4 2024 were $243.7 million, a 10% increase compared to Q4 2023[1] - Net income from continuing operations for Q4 2024 was $38.9 million, or $1.58 per diluted share, up from $32.0 million, or $1.30 per diluted share in Q4 2023[1] - For the full year 2024, total revenues increased to $910.9 million, a 10% rise from $831.8 million in 2023[2] - Adjusted EBITDA for the full year 2024 was $351.7 million, reflecting a $33.4 million increase, or 10%[2] - Total revenues for the twelve months ended December 31, 2024, increased to $910,942,000, up 9.5% from $831,842,000 in 2023[22] - Gross profit for the twelve months ended December 31, 2024, was $435,415,000, representing a 10.6% increase compared to $393,633,000 in 2023[22] - Net income for the twelve months ended December 31, 2024, rose to $231,727,000, a 32.7% increase from $174,621,000 in 2023[22] - Earnings per share from continuing operations for the twelve months ended December 31, 2024, was $9.44, compared to $4.57 in 2023, reflecting a 106.4% increase[22] - Total revenues for Q4 2024 reached $243.746 million, a 9.9% increase from $221.706 million in Q4 2023[30] - Adjusted EBITDA for Q4 2024 was $92.002 million, compared to $87.869 million in Q4 2023, indicating a 4.8% increase[30] - Total gross profit for Q4 2024 was $114.757 million, up from $110.122 million in Q4 2023, representing a growth of 4.8%[30] Cash Flow and Dividends - Cash flows from operating activities for the twelve months ended December 31, 2024, amounted to $374,375,000, significantly up from $95,343,000 in 2023[26] - The Company declared a cash dividend of $0.485 per share for Q1 2025, a 2% increase from the prior year[3] - Cash dividends declared per share increased to $1.90 for the twelve months ended December 31, 2024, compared to $1.86 in 2023[22] - Net cash provided by operating activities for Q4 2024 was $36,779,000, a significant recovery from a cash used of $(23,560,000) in Q4 2023[45] Assets and Liabilities - Total assets as of December 31, 2024, were $2,277,584,000, an increase from $2,217,283,000 in 2023[24] - Total liabilities decreased to $1,154,216,000 as of December 31, 2024, down from $1,283,481,000 in 2023[24] Operational Metrics - Average utilization rate improved to 76.0% in Q4 2024, compared to 79.7% in Q4 2023[30] - Rental revenues increased to $124.220 million in Q4 2024, up from $123.563 million in Q4 2023, reflecting a growth of 0.5%[30] - Average monthly total yield for Q4 2024 was 2.15%, slightly down from 2.19% in Q4 2023[30] - The average monthly total yield for rental operations was 2.34% in 2024, slightly down from 2.43% in 2023[33][36] - Average utilization rates for rental equipment were 77.5% in 2024, compared to 79.7% in 2023, showing a decline of 2.2 percentage points[33][36] Expenses and Costs - Selling and administrative expenses for Q4 2024 totaled $51.669 million, compared to $54.506 million in Q4 2023, a decrease of 5.4%[30] - Interest expense for Q4 2024 was $8.858 million, compared to $12.126 million in Q4 2023, reflecting a reduction of 26.5%[30] - The company incurred interest expenses of $47,241,000 in 2024, compared to $40,560,000 in 2023, marking an increase of about 16.6%[33][36] - The company incurred transaction costs of $2,002,000 in Q4 2024, up from $1,575,000 in Q4 2023[42] Future Outlook - For full-year 2025, the Company expects total revenue between $920 million and $970 million[15] - The Company anticipates Adjusted EBITDA for 2025 to be between $345 million and $360 million[15] - The company plans to continue expanding its rental operations and investing in new rental equipment to support growth[22] Other Notable Items - The company reported a gain on merger termination of $116,841,000, contributing positively to operating activities[26] - The company reported a foreign currency exchange loss of $270,000 in Q4 2024, compared to a gain of $144,000 in Q4 2023[30] - The gain on sale of used rental equipment was $9,900,000 in Q4 2024, compared to $8,678,000 in Q4 2023, showing an increase of 14.1%[45]