Financial Data and Key Metrics Changes - Total company revenues increased by 5% to $257 million in Q4 2025, driven by a 6% increase in rental operations and a 5% increase in sales revenues [15] - Adjusted EBITDA rose by 14% to $105 million compared to the previous year [15] - For the full year 2025, net cash provided by operating activities was $256 million, down from $374 million in the prior year due to the absence of a non-recurring $180 million merger termination payment [20] Business Line Data and Key Metrics Changes - **Mobile Modular**: Rental revenues increased by 2% to $175.8 million, with Adjusted EBITDA up 13% to $68.7 million [15][16] - **Portable Storage**: Rental revenues increased by 3% to $17.3 million, while Adjusted EBITDA decreased by 3% to $9.6 million [17] - **TRS-RenTelco**: Rental revenue grew by 13% to $28.7 million, with total revenues up 19% to $40.6 million and Adjusted EBITDA increasing by 21% to $23.1 million [18] Market Data and Key Metrics Changes - The non-residential construction market remains soft, impacting overall demand [11] - The Architectural Billings Index (ABI) indicates continued uncertainty in the market conditions for non-residential construction [11] Company Strategy and Development Direction - The company plans to focus on geographic expansion and modular growth initiatives as key drivers for performance in 2026 [11][13] - The strategy includes investing in existing markets, expanding into new locations, and pursuing tuck-in acquisitions [12][21] - The company aims to maintain a competitive advantage through its fleet size and modification capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and the ability to execute despite a challenging macroeconomic environment [13][24] - The outlook for 2026 includes expected total revenue between $945 million and $995 million, with Adjusted EBITDA between $360 million and $378 million [20][21] Other Important Information - The company announced its 35th consecutive annual dividend increase [5] - Joe Hanna will retire as CEO effective April 3, 2026, with Phil Hawkins succeeding him [3][4] Q&A Session Summary Question: What could drive performance above guidance this year? - Management noted that the second half of the year typically contributes more to financial performance and emphasized the uncertainty in the macro environment [29][30] Question: What is driving the growth in Mobile Modular Plus and Site Related Services? - Management highlighted the profitability captured through these service offerings and the value seen by customers in having a single provider for multiple services [33][34] Question: What drove the acceleration in TRS rental revenue growth? - The growth was attributed to increased demand in aerospace, defense, and semiconductor sectors, as well as robust activity in the communications fleet [35][36] Question: Will there be any changes in strategic initiatives under new leadership? - Management indicated that there would be no near-term changes to the current strategy, which has been collaboratively developed [41][42] Question: What are the expectations for M&A activity in 2026? - The company continues to have an active M&A pipeline, focusing on geographic expansion opportunities [61][79]

Financial Data and Key Metrics Changes - Total company revenues increased by 5% to $257 million in Q4 2025, with rental operations revenue rising by 6% and sales revenues increasing by 5% [5][16] - Adjusted EBITDA grew by 14% year-over-year to $105 million [5][16] - For the full year 2025, net cash provided by operating activities was $256 million, down from $374 million in the prior year due to the absence of a non-recurring merger termination payment [20][21] Business Line Data and Key Metrics Changes - **Mobile Modular**: Rental revenues increased by 2% to $175.8 million, with Adjusted EBITDA rising by 13% to $68.7 million [16][17] - **Portable Storage**: Rental revenues grew by 3% to $17.3 million, while Adjusted EBITDA decreased by 3% to $9.6 million [18] - **TRS-RenTelco**: Rental revenue surged by 13% to $28.7 million, with total revenues up 19% to $40.6 million and Adjusted EBITDA increasing by 21% to $23.1 million [19][20] Market Data and Key Metrics Changes - The non-residential construction market remains soft, impacting overall demand [11] - The Architectural Billings Index (ABI) indicates continued uncertainty in the modular business environment [11] Company Strategy and Development Direction - The company plans to focus on geographic expansion and modular growth initiatives as key drivers for 2026 [11][12] - The strategy includes investing in existing markets, expanding into new locations, and pursuing tuck-in acquisitions [12][13] - The company aims to maintain a competitive advantage through fleet size and modification capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and leadership team, emphasizing a commitment to long-term shareholder value [14][25] - The outlook for 2026 includes expected total revenue between $945 million and $995 million, with Adjusted EBITDA between $360 million and $378 million [22][24] Other Important Information - The company announced its 35th consecutive annual dividend increase [5] - The effective tax rate for the fourth quarter was 26.4%, compared to 25% a year earlier [20] Q&A Session Summary Question: What could drive results above the guidance range? - Management noted that the second half of the year typically contributes more to financial performance and emphasized the uncertainty in the macro environment [32][33] Question: What drove the growth in Mobile Modular Plus and Site Related Services? - Management highlighted the profitability captured through these service offerings and the value seen by customers in having a single provider for multiple services [36][37] Question: What factors contributed to the acceleration in TRS rental revenue growth? - The growth was driven by demand in aerospace, defense, and semiconductor sectors, as well as robust activity in the communications fleet [38][39] Question: Will there be any changes in strategic initiatives under new leadership? - Management confirmed that there would be no near-term changes to the current strategy, which has been collaboratively developed [44][45] Question: What is the outlook for geographic expansion and acquisitions? - The company continues to have an active M&A pipeline, focusing on geographic areas for potential acquisitions, but timing and valuations remain uncertain [64][84]

Financial Data and Key Metrics Changes - Total company revenues increased by 5% to $257 million in Q4 2025, with rental operations revenue rising by 6% and sales revenues increasing by 5% [6][17] - Adjusted EBITDA rose by 14% to $105 million compared to the previous year [6][17] - For the full year 2025, net cash provided by operating activities was $256 million, down from $374 million in the prior year due to the absence of a non-recurring merger termination payment [22] Business Line Data and Key Metrics Changes - **Mobile Modular**: Rental revenues increased by 2% to $175.8 million, with Adjusted EBITDA up by 13% to $68.7 million. Average fleet utilization was 71.3%, down from 76% a year earlier [7][18] - **Portable Storage**: Rental revenues increased by 3% to $17.3 million, with Adjusted EBITDA at $9.6 million, a decrease of 3% compared to the prior year [19] - **TRS-RenTelco**: Rental revenue grew by 13% to $28.7 million, with total revenues up 19% to $40.6 million. Adjusted EBITDA increased by 21% to $23.1 million, with average utilization rising to 64.5% from 59.1% a year ago [9][20] Market Data and Key Metrics Changes - The non-residential construction market remains soft, impacting overall demand. However, there is ongoing strength in sectors such as aerospace, defense, and data centers, which are contributing positively to TRS [12][40] - The education market is expected to remain stable, with healthy backlogs [12] Company Strategy and Development Direction - The company plans to focus on geographic expansion and modular growth initiatives as key drivers for performance in 2026 [12][14] - There is an emphasis on improving sales effectiveness and expanding into new locations aligned with demand [13][14] - The company remains committed to disciplined capital allocation and strategic focus to build long-term shareholder value [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and the ability to execute despite a challenging operating environment [14][26] - The outlook for 2026 includes expected total revenue between $945 million and $995 million, with Adjusted EBITDA projected between $360 million and $378 million [22][23] Other Important Information - The company announced its 35th consecutive annual dividend increase [6] - The CEO transition is expected to be smooth, with Phil Hawkins succeeding Joe Hanna as CEO [5][11] Q&A Session Summary Question: What could drive performance above guidance this year? - Management noted that the second half of the year typically contributes more to financial performance and emphasized the uncertainty in the macro environment [32][34] Question: What drove the growth in Mobile Modular Plus and Site Related Services? - Management highlighted the value customers see in having a single provider for services, leading to double-digit growth in these areas [38] Question: What factors contributed to the acceleration in TRS rental revenue growth? - Growth was driven by demand in aerospace, defense, and data centers, with minimal seasonal slowdown observed [40][42] Question: Will there be any changes in strategic initiatives under new leadership? - Management indicated that there would be no near-term changes to the current strategy, which has been collaboratively developed [47] Question: What are the expectations for capital expenditures in 2026? - The primary driver for increased CapEx is geographic expansion, with a focus on both new markets and maintaining existing fleet [62] Question: How will revenue and EBITDA growth progress throughout 2026? - Management expects the first half of 2026 to be comparable to the previous year, with potential growth in the second half as new capital is deployed [64][88]

QUARTERLY INVESTOR PRESENTATION FOURTH QUARTER 2025 February 19, 2026 SAFE HARBOR Forward Looking Statements This presentation contains forward-looking statements (including the guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimates," "expects," "anticipates," "believes," "forecasts," "plans," "intends," "may," "will," "should," "shall," "outlook," "guidance," ...

Summary of McGrath RentCorp FY Conference Call Company Overview - **Company**: McGrath RentCorp (NasdaqGS:MGRC) - **Industry**: B2B rental services, focusing on modular, portable storage, and electronic test equipment in the U.S. [2][3] Key Points Executive Transition - An executive transition is occurring with Phil Hawkins taking over as CEO from Joe Hanna, who has been with the company since 2003 and served as CEO since 2017 [2][46][49] - Joe Hanna emphasized the company's strong strategy and deep leadership bench, expressing confidence in the transition [47][56] Business Strategy and Focus - McGrath's business is primarily centered around a modular solution strategy, with a focus on modular buildings (75-80% of business) and a high-performing electronics business [6][7] - The company has shifted focus to a standalone strategy after terminating an acquisition agreement with WillScot [5] Market Position and Competitive Differentiators - McGrath differentiates itself through exceptional customer service, the ability to handle large and complex projects, and a knowledgeable sales force familiar with regulations [9][10][11] - Approximately one-third of the business is education-focused, with the remaining two-thirds in commercial sectors [12] Market Trends and Demand - The company is experiencing strength in large projects, particularly in education and data centers, while smaller, rate-sensitive projects are weaker [15][21] - The Architectural Billing Index (ABI) has shown weakness, but there is a noted strength in large projects despite challenges in smaller construction sites [17][20] Financial Performance and Outlook - The company reported a 6% increase in revenue per unit on rent in Q3 compared to the previous year, indicating positive growth despite a challenging demand environment [28] - Portable storage business saw a slight growth of 1% in Q3, marking the first growth in nearly two years [19] - The company raised its guidance for 2025, citing stability in portable storage and positive momentum in the electronics business [24] Capital Allocation and Financial Health - McGrath received a break fee of approximately $85 million from the terminated acquisition, enhancing its financial position and providing flexibility for capital allocation [43][44] - The company maintains a conservative financial footing with low leverage, allowing for organic investments and potential tuck-in acquisitions [45] Future Strategy - McGrath aims to continue growing organically while also pursuing strategic acquisitions to enhance its market position [35][36] - The recent acquisition of Vesta for over $400 million and the divestiture of Adler Tank were strategic moves to focus on modular solutions [36][38] Cultural and Operational Consistency - The leadership team emphasizes a strong company culture and consistent operational practices, which are expected to continue under the new CEO [55][56] - The company has a collaborative leadership approach, ensuring continuity in strategy and execution [55] Additional Insights - The company has successfully navigated the challenges posed by the pandemic and inflation, maintaining a focus on customer service and operational excellence [41][42] - The transition in leadership is seen as a natural progression, with Phil Hawkins well-prepared to lead the company forward [49][51]

Core Insights - StorageVault Canada Inc. reported strong financial results for Q3 2025, with a 5.4% increase in same-store revenue and a 5.2% increase in net operating income (NOI), leading to a 7.5% rise in adjusted funds from operations (AFFO) per common share [1][2][3] Financial Performance - Q3 2025 revenue increased to $88.5 million from $79.0 million in Q3 2024, while NOI grew to $60.2 million from $54.1 million [2][6] - The net income for Q3 2025 was $20.5 million, a significant recovery from a net loss of $7.0 million in Q3 2024, influenced by a $15.7 million realized gain on real estate and $29.5 million in depreciation and amortization [2][6] - Funds from operations (FFO) for Q3 2025 were $24.7 million, up 6.7% from $23.1 million in Q3 2024, while AFFO increased by 5.2% to $26.6 million [3][4] Operational Highlights - Revenue and NOI from existing self-storage facilities increased by 5.4% and 5.2% year-over-year, respectively [3][7] - The company expects to add an incremental annual NOI of $7.9 million over the next three years as acquisitions and expansions stabilize [4][21] Dividend Announcement - StorageVault announced a 0.5% increase in its Q4 2025 dividend to $0.002991 per common share [9] Strategic Focus - The company aims to own and operate storage facilities in top Canadian markets, focusing on acquisitions, organic growth, and expansion of existing stores and services [10][19]

Financial Data and Key Metrics Changes - Total revenues increased by 11% to $235.6 million and adjusted EBITDA increased by 3% to $86.5 million [17] - Adjusted EBITDA for Mobile Modular decreased by 1% to $53.1 million despite revenue growth [17] - Average fleet utilization decreased to 73.7% from 78.4% a year earlier [18] - Interest expense decreased by $5.2 million to $7.8 million due to lower average interest rates and debt levels [22] Business Line Data and Key Metrics Changes - Mobile Modular total revenues increased by 8% to $156 million, with rental revenues up by 5% and sales revenues up by 13% [17] - Portable Storage rental revenues decreased by 5% year over year but improved by 5% sequentially from the first quarter [8][20] - TRS RenTelco rental revenues grew by 7%, with average utilization improving to 64.8% from 56.5% a year ago [21] Market Data and Key Metrics Changes - The Architecture Billings Index (ABI) showed ongoing softness, but quote activity remained healthy [6] - Construction backlogs grew slightly in June, indicating improved activity levels [12] Company Strategy and Development Direction - The company is focused on expanding its modular solutions capabilities and geographic presence [13] - Two tuck-in acquisitions were completed to support modular growth strategy [11] - The company aims to enhance capabilities for larger and more complex modular building rentals and sales [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic conditions improving in the next two quarters [15] - The uncertain market conditions earlier in the year have not deteriorated significantly, with slight improvements observed [12] - The company upwardly adjusted its full-year financial outlook, expecting total revenue between $925 million and $960 million [23] Other Important Information - The company is investing in technology upgrades and strategic hiring to support long-term growth [72] - The benefit to free cash flow from new federal tax legislation is estimated to be between $10 million and $15 million [42] Q&A Session Summary Question: Can you provide more detail on the balance of third and fourth quarter EBITDA? - The company expects adjusted EBITDA to be broadly similar in Q3 and Q4, with a more balanced contribution of sales gross profit [28] Question: What is the visibility on the Mobile Modular segment? - Visibility is somewhat fluid due to current demand environment, with ongoing assessments of the pipeline [29] Question: How is the education business expected to perform this year? - The education business is expected to finish the year strong, with good order volume [31] Question: What factors could affect the current guidance range? - Sales activity can significantly impact the guidance, with a cautious approach taken for the second half of the year [35] Question: What is the impact of new federal tax legislation on free cash flow? - The estimated benefit to free cash flow is between $10 million and $15 million, though not a massive impact [42] Question: Can you provide an update on the pricing gap between current spot rates and existing rates? - The gap remains around 39% lower for existing rates compared to new shipments, with spot rates generally stable [47] Question: What is the outlook for portable storage demand? - There are encouraging signs of improvement, with increased quote volumes and unit shipments [48] Question: Can you discuss the geographical focus of new sales hires? - New hires are aimed at increasing geographic coverage and supporting both commercial and education business [52] Question: How is Enviroplex performing? - Enviroplex is performing well, with strong growth and improved margins, contributing positively to the overall performance [61]