McGrath RentCorp reported a consolidated revenue of $910.9 million for the fiscal year ending December 31, 2024, marking an 8% increase from $841.3 million in 2023. The company's net income rose significantly to $231.7 million, or $9.43 per diluted share, compared to $174.6 million, or $7.12 per diluted share, in the previous year. This increase was primarily driven by a $180 million gain from the termination of a merger agreement with WillScot Mobile Mini, offset by $63.2 million in transaction costs associated with that termination. Excluding these one-time items, net income increased by approximately 30% year-over-year.
The company experienced notable changes in its operational segments. The Mobile Modular segment, which focuses on relocatable modular buildings, generated $635.4 million in revenue, a 13% increase from the previous year, largely due to higher rental and sales revenues. In contrast, the Portable Storage segment saw a 7% decline in revenue to $94.5 million, attributed to lower rental and rental-related services revenues. The TRS-RenTelco segment, which rents electronic test equipment, reported a 9% decrease in revenue to $135.2 million, primarily due to lower rental revenues.
In terms of strategic developments, McGrath RentCorp terminated its merger agreement with WillScot Mobile Mini, receiving a net payment of $116.8 million after transaction costs. The company also made several acquisitions in 2023, including Vesta Modular and Brekke Storage, which contributed to its growth in the modular and portable storage markets. As of December 31, 2024, the company had 1,219 employees, with a focus on enhancing employee engagement and development.
Operationally, the company reported a fleet utilization rate of 75.1% for its modular buildings and 59.8% for its portable storage containers as of year-end 2024. The average monthly rental rate for modulars increased by 3%, while the average rental rate for portable storage containers remained stable. The company anticipates continued growth in rental revenues, driven by an expanding base of rental assets and improved gross profits. Looking ahead, McGrath RentCorp remains focused on leveraging its operational efficiencies and strategic acquisitions to enhance its market position and financial performance.
About MCGRATH RENTCORP
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