McGrath RentCorp (MGRC) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp third quarter 2025 earnings call.

女士們、先生們，感謝你們的耐心等待。歡迎參加 McGrath RentCorp 2025 年第三季財報電話會議。

(Operator Instructions) This conference call is being recorded today, Thursday, October 23, 2025.

（操作員說明）本次電話會議於2025年10月23日星期四進行錄音。

Before we begin, note the matters that the company management will be discussing today that are not statements of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's expectations, strategies, prospects, backlog or targets. These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the company's expectations are disclosed under Risk Factors in the company's Form 10-K and other SEC filings. Forward-looking statements are made only as of the date hereof. Except as otherwise required by law, we assume no obligation to update any forward-looking statements.

在開始之前，請注意，公司管理階層今天將要討論的事項中，非歷史事實的陳述屬於 1995 年《私人證券訴訟改革法案》意義上的前瞻性陳述，包括與公司預期、戰略、前景、積壓訂單或目標相關的陳述。這些前瞻性陳述並非對未來績效的保證，並且涉及重大風險和不確定性，可能導致我們的實際結果與預測結果有重大差異。可能導致實際結果與公司預期存在重大差異的重要因素已在公司 10-K 表格和其他提交給美國證券交易委員會的文件中「風險因素」部分披露。前瞻性陳述僅代表截至本新聞稿發布之日的資訊。除法律另有規定外，我們不承擔更新任何前瞻性陳述的義務。

In addition to the press release issued today, the company also filed with the SEC the earnings release on Form 8-K and its Form 10-Q for the quarter ended September 30, 2025.

除了今天發布的新聞稿外，該公司還向美國證券交易委員會提交了截至 2025 年 9 月 30 日的季度收益報告（8-K 表格）和季度財務報告（10-Q 表格）。

Speaking today will be Joe Hanna, Chief Executive Officer; and Keith Pratt, Chief Financial Officer.

今天發言的有執行長喬·漢納和財務長基斯·普拉特。

I will now turn the call over to Mr. Hanna. Go ahead, sir.

現在我將把電話轉給漢納先生。請便，先生。

Thank you, Dave. Good afternoon, everyone. We appreciate your attendance on McGrath RentCorp's third quarter earnings call for 2025. It's a pleasure to be here today, and we're eager to share further insights into our performance. I'll begin with an overview of our third quarter results before Keith shares and financial details, and then we will open up the call for questions.

謝謝你，戴夫。大家下午好。感謝您出席 McGrath RentCorp 2025 年第三季財報電話會議。今天能來到這裡我們感到非常榮幸，我們也渴望與大家分享更多關於我們表現的見解。在基斯分享財務細節之前，我將首先概述我們第三季的業績，然後我們將開放問答環節。

For the third quarter, total company rental operations revenues rose by 4% with growth from all three of our rental businesses. Project activity remains steady despite ongoing market uncertainties. Mobile Modular rental revenues increased by 2%. The rental revenue growth we experienced in the quarter was primarily due to commercial activity centered around larger infrastructure projects across all our geographies. Smaller projects have been less prevalent, which is consistent with the trend we have experienced year-to-date.

第三季度，公司租賃業務總收入成長了 4%，這得益於我們所有三家租賃業務的成長。儘管市場持續存在不確定性，但專案活動仍保持穩定。行動模組化租賃收入成長了2%。本季租賃收入的成長主要歸功於我們所有地區圍繞大型基礎設施項目開展的商業活動。小型項目較少，這與我們今年迄今為止所經歷的趨勢一致。

We had a busy education season with a good level of new shipment activity. Funding for the education business remains solid as the need for classroom modernization and growth in select areas remains consistent. With higher shipments, volumes for the quarter, we faced higher inventory center costs to prepare equipment for delivery. We used off-rent inventory rather than investing in new product, continuing to manage the fleet with a sharp focus on deploying capital efficiently.

我們度過了一個繁忙的教育季，新出貨量也相當可觀。由於教室現代化和特定地區發展的需求持續存在，教育產業的資金依然充足。由於本季出貨量增加，我們面臨更高的庫存中心成本，需要為交付準備設備。我們利用已退租的庫存，而不是投資新產品，繼續管理車隊，重點是有效率地部署資金。

Despite challenges in the demand environment, our booked orders increased during the third quarter. This was encouraging and positive for our momentum entering the fourth quarter. Our ongoing efforts with Mobile Modular Plus and site-related services continue to go well. Both experienced healthy growth during the quarter. We continue to be pleased with our year-to-date progress.

儘管需求環境面臨挑戰，但我們第三季的訂單量有所成長。這對我們進入第四季度的發展勢頭來說是一個令人鼓舞的積極信號。我們與 Mobile Modular Plus 及現場相關服務的持續合作進展順利。本季兩家公司均實現了健康成長。我們對今年迄今的進展感到滿意。

At Portable Storage, rental revenues increased by 1% year-over-year and by 2% sequentially from the prior quarter. Shipments grew and pricing remained stable. Opportunities in energy, data centers and seasonal retail offset the flat construction market. Overall, we are encouraged by these positive signs that suggest the market may be stabilizing after a challenging demand contraction in 2024.

便攜式儲存業務的租賃收入較去年同期成長 1%，較上季成長 2%。出貨量成長，價格維持穩定。能源、資料中心和季節性零售業的機會抵消了建築市場的低迷。總體而言，這些積極跡象令人鼓舞，表明市場在經歷了 2024 年充滿挑戰的需求萎縮之後可能正在趨於穩定。

TRS-RenTelco rental revenue grew by a strong 9%. Both our general purpose and communications rental revenues saw strong growth maintaining positive momentum from the first half of the year. Utilization at a healthy 65% improved year-over-year and remained steady sequentially versus the second quarter. Rental demand pipelines remain solid as we enter the fourth quarter, indicating that the business is well positioned to continue its growth trajectory.

TRS-RenTelco 的租賃收入實現了強勁的 9% 成長。我們的通用租賃和通訊租賃收入均實現了強勁增長，延續了上半年的良好勢頭。利用率達到健康的 65%，年成長，與第二季相比保持穩定。進入第四季度，租賃需求依然強勁，顯示該業務已做好充分準備，並持續保持成長勢頭。

Turning my comments to the whole company. We do not believe McGrath is currently facing any immediate headwinds due to the ongoing federal government shutdown and any potential impacts from a long shutdown are unclear at this time. With regard to the dynamic tariff environment, the impact of tariffs has been managed appropriately by our teams and has had minimal impact on our results.

我要對全公司發表意見。我們認為，由於聯邦政府持續停擺，麥格拉斯目前不會面臨任何直接的不利影響，長期停擺可能造成的任何潛在影響目前尚不清楚。鑑於關稅環境的動態變化，我們的團隊已妥善應對關稅的影響，關稅對我們的業績影響甚微。

Looking ahead to the rest of the year, uncertain market conditions persist. Nonresidential construction indicators such as the Architectural Billing Index, or ABI remains soft. We remain focused on our strategic growth priorities dedicated to expanding our modular and portable storage businesses.

展望今年剩餘時間，市場狀況仍不明朗。非住宅建築指標，例如建築計費指數（ABI），仍然疲軟。我們將繼續專注於策略成長重點，致力於拓展模組化和便攜式儲存業務。

Over the course of this year, we have taken steps to enter new regions, grow our Mobile Modular Plus and site-related services initiatives and increase our coverage through tuck-in acquisitions. All of these items support our efforts to become a true national modular solutions provider capable of serving our customers with storage units, single-wide units, large multi-floor and multi-story facilities and services to meet all their space needs.

今年以來，我們採取了多項措施，進入新的地區，發展我們的行動模組化增強型產品和現場相關服務計劃，並透過收購擴大了我們的覆蓋範圍。所有這些項目都支持我們努力成為真正的全國模組化解決方案提供商，能夠為客戶提供儲存單元、單體單元、大型多層設施和服務，以滿足他們所有的空間需求。

I want to thank all our team members for your third quarter accomplishments and steadfast commitment to delivering the highest quality service to our customers. Our culture at McGrath is a driving force behind our growth as we introduce more customers to the exceptional experience we offer. I am pleased with our progress so far in 2025, and we remain dedicated to providing value to our customers and shareholders as we finish the year.

我要感謝我們所有團隊成員在第三季所取得的成就，以及你們始終如一地致力於為客戶提供最高品質的服務。McGrath 的企業文化是我們發展的驅動力，因為我們不斷為更多客戶提供卓越的體驗。我對我們在 2025 年迄今為止的進展感到滿意，我們將繼續致力於在年底前為我們的客戶和股東創造價值。

With that, I will turn the call over to Keith, who will take you through the financial details of our quarter and our updated outlook for the full year.

接下來，我將把電話交給基思，他將為大家詳細介紹我們本季的財務狀況以及我們更新後的全年展望。

Thank you, Joe, and good afternoon, everyone. Looking at the overall corporate results for the third quarter. Total revenues decreased 4% to $256 million, with rental operations increasing 4% and sales revenues decreasing 18% during the quarter. Adjusted EBITDA decreased 7% to $96.5 million. Excluding prior year items related to the terminated WillScot merger process, net income for the third quarter decreased $3.6 million or 8% to $42.3 million and diluted earnings per share decreased $0.15 to $1.72.

謝謝你，喬，大家下午好。綜觀第三季公司整體業績。本季總營收下降 4% 至 2.56 億美元，其中租賃業務成長 4%，銷售收入下降 18%。調整後 EBITDA 下降 7% 至 9,650 萬美元。剔除與終止的 WillScot 合併流程相關的上年項目，第三季淨收入減少 360 萬美元，降幅 8%，至 4,230 萬美元；稀釋後每股收益減少 0.15 美元，至 1.72 美元。

Reviewing Mobile Modular's operating performance as compared to the third quarter of 2024, Mobile Modular total revenues decreased 5% to $181.5 million. The business saw 2% higher rental revenues and 5% higher rental-related services revenues which were offset by 21% lower sales revenues. The sales revenues decrease was primarily due to lower new equipment sales as we discussed in July, while 2024 sales were more concentrated in the third quarter. This year, we expect a more balanced contribution from sales and related gross profit across the third and fourth quarters.

與 2024 年第三季相比，Mobile Modular 的營運業績顯示，其總收入下降了 5%，至 1.815 億美元。該業務的租賃收入成長了 2%，租賃相關服務收入成長了 5%，但銷售收入下降了 21%，抵消了這些成長。正如我們在 7 月討論的那樣，銷售收入下降主要是由於新設備銷售額下降，而 2024 年的銷售額則更多地集中在第三季度。今年，我們預計第三季和第四季的銷售額及相關毛利將更均衡地貢獻收入。

This quarter had higher inventory center expenses to prepare available fleet for new shipment demand, which allowed us to minimize rental equipment capital spending. We also operated with higher selling and administrative expenses to support broader sales coverage. As a result, adjusted EBITDA decreased 10% to $64.6 million. With softer demand conditions, we saw a lower average fleet utilization or 72.6% compared to 77.1% a year earlier.

本季庫存中心支出較高，以便為新的出貨需求做好準備，這使得我們能夠最大限度地減少租賃設備的資本支出。為了支援更廣泛的銷售覆蓋範圍，我們也提高了銷售和管理費用。因此，調整後的 EBITDA 下降了 10%，至 6,460 萬美元。由於需求疲軟，我們看到平均車隊利用率下降至 72.6%，而一年前為 77.1%。

Despite the softer market demand, third quarter monthly revenue per unit on rent increased 6% year-over-year to $865. For new shipments over the last 12 months, the average monthly revenue per unit increased 3% to $1,192. As Joe highlighted, we continue to make progress with our modular services offerings. Global Modular Plus revenues increased to $9.7 million from $7.9 million a year earlier, and site-related services increased to $15.6 million up from $12.7 million. Overall, Mobile Modular had a solid quarter as we continue to make progress with our modular business growth strategy despite some challenging demand conditions.

儘管市場需求疲軟，但第三季每單元月租金收入年增 6%，達到 865 美元。在過去 12 個月的新出貨量中，每單位平均月收入成長了 3%，達到 1,192 美元。正如喬所強調的，我們在模組化服務方面不斷取得進展。Global Modular Plus 的收入從去年同期的 790 萬美元增至 970 萬美元，而場地相關服務的收入從 1,270 萬美元增至 1,560 萬美元。總體而言，儘管面臨一些挑戰性的需求環境，但隨著我們在模組化業務成長策略方面繼續取得進展，行動模組化業務在本季度表現穩健。

Turning to the review of portable storage. Rental revenues for the quarter increased 1% to $17.3 million, which is the first year-over-year growth since the first quarter of last year. We have begun to feel encouraged that market conditions for Portable Storage are showing signs of stabilization despite soft commercial construction project activity. Average utilization for the quarter was 61.4% compared to 62.8% a year ago. Adjusted EBITDA was $9.2 million, a decrease of 14% compared to the prior year.

接下來我們來評測一下便攜式儲存設備。本季租賃收入成長 1% 至 1,730 萬美元，這是自去年第一季以來首次實現同比增長。儘管商業建設項目活動疲軟，但我們開始感到鼓舞的是，便攜式儲存的市場狀況已出現穩定跡象。本季平均利用率為 61.4%，而去年同期為 62.8%。調整後 EBITDA 為 920 萬美元，較上年下降 14%。

Turning now to the review of TRS-RenTelco. TRS had a strong quarter with total revenues up 6% to $36.9 million, driven by higher rental revenues. Rental revenues increased 9% as the industry continued to experience improved demand across markets. Average utilization for the quarter was 64.8%, up from 57.3% a year ago. Rental margins improved 43% from 37% a year ago. Adjusted EBITDA was $20.2 million, an increase of 7% compared to last year.

現在來評測TRS-RenTelco。TRS 本季業績強勁，總營收成長 6% 至 3,690 萬美元，主要得益於租賃收入的成長。隨著各市場需求持續改善，租賃收入成長了 9%。本季平均利用率為 64.8%，高於去年同期的 57.3%。租金利潤率較一年前的 37% 提高了 43%。調整後 EBITDA 為 2,020 萬美元，比去年增長 7%。

The remainder of my comments will be on a total company basis. Third quarter selling and administrative expenses increased $3.2 million to $52.5 million as we operated with broader sales coverage to support long-term business growth and invested in information technology projects. Interest expense was $8.2 million a decrease of $4.5 million as a result of lower average interest rates and lower average debt levels during the quarter. The third quarter provision for income taxes based on an effective tax rate of 27.7% compared to 26.4% a year earlier.

我接下來的評論將以公司整體情況為出發點。第三季銷售和管理費用增加了 320 萬美元，達到 5,250 萬美元，因為我們擴大了銷售覆蓋範圍以支持長期業務成長，並投資於資訊科技專案。由於本季平均利率和平均債務水準下降，利息支出為 820 萬美元，減少了 450 萬美元。第三季所得稅準備金以實際稅率 27.7% 計算，而去年同期為 26.4%。

Turning to our year-to-date cash flow highlights. Net cash provided by operating activities was $175 million. Rental equipment purchases were $92 million, down from $167 million last year. Consistent with lower fleet utilization and our plans to use available fleet to satisfy customer orders. At quarter end, we had net borrowings of $552 million and the ratio of funded debt to the last 12 months actual adjusted EBITDA was 1.58:1.

接下來看一下我們今年迄今為止的現金流亮點。經營活動產生的淨現金流量為 1.75 億美元。租賃設備採購額為 9,200 萬美元，低於去年的 1.67 億美元。這與降低車隊利用率以及我們利用現有車隊滿足客戶訂單的計劃相一致。截至季末，我們的淨借款為 5.52 億美元，有息負債與過去 12 個月實際調整後 EBITDA 的比率為 1.58:1。

Wrapping up the financial review. While there is still uncertainty in the demand environment, we are pleased with our year-to-date results, and we have seen some encouraging positive trends as we enter the fourth quarter. As a result, we have upwardly revised our full year financial outlook, and we currently expect total revenue between $935 million and $955 million, adjusted EBITDA between $350 million and $357 million and gross rental equipment capital expenditures between $120 million and $125 million. We are proud of McGrath's third quarter performance, and we are fully focused on solid execution for the remainder of the year.

財務審查結束。儘管需求環境仍存在不確定性，但我們對今年迄今為止的業績感到滿意，並且隨著第四季度的到來，我們看到了一些令人鼓舞的積極趨勢。因此，我們上調了全年財務預期，目前預計總收入在 9.35 億美元至 9.55 億美元之間，調整後 EBITDA 在 3.5 億美元至 3.57 億美元之間，租賃設備資本支出總額在 1.2 億美元至 1.25 億美元之間。我們為麥格拉斯第三季的表現感到自豪，我們將全力以赴，確保今年剩餘時間各項工作都能出色完成。

That concludes our prepared remarks. Dave, you may open the lines for questions.

我們的發言稿到此結束。戴夫，你可以開放提問通道了。

(Operator Instructions) Scott Schneeberger, Oppenheimer.

（操作員說明）Scott Schneeberger，Oppenheimer。

I guess, guys, could you address -- you foreshadowed it last quarter the lumpiness of the sales activity, could you speak a little bit about what the run rate in the business is? Keith, you did a good job outlining that it was big in the third quarter last year. It's more smooth across the year this year. But it looks like it will, over the course of '25 grow over '24 -- how -- is that right? And how should we think about it going forward outside of the lumpiness on an annual basis?

我想，各位，你們能否談談──你們上個季度已經預告了銷售活動的波動性，能否稍微談談公司目前的營運速度？基思，你很好地概述了去年第三季的情況非常嚴重。今年全年運作更加平穩。但看起來，在 2025 年，它的數量將比 2024 年成長——怎麼成長？是這樣嗎？那麼，拋開每年的波動性，我們該如何看待這個問題呢？

Yeah, Scott, I can answer that. You're right, we did have a big sales quarter in Q3 of last year, and we did telegraph that it would be more balanced this year. So things are turning out the way that we thought they would. Our sales backlog is strong. We had a number of projects in this particular quarter that didn't close by the end of the quarter that will move into the fourth quarter. We did not lose our -- none of those projects were canceled. So overall, we're very positive on our sales outlook for the year. And as you can see from our guidance adjustment, we think that the business is going to perform well, and sales is a big part of that. So we're confident that we'll be able to hit those numbers.

是的，斯科特，我可以回答這個問題。你說得對，我們去年第三季的銷售額確實很高，我們也確實預告今年的銷售額會更加平衡。事情的發展果然和我們預想的一樣。我們的銷售訂單儲備充足。本季我們有一些項目未能在本季末完成，這些項目將延至第四季進行。我們沒有損失——這些項目一個也沒有取消。總的來說，我們對今年的銷售前景非常樂觀。從我們的業績指引調整中可以看出，我們認為公司業務將會表現良好，而銷售額是其中很重要的一環。所以我們有信心能夠達到這些目標。

And is this a business on an upward trajectory, would you say? I'm not asking for '26 guidance, but -- this year, I believe it's going to be probably better than last year. Should we continue to anticipate that kind of trend? Or is it safer just to think about it as a flattish business and take it as it comes?

那您認為這家公司正處於上升期嗎？我並不是尋求 2026 年的預測，但——我相信今年的情況可能會比去年好。我們是否應該繼續預期這種趨勢？或者，更穩健的做法是把它看作一個相對平穩的生意，順其自然？

No. We anticipate that, that's going to continue to grow. It's an important part of the market. We're well positioned with resources out in the field to take advantage of these projects. And keep in mind that when we go to a customer, they may have a rental need in one year that very well could turn into a sales need in the following year. And so we want to be positioned to be able to take advantage of that customer need, no matter what they need. And so our folks are out there looking for those opportunities, and we feel it's an important part of the business, and it's going to grow.

不。我們預計這種情況會繼續增長。它是市場的重要組成部分。我們在實地擁有充足的資源，能夠充分利用這些項目。請記住，當我們拜訪客戶時，他們可能在某一年有租賃需求，而這種需求很可能會在下一年轉變為購買需求。因此，我們希望能夠隨時滿足客戶的需求，無論他們需要什麼。因此，我們的員工都在積極尋找這些機會，我們認為這是業務的重要組成部分，而且它將不斷成長。

Sounds good, Joe. The -- keeping it on modular. The -- can we speak to -- I've heard you loud and clear and then it echoes what another larger rental company said earlier today that there really is strong demand at the upper end of the market for larger projects. Could you speak to the education sector? And how is funding there? How do you see that as we're looking out to the next year?

聽起來不錯，喬。 ——保持模組化設計。——我們可以和——我聽得很清楚，這與另一家規模更大的租賃公司今天早些時候的說法相呼應，即高端市場對大型項目的需求確實很強勁。您能否談談教育界的狀況？那裡的資金情況如何？展望明年，您如何看待這個問題？

Sure. We had a decent Q3 in education. We shipped more than we did last year. And we also got a number of returns this particular year that is part of the normal cadence, but muted our results there a little bit. Now having said that, the thing that makes me sleep well at night, and I've been doing this for a long time. What we realize is that each year with education is always a little bit different.

當然。第三季教育方面表現不錯。我們的出貨量比去年增加了。今年我們也收到了一些正常週期內的回報，但這在某種程度上影響了我們的表現。話雖如此，讓我晚上睡得安穩的，而且我已經做了很久了。我們意識到，教育的每一年都會略有不同。

Sometimes districts place orders earlier in the year. Sometimes they place orders later in the year. If there's some kind of economic uncertainty, which there was with the administration and the Department of Education and all the things that were going on there. It just makes districts a little bit nervous. Are we going to have the money for the programs? Programs equals teachers, equals classrooms.

有時，各學區會在年初就下單。有時他們會在一年中的晚些時候下訂單。如果存在某種經濟上的不確定性，就像當時政府、教育部以及所有相關部門所面臨的情況一樣。這會讓各區有點緊張。我們是否有足夠的資金來進行這些計畫？課程等於教師，課程等於教室。

And so in this particular year, orders were placed a little bit later in the season, but we're getting orders all the way into Q4 here and we're getting orders for next year. But what really is, I think, makes me sleep well at night is the fact that the funding is very, very good. California passed a $10 billion facility bond. Texas passed another $8 billion in facilities bond. It was later in the year. So we won't see that until 2026.

因此，今年的訂單下得稍微晚了一些，但我們一直到第四季都還在接到訂單，而且我們還接到了明年的訂單。但真正讓我晚上睡得安穩的，我認為是資金非常充足。加州通過了一項價值100億美元的融資債券。德州再次通過了80億美元的設施建設債券。那是在當年晚些時候。所以，我們最早也要到2026年才能看到這種情況。

And then there's literally billions of dollars that have been passed at a local level that are waiting to be dispersed and used on projects. So I feel very, very good about the status and the solid nature of our education business and think that it's going to be a tailwind for us in quarters to come.

此外，還有數十億美元的資金已經在地方層級獲得通過，等待分配並用於各種項目。因此，我對我們教育業務的現狀和穩健性感到非常非常滿意，並認為這將在未來幾季成為我們的順風。

Good, Joe. Thanks for that clarity. Across both modular and portable storage, obviously, the lower end of the market remains challenged. No big surprise there. Could you speak to the rate environment, the spot rate environment across both, please?

好的，喬。謝謝你的解釋。無論是模組化存儲還是便攜式存儲，低端市場顯然仍然面臨挑戰。這沒什麼好奇怪的。請您談談目前的匯率環境，特別是兩地的即期匯率環境？

Sure. I would say for both businesses, our rates are holding in there pretty well. And you can see that we have this -- we're still working on this differential between our fleet average pricing and what units are going out on new contracts now. And so we do continue to have that tailwind, and that's been a positive and will continue to be a positive for a while as the fleet churns.

當然。我認為就我們兩家企業而言，我們的利率都保持得相當不錯。您可以看到，我們目前仍在努力解決車隊平均價格與現在新合約車輛價格之間的差異。因此，我們繼續擁有這種順風，這一直是一個積極因素，而且隨著船隊的更迭，這種積極因素還會持續一段時間。

Over in portable storage, rates are steady. And we've been really working hard to not have to lower our unit rents. We have had to give up a little bit on some of the transportation costs to stay competitive, but we'd rather do that than give up on the rental rate. And so contrary to what's happened in the industry in years past, this is a good sign, and I think we're on pretty solid ground.

便攜式儲存設備的價格保持穩定。我們一直在努力避免降低房屋租金。為了保持競爭力，我們不得不降低一些運輸成本，但我們寧願這樣做，而不是降低租金。因此，與過去幾年行業內發生的情況相反，這是一個好兆頭，我認為我們目前處境相當穩固。

One more in storage and then just a couple of others, and I'll pass it on. I found it interesting. You mentioned, I think it was energy data centers and then seasonal retail and storage. That's not an area where you've typically competed, but we've heard recently from a competitor of yours that maybe some of the large players in the industry are changing their strategies with how they did business. Is this an area that you're going to move -- is this a onetime thing? Are you moving to this space more so? If you can just elaborate on specifically the seasonal retail.

倉庫裡還有一件，再過幾件我就轉手了。我覺得很有趣。你剛才提到了，我想應該是能源資料中心，然後是季節性零售和倉儲。這並非您通常涉足的領域，但我們最近從您的一位競爭對手那裡聽說，業內一些大型企業可能正在改變他們的經營策略。這是你打算搬到的地方嗎？還是只是一次性的？你更傾向於搬到這裡來嗎？如果您能具體詳細說明季節性零售情況就太好了。

This is not a big part of our portable storage business. I don't anticipate that it is going to be a big part of our business, but we're happy to pick up orders, and we were well positioned with some of the large retailers to get orders if they're available, and we have people out there that look for them, but it's not a strategic initiative in the business for us to really try to grow that because just for the reason, it is seasonal. Those units go out, they come back. We much rather have a much longer term with other types of customers. But any seasonal business we can pick up, we're happy to do it, and we did some this year.

這並非我們便攜式儲存業務的主要組成部分。我預計它不會成為我們業務的重要組成部分，但我們樂於接受訂單，而且我們與一些大型零售商保持著良好的合作關係，以便在有訂單時能夠拿到訂單，我們也有專門的人在尋找這些訂單，但這並不是我們真正想要發展這項業務的戰略舉措，因為原因很簡單，它是季節性的。這些設備出動後，又會返回。我們更願意與其他類型的客戶建立更長期的合作關係。但是，任何季節性業務我們都樂意承接，今年我們也做了一些。

Okay. And then over in TRS, how is your visibility in the next year? 2025 has been a pretty good year for you in that business. How do you feel about heading into next year? Maybe with some discussion across the end markets?

好的。那麼，TRS方面，你們對明年的發展前景有何看法？2025年對你來說，在這個行業裡算是相當不錯的一年。你對即將到來的明年有什麼感想？或許可以在終端市場之間進行一些討論？

Yeah. A little bit -- it's tough to predict into next year. We're in the process of putting our plan together for next year. So I can't comment too much on that, but the encouraging thing is that our bookings have been strong. Our rental order volume has been strong. We managed the inventory appropriately. And I think even coming into Q4 here, things are looking good for the month of October. And I think that's momentum that will carry us into next year.

是的。有點兒——很難預測明年的情況。我們正在製定明年的計劃。所以對此我無法多做評論，但令人鼓舞的是，我們的預訂情況一直很好。我們的租賃訂單量一直很強勁。我們對庫存進行了妥善管理。我認為即使進入第四季度，10 月的情況看起來也不錯。我認為這種勢頭將帶領我們進入明年。

We're not seeing anything different in the landscape that we're seeing right now that's going to indicate a big change for next year, but I think we've got momentum. But keep in mind, too, that this was a much shorter term rental business. So it is harder to see out over the hood in terms of what is coming down the pipe. But so far, we're encouraged and we'll know more and be able to share more in the Q4 call.

從目前的情況來看，我們還沒有看到任何預示著明年將發生重大變化的跡象，但我認為我們已經取得了進展。但也要記住，這是一種短期租賃業務。因此，就排氣管排出的氣體而言，很難越過引擎蓋看到外面的情況。但就目前而言，我們感到鼓舞，我們將在第四季度電話會議上了解更多資訊並分享更多資訊。

Great. And last for me, you called out technology spend or investments in projects and technology. Could you elaborate on what you're doing? And is that to a sizable magnitude and what type of returns you're seeking in that investment?

偉大的。最後，您提到了技術支出或對專案和技術的投資。可以詳細說明一下你在做什麼嗎？這項投資規模是否相當可觀？您希望從這項投資中獲得什麼樣的回報？

Sure. The bright spot, I'm assuming you're still talking about TRS. The bright spot in that business this year is along the wired communications part of the business and the business that we're getting at data centers. That's been a real strong point for us. And that's very technology oriented. We're well positioned to serve that market. There's a ton of testing that needs to be done when you put in a data center, and we're on it, and that's been good for us this year, and I think it's going to continue.

當然。好消息是，我猜你還是在談論TRS。今年該業務的亮點在於有線通訊業務和資料中心業務。那一直是我們的優勢。而且這非常注重技術。我們已做好充分準備，服務該市場。建立資料中心時需要進行大量的測試，我們正在進行這些測試，這在今年對我們很有利，而且我認為這種情況還會繼續下去。

Love it. That's actually not what I was asking, Joe, but that's a -- what I was pitching for.

愛它。喬，其實我問的並不是這個，但這正是──我所主張的。

I am sorry, what did I miss there, in fact? What do you?

抱歉，我究竟錯過了什麼？你是什​​麼？

I'm glad you added that in there because that was well worth hearing. I was just asking general for the total corporation, it sounded like you've been making some technology investments in McGrath itself. So that's what I was asking. I like your last answer, but if we could touch on that as well, too, please.

很高興你把那段話加進去了，因為那段話很有價值。我只是問整個公司的整體情況，聽起來你們似乎在 McGrath 公司本身進行了一些技術投資。這就是我問的。我喜歡你上次的回答，但如果我們也能再談談那方面的內容就更好了。

Sorry about that, Scott. I completely missed that. I should have asked for clarification. Yes, the technology investments that we're making are normal course. We always need to update our systems, systems come out of support in years. We need to move things to the cloud. There's just all kinds of work that we need to do to keep our systems relevant and keep them customer-friendly and customer-facing. So that's pretty much what I meant by the technology enhancements.

抱歉啊，斯科特。我完全錯過了這一點。我應該請對方解釋清楚的。是的，我們目前的技術投資屬於正常流程。我們需要不斷更新系統，因為系統幾年後就會停止維護。我們需要把一些東西遷移到雲端。為了保持系統的相關性，使其對客戶友好並面向客戶，我們需要做各種各樣的工作。這就是我所說的技術改進的意思。

Got it. I like what I was hearing about the work you're doing in data centers and TRS.

知道了。我聽說了你在資料中心和TRS領域所做的工作，我很感興趣。

Daniel Moore, CJS Securities

Daniel Moore，CJS Securities

Joe and Keith, I'll start with -- you obviously -- you mentioned some encouraging trends. Can you just speak to the cadence of inquiries as well as order rates over say the last one, three, six months, start with Mobile Modular, sequential improvement, more stable? How would you describe it? And then the same question for Portable Storage.

喬和基思，我先從你們兩個說起──你們提到了一些令人鼓舞的趨勢。能否談談過去一、三、六個月的詢問量和訂單量變化？從行動模組化產品開始，逐步改進，更加穩定？你會如何描述它？那麼，便攜式儲存設備也存在同樣的問題。

Sure, yeah, I'll start with Mobile Modular. Our quote volumes have been healthy, and our booked order levels have been healthy, too, and they were healthy for this particular quarter, up double digits. That was fairly consistent with the second quarter and up from the first quarter. And I would say we're seeing a similar trend in Portable Storage. I wouldn't say that the third quarter, we're not seeing any marked increase over the second quarter, but we're seeing a consistent level of inquiries and booked order flow sequentially.

當然，好的，我會先從行動模組化開始。我們的報價量一直都很健康，已預訂訂單量也很健康，而且本季度這兩個數字都實現了兩位數的增長。這與第二季的情況基本一致，並且比第一季有所改善。我認為我們在便攜式儲存領域也看到了類似的趨勢。我不會說第三季沒有比第二季有明顯的成長，但我們看到諮詢量和訂單量與上一季相比保持了穩定的水平。

Really helpful. Something that you've described in detail and laid out again this quarter, the shift from CapEx to OpEx over the last few quarters as you refurbish units rather than purchase new ones, dampens your GAAP margins a little, but not necessarily your cash flow. Is that something you expect to continue into next year? And what would cause you to shift back into a little bit more of a CapEx mode?

真的很有幫助。正如您在本季度詳細描述和再次闡述的那樣，過去幾個季度以來，由於您翻新設備而不是購買新設備，資本支出轉向營運支出，這會稍微降低您的 GAAP 利潤率，但不一定會降低您的現金流。你預計明年還會繼續這樣做嗎？那麼，在什麼情況下你會重新轉向資本支出模式呢？

Yeah, Dan, I can help with that. I think, it all goes to fleet utilization. So if you look at the modular fleet, there are more markets where we have equipment available to meet new orders. If you go back 18 months, two years ago, utilization was higher. It was more common that when a new order came in, we were already highly utilized, and we would look to invest capital to meet the orders. So that's the dynamic at play.

是的，丹，我可以幫忙。我認為，這一切都與車隊利用率有關。因此，從模組化車隊來看，我們有更多市場的設備可以滿足新的訂單需求。如果把時間倒回18個月前，也就是兩年前，當時的使用率更高。更常見的情況是，當新訂單到來時，我們已經處於高度繁忙狀態，我們會尋求投資資金來滿足訂單需求。這就是其中的動態。

So I think to answer your question, look at where utilization is when we're entering next year. And for businesses where it's low, which is currently the case of portable storage and in many of our modular regions, we've got available equipment and that's how we'll meet demand.

所以我認為，要回答你的問題，我們需要看看明年年初的利用率情況。而對於需求量低的企業，例如目前便攜式儲存的需求量以及我們許多模組化區域的市場需求，我們有可用的設備，我們將以此來滿足需求。

So there will be a trade-off there. It may mean those expenses continue to be more elevated. But from a cash flow point of view, it's the right thing to do. So that's how it's looking. I would say at TRS, where we've seen good recovery, particularly over the last three quarters and where utilization in the mid 60s is actually very good utilization for that business. That's an area where already, we're looking at selectively spending the capital and adding to the fleet again, to meet demand and we're very happy to do that.

所以這其中需要權衡取捨。這可能意味著這些費用將繼續居高不下。但從現金流的角度來看，這樣做是對的。情況就是這樣。我認為，TRS 的情況已經有所好轉，尤其是在過去三個季度，其產能利用率在 60% 左右，這對該業務來說實際上是一個非常好的產能利用率。在這個領域，我們已經在考慮有選擇地投入資金，再次擴充船隊以滿足需求，我們非常樂意這樣做。

Really helpful. Clearly, we still have a couple of months to go here, and we'll be looking to guide for a couple of months after that. I just wonder if you could maybe contrast the environment today compared to where we were, say, this time last year and whether or not you expect to get back to a more kind of normalized long-term growth in EBITDA as we look out '26, '27?

真的很有幫助。顯然，我們還有幾個月的時間，之後我們還要繼續指導幾個月。我想請您比較一下目前的情況與去年同期的情況，以及您是否預期在展望 2026 年和 2027 年時，EBITDA 的長期成長能夠恢復到較為正常的水平？

Yes, Dan, I'll throw in a couple of comments. I'm sure Joe can add to it. I'd characterize the environment as still mixed. We've talked already about things like the Architectural Billings Index which has really bounced along below 50 for all this year and some months a little better, some months a little worse, but consistently below 50. That's a headwind for parts of the business. Smaller projects and portable storage have definitely suffered as well due to interest rate being high and really a slow journey of seeing interest rates start to come down. And then at various points in the year, a lot of it is related to just the policy and governmental topics there's that era of uncertainty.

是的，丹，我再補充幾點。我相信喬還能補充一些內容。我認為目前的環境仍然是混合的。我們之前已經討論過建築帳單指數之類的指標，該指數今年以來一直在 50 以下波動，有些月份情況稍好一些，有些月份情況稍差一些，但始終低於 50。這對部分業務來說是一個不利因素。由於利率居高不下，而且利率下降的進程十分緩慢，小型專案和便攜式儲存設備也確實受到了影響。而在一年中的某些時候，很多事情都與政策和政府議題有關，那是一個充滿不確定性的時期。

That probably means some customers have either moved with a little bit more deliberation, a little bit more caution. And we've seen examples of projects just take longer to get executed. So that's really the backdrop of how we've managed through this year. It hasn't been an easy year for us.

這可能意味著一些顧客在做出決定時更加深思熟慮、更加謹慎。我們也看到一些專案需要更長時間才能完成的例子。這就是我們今年應對挑戰的背景。對我們來說，今年並不輕鬆。

If you then look into next year, the question is, how many of those headwinds start to ease. Do we see interest rates come down enough that people start to act more quickly on starting up new projects. And do we see some of the broader macro indicators like ABI start to move into positive territory and indicate that people are planning to execute a larger number of projects going forward.

如果展望明年，問題是，這些不利因素中有多少會開始緩解。我們是否會看到利率下降到一定程度，以至於人們開始更快地啟動新專案？我們是否看到一些更廣泛的宏觀指標，例如ABI，開始進入正值區間，顯示人們計劃在未來執行更多專案？

I think it's too early to tell. I think as we said in our prepared remarks, we've done a pretty good job this year of counterbalancing some of those headwinds with all of our growth initiatives, the services side of modulars getting good revenue per rental unit, which we're continuing to get and grow and in some of the regional expansion where we have been hiring and we're beginning to fund equipment purchases to support growth in some regions, but for us are relatively undeveloped and where we see longer-term opportunity. So those are the things you've got to lay on the scales as you look at the pluses and minuses that will influence next year.

我覺得現在下結論還太早。我認為正如我們在準備好的發言稿中所說，今年我們透過各項成長舉措，很好地抵銷了一些不利因素。模組化房屋的服務方面，每套租賃單位的收入都很不錯，而且我們還在持續成長。在一些區域擴張方面，我們一直在招募員工，並開始為一些地區的設備採購提供資金，以支持這些地區的成長。這些地區對我們來說相對欠發達，我們看到了長期的發展機會。所以，這些都是你在權衡利弊、考慮明年發展時需要考慮的因素。

So I'd like to just click on that just a minute, too, and what Keith said about the regional expansion. I mean, we hired a number of folks this year, and we're putting them into new markets and also markets that are adjacent to operating areas that we are already in. And we definitely are anticipating that to be a nice contributor to next year's results. So we're really trying to add that horsepower in there to be able to continue to grow the business despite what the market is doing.

所以我也想花點時間點擊一下，看看基斯關於區域擴張的發言。我的意思是，我們今年僱用了很多人，我們將他們派往新市場，以及與我們現有營運區域相鄰的市場。我們預計這將對明年的業績做出積極貢獻。因此，我們正在努力增加這方面的動力，以便能夠在市場情況不明朗的情況下繼續發展業務。

That's really helpful. Last one, and I'll jump out. Maybe just talk a little about the two smaller acquisitions you made last quarter. I know it's still early days, but one in Mobile Modular, Portable Storage. How are they progressing? And more importantly, what does the pipeline of opportunities look like over the next few quarters?

這真的很有幫助。最後一個，我就要跳下來了。或許可以簡單談談上個季度你們完成的兩項規模較小的收購。我知道現在還處於早期階段，但行動模組化便攜式儲存領域正在蓬勃發展。他們進展如何？更重要的是，未來幾季的機會儲備情況如何？

Yeah. We -- yeah, those were relatively small acquisitions. We closed them in Q2. And there was one, was a modular business and one was a Portable Storage business located in the Southeast. And so they're integrated, and we're happy to have them on board and they're contributing at this point. And we'll see what the results are as the next quarter or two progress. It is a little bit early to really be able to talk much about how they're performing. But there's no red flags there at this point.

是的。是的，那些都是規模相對較小的收購。我們在第二季完成了這些交易。其中一家是模組化企業，另一家是位於東南部的便攜式儲存企業。因此，他們已經融入團隊，我們很高興他們加入我們，他們目前正在做出貢獻。接下來一兩個季度，我們將看看結果如何。現在談論他們的表現還為時過早。但目前來看，還沒有任何危險訊號。

And then maybe the pipeline comment. I think we can say that we're very active in our normal process. We have work going on in the field. We know markets that we have a high level of interest in. And I think the pipeline is active and encouraging and it's going to be part of our growth strategy.

然後或許還有關於管道的評論。我認為我們可以說，我們在日常工作流程中非常活躍。我們正在現場開展工作。我們清楚自己對哪些市場非常感興趣。我認為該專案進展順利，前景可期，並將成為我們成長策略的一部分。

Marc Riddick with Sidoti.

馬克·里迪克與西多蒂。

So I just wanted to maybe piggyback on the prior question and line of questioning. Maybe give a bit of an update as far as kind of usage prioritization that you're sort of looking into next year and particularly around the acquisition sort of pipeline. Can you maybe talk a little bit about the valuation that you're seeing now, whether that's changed much over maybe over the last 6 months or so? And then I have a follow-up on the personnel side.

所以我想藉用一下之前的問題和想法。或許可以稍微更新一下您明年正在研究的使用優先排序，特別是關於收購方面的計劃。您能否談談您目前看到的估值情況，以及在過去六個月左右的時間裡，估值是否發生了較大變化？然後我還要跟進一下人事方面的狀況。

Okay. Marc, I'll take a crack at that. In terms of usage of cash, first high-level comment I would make is, this has been a very good year from a free cash flow point of view. And if you look at us year-to-date, we've reduced our debt. We actually had slightly lower leverage than when we started the year. We've managed to pay our dividends, and we've completed two small acquisitions. One of the factors that has allowed us to do that in addition to just good operating performance from the business, but it's that lower CapEx that I referenced in the prepared remarks. We spent a lot less on new equipment this year than we did a year ago.

好的。馬克，我來試試。就現金使用而言，我首先要說的是，從自由現金流的角度來看，今年是非常好的一年。從今年迄今為止的情況來看，我們已經減少了債務。實際上，我們的槓桿率比年初時略低。我們已經支付了股息，並且完成了兩項小型收購。除了公司良好的營運績效之外，我們能夠做到這一點的因素之一是較低的資本支出，正如我在準備好的演講稿中提到的那樣。今年我們在新設備上的花費比去年少了很多。

So if we look into next year, and I touched on this earlier, based on fleet utilization, we're probably going to be in a position where we can meet a lot of demand from existing fleet. That's a good thing. That may be a positive, again, from a CapEx point of view. That gives us a lot more flexibility with things like M&A. And that's why the pipeline is active. It's an important part of the strategy.

所以，如果我們展望明年，正如我之前提到的，根據車隊利用率，我們很可能能夠利用現有車隊來滿足許多需求。這是件好事。從資本支出角度來看，這可能又是另一個好消息。這讓我們在併購等方面擁有更大的彈性。這就是管道運行的原因。這是戰略的重要組成部分。

Briefly on valuations, it's very situationally specific what you're looking at, what there is on offer from a business that's for sale. We try to be very measured in how we look at things, fleet quality matters to us a lot and the ability to generate future cash from any business that we acquire. But there are opportunities out there. We'll always pay a fair price for a good quality business. But we'll also know what our walkaway is where it doesn't make sense for us and we'll simply approach the market from other angles.

簡而言之，估值很大程度上取決於具體情況，取決於你所關注的，以及待售企業所提供的價值。我們看待事物時力求非常謹慎，車隊品質對我們至關重要，我們也很重視從我們收購的任何企業中創造未來現金流的能力。但機會總是存在的。我們始終會為優質企業支付合理的價格。但我們也知道，如果某個項目對我們來說沒有意義，我們會毫不猶豫地放棄，並從其他角度切入市場。

Great. And then maybe just a little bit of a follow-up on the commentary around adding folks and tech spend for some opportunities that you see. Are those kind of just sort of a short focus as far as things you're going to be executing on in the short term? Or is this something that you see opportunity sets going into next year? And are there some areas there geographically or otherwise that you're kind of targeting for the potential for new additions, both on the assuming capital side as well as the technology side?

偉大的。然後，或許可以稍微補充一下關於增加人員和技術支出以抓住一些機會的評論。這些是不是你短期內要執行的一些重點工作？或者，您認為這是明年會出現的機會嗎？那麼，在地理位置或其他方面，您是否有一些目標區域，希望在這些區域進行新的投資，包括資金方面和技術方面？

Yeah, Marc, the hires that we've made this year are definitely long term, we hope to have them be long-term resources in the company, no short-term plans there. We want those salespeople to get out into the market and really start generating some business over the next several years. Most of the hires that we made were in the Midwest area and Northeast, but we will continue to add sales people in places that we need them, where we see business potential and in places that we have resources already that we can leverage to be able to serve the market. So very much long-term strategy, very carefully thought out and implemented, and we're anticipating that's going to be very nice to help our growth.

是的，馬克，我們今年招募的人員絕對都是著眼於長期發展的，我們希望他們能成為公司的長期資源，沒有任何短期計畫。我們希望這些銷售人員能夠進入市場，並在未來幾年真正開始創造一些業務。我們大部分招募都集中在中西部地區和東北部，但我們將繼續在需要銷售人員的地方、我們看到業務潛力的地方以及我們已經擁有可以利用的資源來服務市場的地方增加銷售人員。所以這是一項非常長遠的策略，經過了深思熟慮和精心實施，我們預計這將對我們的成長起到很好的促進作用。

Excellent. And the last thing, I think, in your prepared remarks and maybe as a response to one of the questions. It really did a great job as far as bringing us up to speed on maybe how education funding has really played out through the year. Are there any valid initiatives that you kind of have an eye on or keen next month that we should be aware or should be thinking about as far as -- is there any that are top of mind at the moment? Or do you feel like we already have a lot of the main ones locked in already?

出色的。最後一點，我想，可以在你準備好的發言稿中，或許可以作為某個問題的回答。它確實做得很好，讓我們了解了教育經費在過去一年中是如何實際使用的。下個月您有沒有特別關注或熱衷的、值得我們注意或考慮的有效措施？目前有沒有哪些舉措是您最重視的？或者你覺得我們已經鎖定了許多主要目標？

Yeah. There's no particular valid issues that I'm aware of right now that we're concerned about concerning facilities funding at this point. So I mean I'm very pleased with the amount of funding that's in place in the markets that we operate in. It's very healthy. And that funding typically doesn't grow cobwebs. That stuff gets implemented and put out into the market as soon as districts can get themselves organized and get the projects underway, and we'll be right there with them when they do it. So we're very, very happy about that and think that it's a good positive.

是的。目前就我所知，我們還沒有對設施資金有任何特別值得關注的問題。所以，我對我們營運所在市場目前的資金規模非常滿意。它非常健康。而這些資金通常不會閒置。一旦各地區組織起來並啟動項目，這些措施就會立即實施並投放市場，屆時我們將與他們並肩作戰。所以我們對此非常非常高興，認為這是一個正面的訊號。

(Operator Instructions) We can pause for a moment to allow any further questions to queue. And ladies and gentlemen, that appeared to have been our last question. Let me now turn the call back to Mr. Hanna for any closing remarks.

（操作員指示）我們可以暫停片刻，以便其他問題可以排隊等候。女士們先生們，這似乎是我們的最後一個問題了。現在我把電話轉回給漢納先生，請他作總結發言。

I'd like to thank everyone for joining us on the call today and for your continuing interest in our company. We look forward to speaking with you again in late February to review our fourth quarter results.

感謝各位今天參加我們的電話會議，也感謝大家一直以來對我們公司的關注。我們期待在二月下旬再次與您會面，共同回顧我們第四季的業績。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接了。