Strategic Focus on Modular Solutions and Geographic Expansion
Company emphasizes its core strategy of being a modular solutions provider, with ongoing efforts to expand into new metro areas lacking rental fleets or sales presence.
Added new sales representatives in several markets ahead of schedule, aiming to increase geographic coverage and market penetration.
Investments in fleet and capabilities for larger, complex modular projects to meet rising customer demand.
Adjusted EBITDA for Mobile Modular decreased 1% to $53.1 million due to higher inventory center expenses and SG&A costs.
Adjusted EBITDA grew by 3% to $86.5 million.
Average fleet utilization was 73.7% for Mobile Modular, 61.1% for Portable Storage, and 64.8% for TRS-RenTelco.
Interest expense decreased by $5.2 million to $7.8 million due to lower rates and debt levels.
Mobile Modular total revenues increased 8% to $156 million with rental revenues up 5%, rental-related services up 11%, and sales revenues up 13%.
Net borrowings at quarter end were $573 million with funded debt to adjusted EBITDA ratio of 1.6:1.
Net cash provided by operating activities was $110 million, down from $139 million prior year.
Portable Storage revenues decreased 3% to $23.3 million with rental revenues down 5% but sequentially up 5% from Q1; adjusted EBITDA decreased 11% to $9.8 million but increased 15% sequentially.
Rental equipment purchases were $50 million, down from $145 million last year.
Total revenues increased 11% to $235.6 million in Q2 2025.
TRS-RenTelco revenues increased 11% to $36.4 million with rental revenues up 7%; adjusted EBITDA increased 7% to $19.3 million.
Strategic Capacity Expansion in Pet Litter and Sustainable Products
Opening a new pet litter packaging facility in Asia in late Q3 to support demand growth.
Retooling facilities in North America and Europe with new process and packaging equipment to improve quality, efficiency, and reduce costs.
Multiple capacity expansion projects underway for renewable fuel purification, animal health solutions, and fabric care, supporting $100 million in revenue growth and margin improvement.
Dafinchi