McGrath RentCorp to Join S&P SmallCap 600 Effective November 4
Key Facts
S&P Dow Jones Indices announced on October 30 that McGrath RentCorp will replace Glaukos in the S&P SmallCap 600, with the change taking effect before trading opens on Wednesday, November 4. The decision corrects the listing destination given in the initial wording of the report: the company will join the small-cap index, while Glaukos will move to the S&P MidCap 400. The move is part of a broader set of changes announced by the index provider on the same day. Those changes include Okta’s move to the S&P 500, followed by Glaukos replacing it in the mid-cap index. Loar Holdings will also be added to the S&P SmallCap 600 on the same date.
The series of changes begins with Kenvue’s departure from the S&P 500. S&P Dow Jones Indices said Kimberly-Clark is acquiring it and that the deal was expected to close soon after final conditions were met. After Okta moves to the larger index, Glaukos will replace it in the S&P MidCap 400, while McGrath moves to the small-cap index. In another change in the announcement, S&P said Publicis Groupe is acquiring LiveRamp Holdings, with the deal expected to close soon, subject to final conditions. These announcements link index constituent changes with acquisitions reshaping the companies listed in the indexes. The provider set November 4 as the effective date for the changes, before trading begins.
The company’s addition comes after McGrath reported third-quarter results on October 28. Revenue was 274.6 million dollars, up 7% year over year from the same period in 2025. Net income also rose to 48.8 million dollars, or 2.00 dollars per diluted share, from 42.3 million dollars and 1.72 dollars per share a year earlier. CEO Phil Hawkins said growth in total revenue came mainly from higher rental operations revenue. He said TRS rental revenue increased 26%, with demand remaining strong. The results provide operating context for the index announcement, without the announcement alone establishing a causal link to the stock’s performance.
The improvement was not uniform across businesses; the company said portable storage rental revenue fell 3% as demand conditions remained weak. It added that higher equipment preparation, transportation and sales coverage costs continued to pressure margins. By contrast, TRS rental revenue grew 26% during the quarter, according to the CEO’s comments. These figures show variation across the company’s businesses in the period when it reported results. The information presented here did not include additional numerical detail on the impact of operating costs on margins.
In trading, McGrath RentCorp shares closed at 118.28 dollars on October 30, according to EL7 data. The previous session’s close, on October 29, was 119.60 dollars. That puts the stock’s close below its level the day before, while the index changes were announced on October 30. The closing data presented here do not attribute that move to the index addition. The inputs also do not include the session’s high and low prices, so those figures are not included in the trading summary.
The company updated its 2026 outlook to revenue of between 945 and 960 million dollars and adjusted EBITDA of between 365 and 373 million dollars. It also set total capital spending on rental equipment at between 270 and 290 million dollars. In its quarterly results disclosure, the company announced a dividend rate of 0.495 dollars per share for the third quarter. It estimated the annual dividend yield at 1.7%, based on a closing price of 119.56 dollars on October 27. McGrath’s addition to the S&P SmallCap 600 takes effect before trading opens on November 4, as part of the announced changes to the three indexes.