Core Viewpoint - Baird downgraded WillScot Holdings Corporation to Neutral from Outperform, citing sluggish rental rates and revenue growth, while raising its price target to $23 from $22 [1] Group 1: Company Performance - WillScot's rental rates and revenue growth are described as "sluggish" according to Baird's research note [1] - A quarterly survey of National Portable Storage Association members indicates a more balanced setup for WillScot as it approaches its initial 2026 guidance, although estimates for 2026 continue to trend lower [1] Group 2: Dividend Information - WillScot offers a quarterly dividend of $0.07 per share, resulting in a dividend yield of 1.39% as of January 29 [2] - The CEO stated that the introduction of a quarterly dividend is a method for the company to return excess capital to shareholders, reflecting the strength of its cash flows and balance sheet [2] - The board plans to regularly review the dividend program with the intention of increasing the payout over time, with dividends expected to be paid on the third Wednesday of the last month of each quarter [3] Group 3: Company Overview - WillScot Holdings Corporation operates as a leading provider of turnkey space solutions in North America, offering products such as modular office complexes, mobile offices, classrooms, temporary restrooms, portable storage containers, protective buildings, climate-controlled units, and clearspan structures [4]

Core Insights - Silver Beech Capital achieved a net annualized return of 19.5% since inception, outperforming the S&P 500 by 5.3% annually [1] - The fund's performance in Q3 2025 was up 3.5%, while the S&P 500 and Russell 2000 returned 14.8% and 10.4% YTD respectively [1] - The S&P 500's Q3 return of 8.1% was attributed to market recovery post-Liberation Day volatility, driven by monetary easing and strong tech earnings [1] - Current equity valuations are viewed as disconnected from fundamentals by the firm [1] Company Focus: WillScot Holdings Corporation - WillScot Holdings Corporation (NASDAQ:WSC) offers workspace and portable storage solutions and changed its name from WillScot Mobile Mini Holdings Corp. in July 2024 [2] - The stock's one-month return was 1.56%, but it has lost 42.13% of its value over the past 52 weeks, closing at $19.56 per share with a market capitalization of $3.561 billion on December 22, 2025 [2] - Silver Beech Capital views WillScot as a significant opportunity, noting a ~40% decline from its cost basis and a reduction in valuation from ~10x TEV/EBITDA (2024E) to ~7.5x (2025E) [3] - The free cash flow yield for WillScot is projected to increase from ~7% (2024E) to ~13% (2025E), indicating a market perception of decline that contrasts with the firm's view of the company as a compounding industrial services franchise with a strong market position [3]

Core Viewpoint - Bank of America (BofA) has adopted a conservative stance on WillScot Holdings Corporation (WSC), lowering its price target to $25 from $27.50 while maintaining a Buy rating, due to uneven modular demand and a lack of clear recovery in storage [1] Financial Performance - WillScot reported mixed earnings for Q3 2025, with revenues of $566.8 million, a decrease of 5.75% year-over-year, and leasing revenues of $434 million, down 4.7% from the previous year [1] - The company experienced lower Canadian and seasonal storage revenues compared to the prior year, which did not meet expectations, although its EBITDA margin improved to 42.9%, an increase of 60 basis points sequentially [1] Cash Flow and Debt Management - WillScot generated $191 million in operating cash flow at a margin of 33.7% and free cash flow of $122 million at a margin of 21.6% [2] - The company utilized $84 million to pay down outstanding debt and allocated $21 million for dividends and share repurchases, in addition to deploying $8 million for a tuck-in acquisition [2] Market Position and Investment Outlook - WillScot is recognized for its portable and modular storage services, but there is a belief that certain AI stocks may offer greater upside potential with less downside risk [3]

Core Insights - The company is the largest temporary space provider in North America, offering turnkey space solutions across various markets including construction, education, and commercial applications [1] Company Overview - The company provides modular offices and on-site storage solutions, enabling customers to have the necessary space for as long as needed [1] - The business model focuses on a curated portfolio of value-added products and services, which enhances financial performance and increases returns on assets [1] - The solutions offered allow customers to become productive immediately upon starting their projects [1]

Core Insights - WillScot Holdings Corporation is a leader in innovative temporary space solutions and will participate in upcoming investor conferences [1][4] Company Overview - WillScot is listed on the Nasdaq under the ticker symbol "WSC" and is the premier provider of turnkey space solutions in North America [2] - The company offers a comprehensive range of products including modular office complexes, mobile offices, classrooms, temporary restrooms, portable storage containers, protective buildings, climate-controlled units, and clearspan structures [2] - WillScot operates from approximately 260 branch locations and additional drop lots across the United States, Canada, and Mexico, serving diverse customer segments across all sectors of the economy [2]

Core Viewpoint - WillScot Holdings Corporation (NASDAQ:WSC) is experiencing significant stock performance, with a recent rally attributed to positive analyst coverage and upgraded ratings [1][2]. Group 1: Stock Performance - WillScot's stock increased by 11.10 percent, closing at $17.61, marking a strong performance over two consecutive days [1]. - The investment firm Baird upgraded WillScot from "market perform" to "outperform" and raised its price target from $20 to $22 [2]. Group 2: Analyst Insights - The new price target indicates a 24.9 percent upside potential from the latest closing price [3]. - Baird suggests that the third quarter could be a pivotal moment for WillScot, highlighting its strong market position and value-added products as attractive long-term investment opportunities [3]. - WillScot is noted to provide over 25 percent internal rates of return and revenue opportunities through enhanced value-added products and services [4].

Market Overview - The stock market experienced volatility but ended positively on Friday, with the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all gaining around 1% [2] - Daily percentage changes were: Dow +1.08% (+493 points), S&P 500 +0.98% (+64 points), and Nasdaq +0.88% (+195 points) [3] Company Highlights - **Cava (NYSE: CAVA)**: The Mediterranean fast-casual restaurant chain saw a significant stock increase of 12% on Friday. Despite earlier disappointing third-quarter results and a reduced full-year outlook for 2025, investors are becoming more optimistic about the stock's valuation. Cava's expansion strategy includes opening 17 new locations in three months, raising concerns about consumer interest in fast-casual dining [4] - **WillScot Holdings (NASDAQ: WSC)**: The mobile office and storage container company gained 11% after analysts at Baird upgraded the stock from neutral to outperform and raised the price target from $20 to $22 per share. The company has faced stagnant performance over the past five years, but analysts believe it may now have the opportunity to develop a viable strategy for growth, especially if the Federal Reserve cuts interest rates, which could benefit its customers [5] Market Sentiment - Overall market sentiment improved as investors became more confident following previous declines, with Cava and WillScot Holdings being notable gainers on Friday [6]

Core Insights - Madison Small Cap Fund experienced a challenging third quarter in 2025, with a decline of 1.3% in its performance, significantly underperforming benchmarks due to stock selection and a speculative market environment [1] Company Performance - WillScot Holdings Corporation (NASDAQ:WSC) reported a one-month return of -29.46% and a 52-week loss of 56.34%, closing at $15.85 per share with a market capitalization of $2.886 billion as of November 20, 2025 [2] - In Q3 2025, WillScot Holdings Corporation generated revenue of $567 million, a decrease of $34 million compared to Q3 2024 [4] Investment Analysis - The underperformance of WillScot Holdings Corporation was attributed to challenging end markets, but the company has attractive unit economics and has reduced its share count from 230 million to 182 million over the past five years through share buybacks [3] - Madison Small Cap Fund reassessed the intrinsic value of WillScot Holdings Corporation at $46, based on conservative assumptions regarding market recovery and continued share buybacks, indicating a belief in the company's long-term potential despite current challenges [3]

Core Insights - Turtle Creek Asset Management's third-quarter 2025 investor letter indicates a challenging market environment, with the Turtle Creek Equity Fund's net asset value increasing by only 0.4%, underperforming the S&P MidCap 400 index's 7.7% and the S&P/TSX Completion index's 16.3% gains [1] - The firm highlights WillScot Holdings Corporation (NASDAQ:WSC) as a significant investment, despite its recent stock performance showing a one-month return of -17.69% and a 52-week loss of 48.00% [2][4] Fund Performance - The Turtle Creek Synthetic PE Fund increased by 1.4%, while the Turtle Creek United States Equity Fund decreased by 1.0%, and the Turtle Creek Canadian Equity Fund increased by 7.8% during the same period [1] - The Turtle Creek Equity Fund's performance is notably below the broader market indices, indicating potential challenges in stock selection or market conditions [1] WillScot Holdings Corporation Overview - WillScot Holdings Corporation is recognized as the leading provider of turnkey space solutions in North America, offering modular offices, temporary classrooms, and portable storage containers [3] - The company has consolidated a previously fragmented industry, enhancing competitive behavior and achieving scale advantages that contribute to pricing power [3] - Despite being in a mature industry, WillScot is expected to continue growth through bolt-on acquisitions and expansion into adjacent offerings [3] Financial Performance of WillScot Holdings - In the third quarter of 2025, WillScot reported revenue of $567 million, reflecting a decrease of $34 million compared to the previous year [4] - The market capitalization of WillScot Holdings Corporation is reported at $3.31 billion, with shares closing at $18.19 on November 12, 2025 [2] Hedge Fund Interest - WillScot Holdings Corporation was held by 49 hedge fund portfolios at the end of the second quarter of 2025, an increase from 46 in the previous quarter [4]

Core Insights - WillScot Mobile Mini reported a revenue decline of 5.8% year-on-year to $566.8 million, falling short of market expectations [1][3] - The company provided a conservative revenue guidance of $545 million for the next quarter, which is 6.6% below analysts' estimates [1][4] - Non-GAAP profit per share was $0.30, exceeding analysts' consensus estimates by 3.9% [1][4] Financial Performance - Revenue for Q3 CY2025 was $566.8 million, compared to analyst estimates of $580.3 million, resulting in a 5.8% year-on-year decline and a 2.3% miss [4] - Adjusted EPS was $0.30, beating analyst estimates of $0.29 by 3.9% [4] - Adjusted EBITDA was $243.3 million, slightly below analyst estimates of $247.4 million, with a margin of 42.9% [4] - Operating margin improved to 21%, up from -5.9% in the same quarter last year [4] - Market capitalization stands at $3.33 billion [4] Management Commentary - Management attributed revenue weakness to factors such as accelerated cleanup of aged accounts receivable and lower delivery and installation revenues [3] - The CEO-designate highlighted ongoing softness in the Canadian market and slower growth in newer business lines [3] - The Executive Chairman acknowledged the company's underperformance over the last two years and emphasized a commitment to improve [3] - Future strategies include operational improvements and targeted investments in higher-value products to drive growth [3]