Wall Street expects a year-over-year decline in earnings on lower revenues when WillScot (WSC) reports results for the quarter ended September 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 6, might help the stock move higher if these key numbers are better than expectation ...

Core Viewpoint - WillScot Holdings Corporation has amended its asset-based lending credit facility to reduce borrowing costs and extend the maturity date to October 16, 2030, enhancing its liquidity position and growth capacity [1][2]. Summary by Sections Credit Facility Amendments - The credit facility has been right-sized to $3.0 billion, with an accordion feature expanded to $1.0 billion, allowing for significant growth capacity [2][4]. - The interest rate spreads above Term SOFR and Term CORRA have been reduced to a maximum of 137.5 basis points, down from 160 basis points, resulting in initial savings of 22.5 basis points [2][3]. Financial Impact - The company anticipates annual cash interest expense savings of approximately $5.0 million at current borrowing levels, with potential for further reductions [2]. - Additional interest rate reductions of 12.5 basis points will occur after September 30, 2026, if certain conditions regarding average availability and net leverage are met [3]. Current Financial Position - As of the transaction close, WillScot had approximately $1.4 billion in available borrowing capacity under the amended facility [4]. - The aggregate principal amount of the credit facility has been reduced from $3.7 billion to $3.0 billion, which will lower undrawn line fees [4]. Institutional Support - The amended facility is supported by a syndicate of financial institutions, with Bank of America N.A. serving as the Administrative Agent and Collateral Agent [5].

Core Viewpoint - WillScot Holdings Corporation will release its third quarter 2025 financial results on November 6, 2025, after market close, followed by a conference call to discuss the results [1] Financial Results Announcement - The financial results will be released on November 6, 2025, after market close [1] - A conference call and webcast will be held on the same day at 5:30 p.m. EST to discuss the results [1] Conference Call Access - Participants can access the live call by phone, with North America dialing 1-833-630-1956 and international participants dialing 1-412-317-1837 [2] - A live webcast will be available on the company's website, with an archived version accessible for 12 months post-call [2] Investor Conference Participation - WillScot will participate in the Baird Global Industrial Conference on November 12 & 13, 2025, in Chicago, Illinois [3] - Portfolio managers and analysts interested in in-person meetings should contact their sales representative [3] Company Overview - WillScot is a leading provider of innovative temporary flexible space solutions in North America, listed on Nasdaq under the ticker symbol "WSC" [4] - The company offers a comprehensive range of products, including modular office complexes, mobile offices, classrooms, and more, ensuring turnkey solutions for diverse customer segments [4] - Headquartered in Phoenix, Arizona, WillScot operates approximately 260 branch locations across the United States, Canada, and Mexico [4]

Summary of Key Points Core Viewpoint - DA Davidson has lowered the price target for WillScot (WSC) to $35 from $40 while maintaining a Buy rating, indicating a mixed demand trend and seasonal activity as a significant headwind [1] Group 1: Price Target and Rating - The price target for WillScot has been reduced to $35 from $40 [1] - DA Davidson continues to hold a Buy rating on WillScot shares despite the price target adjustment [1] Group 2: Demand Trends and Earnings Outlook - The company is experiencing mixed demand trends, with seasonal activity posing a larger challenge than previously anticipated [1] - Earnings outlook reductions have been noted, but the firm acknowledges substantial share price pressure and valuation contraction since early 2024 [1] Group 3: Investment Value - DA Davidson sees "value in the name" at current levels, suggesting potential investment opportunities despite the challenges faced [1]

Company Overview - The company is undergoing a leadership transition with Tim Boswell set to become CEO on January 1, 2026, and expresses optimism about the business prospects [2][3] - The transition process has been described as extraordinary and thorough, with positive internal reception and a strong sense of responsibility felt by the incoming leadership [3] Business Positioning - The company has experienced an interesting inflection point, indicating a significant change or development in its business trajectory [4]

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Company Overview - WillScot Holdings Corporation is a leader in innovative temporary space solutions in North America, listed on the Nasdaq under the ticker symbol "WSC" [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, along with furnishings and supplementary services [2] - Headquartered in Phoenix, Arizona, WillScot operates 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] Investor Conference Participation - WillScot will participate in the D.A. Davidson Diversified Industrials & Services Conference on September 18, 2025, in Nashville, Tennessee [1] - A live webcast link will be available on the company's investor website for interested parties [1] - Portfolio managers and analysts can request in-person meetings through their sales representatives at the sponsoring firm [1]

Core Viewpoint - WillScot Holdings Corporation has announced the appointment of Tim Boswell as the new CEO, effective January 1, 2026, succeeding Brad Soultz, who has significantly contributed to the company's growth during his tenure [2][4][5] Leadership Changes - Tim Boswell will join the Board of Directors upon his appointment as CEO [2] - Worthing Jackman has transitioned from non-Executive Chairman to Executive Chairman to support the new CEO and the management team [2][4] - Jeff Sagansky has been appointed as Lead Independent Director [2] Tim Boswell's Background - Tim Boswell has a 13-year history with WillScot, holding various leadership roles, including President and COO [3] - He has extensive experience in capital markets and has led strategic initiatives such as M&A, pricing, and marketing [3] Company Growth Under Previous Leadership - Under Brad Soultz's leadership, WillScot's revenues grew over 5 times, and free cash flow exceeded $500 million [4] - The company has transformed its financial profile significantly during Soultz's tenure [4] Future Outlook - The Board expresses confidence in Tim Boswell's ability to lead the company into its next chapter, focusing on growth and value creation for shareholders [4][5] - Worthing Jackman emphasizes the importance of the strategic plan and the expectation of continued growth under Boswell's leadership [4]

Core Insights - WillScot reported Q2 2025 results with a miss on adjusted earnings per share at $0.27, while GAAP revenue slightly exceeded forecasts at $589 million, surpassing consensus by $1.51 million [1][5] - Adjusted EBITDA decreased to $249 million from $264 million year-over-year, indicating margin pressure and lower volumes in core leasing activities despite resilient cash generation [1][5] Financial Performance - Non-GAAP EPS was $0.27, down 30.8% from $0.39 in Q2 2024 [2] - GAAP revenue was $589 million, a decline of 2.6% from $605 million in Q2 2024 [2] - Adjusted EBITDA fell by 5.7% year-over-year to $249 million [2] - Adjusted Free Cash Flow increased slightly to $130 million, up 0.8% from $129 million in Q2 2024 [2] - Return on Invested Capital decreased to 13.8%, down 2.6 percentage points from 16.4% in Q2 2024 [2] Business Model and Strategy - WillScot operates a vast network in North America, focusing on modular office complexes and portable storage solutions, serving various industries including construction and government [3] - The company aims to maintain market leadership through product expansion, value-added services, and targeted acquisitions [4] Revenue Breakdown - Core leasing revenue declined to $443 million, a 3.4% decrease year-over-year, despite higher average monthly rates for modular space units (up 5.2%) and portable storage units (up 7.2%) [6] - Delivery and installation revenue remained stable at $108 million, but margins are under pressure due to operational investments [6] Value-Added Products and Services (VAPS) - VAPS accounted for over 17% of revenue in Q1 FY2025, including offerings like furnishings and climate controls, which are crucial for managing revenue decline [7] - Recent acquisitions in climate-controlled storage reinforce the commitment to high-value product lines [7] Operational Initiatives - WillScot implemented productivity initiatives targeting logistics and working capital, achieving a sequential expansion of adjusted EBITDA margin by 1.4 percentage points [8] - Investments in scheduling technology and in-house delivery resources are underway, although they have contributed to short-term margin pressures [8] Market Trends and Outlook - The market favors large enterprise-level projects, with all order growth in Q1 2025 coming from these accounts, while local business remains soft [9] - The acquisition pipeline is active, with $134 million spent on tuck-in deals, particularly in climate-controlled storage [10] Capital Allocation - WillScot returned $53 million to shareholders through buybacks and dividends, resulting in a 3.4% reduction in share count over the past year [11] - The company maintains robust liquidity with $1.6 billion available on its credit facility, and a net debt to adjusted EBITDA ratio of 3.6x [11] Financial Guidance - Management updated FY2025 guidance, narrowing revenue outlook to $2,300 million to $2,350 million, and adjusted EBITDA guidance to $1,000 million to $1,020 million [13] - Adjusted free cash flow is expected between $500 million and $550 million for FY2025, driven by working capital improvements [13] Market Conditions - No specific improvement is forecast for local or transactional markets in the near term, with ongoing mixed conditions across end markets [14] - The company reaffirmed long-term financial targets but remains cautious in the near term until demand strengthens [14]

Core Viewpoint - WillScot (WSC) reported a revenue decline of 2.6% year-over-year for the quarter ended June 2025, with earnings per share (EPS) also decreasing significantly compared to the previous year [1] Financial Performance - Revenue for the quarter was $589.08 million, slightly above the Zacks Consensus Estimate of $586.85 million, resulting in a surprise of +0.38% [1] - EPS was reported at $0.27, down from $0.39 in the same quarter last year, reflecting a surprise of -25% against the consensus estimate of $0.36 [1] Revenue Breakdown - Leasing revenue was $442.92 million, below the two-analyst average estimate of $452.05 million, marking a year-over-year decline of -3.4% [4] - Delivery and installation revenue reached $108.45 million, exceeding the average estimate of $98.69 million, with a slight year-over-year increase of +0.3% [4] - Total leasing and services revenue was $551.37 million, slightly above the average estimate of $550.74 million [4] - Sales revenue from rental units was $16.1 million, surpassing the average estimate of $15.82 million, but down -2.3% year-over-year [4] - Sales revenue from new units was $21.62 million, below the average estimate of $23.18 million, with a year-over-year increase of +1.1% [4] Stock Performance - WillScot's shares have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]