Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $567 million, down $34 million year-over-year, primarily due to increased accounts receivable cleanup of approximately $20 million [11] - Adjusted EBITDA was $243 million for the quarter, reflecting a margin of 42.9%, which was up 60 basis points sequentially from Q2 [12] - Adjusted free cash flow in the quarter was $122 million, representing a 22% margin or $0.67 per share [15] Business Line Data and Key Metrics Changes - Leasing revenues were $434 million in Q3, a 5% year-over-year decline, but only down 1.3% when excluding write-offs related to accounts receivable cleanup [12][13] - Sales in new and rental units increased by 10% year-over-year [11] - VAPS revenues were flat year-over-year despite volume headwinds, while storage portfolio saw a 10% improvement in rate and mix, partially offsetting a 14% volume decline [13] Market Data and Key Metrics Changes - The Canadian market experienced a slowdown, contributing to a revenue decline of approximately $130 million [35] - The company noted that traditional storage business remains weak, while climate-controlled storage units on rent were up 44% year-over-year [50] Company Strategy and Development Direction - The company aims to shift revenue towards more differentiated, higher-value offerings to create consistent results and reduce variability from commoditized lines of business [6][8] - A multi-year network optimization plan is underway to enhance operational efficiency and reduce structural costs, with an estimated net book value of rental fleet units for disposal between $250 million and $350 million [19][18] - The focus is on reestablishing organic growth through local market initiatives and enterprise accounts, with expectations for enterprise accounts revenue to grow approximately 5% year-over-year in the second half [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for a more conservative approach to guidance to minimize the risk of negative surprises, emphasizing accountability and credibility [8][9] - The company expects Q4 2025 revenue of approximately $545 million and adjusted EBITDA of approximately $250 million, with a full-year 2025 revenue outlook of around $2.26 billion [20] - Management expressed optimism about the potential for growth in the enterprise portfolio and value-added products, despite challenges in the traditional storage market [23][26] Other Important Information - The company has paid down $84 million in borrowings and returned $21 million to shareholders through repurchases and dividends [16] - A review of real estate positions is ongoing to reduce the real estate footprint while maintaining market coverage, with real estate costs having increased by over 10% per year [17] Q&A Session Summary Question: Inquiry about revenue outlook and underperformance - Management identified seasonal storage components and write-off activities as significant contributors to lower revenue outlook, with the Canadian market also underperforming [34][35] Question: Impact of federal government shutdowns - Management reported negligible disruption from government shutdowns, maintaining enthusiasm for future opportunities in government sectors [39] Question: Clarification on fleet review and potential disposals - Management clarified that the fleet being reviewed for disposal represents about 10% of total fleet, primarily excess units not needed for future growth [44][45] Question: Trends in order book and activations - Management noted that the modular order book is down about 1% year-over-year, with activations showing low single-digit growth recently, while traditional storage remains weak [50] Question: Changes in guidance philosophy - Management emphasized a shift towards conservative guidance to avoid negative surprises, focusing on controllable outcomes [86][87]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $567 million, down $34 million year-over-year, primarily due to increased accounts receivable cleanup of approximately $20 million [11] - Adjusted EBITDA for the quarter was $243 million, reflecting a margin of 42.9%, which was up 60 basis points sequentially from Q2 [12] - Adjusted free cash flow in the quarter was $122 million, representing a 22% margin or $0.67 per share [15] Business Line Data and Key Metrics Changes - Leasing revenues were $434 million in Q3, a 5% year-over-year decline, but only down 1.3% when excluding write-offs related to accounts receivable cleanup [12][13] - Sales in new and rental units increased by 10% year-over-year [11] - VAPS revenues were flat year-over-year despite volume headwinds, while storage portfolio saw a 10% improvement in rate and mix, partially offsetting a 14% volume decline [13] Market Data and Key Metrics Changes - The Canadian market experienced a slowdown, contributing to approximately $130 million of total revenue, which has been impacted by trade posture changes [35] - The traditional storage business remains weak, while climate-controlled storage units on rent were up 44% year-over-year [50] Company Strategy and Development Direction - The company aims to shift revenue towards more differentiated, higher-value offerings to create consistent results and reduce variability from commoditized lines of business [6][8] - A multi-year network optimization plan is underway to enhance operational efficiency and reduce structural costs, with an estimated $250 million-$350 million in rental fleet units identified for disposal [19][18] - The focus is on reestablishing organic growth through local market initiatives and enterprise accounts, with expectations for enterprise accounts revenue to grow mid to high single digits into 2026 [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for a more conservative approach to guidance to minimize the risk of negative surprises, with revised full-year guidance reflecting current operating conditions [20][8] - The company expects Q4 2025 revenue of approximately $545 million and adjusted EBITDA of approximately $250 million, with a full-year 2025 revenue outlook of around $2.26 billion [20] Other Important Information - The company has amended and extended its ABL Credit Facility, reducing estimated annual cash borrowing costs by approximately $5 million and extending maturity through October 2030 [16] - The company has identified a pathway to improve adjusted EBITDA margins above 45% as units on rent trends begin to improve [6][8] Q&A Session Summary Question: Inquiry about revenue outlook and underperformance - Management noted that seasonal storage components and write-off activities contributed significantly to the lower revenue outlook, with the Canadian market also experiencing a slowdown [34][35] Question: Impact of federal government shutdowns - Management indicated negligible disruption from government shutdowns, with optimism about future penetration into government sectors [39] Question: Clarification on fleet review and potential disposals - Management confirmed that the identified fleet for disposal represents about 10% of total fleet, aimed at optimizing costs without compromising service capabilities [44][45] Question: Trends in order book and activations - The modular order book is down about 1% year-over-year, but activations have shown low single-digit growth recently, while traditional storage remains weak [50] Question: Changes in guidance philosophy - Management emphasized a shift towards conservative guidance to avoid negative surprises, focusing on controllable outcomes [86][87]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $567 million, down $34 million year-over-year, primarily due to increased accounts receivable cleanup of approximately $20 million [9] - Adjusted EBITDA was $243 million for the quarter, reflecting a margin of 42.9%, which was up 60 basis points sequentially from Q2 [10] - Adjusted free cash flow in the quarter was $122 million, representing a 22% margin or $0.67 per share [12] Business Line Data and Key Metrics Changes - Leasing revenues were $434 million in Q3, a 5% year-over-year decline, but only down 1.3% when excluding write-offs related to accounts receivable cleanup [10][11] - Sales in new and rental units increased by 10% year-over-year [9] - VAPS revenues were flat year-over-year despite volume headwinds, while storage portfolio rates improved by 10% despite a 14% volume decline [11] Market Data and Key Metrics Changes - The Canadian market has seen a slowdown, impacting approximately $130 million of total revenue [34] - The company noted that the traditional storage business remains weak, while climate-controlled storage orders and activations were up approximately 60% year-over-year [48] Company Strategy and Development Direction - The company aims to shift revenue towards more differentiated, higher-value offerings to create consistent results and reduce variability from commoditized lines of business [5][6] - A multi-year network optimization plan is underway to enhance operational efficiency and reduce structural costs, with an estimated $250 million-$350 million of rental fleet units identified for disposal [16][17] - The focus is on reestablishing organic growth through local market initiatives and enterprise accounts, with expectations for enterprise accounts revenue to grow mid to high single digits into 2026 [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for a more conservative approach to guidance to minimize the risk of negative surprises, with revised full-year guidance reflecting current operating conditions [18][19] - The company expects Q4 2025 revenue of approximately $545 million and adjusted EBITDA of around $250 million, with full-year 2025 revenue projected at approximately $2.26 billion [18] Other Important Information - The company has amended and extended its ABL Credit Facility, reducing estimated annual cash borrowing costs by approximately $5 million and extending maturity through October 2030 [14][15] - The company has identified fleet with a net book value of $27 million for disposal, which will help reduce real estate costs and improve operational efficiency [16] Q&A Session Summary Question: Revenue outlook and underperformance - Management identified seasonal storage headwinds and write-off activities as significant contributors to lower revenue outlook, with the Canadian market also underperforming [33][34] Question: Impact of federal government shutdowns - Management reported negligible disruption from federal government shutdowns, maintaining optimism about future opportunities in government sectors [36] Question: Fleet review and potential disposals - The company plans to dispose of excess fleet, which is expected to be around 10% of total fleet, to optimize costs while maintaining adequate market coverage [42][43] Question: Trends in order book and activations - The modular order book is down about 1% year-over-year, but activations have shown low single-digit growth recently, while traditional storage remains weak [48] Question: Changes in operational strategy - Management confirmed that the operational strategy aligns with initiatives laid out at Investor Day, with a focus on asset and network optimization [54] Question: Capital expenditure and growth strategy - Management indicated that the disposal of surplus fleet will not constrain future growth, and capital allocation will focus on differentiated product lines [58][69]

Core Insights - WillScot's Q3 2025 financial results were mixed, with strong cash flow but revenue falling short of market expectations [1][2] - The company reported a non-GAAP profit of $0.30 per share, exceeding analysts' consensus estimates by 3.9% [2] - Revenue guidance for Q4 2025 is $545 million, which is 6.6% below analysts' estimates [2] Financial Performance - Free Cash Flow increased to $122.2 million from -$3.81 million year-on-year [1] - Operating Margin improved to 21%, up from -5.9% in the same quarter last year [1] - EBITDA guidance for the full year is $970 million, below analyst estimates of $995.3 million [1] Revenue Analysis - Q3 2025 revenue was $566.8 million, a 5.8% decline year-on-year [2][7] - Leasing revenue, which constitutes 76.6% of total revenue, remained flat over the last two years, while Delivery and Installation revenue saw an average decline of 5.8% year-on-year [6][7] - Analysts expect a 1.3% revenue growth over the next 12 months, indicating potential for improved performance from newer products and services [8] Profitability Metrics - WillScot's operating margin has shown significant improvement, rising by 5.2 percentage points over the last five years [10] - The company achieved an operating margin of 21% this quarter, up 26.8 percentage points year-on-year, attributed to cost control measures [11] - EPS grew at a compounded annual growth rate of 17.4% over the last five years, indicating improved profitability on a per-share basis [12][13] Market Reaction - Following the earnings report, WillScot's stock price fell by 6.6% to $18.29, reflecting market disappointment with revenue guidance [16]

QUARTERLY INVESTOR PRESENTATION THIRD QUARTER 2025 November 6, 2025 2 SAFE HARBOR Forward Looking Statements This presentation contains forward-looking statements (including the guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimates," "expects," "anticipates," "believes," "forecasts," "plans," "intends," "may," "will," "should," "shall," "outlook," "guidance," ...

Financial Performance - Total revenues for Q3 2025 were $566.8 million, a decrease of 5.7% compared to $601.4 million in Q3 2024[8] - Net income for Q3 2025 was $43.3 million, compared to a net loss of $70.5 million in Q3 2024, marking a significant turnaround[12] - Gross profit for the nine months ended September 30, 2025, was $878.1 million, compared to $965.5 million for the same period in 2024, a decline of 9.1%[8] - For the nine months ended September 30, 2025, net income was $134.3 million, a significant increase from a net loss of $61.1 million in the same period of 2024[17] - Adjusted EBITDA for the nine months ended September 30, 2025, was $721.0 million, down 7.4% from $778.4 million in 2024[91] - Total comprehensive income for the three months ended September 30, 2025, was $36,800, compared to a total comprehensive loss of $93,093 in the prior year[12] Revenue and Leasing - Leasing revenue for Q3 2025 was $434.2 million, down from $455.6 million in Q3 2024, reflecting a decrease of 4.9%[8] - Total revenue for the three months ended September 30, 2025, was $566.8 million, a decrease of 5.8% from $601.4 million in the same period of 2024[27] - For the nine months ended September 30, 2025, total revenue was $1.72 billion, down 4.3% from $1.79 billion in 2024[27] - Modular space leasing revenue for the three months ended September 30, 2025, was $250.8 million, a slight decrease from $254.5 million in 2024[29] Assets and Liabilities - Total assets increased to $6.1 billion as of September 30, 2025, up from $6.0 billion at the end of 2024[7] - Total liabilities stood at $5.0 billion as of September 30, 2025, slightly up from $5.0 billion at the end of 2024[7] - The company’s accumulated deficit decreased to $612.6 million as of September 30, 2025, from $747.0 million at the end of 2024[7] - Total shareholders' equity as of September 30, 2025, was $1.06 billion, an increase from $1.05 billion as of September 30, 2024[15] Cash Flow and Dividends - Total cash provided by operating activities for the nine months ended September 30, 2025, was $603.1 million, compared to $382.7 million in 2024, reflecting a 57.6% increase[17] - The company incurred cash dividends declared of $38.4 million for the nine months ended September 30, 2025, compared to no dividends declared in the same period in 2024[17] - Cash and cash equivalents at the end of the period were $14.8 million as of September 30, 2025, compared to $11.0 million at the end of September 2024[17] Debt and Financing - Total debt outstanding as of September 30, 2025, was $3.6 billion, a decrease from $3.7 billion as of December 31, 2024[46] - The ABL Facility had $1.7 billion of available borrowing capacity as of September 30, 2025, including $1.5 billion under the US Facility and $190 million under the Multicurrency Facility[50] - The Company issued $500 million in 6.625% senior secured notes due 2030 on March 26, 2025, with interest payable semi-annually starting October 15, 2025[53] - The company was in compliance with all debt covenants and restrictions associated with its debt instruments as of September 30, 2025[57] Tax and Compliance - The company recorded an income tax expense of $54.9 million for the nine months ended September 30, 2025, compared to an income tax benefit of $17.4 million for the same period in 2024, reflecting a significant change in tax position[63] - The effective tax rate for the nine months ended September 30, 2025, was 29.0%, up from 22.2% for the same period in 2024, primarily due to state and provincial taxes and non-deductible executive compensation[64] Stock and Compensation - Stock-based compensation expense for Restricted Stock Awards (RSAs) was $1.2 million for the nine months ended September 30, 2025, compared to $1.0 million for the same period in 2024[75] - The Company granted 677,853 Time-Based RSUs with a weighted-average grant date fair value of $31.08 during the nine months ended September 30, 2025[76] - Unrecognized compensation cost related to Time-Based RSUs totaled $24.8 million as of September 30, 2025, expected to be recognized over a remaining weighted average vesting period of 2.7 years[76] - The intrinsic value of stock options outstanding at September 30, 2025, was $3.7 million, while the intrinsic value of fully vested and exercisable options was $4.2 million[82] Acquisitions and Investments - The company acquired a regional provider of climate-controlled containers for $115.6 million, with recognized goodwill of $54.5 million and intangible assets valued at $18.7 million[25] - The company made acquisitions totaling $144.4 million during the nine months ended September 30, 2025, compared to $84.5 million in 2024[17] Other Financial Metrics - The company reported depreciation and amortization expenses of $317.8 million for the nine months ended September 30, 2025, up from $285.9 million in 2024[17] - The company recognized a loss of $9.636 million in other comprehensive income (OCI) for the nine months ended September 30, 2025, compared to a gain of $3.947 million for the same period in 2024[69] - The balance of accumulated other comprehensive income (loss) at September 30, 2025, was $(72.783) million, compared to $(69.924) million at September 30, 2024[62]

Financial Performance - Third quarter 2025 revenue was $567 million, with Adjusted EBITDA of $243 million, reflecting a 42.9% margin[5] - Total revenues for Q3 2025 were $566.841 million, a decrease of 5.7% compared to $601.432 million in Q3 2024[23] - Net income for Q3 2025 was $43.332 million, compared to a net loss of $70.475 million in Q3 2024[23] - Adjusted EBITDA for the three months ended September 30, 2025, was $243,307 thousand, a decrease of 8.8% from $266,863 thousand in the same period of 2024[35] - Adjusted EBITDA margin for the three months ended September 30, 2025, was 42.9%, down from 44.4% in the prior year[37] - Gross profit for Q3 2025 was $281.618 million, down from $321.484 million in Q3 2024[23] - Gross profit margin for the three months ended September 30, 2025, was 49.7%, down from 53.5% in the same period of 2024[37] - Adjusted Net Income for the nine months ended September 30, 2025, was $163.5 million, down from $216.3 million in 2024[41] - Revenue for the nine months ended September 30, 2025, was $1.72 billion, compared to $1.79 billion in 2024[44] - Adjusted EBITDA for the nine months ended September 30, 2025, was $721.0 million, down from $778.4 million in 2024[49] Cash Flow and Debt Management - Generated net cash from operating activities of $191 million, resulting in Adjusted Free Cash Flow of $122 million[12] - Adjusted Free Cash Flow for the three months ended September 30, 2025, was $122.2 million, with a margin of 21.6%, compared to $143.1 million and 23.8% in 2024[44] - Total debt was $3.617 billion, with a reduction of $84 million in the quarter, and net debt to Adjusted EBITDA ratio at 3.6x[12] - Net debt as of September 30, 2025, was $3,602,695 thousand, resulting in a Net Debt to Adjusted EBITDA ratio of 3.6[38] - Long-term debt decreased to $3,590,015 thousand as of September 30, 2025, from $3,683,502 thousand at December 31, 2024, a reduction of 2.5%[27] Shareholder Returns - Adjusted diluted earnings per share for Q3 2025 were $0.30, compared to $0.38 in Q3 2024[8] - Basic earnings per share for Q3 2025 were $0.24, compared to a loss of $0.37 per share in Q3 2024[23] - The company repurchased 296,805 shares for $8 million, contributing to a 2.7% reduction in outstanding shares over the past year[12] Outlook and Guidance - The company expects fourth quarter 2025 revenue of approximately $545 million and Adjusted EBITDA of $250 million[3] - Updated full year 2025 outlook includes revenue of $2.26 billion and Adjusted EBITDA of $970 million[14] - Adjusted EBITDA guidance for the upcoming quarters is expected to provide useful insights for investors, although specific reconciliations to GAAP measures are not available[17] Operational Insights - Leasing revenues were $434 million, down 4.7% year-over-year, but flat sequentially when excluding write-offs[5] - The company’s leasing revenue for Q3 2025 was $434.224 million, a decrease from $455.578 million in Q3 2024[23] - Accounts receivable write-offs increased by $20 million year-over-year, with $25 million of total write-offs impacting leasing revenue[3] - The company plans to optimize its real estate footprint, potentially reducing leased acreage by over 20% and annual real estate cost increases by $20 million to $30 million[7] - The company operates approximately 260 branch locations across North America, providing a comprehensive range of space solutions[19] Asset and Liability Management - Total assets increased to $6,104,669 thousand as of September 30, 2025, compared to $6,034,911 thousand at December 31, 2024, reflecting a growth of 1.2%[27] - Total current liabilities increased to $659,819 thousand as of September 30, 2025, from $585,008 thousand at December 31, 2024, representing a rise of 12.7%[27] - Total shareholders' equity increased to $1,060,070 thousand as of September 30, 2025, compared to $1,018,593 thousand at December 31, 2024, reflecting a growth of 4.1%[27] Strategic Initiatives - Forward-looking statements indicate a focus on growth strategies, including potential mergers and acquisitions, and optimizing network operations[20]

Core Insights - WillScot Holdings Corporation reported mixed financial results for Q3 2025, with strong cash flow but challenges in revenue growth and increased accounts receivable write-offs [3][4][12] Financial Performance - Q3 2025 revenue was $567 million, with Adjusted EBITDA of $243 million, reflecting isolated events not fully anticipated in the previous outlook [3][4][12] - Leasing revenues, excluding write-offs, were stable sequentially, with a slight year-over-year decline of 4.7% [3][4][12] - Adjusted EBITDA Margin improved to 42.9%, up 60 basis points sequentially [3][4][12] - Net income for Q3 2025 was $43 million, compared to a loss of $70 million in Q3 2024 [7][35] Revenue Breakdown - Modular space leasing revenue was $250.8 million, down from $254.5 million year-over-year [9][10] - Portable storage leasing revenue decreased to $79.8 million from $85.7 million year-over-year [9][10] - Total revenues for the nine months ended September 30, 2025, were $1.72 billion, compared to $1.79 billion in the same period of 2024 [7][9] Cash Flow and Capital Management - Net cash provided by operating activities was $191 million, resulting in Adjusted Free Cash Flow of $122 million [13][14] - The company paid down $84 million of outstanding debt and returned $21 million to shareholders through share repurchases and dividends [4][13] - The company amended its revolving credit facility, extending maturity to October 2030, which is expected to reduce annual cash interest expense by approximately $5 million [4][13] Strategic Initiatives - The company is focused on driving organic revenue growth, improving customer satisfaction, and optimizing its balance sheet and asset utilization [4][5][6] - A network optimization initiative is underway, aiming to reduce real estate costs and improve operational efficiency [6][12] - The company plans to establish a conservative outlook for Q4 2025, projecting revenue of approximately $545 million and Adjusted EBITDA of $250 million [3][4][12]

Company Overview - WillScot (WSC) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.29, reflecting a decrease of 23.7% compared to the previous year [3] - Revenues are anticipated to be $579.97 million, down 3.6% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on November 6, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 9.71% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for WillScot is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.68% [12] - However, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, WillScot was expected to post earnings of $0.36 per share but only achieved $0.27, resulting in a surprise of -25.00% [13] - Over the past four quarters, the company has only beaten consensus EPS estimates once [14] Industry Comparison - In the Zacks Real Estate - Operations industry, Jones Lang LaSalle (JLL) is expected to report earnings of $4.24 per share, indicating a year-over-year increase of 21.1% [18] - JLL's revenue is projected to be $6.46 billion, up 10% from the previous year, with an Earnings ESP of +0.95% [19]

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].