WillScot Mobile Mini (US:WSC)2025-11-06 21:11Financial 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]