WillScot Reports Second Quarter 2025 Results and Updates 2025 Full Year Outlook

Core Insights - WillScot Holdings Corporation reported second quarter 2025 results that were broadly in line with expectations, highlighting an Adjusted EBITDA Margin of 42.3% and an Adjusted Free Cash Flow Margin of 22.1% [3][5][6] - The company narrowed its full-year 2025 outlook for revenue and Adjusted EBITDA, reflecting mixed market conditions and macroeconomic views for the second half of the year [3][5][6] Financial Performance - Revenue for Q2 2025 was $589 million, a decrease of 2.5% from $605 million in Q2 2024 [4][5] - Net income for the quarter was $47.9 million, compared to a net loss of $46.9 million in the same quarter last year [4][5] - Adjusted Net Income was $49.2 million, down from $75 million year-over-year [4][5] - Adjusted EBITDA for the quarter was $248.9 million, with a margin of 42.3%, slightly down from 43.6% in Q2 2024 [4][5][6] Cash Flow and Capital Allocation - The company generated $205 million in net cash from operating activities, up 17% year-over-year, resulting in $130 million of Adjusted Free Cash Flow [5][6] - WillScot deployed approximately $134 million towards tuck-in acquisitions and returned $53 million to shareholders through share repurchases and dividends [3][5][6] - The expected Adjusted Free Cash Flow for FY 2025 is projected to be between $500 million and $550 million [5][6] Market Outlook - Leasing revenues were $443 million, reflecting a 2.0% sequential improvement but a 3.4% decline compared to the prior year, with average monthly rates increasing by 5.2% for modular space units and 7.2% for portable storage units [5][6] - The company has narrowed its revenue outlook for FY 2025 to a range of $2.3 billion to $2.35 billion and Adjusted EBITDA to $1 billion to $1.02 billion [6][8] Capital Structure and Debt - Total debt stood at $3.7 billion, with a net debt of $3.7 billion, resulting in a Net Debt to Adjusted EBITDA ratio of 3.6x [9][34] - The company maintained approximately $1.6 billion in availability under its asset-backed revolving credit facility [9][34]