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

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]