WillScot Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Outlook

Core Insights - WillScot Holdings Corporation exceeded its Q4 2025 outlook for revenue and adjusted EBITDA, reporting strong adjusted free cash flow [1] - The company experienced a year-over-year increase in modular activations in Q4 2025, with a total pending order book up more than 10% entering 2026 [1] - A conservative outlook for 2026 was provided, reflecting anticipated challenges in the traditional storage business [1] Q4 2025 Performance - Generated revenue of $566 million, with a gross profit margin of 50.4% and a net loss of $187 million [6] - Reported adjusted net income of $55 million and adjusted EBITDA of $250 million, representing a margin of 44.2% [6] - Leasing revenues of $437 million declined by 5.9% year-over-year but increased by 0.8% sequentially [6] - Adjusted free cash flow was $91 million, with net cash provided by operating activities at $159 million [6] Full Year 2025 Results - Total revenue for 2025 was $2.3 billion, with a gross profit margin of 51.0% and a net loss of $53 million [6] - Adjusted net income was $219 million, and adjusted EBITDA reached $971 million, with a margin of 42.6% [6] - Leasing revenues for the year declined by 4.9% year-over-year, with adjusted free cash flow of $489 million [6] 2026 Outlook - The company anticipates revenue of approximately $2.175 billion and adjusted EBITDA of approximately $900 million for FY 2026 [6][14] - Net CAPEX is projected to be around $275 million, focusing on investments in higher value product categories [6][14] - The outlook reflects a conservative view due to a $50 million headwind in the traditional storage business [6][14] Market and Operational Insights - Market activity remains bifurcated, with significant demand in industrial sectors despite a 12% decline in overall non-residential construction starts year-over-year [5] - Modular activations increased by 3% year-over-year in Q4 2025, indicating growing demand for modular complexes [7] - The company is focused on driving organic revenue growth and unlocking operating efficiencies to enhance long-term shareholder value [7]