Financial Data and Key Metrics Changes - Total revenues decreased by 4% to $256 million, with rental operations increasing by 4% and sales revenues decreasing by 18% [9][15] - Adjusted EBITDA decreased by 7% to $96.5 million, and net income decreased by 8% to $42.3 million [9][14] - Diluted earnings per share decreased by $0.15 to $1.72 [9] Business Line Data and Key Metrics Changes - Mobile Modular total revenues decreased by 5% to $181.5 million, with rental revenues increasing by 2% and rental-related services revenues increasing by 5%, offset by a 21% decrease in sales revenues [9][11] - Portable Storage rental revenues increased by 1% year-over-year to $17.3 million, marking the first year-over-year growth since Q1 of the previous year [11] - TRS-RenTelco total revenues increased by 6% to $36.9 million, driven by a 9% increase in rental revenues [12] Market Data and Key Metrics Changes - The rental demand pipelines remained solid entering Q4, indicating a positive outlook for continued growth [6] - Average fleet utilization for Mobile Modular decreased to 72.6% from 77.1% a year earlier, while TRS-RenTelco's utilization improved to 64.8% from 57.3% [10][12] Company Strategy and Development Direction - The company is focused on expanding its modular and portable storage businesses, entering new regions, and growing Mobile Modular Plus and site-related services [7][8] - The company aims to become a national modular solutions provider, capable of serving diverse customer needs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales outlook, citing a strong sales backlog and positive trends in inquiries and booked orders [18][43] - The company is not currently facing immediate headwinds from the federal government shutdown, although potential long-term impacts remain unclear [6] - Management noted that the dynamic tariff environment has been managed with minimal impact on results [7] Other Important Information - The company has revised its full-year financial outlook, expecting total revenue between $935 million and $955 million and adjusted EBITDA between $350 million and $357 million [15] - The company reported net cash provided by operating activities of $175 million and reduced rental equipment purchases to $92 million from $167 million last year [14] Q&A Session Summary Question: Can you address the lumpiness of the sales activity and the run rate in the business? - Management confirmed that sales activity is expected to be more balanced this year, with a strong sales backlog and positive outlook for the year [18] Question: Is the business on an upward trajectory? - Management anticipates continued growth, emphasizing the importance of being well-positioned to meet customer needs [19] Question: How is funding in the education sector? - Management reported solid funding for education projects, with significant bonds passed in California and Texas, indicating a positive outlook for the education business [21] Question: Can you speak to the rate environment across both modular and portable storage? - Management indicated that rates are holding steady, with efforts to maintain rental rates despite some transportation cost adjustments [22] Question: How is visibility for TRS-RenTelco heading into next year? - Management expressed optimism about strong bookings and rental order volume, indicating a positive outlook for the upcoming year [26] Question: Can you elaborate on technology investments? - Management clarified that technology investments are aimed at updating systems and enhancing customer-facing capabilities [37]

Financial Data and Key Metrics Changes - Total revenues increased by 11% to $235.6 million and adjusted EBITDA increased by 3% to $86.5 million [17] - Adjusted EBITDA for Mobile Modular decreased by 1% to $53.1 million despite revenue growth [18] - Net cash provided by operating activities was $110 million compared to $139 million in the prior year [22] - Interest expense decreased by $5.2 million to $7.8 million due to lower average interest rates and debt levels [22] Business Line Data and Key Metrics Changes - Mobile Modular total revenues increased by 8% to $156 million, with rental revenues up by 5% and sales revenues up by 13% [17][18] - Portable Storage total revenue decreased by 3% to $23.3 million, with rental revenues down by 5% year over year but up by 5% sequentially [20] - TRS RenTelco rental revenues grew by 7%, with total revenues increasing by 11% to $36.4 million [21] Market Data and Key Metrics Changes - The Architecture Billings Index (ABI) showed ongoing softness, but quote activity remained healthy [6] - Construction backlogs grew slightly in June, indicating improved activity levels [12] Company Strategy and Development Direction - The company is focused on expanding its modular business and enhancing its modular solutions capabilities [13] - Two tuck-in acquisitions were completed to support modular growth strategy, enhancing fleet and customer relationships [11] - The company is investing in technology upgrades and strategic hiring to support long-term growth [74] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic conditions improving in the next two quarters [15] - The uncertain market conditions have not deteriorated significantly, and slight improvements are being observed [12] - The company anticipates a balanced contribution of sales gross profit in the third and fourth quarters [29] Other Important Information - The company expects total revenue for the year to be between $925 million and $960 million, with adjusted EBITDA between $347 million and $356 million [23] - The benefit to free cash flow from new federal tax legislation is estimated to be between $10 million and $15 million [43] Q&A Session Summary Question: Can you provide more detail on the balance of third and fourth quarter EBITDA? - Management expects a more balanced contribution of sales gross profit in the third and fourth quarters compared to the previous year [28] Question: What is the visibility on the Mobile Modular segment? - Visibility is somewhat fluid due to the current demand environment, with potential delays and uncertainties [30] Question: How is the education rental business expected to perform? - Management is optimistic about the education sector, expecting a good year despite orders being realized later than usual [32] Question: What factors could affect the guidance range? - Sales activity can significantly impact the guidance, with a cautious approach taken for the second half of the year [36] Question: What is the impact of new federal tax legislation on free cash flow? - The estimated benefit to free cash flow is between $10 million and $15 million, which is positive but not a major impact [43] Question: Can you provide an update on the pricing gap for modular rentals? - The gap between current spot rates and average rates on existing rentals remains around 39% lower than the last twelve months rate on new shipments [49] Question: How is the demand for portable storage evolving? - There are signs of improvement in portable storage, with increased quote volumes and unit shipments [50] Question: What is the focus of new sales hires? - New hires are aimed at increasing geographic coverage and enhancing sales capabilities in various market verticals [54] Question: How is Enviroplex performing? - Enviroplex is showing strong growth and improved margins, with a balanced contribution expected in the second half of the year [66]