Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $567 million, down $34 million year-over-year, primarily due to increased accounts receivable cleanup of approximately $20 million [9] - Adjusted EBITDA was $243 million for the quarter, reflecting a margin of 42.9%, which was up 60 basis points sequentially from Q2 [10] - Adjusted free cash flow in the quarter was $122 million, representing a 22% margin or $0.67 per share [12] Business Line Data and Key Metrics Changes - Leasing revenues were $434 million in Q3, a 5% year-over-year decline, but only down 1.3% when excluding write-offs related to accounts receivable cleanup [10][11] - Sales in new and rental units increased by 10% year-over-year [9] - VAPS revenues were flat year-over-year despite volume headwinds, while storage portfolio rates improved by 10% despite a 14% volume decline [11] Market Data and Key Metrics Changes - The Canadian market has seen a slowdown, impacting approximately $130 million of total revenue [34] - The company noted that the traditional storage business remains weak, while climate-controlled storage orders and activations were up approximately 60% year-over-year [48] Company Strategy and Development Direction - The company aims to shift revenue towards more differentiated, higher-value offerings to create consistent results and reduce variability from commoditized lines of business [5][6] - A multi-year network optimization plan is underway to enhance operational efficiency and reduce structural costs, with an estimated $250 million-$350 million of rental fleet units identified for disposal [16][17] - The focus is on reestablishing organic growth through local market initiatives and enterprise accounts, with expectations for enterprise accounts revenue to grow mid to high single digits into 2026 [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for a more conservative approach to guidance to minimize the risk of negative surprises, with revised full-year guidance reflecting current operating conditions [18][19] - The company expects Q4 2025 revenue of approximately $545 million and adjusted EBITDA of around $250 million, with full-year 2025 revenue projected at approximately $2.26 billion [18] Other Important Information - The company has amended and extended its ABL Credit Facility, reducing estimated annual cash borrowing costs by approximately $5 million and extending maturity through October 2030 [14][15] - The company has identified fleet with a net book value of $27 million for disposal, which will help reduce real estate costs and improve operational efficiency [16] Q&A Session Summary Question: Revenue outlook and underperformance - Management identified seasonal storage headwinds and write-off activities as significant contributors to lower revenue outlook, with the Canadian market also underperforming [33][34] Question: Impact of federal government shutdowns - Management reported negligible disruption from federal government shutdowns, maintaining optimism about future opportunities in government sectors [36] Question: Fleet review and potential disposals - The company plans to dispose of excess fleet, which is expected to be around 10% of total fleet, to optimize costs while maintaining adequate market coverage [42][43] Question: Trends in order book and activations - The modular order book is down about 1% year-over-year, but activations have shown low single-digit growth recently, while traditional storage remains weak [48] Question: Changes in operational strategy - Management confirmed that the operational strategy aligns with initiatives laid out at Investor Day, with a focus on asset and network optimization [54] Question: Capital expenditure and growth strategy - Management indicated that the disposal of surplus fleet will not constrain future growth, and capital allocation will focus on differentiated product lines [58][69]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was $249 million, representing a 42.3% margin, an increase of 140 basis points sequentially [6][20] - Adjusted free cash flow was $130 million with a margin of 22.1%, up 80 basis points year over year [22] - Total revenue was $589 million, with leasing revenues at $443 million, reflecting a 3% year over year decline [18] Business Line Data and Key Metrics Changes - Modular units on rent increased by 4% year over year, while storage units on rent decreased by 1% [11][52] - Climate-controlled storage units on rent rose by 30% year over year, driven by both organic growth and acquisition [13] - Value-added products and services (VAPS) revenues increased by approximately 7% year over year for modular units and about 12% for storage units [14] Market Data and Key Metrics Changes - Demand for large projects remains strong, while smaller projects are experiencing a wait-and-see approach from customers due to economic uncertainties [8][64] - The overall order book is up about 1% year over year, with modular units on rent still showing strength [78][86] Company Strategy and Development Direction - The company is focused on enhancing enterprise account relationships and improving execution across the field sales team [10] - Continued investments in technology and process improvements are aimed at optimizing customer experience and unlocking working capital opportunities [7][15] - The company aims to achieve $3 billion in revenue, $1.5 billion in adjusted EBITDA, and $700 million in adjusted free cash flow over the next three to five years [7] Management's Comments on Operating Environment and Future Outlook - Management expects second half demand to be below prior expectations due to uncertainties in trade and U.S. monetary policies [8] - The company is optimistic about the strategic initiatives in place and their potential to drive future success [9] - Recent tax legislation is expected to positively impact cash flow and reduce federal cash taxes significantly [28] Other Important Information - The company invested $75 million in net CapEx in Q2, a 37% increase from the previous year, focusing on refurbishments and acquisitions [23] - Share repurchases and dividends returned $53 million to shareholders during the quarter [25] Q&A Session Summary Question: Can you elaborate on the modular side and the improvements in rental rates and utilization? - Management noted that modular units on rent were up 4% year over year, with flex units specifically up 30% year over year, indicating a positive mix shift [33][34] Question: What is the outlook for the second half of the year? - Management indicated that while larger projects are performing well, smaller projects are still facing headwinds, leading to a cautious outlook for the second half [36][38] Question: Can you clarify the drivers behind the sequential margin expansion expected in Q3? - The expected margin expansion is driven by improvements in delivery and installation margins and SG&A leverage [44] Question: What is the impact of the new federal tax legislation on cash flow? - The tax legislation is expected to eliminate meaningful federal cash taxes for 2025, providing a positive cash flow impact [67][68] Question: How is the order book trending? - The order book is up 1% year over year, with strong performance in the modular business, although some seasonal dynamics are affecting storage [78][81]

Core Viewpoint - Thailand, despite being questioned about its economic appeal, remains a preferred destination for Chinese companies looking to expand overseas due to its resilient consumer market, strategic location, and commitment to industrial upgrading [1][24]. Group 1: Economic and Trade Relations - Thailand's GDP reached approximately $526.8 billion in 2024, positioning it as the second-largest economy in ASEAN, with a growth rate of 2.5% [22]. - In 2024, bilateral trade between China and Thailand amounted to $133.98 billion, maintaining Thailand's status as China's largest trading partner [18]. - Chinese direct investment in Thailand has seen a decline, with Singapore surpassing China as the largest source of foreign direct investment (FDI) in 2024 [18][20]. Group 2: Investment Opportunities - Thailand's consumer market is the third largest in ASEAN, with a total consumption of $302.6 billion in 2023, showing a compound annual growth rate of 3.4% over the past nine years [25]. - The Eastern Economic Corridor (EEC) has attracted significant FDI, with $12.7 billion in 2023, representing 80% of the total foreign investment in Thailand [29]. - Thailand's strategic location and developed logistics infrastructure make it a key trade hub in Southeast Asia, facilitating access to neighboring markets [26][27]. Group 3: Industry and Market Trends - Thailand is recognized as the largest automotive manufacturing center in Southeast Asia, producing over 1.8 million vehicles annually, which accounts for nearly 50% of the region's output [16]. - The electronics manufacturing sector in Thailand is robust, with the country being the second-largest producer of hard disk drives globally [16]. - The Thai e-commerce market is projected to reach $32.7 billion by 2024, with social commerce reshaping consumer shopping preferences [39]. Group 4: Challenges and Future Outlook - Thailand faces demographic challenges, with an aging population and declining birth rates, which may impact its labor market and economic growth potential [23]. - Despite these challenges, Thailand's commitment to industrial transformation and digital economy initiatives presents new opportunities for investment and collaboration [42].