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

SCOTTSDALE, Ariz., Nov. 06, 2025 (GLOBE NEWSWIRE) -- WillScot Holdings Corporation (WillScot or the Company) (Nasdaq: WSC), a leader in innovative temporary space solutions, today announced third quarter 2025 results, including key performance highlights and market updates, and an update to its 2025 full year outlook.

Q3 2025^{1, 2}

• Generated revenue of $567 million, gross profit margin percentage of 49.7%, net income of $43 million, Adjusted Net Income of $55 million, and Adjusted EBITDA of $243 million at a 42.9% margin.
• Reported diluted and Adjusted Diluted Earnings Per Share of $0.24 and $0.30, respectively.
• Leasing revenues of $434 million declined 4.7% year-over-year. Excluding longer-dated receivables write-offs, leasing revenues were flat sequentially and down 1.3% year-over-year.
• Generated Net cash provided by operating activities of $191 million at a 33.7% margin and Adjusted Free Cash Flow of $122 million at a 21.6% margin.
• Paid down $84 million of outstanding debt, returned $21 million to shareholders through share repurchases and our quarterly cash dividend, and deployed approximately $8 million towards a tuck-in acquisition.
• Amended our revolving credit facility in October, extending the maturity to October 16, 2030. We estimate the amendment will result in an approximate $5 million reduction in annual cash interest expense at current debt levels.
• Updated FY 2025 outlook for Revenue, Adjusted EBITDA, and Net CAPEX.
  

Brad Soultz, Chief Executive Officer of WillScot, commented, Our third quarter 2025 financial results were mixed. We delivered strong cash flow, and the team remains focused on executing the growth and operational excellence initiatives we outlined in March at our 2025 Investor Day. Our customer service team made significant progress improving our collections processes where we are realizing meaningful improvements in customer satisfaction and steady improvements in days sales outstanding, as well as a temporary increase in accounts receivable write-offs. Leasing revenues excluding write-offs were stable sequentially, with favorable rate and mix offsetting year-over-year volume headwinds. With that impact of increased write-offs largely confined to 2025, we are focused on the areas in our portfolio where we believe strong demand and our differentiated products and services will drive growth into 2026, particularly in Enterprise Accounts and more differentiated service offerings. With ongoing uncertainty around the market trajectory, we remain agile in terms of controlling what we can control, specifically adjusting our cost structure and implementing our operating improvement initiatives to maintain our free cash flow and return profile. I want to thank our entire team for its steadfast dedication and hard-work which are the cornerstones to providing value to our customers and shareholders.

Matt Jacobsen, Chief Financial Officer of WillScot, commented, Third quarter 2025 revenue of $567 million and Adjusted EBITDA of $243 million reflect isolated events that were not fully contemplated in our prior fiscal year 2025 outlook. Lower year-over-year Canadian and seasonal retail storage revenues were softer than our expectations, and our accounts receivable write-offs increased $20 million year-over-year as we cleaned up aged receivables that had largely been reserved previously through the provision for credit losses in SG&A. Approximately $25 million of the $32 million of total write-offs were recorded as a reduction to leasing revenue representing an increase of $15.5 million year-over-year. When excluding the revenue impact of these write-offs, leasing revenue was essentially flat on a sequential basis in the third quarter, which we believe reflects underlying stability in the portfolio. Additionally, both our Adjusted EBITDA Margin of 42.9%, which expanded 60 basis points sequentially in the third quarter, and Adjusted Free Cash of $122 million were consistent with our expectations as we calibrated variable costs with demand and achieved further progress on our working capital management initiatives.

Jacobsen continued, Based on our end market demand expectations for the remainder of 2025, including seasonal retail demand, we have adjusted our expectations for the fourth quarter to approximately $545 million of revenue and $250 million of Adjusted EBITDA. We believe this outlook is conservative and provides sufficient cushion to meet or exceed those levels while establishing an initial baseline for 2026.

Strategic Priorities
Tim Boswell, President and Chief Operating Officer of WillScot, concluded, As we head into 2026, the priorities facing our team are clear. First, we are focused on driving an organic revenue inflection in the business. We are seeing signs of stability in rental revenues and our field sales organization, with strong growth potential in Enterprise Accounts, and favorable mix shifts towards our more differentiated offerings. We intend to build upon these strengths while stabilizing our more transactional product lines. Second, we are driving our operating excellence initiatives with clear progress both in our cash generation, as well as our customer satisfaction and net promoter scores. Third, we are actively developing talent at all levels in the organization, both in the field and in our support functions with clear performance management and accountability. Lastly, we believe we have multiple balance sheet and asset optimization opportunities across working capital, our fleet, and our real estate footprint that all support ROIC expansion. Together, we believe that these pillars support a return to growth, unlocking the significant operating leverage embedded in our platform, and driving sustainable returns on capital, consistent with both our long-term financial targets and our value creation roadmap for shareholders.

Network Optimization Initiative
In 2024, we consolidated the WillScot and Mobile Mini field sales and operations teams into a single leadership structure. In the beginning of 2025, we began evaluating our real estate footprint on a property-by-property basis to reduce our overall real estate costs opportunistically while maintaining market coverage. To exit certain real estate positions, we disposed of certain rental fleet units, with a primary focus on long idle, non-standard or higher repair cost units, while maintaining adequate idle fleet to meet projected demand. During the three and nine months ended September 30, 2025, rental equipment identified for disposal was depreciated to its salvage value, resulting in incremental depreciation of rental equipment of $7.3 million and $26.6 million, respectively. Management is considering expanding this program to evaluate all real estate leases maturing in the next four or five years for consolidation opportunities, and we estimate the net book value of rental fleet units that could be disposed as part of this optimization to be in the range of $250 million to $350 million, which would be recognized as incremental depreciation expense as properties and rental fleet units are identified for exit. We believe this initiative could reduce leased acreage by more than 20% and reduce expected annual real estate cost increases by $20 million to $30 million. To the extent we finalize a multi-year network optimization plan by the end of 2025, and the plan is approved by the Board of Directors, we may accelerate the recognition of the $250 million to $350 million of incremental depreciation expense on identified rental equipment into 2025 as a non-cash restructuring charge.

Capitalization and Liquidity Update^{1, 2, 3}
As of and for the three months ended September 30, 2025, except where noted:

• Net cash provided by operating activities was $191 million, resulting in $122 million of Adjusted Free Cash Flow after Net CAPEX investments.
• Invested $69 million of Net CAPEX, including $81 million of capital expenditures for rental equipment, supporting both maintenance capex needs and growth in new product lines.
• Total debt was $3,617 million and net debt, or total debt net of cash and cash equivalents, was $3,603 million, representing an $84.4 million reduction in our total debt balance in the quarter. Our next debt maturity is in 2028 after completion in October of the extension of our asset backed revolving credit facility (ABL Facility) to October 2030.
• Availability under our ABL Facility, after reducing the aggregate facility size to $3.0 billion in October to reduce undrawn line fees, was approximately $1.5 billion.
• On October 16, 2025, we amended our ABL Facility to reduce borrowing costs and extend the maturity date to October 16, 2030. Weighted average pre-tax interest rate, inclusive of $1.25 billion of fixed-to-floating swaps of 1 month SOFR at 3.55%, was approximately 5.7%. Estimated annual cash interest expense based on our current debt structure and benchmark rates is approximately $209 million, or approximately $218 million inclusive of non-cash amortization of deferred financing fees. Our debt structure is approximately 89% / 11% fixed-to-floating after giving effect to all interest rate swaps and the ABL amendment completed in October.
• Net Debt to Adjusted EBITDA was at 3.6x based on our last 12 months Adjusted EBITDA of $1,006 million.
• Repurchased 296,805 shares of Common Stock for $8 million, contributing to a 2.7% reduction in our outstanding share count over the 12 months ending September 30, 2025.
• Paid Common Stock quarterly cash dividend of $0.07 per share on September 17, 2025 to shareholders of record as of September 3, 2025.

Q4 2025 and 2025 Full Year Outlook^{1, 2}
The Company's updated outlook is based on current end market demand expectations for the remainder of 2025, including seasonal retail demand. This outlook uses approximate figures, reflects a more conservative approach than taken by the Company in the past and is subject to risks and uncertainties, including those described in Forward-Looking Statements below.

Non-GAAP Financial Measures 

This press release includes non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Weighted Average Diluted Shares Outstanding, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Return on Invested Capital, Net CAPEX, and Net Debt to Adjusted EBITDA ratio. Adjusted EBITDA is defined as net income (loss) plus net interest (income) expense, income tax expense (benefit), depreciation and amortization adjusted to exclude certain non-cash items and the effect of what we consider transactions or events not related to our core business operations, including net currency gains and losses, goodwill and other impairment charges, restructuring costs, costs to integrate acquired companies, costs incurred related to transactions, non-cash charges for stock compensation plans and other discrete expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted Net Income is defined as net income (loss) plus certain non-cash items and the effect of what we consider transactions or events not related to our core business operations, including restructuring costs, goodwill and other impairment charges, costs to integrate acquired companies, costs incurred related to transactions, depreciation expense related to the implementation of a network optimization initiative, equity-based executive transition costs and other discrete expenses. Adjusted Diluted Earnings Per Share is defined as Adjusted Net Income divided by Adjusted Diluted Weighted Average Common Shares Outstanding. The calculation of Adjusted Weighted Average Diluted Shares Outstanding includes shares related to stock awards that are dilutive for Adjusted Diluted Earnings Per Share. Adjusted Free Cash Flow is defined as net cash provided by operating activities; less purchases of rental equipment and property, plant and equipment and plus proceeds from sale of rental equipment and property, plant and equipment, which are all included in cash flows from investing activities; excluding one-time, nonrecurring payments for transaction costs from terminated acquisitions. Adjusted Free Cash Flow Margin is defined as Adjusted Free Cash Flow divided by revenue. Return on Invested Capital is defined as adjusted earnings before interest and amortization divided by average invested capital. Adjusted earnings before interest and amortization is defined as Adjusted EBITDA (see definition above) reduced by depre