WillScot Holdings Corporation Q3 FY2025 earnings call

• Worthing Jackman discussed his role as Executive Chairman, strategic priorities including mix shift to higher-value offerings and optimization plan for branch network and fleet. - Brad Soultz emphasized alignment to deliver commitments and trust in Tim Boswell's leadership. - Matt Jacobsen reviewed Q3 financials, leasing revenue trends, accounts receivable cleanup, adjusted EBITDA, free cash flow, CapEx, debt repayment, and real estate/fleet optimization. - Tim Boswell outlined strategic priorities: reestablish organic growth via local market, enterprise accounts, adjacency offerings; operational excellence and customer experience improvement; developing human capital; balance sheet optimization.

Revenue for the third quarter was $567 million, down $34 million year-over-year. Leasing revenues were $434 million, a 5% year-over-year decline, but excluding write-offs, only down 1.3% year-over-year. Modular portfolio: average monthly rates improved 5%, offsetting a 6% volume decline. Storage portfolio: rate and mix improvements of 10% partially mitigated a 14% volume headwind. VAPS revenues were flat year-over-year despite volume headwinds. Adjusted EBITDA for the quarter was $243 million, a 42.9% margin, up 60 basis points sequentially. Adjusted free cash flow in Q3 was $122 million, with year-to-date adjusted free cash flow at $397 million.

• Revised 2025 outlook: Q4 2025 revenue expected to be approximately $545 million and adjusted EBITDA approximately $250 million. Full-year 2025: revenue ~$2.26 billion, adjusted EBITDA ~$970 million, adjusted free cash flow ~$475 million. - More conservative guidance approach to minimize negative surprises.

• Cyclical headwinds and intense competition. - Uncertainty around end market demand, competition in commoditized lines, sales execution issues. - Impact of federal government shutdowns (minor impact so far).

Q: Timothy Mulrooney asked about revenue outlook, seasonal storage, write-offs, Canada market, clearspan/perimeter ramp.

A: Timothy Boswell responded discussing seasonal storage impact, write-off activity, Canadian market slowdown, and clearspan/perimeter ramp challenges.

Q: Andrew J. Wittmann asked about fleet disposal, final disposition, fleet write-down impact.

A: Matthew Jacobsen and Timothy Boswell responded discussing fleet disposal intent, excess fleet, and cost savings associated with optimization.

Q: Angel Castillo Malpica asked about operational strategy changes since Investor Day.

A: Worthing Jackman responded endorsing Investor Day initiatives and expanding to include asset and network optimization.

Q: Kyle Menges asked about local/regional customer trends, enterprise customer growth, VAPS competition.

A: Timothy Boswell responded discussing local market performance, enterprise customer growth expectations, and VAPS cross-selling opportunities.

Q: Philip Ng asked about organic growth acceleration, go-to-market strategy pivot.

A: Timothy Boswell responded outlining emphasis on organic volume, go-to-market pillars, and market competition approach.

Q: Ronan Kennedy asked about fleet optimization lessons learned, changed guiding approach.

A: Matthew Jacobsen and Worthing Jackman responded discussing fleet optimization focus on real estate and changed guiding to minimize negative surprises.

Q: Scott Schneeberger asked about 2026 volume/price trends, asset optimization focus.

A: Timothy Boswell and Matthew Jacobsen responded discussing 2026 volume/price trends and asset optimization focus on real estate cost reduction.