WillScot Holdings Corporation Q4 FY2025 earnings call

• Leadership transition: Tim Boswell excited about company's position, team alignment, and culture. • Business performance: Total revenue down 2% in Q4 excluding write-offs, adjusted EBITDA in line with guidance. Lease portfolio stabilizing. • Strategic priorities: 2026 focus on returning to organic growth. Sales staffing up 13% with greater tenure; enterprise accounts accelerating with 7% full year and 10% Q4 growth; expanded offering and customer experience complementing efforts. • Operational initiatives: Network optimization plan, enhanced scheduling and route optimization platform, improvements in support center operations for cash collections and customer service.

In the fourth quarter, total revenue was $566 million, down 2% year-over-year excluding write-offs, with the decline mainly from lower seasonal storage demand. Adjusted EBITDA was $250 million, margin 44.2%. Full year 2025 total revenue was $2.28 billion, adjusted EBITDA $971 million, margin 42.6%. Leasing revenue: modular space leasing was essentially flat, portable storage leasing down due to lower volumes but partially offset by climate controlled; VAPS revenue flat in absolute dollars with 100 basis points year-over-year penetration increase to 17.8% of total revenue. Adjusted free cash flow in Q4 was $91 million, full year $489 million. Net CapEx in 2025 was $273 million, total debt under $3.6 billion with leverage ratio 3.6x. Network optimization plan approved, expected to realize $25 - $30 million annual real estate cost savings with noncash restructuring charge of $302 million in Q4.

• 2026 initial guidance is conservative, not assuming business trend improvement. Sees potential for positive organic revenue growth inflection in second half. • Q1 2026 guidance: Approximately $515 million revenue and $200 million adjusted EBITDA. • 2026 outlook: Revenue ~$2.175 billion, adjusted EBITDA $900 million. Net CapEx expected to be ~$275 million. • Free cash flow: Adjusted free cash flow guidance around $415 million, with CapEx guide based on demand-driven approach.

Q: Andrew Wittmann asks about order book, seasonality, and VAPS.

A: Tim Boswell talks about larger RFP wins in enterprise accounts, VAPS penetration opportunity.

Q: Angel Castillo asks about modular orders and free cash flow.

A: Tim and Matt Jacobsen discuss order book conversion, free cash flow guidance.

Q: Steven Ramsey asks about enterprise revenue drivers.

A: Tim Boswell says enterprise growth is volume-driven.

Q: Kyle Menges asks about portable storage rate and AI.

A: Tim and Matt Jacobsen talk about portable storage mix and AI use.

Q: Benjamin Luke McFadden asks about customer sentiment and subcontractor work.

A: Tim Boswell talks about improved customer sentiment and referral program.

Q: John Ronan Kennedy asks about segment assumptions and strategic targets.

A: Matthew Jacobsen and Tim Boswell discuss segment assumptions and strategic initiative progress.

Q: Faiza Alwy asks about conservatism and data center.

A: Matthew Jacobsen and Tim Boswell talk about conservatism and data center activity.

Q: Philip Ng asks about nonres square footage starts and end market.

A: Tim Boswell talks about activation volumes and outperformance.

Q: Daniel Hultberg asks about EBITDA bridge and M&A.

A: Tim Boswell and Matthew Jacobsen discuss EBITDA bridge and M&A guidance.