WillScot Reports First Quarter 2025 Results and Reaffirms 2025 Full Year Outlook

PHOENIX, May 01, 2025 (GLOBE NEWSWIRE) -- WillScot Holdings Corporation (“WillScot” or the “Company”) (Nasdaq: WSC), a leader in innovative temporary space solutions, today announced first quarter 2025 results including key performance highlights and market updates.

Q1 20251, 2

• Generated revenue of $560 million, gross profit margin percentage of 53.7%, net income of $43 million and diluted earnings per share of $0.23.
• Increased average monthly rates, inclusive of Value-Added Products ("VAPS"), for modular space and portable storage units 5.2% and 1.9%, respectively, offsetting much of the year-over-year impact from decreased units on rent.
• Delivered Adjusted EBITDA of $229 million at a 40.9% margin.
• Generated net cash provided by operating activities of $207 million at a 36.9% margin. Adjusted Free Cash Flow was $145 million at a 25.9% margin.
• Returned $45 million to shareholders through a combination of repurchasing approximately 1.1 million shares of Common Stock for $32 million and paying first Common Stock quarterly cash dividend totaling $13 million.
• Reaffirmed previous FY 2025 Revenue, Adjusted EBITDA, and Net CAPEX outlook ranges given both the resiliency of our recurring lease revenues and recent improvements in our pending order book.

Brad Soultz, Chief Executive Officer of WillScot, commented, “Our first quarter financial results were consistent with our expectations and support reaffirming our previously issued full year 2025 outlook. We delivered $145 million of Adjusted Free Cash Flow at a 26% margin, returned $45 million to shareholders, and progressed our acquisition pipeline. In addition to our focus on day-to-day execution, we continued investing in the business to support our medium-to-longer term margin expansion and organic revenue growth plans discussed at our Investor Day on March 7, 2025."

Soultz continued, "Despite macro-related end-market uncertainty, our pending order book is up 7% year-over-year, which we believe would support our expected new lease activation levels in the second quarter. Importantly, we have multiple performance levers that allow us to achieve our growth goals through different paths and end-market backdrops. As always, we will remain nimble and make adjustments as needed along the way. I have tremendous confidence in our team's ability to achieve our three-to-five year financial milestones of $3 billion in revenue, $1.5 billion in Adjusted EBITDA, and $700 million in Adjusted Free Cash Flow."

First Quarter 2025 Results1

Matt Jacobsen, Chief Financial Officer of WillScot, commented, “First quarter 2025 revenues of $560 million and Adjusted EBITDA of $229 million were both in line with our expectations and support our full year outlook, which remains unchanged. We continue to invest in our fleet to support our customers and invested $62 million of Net CAPEX in the first quarter. Given our first quarter results and the build of our pending order book since the beginning of the year, we remain confident in our full year 2025 outlook range. And our consistent Adjusted Free Cash Flow generation across various market environments continues to be a strength of our business model."

Jacobsen continued, "Our strong balance sheet, further bolstered by the successful refinancing of our 2025 senior secured notes during March, provides us continued financial flexibility to strategically allocate capital towards accretive investments and support our future growth priorities. In turn, we believe these moves will deliver sustained value to our shareholders, in addition to our quarterly cash dividends and opportunistic share repurchases, which together totaled $45 million during the first quarter."

Capitalization and Liquidity Update1, 2, 3
As of and for the three months ended March 31, 2025, except where noted:

• Net cash provided by operating activities was $207 million, resulting in $145 million of Adjusted Free Cash Flow after Net CAPEX investments.
• Invested $62 million of Net CAPEX in the quarter, primarily supporting growth in new product lines.
• Completed an offering of $500 million of its 6.625% senior secured notes due 2030 on March 26, 2025 and subsequently redeemed the outstanding $527 million senior secured notes due June 2025. Our next debt maturity is in 2027.
• Maintained availability under our asset backed revolving credit facility of approximately $1.6 billion.
• Total debt was $3,622 million and net debt, or total debt net of cash and cash equivalents, was $3,612 million.
• Weighted average pre-tax interest rate, inclusive of $1.25 billion of fixed-to-floating swaps at 3.55%, was approximately 5.9%. Annual cash interest expense based on the current debt structure and benchmark rates is approximately $214 million, or approximately $230 million inclusive of non-cash deferred financing fees. Our debt structure is approximately 89% / 11% fixed-to-floating after giving effect to all interest rate swaps.
• Net Debt to Adjusted EBITDA was at 3.5x based on our last 12 months Adjusted EBITDA of $1,044 million.
• Repurchased 1,094,932 shares of Common Stock for $32 million in the first quarter of 2025, contributing to a 3.9% reduction in our outstanding share count over the 12 months ending March 31, 2025.
• Paid first Common Stock quarterly cash dividend of $0.07 per share on March 19, 2025 to shareholders of record as of March 5, 2025.

2025 Full Year Outlook1, 2
Willscot reaffirmed its FY 2025 Revenue, Adjusted EBITDA, and Net CAPEX outlook ranges provided in February of 2025. This outlook is subject to risks and uncertainties, including those described in "Forward-Looking Statements" below.