WSC

Even though WillScot Mobile Mini (currently trading at $23.58 per share) has gained 6.7% over the last six months, it has lagged the S&P 500’s 13.1% return during that period. This may have investors wondering how to approach the situation. Is now the time to buy WillScot Mobile Mini, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We don’t have much confidence in WillScot Mobile Mini. Here are three reasons we avoid WSC, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, WillScot Mobile Mini grew its sales at a tepid 5.7% compounded annual growth rate. This fell short of our benchmark for the industrials sector. Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions. WillScot Mobile Mini’s flat EPS over the last five years was below its 5.7% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, WillScot Mobile Mini’s ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We see the value of companies helping their customers, but in the case of WillScot Mobile Mini, we’re out. With its shares trailing the market in recent months, the stock trades at 19.9× forward P/E (or $23.58 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are better investments elsewhere. Let us point you toward a dominant aerospace business that has perfected its M&A strategy. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

WillScot Mobile Mini delivered Q2 results that surpassed Wall Street’s revenue and profit expectations, driven by robust demand for large project activations and expansion of its modular leasing and services segment. Management emphasized that strong execution in commercial initiatives, particularly in verticals like infrastructure, manufacturing, and special events, supported top-line growth. CEO Tim Boswell highlighted that “delivery and installation revenue increased by over 25%, which is extraordinary and builds upon the strong growth we were seeing in Q1.” The company acknowledged temporary margin compression as it invested to support elevated activity levels and fleet upgrades. Is now the time to buy WSC? Find out in our full research report (it’s free). Revenue: $612.2 million vs analyst estimates of $585.4 million (3.9% year-on-year growth, 4.6% beat) Adjusted EPS: $0.28 vs analyst estimates of $0.25 (12.5% beat) Adjusted EBITDA: $227.9 million vs analyst estimates of $224.1 million (37.2% margin, 1.7% beat) The company lifted its revenue guidance for the full year to $2.3 billion at the midpoint from $2.25 billion, a 2.2% increase EBITDA guidance for the full year is $920 million at the midpoint, in line with analyst expectations Operating Margin: 19.2%, down from 21.5% in the same quarter last year Market Capitalization: $4.00 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kyle Menges (Citigroup) asked about risks to modular rates from the large project mix. CEO Tim Boswell replied there was no risk of rate declines, emphasizing that newer fleet products support higher modular rates and that large projects typically enhance rate and duration. Tim Mulrooney (William Blair) questioned whether higher CapEx for differentiated products would impact returns. CFO Matt Jacobsen explained these products maintain strong returns, with investment focused on complex projects requiring planning and execution, and that underwriting thresholds remain unchanged. Scott Schneeberger (Oppenheimer) asked about the World Cup’s impact and sustainability of project demand. Jacobsen clarified that the World Cup contributed about 2,000 units and $13 million in Q2, with a step-down expected, but underlying project activity remains strong and sustainable. Angel Castillo (Morgan Stanley) inquired about rental rate trends and visibility into 2027. Boswell said rate environments were stable, with large projects creating fleet constraints that support pricing. He noted visibility into 2027 is driven by a diverse pipeline and robust win rates. Ronan Kennedy (Barclays) requested clarity on value-added products (VAPS) attach rates and margin expansion. Boswell explained VAPS penetration is highest in specific categories, and margin expansion will be driven by normalization of delivery and installation mix, cost leverage, and operational efficiencies. In the coming quarters, the StockStory team will be watching (1) whether large project activations and enterprise account momentum persist as transactional segments remain soft, (2) the pace and effectiveness of technology rollouts like route optimization in supporting margin recovery, and (3) further traction in new product categories such as climate-controlled storage and perimeter solutions. Continued visibility into 2027 project demand and disciplined fleet investments will also be key markers of execution. WillScot Mobile Mini currently trades at $22.05, down from $25.82 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:30 p.m. ET Senior Director of Investor Relations - Charlie Woolhutter Executive Chairman - Worthing Jackman President and Chief Executive Officer - Tim Boswell Chief Financial Officer - Matt Jacobsen Operator: Welcome to WillScot's second quarter 2026 earnings conference call. My name is Sheree, and I will be your operator for today's call. Please note that this conference is being recorded. I will now turn the call over to Charlie Woolhutter, Senior Director of Investor Relations. Charlie, you may begin. Charlie Woolhutter: All right. Thank you, Sheree. Good afternoon, and welcome to our second quarter 2026 earnings call. With me in the room today are Worthing Jackman, our Executive Chairman, Tim Boswell, President and Chief Executive Officer, and Matt Jacobsen, our Chief Financial Officer. Today's presentation material may be found on our investor relations website at investors.willscot.com. Before we begin, I'd like to direct your attention to slide two of our posted presentation containing our safe harbor statement. We will be making forward-looking statements during the presentation and our Q&A session. Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control. As a result, our actual results may differ materially from comments made on today's call. For a more complete description of the factors that could cause actual results to differ and other possible risks, please refer to the safe harbor statements in our presentation and our filings with the SEC. Now it's my pleasure to turn the call over to our President and Chief Executive Officer, Tim Boswell, to begin today's discussion. Tim Boswell: Thank you, Charlie, and good afternoon, everyone. We appreciate you joining us on today's call for a discussion of the operating environment, our second quarter 2026 results, strategic priorities, and expectations for the remainder of the year. Our second quarter results reflect steady progress across both our commercial and operational initiatives and highlight the capabilities that continue to position us well to serve our customers and create long-term value for shareholders. A top priority this year has been returning to organic top-line growth, which we achieved in the second quarter and are positioned to sustain through the remainder of the year. Matt will provide additional detail on the quarter's financial results, the key takeaways are that activation volumes in our order book continue to be quite strong in certain segments. We are increasing variable expenses and fleet investments to support that demand. The combination makes us more confident in our outlook for the remainder of the year and sustained lease revenue growth. Total revenue of $612 million was up 4% year-over-year in the quarter, driven by leasing and services revenue growth of 6%. Within that, delivery and installation revenue increased by over 25%, which is extraordinary and builds upon the strong growth we were seeing in Q1. Matt will touch on the impact of the World Cup, but modular activations were up 16% year-over-year in the quarter, and modular pending orders are up 13% year-over-year sitting here today. In a backdrop where overall non-residential construction square footage is still declining, I'm really encouraged by the opportunities our team is finding across our target verticals as well as our win rates. There is clear progress supporting these results across each of our commercial priorities to improve local market execution, expand our enterprise accounts and verticals, and grow our value-added space solutions. Staffing is up approximately 5% across our sales organization, with initiatives in place to continue improving their productivity. Our enterprise accounts and vertical strategies are still in their early innings from an execution standpoint, though showing great traction with enterprise account revenue up 21% year-over-year in the quarter. We expect that revenue from our newer offerings, such as climate-controlled storage, Clearspan industrial tenting, and perimeter solutions, will exit 2026 on roughly a 20% growth rate, supplementing the strength we are seeing in our modular space offering. Our commercial strategy is focused, execution is improving, it's driving a higher quality revenue mix long term, and it is allowing us to be highly competitive in the segments of the market where we're seeing the biggest opportunities. The opportunities we're seeing are diverse across verticals. We continue to support critical infrastructure investments, manufacturing projects, power generation facilities, data centers, large-scale retail operations, and special events of all sizes. We believe our expanded offering of space solutions, our operational capabilities, and our scale where we specialize continue to differentiate us in these environments, and that distinction is becoming increasingly clear, particularly at the enterprise account level. In our field operations, it's been an extremely dynamic year, and I've been very impressed by how our teams have rallied together and are executing across multiple priorities. Our branch network is advancing our fleet readiness initiatives with modular work order and refurbishment activity up 17% year-over-year in the quarter, supporting elevated activation levels. At the same time, our team is on track executing our fleet and real estate disposition plan. Taken together with the planned new fleet investments this year, 2026 will likely represent the most significant upgrade to our modular fleet in company history. With all of that going on, we moved over 2,000 fleet units in and out of World Cup host cities over the last three months and are redeploying them to new customer opportunities. Our safety performance continues to improve year-over-year with fewer recordable incidents despite increased activity levels. We are executing in the right way, consistent with our culture and company values. Looking to the second half of the year, our commercial pipeline suggests that these activity levels will continue. We are rolling out our route optimization and dispatch software platform, which will be a benefit heading into 2027. We're continuing to make improvements in other business processes within our shared services, which again, have potential benefit to both margins and the customer experience. Together, all these initiatives improve execution, enhance customer outcomes, and further differentiate WillScot's long-term competitive positioning. I'd like to thank all of our team members who are aligned and executing against these priorities. Looking over the remainder of the year and how we thought about the guidance, we're still very conscious of the bifurcation in demand levels between large and small projects, and recognize that we continue to face headwinds among our more transactional product lines. We're also seeing a lot of strength across the business, much of which is internally driven. We're continuing to take a balanced approach with our updated outlook while remaining squarely focused on executing the commercial and operational priorities that are within our control. We are modestly increasing our previously issued full-year 2026 outlook for revenue and adjusted EBITDA. The rationale for the revenue increase I covered in the commentary. Matt will discuss the margin cadence through the remainder of the year, though the margin impacts we see in Q2 and in the outlook are normal in our business and to be expected in periods with sharp changes in activity. I think we've got different pathways to meet the forecast that would set us up well for 2027 with a solid lease revenue trajectory and margin expansion opportunity. Lastly, on capital allocation, the business continues to be highly cash generative and capital efficient on a relative basis, even in periods of significant investment. Those who have followed us for a while know that our capital investments are entirely demand-driven, and that agility is an important attribute of the business. We have few long-term supply commitments or constraints, and our ability to ramp up our own work order production volumes rapidly is a significant competitive advantage. We increased our outlook for net CapEx based on the reality that we're seeing a lot of interesting opportunities. Utilization levels are rising in key product categories. The commercial pipeline is stretching into 2027, and we remain very confident in the returns we can generate on organic investment. This level of investment is higher than we would expect over time in our long-term capital allocation framework, but it's the best possible allocation both for the business and shareholders right now. Overall, I'm pleased with the start to the year and the continued momentum we are seeing across the business and our internal initiatives. It's been several years since we've seen these activity levels, and based on the improvements to the business over that period, we're extremely well positioned to execute and win in this environment. The dedication, focus, and capability of our team have been humbling, and I am incredibly proud of what we're building together and excited about our prospects. Every day, we're discovering new commercial opportunities, strengthening our already differentiated capabilities, and reinvesting strategically in the business with a focus on long-term value creation. Thank you again to the entire WillScot team for the nice work in the first half of the year. I'll now turn the call over to Matt to discuss our financial results and outlook in more detail. Matt Jacobsen: Thanks, Tim. Our second quarter results exceeded our expectations entering the quarter and reflected continued progress against our objective of returning the business to sustainable leasing revenue growth. Large project demand remained strong. The order book continued to grow, we saw further evidence that the commercial initiatives we've discussed over the past several quarters are translating into improved underlying activity levels. Total revenue for the quarter was $612 million, up 4% year-over-year, surpassing our expectation of approximately $585 million. Leasing and services revenue increased 6% year-over-year, driven by continued strength in modular activation activity that drove delivery and installation revenue up 25% year-over-year. This was supported in part by activity related to the World Cup event, even more so by other large project deployments. Lastly, leasing revenue increased 2% year-over-year to approximately $450 million, marking an important milestone as we continue to progress towards broader leasing revenue growth across the portfolio. I'll touch on this a bit more in a moment. Net income in the quarter was $47 million, diluted earnings per share was $0.26, which was flat to the prior year. Adjusted net income in the quarter was $52 million, adjusted diluted earnings per share was $0.28. Adjusted EBITDA for the quarter was $228 million, exceeding our outlook of $223 million. Adjusted EBITDA margin came in at 37.2%, reflecting continued investment to support elevated activation volumes and large project activity, as Tim mentioned. Margins compressed sequentially from Q1 as we anticipated and communicated in our last call, compressing by about 500 basis points year-over-year. Margins are temporarily pressured primarily because modular activation activity accelerated. Excuse me. We invested approximately $17 million more in cost of leasing and unit transfer costs during the second quarter compared to the same period last year, which helped drive 16% year-over-year growth in modular activations. These upfront costs weighed on margins by about 250 basis points, support growth in our future leasing revenue. Another 160 basis points of the impact is purely revenue mix driven, resulting from the higher delivery and installation revenues we had in the quarter. Lastly, the remaining 100 basis points of impact was primarily driven by SG&A. Higher sales headcount, increased variable compensation, in addition to our provisions for credit losses, offset by savings in other SG&A categories, as we continue to drive cost opportunities in the business. As we look forward to Q3 and Q4, we expect to see significant sequential margin expansion as many of these drivers moderate and lease revenues continue to build, potentially resulting in flat to positive year-over-year EBITDA margin comparisons by the fourth quarter. Circling back now to leasing revenue, we continue to see stabilization in the overall portfolio. Modular activations increased for the third consecutive quarter, and combined with our current order book, gives us increased confidence in our organic growth outlook. Average modular units on rent in the second quarter were within 450 units of the prior year. The World Cup contributed about 750 units on rent growth in modular year-over-year, while we continue to make significant progress towards volume inflection in modular units on rent. Activations in portable storage were again slightly positive year-over-year, with the World Cup being the driver of those results. While we continue to see year-over-year unit on rent headwinds in our portable storage portfolio, growth in climate-controlled storage continues to partially offset those headwinds and remains one of our strongest performing product categories, supporting both revenue growth and portfolio diversification. Value-Added Product leasing revenues increased 3% year-over-year to approximately $103 million in the quarter. While total reported leasing revenue was up 1.5% year-over-year, this includes the shorter term contribution from the World Cup event. Excluding this event, combined leasing revenue for modular storage and VAPS was essentially flat year-over-year in Q2. Even with the benefit of the World Cup event behind us, we expect continued year-over-year leasing revenue growth throughout the rest of 2026. Our outlook on leasing revenue has continued to improve given the positive activation trends we're seeing over the last three quarters. Cash flow in the second quarter reflects further reinvestments in our business. Net cash provided by operating activities was $162 million in the quarter. We invested $114 million of net CapEx in Q2, reflecting increased investment in higher value product lines and differentiated offerings based on our demand outlook. Adjusted free cash flow for the quarter was $55 million, primarily reflecting the increased level of organic reinvestment in the business, with very strong unit economics and underlying project activity. In the past 12 months, we have used just over half of our capital generation to support large project demand by reinvesting in the business, which we believe drives the highest incremental returns. Remaining free cash flow in the quarter was used to fund returns to shareholders through our quarterly dividend program and paid down $27 million of outstanding debt. We ended the quarter with net debt of approximately $3.5 billion and leverage of 3.7 times last 12 months adjusted EBITDA and maintained substantial financial flexibility with roughly $1.5 billion of available liquidity under the ABL facility. Our debt structure remains highly favorable, with no maturities until August of 2028. Moving now to our updated outlook. Based on first half performance and continued momentum in commercial demand, we are increasing our full year 2026 outlook, which reflects the year-over-year leasing revenue inflection that we saw in Q2, sustained through the remainder of the year. Importantly, our outlook recognizes the top-line momentum we've generated while remaining mindful of the continued economic uncertainty. With our Q2 beat and continuing momentum through year-end, we now expect revenue for 2026 of approximately $2.3 billion, or a $50 million increase from our prior outlook, broken down by roughly $25 million of higher leasing revenue and $25 million more of delivery and installation revenue. We have increased our adjusted EBITDA outlook to approximately $920 million, which reflects the continued upfront investments in cost of leasing and transfer costs to support the opportunities that we're seeing, but limits the upfront flow through to EBITDA. Remember, this follows the normal sequential progression that we've seen in prior periods of growth, where we invest today to drive leasing revenue and free cash flow growth in future periods. Looking at Q3 specifically, we expect total revenues of approximately $585 million, up about 3% year-over-year, driven primarily by increased leasing and services revenues as a result of continued strong demand and our large project pipeline. Adjusted EBITDA for the quarter is expected to be approximately $232 million or about a 39.7% margin, reflecting the expected sequential margin expansion I discussed earlier. Looking at a few other items for Q3, we expect depreciation and amortization expense in the period to be approximately $100 million, interest expense to be about $54 million, and our effective tax rate to remain around 27%. In support of the large project demand momentum, we are increasing our net CapEx outlook for the year to approximately $375 million, with the incremental dollars exclusively for new units and refurbishment of highly utilized fleet to support our large scale project pipeline of known opportunities into early 2027. Although these large scale projects may not have significant impact in our 2026 adjusted EBITDA results, it improves the quality of our revenue over time and supports growth. In summary, we delivered another solid quarter with revenue, adjusted EBITDA, and commercial activity levels all outperforming our expectations. Leasing revenues inflected to growth in the quarter, and as we look toward the back half of the year, we remain focused on converting growing activation volumes into sustained leasing revenue growth and positioning the business for continued improvement through 2026 and into 2027. With that, I'll hand it back to Tim. Tim Boswell: Thank you, Matt. We are encouraged by the commercial momentum we're seeing across the business, though are mindful of the mixed demand environment. We are laser-focused on executing the internal commercial and operational initiatives that are starting to flow through to our results. We're investing behind attractive opportunities where our differentiated capabilities continue to win in the market, providing us confidence in our outlook. Most importantly, I want to thank our team again for their focus on improving execution, for executing in the right way consistent with our values, and for our shared commitment to create long-term value for our customers and shareholders. With that, operator, we can open the line for questions. Operator: Thank you. As a reminder to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, press star one again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. Our first question comes from the line of Kyle Menges with Citigroup. Your line is open. Kyle Menges: Great. Thank you, guys. It sounds like a lot of the momentum being driven by large projects. Just curious, starting to think about 2027, just is there any risk of modular rates turning negative at some point, just maybe from a mix of larger projects driving the growth in 2027? Tim Boswell: Hi, Kyle, it's Tim, Matt can follow up with any color commentary, I think the short answer there is no. No risk driven by the large project mix. To the extent there are newer and differentiated fleet products coming into the mix over the next six months, they are supportive of higher modular rates. We do still see very strong growth across our panelized and FLEX fleet, which could present a mixed headwind, overall, we're really encouraged by the large project activity. You're getting very strong rate, very good VAPS penetration in most cases, and better duration as well. When we're talking about the higher quality revenue and fleet mix, it's all of those things that we see when we look at the opportunity pipeline. Matt Jacobsen: Yeah, nothing really to add there. These are good investment opportunities for us to support that growth with high returns, that's why we're making the investments. Kyle Menges: Great. Maybe just to put a finer point on it, thinking about maybe more like for like rate on products is the understanding then that rate that you're getting today on activations is higher than whatever rate you're getting on current units on rent like for like? Matt Jacobsen: There's quite a few dynamics there and mix can have some pretty big impacts there, Kyle, but I think what you saw in the quarter was that the whole blend of that was an increase of 3% in the portfolio. I think as we look at these projects and these opportunities where we're making incremental investments, I think that those are opportunities where the returns are probably a little bit better than like an average potential unit that we may already have in some of the other categories. No, I don't see risk there. I think it could be a potential opportunity, but we'll stay measured there. Tim Boswell: The other aspect to that, Kyle, is that we wouldn't be making some of these investments unless we were seeing increasing fleet constraints- Matt Jacobsen: Yep: Tim Boswell: across certain categories. Whenever that's the case, that's also suggesting that you've got a strong rate environment. Kyle Menges: Great. Appreciate the color. Thank you. Matt Jacobsen: Yep. Operator: Thank you. One moment for our next question. That will come from the line of Tim Mulrooney with William Blair. Your line is open. Tim Mulrooney: Hey, Tim and Matt, thanks for taking my questions. I kind of want to build on that a little bit, looking at your CapEx. It looks like free cash flow was down versus last year in the second quarter due to the step up in CapEx as your activations ramp. Should we expect a similar dynamic in the second half of the year here with free cash flow being down year-over-year in the second half? Matt Jacobsen: Yeah, I think that's right, Tim. We're going to continue to make investments as we get to kind of that guide of $375. You can look at what we've spent year to date. We'll see a similar dynamic, I think, into the third quarter. Then, obviously the fourth quarter, we'll continue to monitor our things and if we can impact refurbishment and some of the activity there if something were to change. Based on what we're seeing right now, pretty strong activity. I think you continue to reinvest in the business and really focus on driving that recurring lease revenue. Tim Mulrooney: Yeah. Okay. Thanks, Matt. You noted in your slides that step up in CapEx is due to increased investments in these higher value product categories that you guys have been discussing today. Just stepping back a bit, do these higher value product categories, do they require more CapEx as a percentage of sales? In other words, how do you think about the IRR on those product categories versus your more traditional offerings? Matt Jacobsen: Yeah. These are units, the higher differentiated units are also units that we've had in our fleet for a very long time. Think of units that couple together to make a complex, for example. There's no change there, Tim. Yeah, these are still getting very good returns. I think the focus has been on more of those where there's some capabilities required to help plan and execute on those projects rather than maybe some of the single wides and containers, which are a bit simpler and not as differentiated. Tim Boswell: From an ROIC standpoint, though, Tim, we haven't changed any underwriting thresholds or anything like that. We're still holding a pretty high- Matt Jacobsen: Yeah Tim Boswell: high bar on these. Really, I think the differentiators are attractive return on capital, long duration, and positioning as well for a lot of this more complex project activity that we're seeing in the market. As you know, market activity has kind of shifted in that direction, which is creating more constraints in those types of areas, as well as the services required to install and set up and transport and deliver. Those are all things that are fundamental to our value proposition and are allowing us to see increasing win rates across the commercial organization. All this is a net positive from my perspective and really focused on setting up a more attractive trajectory for 2027. Tim Mulrooney: Understood. Okay. Higher CapEx, but good pricing, better pricing, better sell through, longer duration, good ROI. All right. Thanks, Tim. Operator: Thank you. One moment for our next question, that will come from the line of Scott Schneeberger with Oppenheimer. Your line is open. Scott Schneeberger: Thanks very much. Good afternoon. I'd like to ask about, if you guys could just go over, I think you said the World Cup units, I thought I heard 2,000 overall and 750 modular. If you did say or open to, could you please clarify that? Then where the question is in that is just how should we think about that? Maybe with the dismantling of units, the cost pressure. You've given the third quarter guidance, we get the sense of what that impact will be. Kind of that impact this year, how are you thinking about the comp next year? How should we think about it? I know you're not giving guidance for next year, but it seems pretty meaningful in size. I'm just curious if you guys could just kind of discuss this once every four year event. Matt Jacobsen: Well, unfortunately, I don't think it'll be here in North America every four years, but, Scott, this is Matt. Yeah, I can give you a little bit more there. There's about 2,000 units that we put out at the various sites. That's roughly kind of half and half between modular and storage. The revenue in the quarter was kind of around $13 million or so. That's not the entire project, but as we're looking at Q2, what that looked like, that's split about 40% towards rental and about 60% to D&I. Really what's left in the third quarter is primarily some of that dismantle that you talked about. Roughly $5 million or so maybe of D&I primarily that would be there. You will have kind of a little bit of a step down from that project. Obviously, we're still driving a lot of other underlying activity from the large project demand and those activations to drive leasing revenue growth year-over-year still in the third quarter. That's kind of why we called out what the underlying excluding that was. We were basically kind of flat in the quarter in leasing revenue, excluding the World Cup, if that's helpful. That's kind of a run rate to build off of. I think that probably gives you what you need. For next year, obviously, we don't have that project. Don't know of a project similar to that. We're focused obviously on the large project demand and driving overall unit on rent sequential growth in the future. Scott Schneeberger: Thanks, Matt. That helps. Just a clarification. Appreciate it. For my follow-up, I want to discuss, it sounds like you have great momentum with large projects. I wanted to ask just about the sustainability, the demand environment. Sounds like the order book is very good. There was a quote in the release about win rate being strong. I kind of want to get an idea of the demand environment and sustainability, and then also how you all are doing within the demand that's there. Just following up on that win rate, how competitive is it out there on those larger projects? And with separation of modular versus storage in that discussion. Thanks. Tim Boswell: All right. I'll take that one, Scott. This is Tim. When you look at the modular activations in the order book, they're up double digits across both enterprise customers and non-enterprise. We're seeing pretty good success there across the modular business. If you look at storage activations, I think for the last 13 weeks, we're up about 2% year-over-year. There's a big enterprise component there. Our local customers would still be down on the storage business, but still stabilizing. When you look at the major project activity and the sustainability of it, we don't have a crystal ball, we do have a large volume of opportunities that we're juggling. It does seem that weekly, one big project pushes to the right, another one pops up and surprises us in its place. That's a bit of an unusual environment to be in. The other thing that's a little different is we are seeing opportunities that stretch into 2027 from a starts standpoint. You know our lead times typically correlate positively with size of projects, that's why we're seeing that extension in lead time. The comment on win rates, it's been an encouraging trend in the business. We started to see some of this changing towards the second half of last year, it's continued to improve through the course of the first half of 2026. I think it comes down to operational capability at the end of the day. Without going into too much detail on it, as project complexity goes up, our win rates have gone up. I think that's a reflection of the service levels that we're able to provide, of course, in the field, but also from our shared services resources. Because of that, we are changing a bit how we deploy our commercial resources. We've been adding to the enterprise team, and also the types of things that we're going to reinvest in the fleet. We are letting that commercial activity and some of those nuances help us reallocate resources as we look forward. Scott Schneeberger: Thanks, Tim. Sounds encouraging for next year. Operator: One moment for our next question. That will come from the line of Angel Castillo with Morgan Stanley. Your line is open. Angel Castillo: Hi, good evening, and thanks for taking my question. Just wanted to go back to that discussion around the kind of key end markets and a lot of what you're seeing, I think a lot of positive trends. Just was hoping to get a little bit more color, specifically on rates. I think you gave some mentions earlier, but just any discounting activity and just rental rate, incremental, I guess quantification that you could provide across modular and in particular also storage, where I think you're still seeing a little bit of pressure there, but just curious if any impact on margins from any of that and how you're kind of seeing it in the second half. Tim Boswell: Yeah, I wouldn't say there's been really a change in the transactional activity or environment there, Angel. We've continued to see pockets of areas where we do arm our teams to be able to look at each opportunity, and we may take a different approach on certain projects than we do on other ones. I wouldn't say there's been any marked change there. I think the change has probably just been a little bit more, again, on the large projects, where some of the fleet's getting a bit more constrained, and we know that it's a bit more constrained across the industry, right? That's really the only piece I would talk to. There's not much else that's moved there. Angel Castillo: Got it. No, that's helpful. Just wanted to maybe talk about the visibility aspects of maybe how you're running your business. I think, Tim, you kind of touched on it, just to the degree that you're now investing, given visibility into 2027 due to some of these kind of mega projects, just curious, one, what gives you confidence, I guess that there's not going to be push outs on some of these, and just as you think about the strategy of how you run the business and that degree of visibility perhaps extending, how is that kind of changing ultimately your underlying appetite for CapEx? It sounds like you're clearly moving forward a little bit more with that, just as we look forward, how do you kind of mitigate risk of projects moving around? Tim Boswell: Yep. It's a good question, we as a team are talking about that, definitely weekly, if not daily at this point. The reality is the project pipeline, probability adjusted, supports the CapEx levels that we are deploying this year. It is absolutely the case that it's the norm for major projects to delay, we are seeing that across the business. There's enough activity that where one delays, one also starts. It's that dynamic that has us comfortable with these investment levels. The second piece I kind of alluded to earlier is kind of the win rates and the probabilities that we're attaching to it. Third is the investments we're making are in some of the most versatile fleet categories that are available in the industry. When I look at the type of major project activity, it's continuing to increase as we look at just the opportunities that are kind of coming into our project database. The large and mega projects that we're seeing were up another 14% year-over-year in terms of new opportunities coming into the pipeline. Data centers are only about a quarter of that project activity. When I talked about diversity across end markets, it's not like it's all one vertical. We're actually seeing interesting stuff across all the different categories that I mentioned. The other piece of this is where we're at with the enterprise account and vertical strategy. I said in my commentary, it's early innings. I think that momentum's still building, all else equal, we're going to have more larger project activity coming from that team. It's a combination of these things that we're taking into account, that have us quite comfortable with the approach here. Angel Castillo: Very helpful. Thank you. Operator: Thank you. One moment for our next question. That will come from the line of Andrew Wittmann with Baird. Your line is open. Andrew Wittmann: Great. Good evening. Thanks for taking my question, guys. The questions on kind of the status of the demand environment have been asked a couple of different ways. Obviously, you talked about ex World Cup revenue was kind of flattish, and that's good. I wanted to look specifically or talk more concretely about orders and activations. I think this quarter you said order book was plus 13%, I think last quarter 14%, so kind of the same number. That metric tells us kind of pretty stable, maybe sequentially. The one number that I try to think would be helpful to understand would be the activations this quarter without the World Cup. You gave us some moving pieces there. I don't know if we can totally back into it. I think last quarter you said it was high single digits-ish. Was it better than that this quarter on the activations? Tim Boswell: Yeah, we would've been somewhere around 10%, excluding the World Cup units, it would've been somewhere around 10%, Andy. The 16% was inclusive of, circa 10%. Andrew Wittmann: Okay. It seems like kind of sequentially a little bit better than last quarter there then. Tim Boswell: Yes, that's right. Andrew Wittmann: My other question is, the strength in the mega projects has been in place for some time, and it feels like to get the engine going to even the next year, going to need that transactional, that more local business to come around. Is there anything besides basically the rate cycle coming down to drive more demand there that you guys are looking for? Or, what do you think that it's going to take to get that piece of the business to come back based on what you're seeing out there today? Tim Boswell: That's kind of the first prong of the commercial strategy that I alluded to. Improving local execution, driving enterprise accounts, and then expanding the value-added offering. That's been the mantra here for a few quarters now internally. I mentioned staffing across that team is up. There are certainly opportunities to continue improving productivity there. As recently as last week, we were having a conversation about pricing and value-added products as other areas of focus in this environment. We still have work to do on that piece of the puzzle. It's nice to have momentum in two of the other pieces, in addition to some of the things that the team is working on operationally behind the scenes here. Andrew Wittmann: That's a good sense of kind of what you guys are trying to do to control what you can control. Just from a macro perspective, Tim, what do you think it takes? Tim Boswell: It's a good question, I'm a believer that there probably is some crowding out effect that's going on, just given the magnitude of some of what's happening out there in the market. I was with a major customer last week, I mentioned project delays are the norm. Labor and supply chain constraints are very real. Inflationary pressures are also real. We're not immune to any of that. I do think given our scale and what we do, we are best positioned to navigate those on behalf of our customers. I think that's one of the reasons that win rates go up. If some of the largest contractors in the world are feeling those pressures, I do think it must be creating pressure in other segments of the market. Andrew Wittmann: Yeah. Okay. Good context. Thank you, guys. Tim Boswell: Thanks, Andy. Operator: One moment for our next question. That will come from the line of Philip Ng with Jefferies. Your line is open. Maggie: Hey, guys. This is Maggie on for Phil. Thanks for taking my questions. I guess first, it was really encouraging to see both modular and storage units on rent inflect sequentially this quarter. I think if I back out the World Cup impact, they were still up quarter-over-quarter. I guess, am I doing the math right there? Tim Boswell: Yeah. Maggie: Is the expectation embedded in the guide that we continue to see quarter-over-quarter improvement through the back half in both of those segments? Or was there anything else in 2Q that could be throwing that off? Tim Boswell: No, I think you're making a fair point there, Maggie. Of the, call it roughly 2,000 unit growth in modular sequentially, about half of that was World Cup and will come off rent here. Year-over-year, on the average, that was the 750 that I talked about. If you're just looking sequentially, the entire amount is pretty much embedded there. We will drop that 1,000 from a modular standpoint. As you look forward, we potentially could get to that. I don't think that would be my base assumption that it would be flat sequentially on average, just given that drop of 1,000 as those go off. For the back half of the year, if we got to inflection here, I think we would be pretty excited, and it's definitely a potential. I don't think that would be embedded in our base guide just quite yet. We're absolutely making progress there each quarter. There is a normal seasonality, right? As you get to fourth quarter, especially on the transactional, you do typically shed a little bit of units on rent just from that. We'd have to fully offset that to stay flat. On the storage side, we do have some of the business that is a little bit front-loaded in the year, separate from the World Cup. Some store remodels and things, that typically does wrap up before you get into the fourth quarter, which will come down a little bit. Much of that is offset by normal fourth quarter seasonality. I don't think we would assume those will fully stay flat sequentially for the year in our base guide, but definitely opportunity probably more on the modular side. Maggie: Okay. All of that is really helpful. I think that taking a step back, looking at broader market dynamics, and especially in this environment where growth is really being driven by these larger projects and enterprise accounts, I was wondering if you could talk about if there's been any shift in competitive dynamics with potentially more national players active in the space. I think we've seen some of your larger national competitors bulking up in your category. How are you differentiating in this market environment? Tim Boswell: Yeah. It all comes down to operational capabilities and ability to service the customer at the end of the day. We are obviously aware of all kind of changes in the competitive landscape. At the same time, we're seeing ourselves be disproportionately successful in this environment, and that's the most important thing, at the end of the day. That's when I talk about, hey, our own strategic focus, where we're allocating resources, the efforts we've made to improve both field operations capability as well as our support capabilities. All of that is geared towards the value proposition that resonates both with the enterprise account level customers, but also our transactional customers. At the end of the day, ease of doing business and customer service are key decision points for really all of our clientele. Encouraged by the mix of market activity is playing to our strengths, and at the end of the day, I just look at our kind of win rates as the evidence of our ability to compete in this environment. Maggie: All right. Perfect. Thanks, guys. Tim Boswell: Yep. Operator: Our next question will come from the line of Manav Patnaik with Barclays. Your line is open. Ronan Kennedy: Hi, this is Ronan Kennedy in for Manav. Thank you for taking our questions. Can you just speak to VAPS trends in terms of penetration pricing, attach rates, and then specifically for attach rates on the large projects today that are driving the demand? Are the attach rates materially higher than on traditional modular deployments? Tim Boswell: I'm having a hard time hearing you. Ronan, you were asking about attach rates on value-added products and whether those are materially different in larger projects versus other parts of the business. I would say no, not material. I think VAPS's revenue was up three-ish % year-over-year for the quarter. Continuing to see growth there. Penetration rates historically have been highest in our single wide mobile office category, which has been one of the weaker categories from a mix standpoint. There is that mix impact that's been a headwind for value-added products penetration. I wouldn't attribute that to the mix of large versus smaller projects necessarily. It is an area of focus for the team, right? It's an area where I look across execution in the business, both commercially and operationally. There are always things we can improve. We had a lengthy discussion on this particular topic on Tuesday morning with the team about some initiatives to reinvigorate aspects of the value-added products portfolio. On the other hand, we've got some new product introductions like the Perimeter Solutions offering, which is deploying across the country, growing quite well, and along with climate-controlled storage and industrial tenting. That's becoming a more meaningful contributor to our lease revenue and should have roughly a 20% CAGR going into next year. Whether it's VAPS specifically or expansions to the offering more generally, we are making some progress there. Ronan Kennedy: Thank you for that, Tim. That's very helpful. If I may, as a follow-up, a two-parter, please, on margin. I think there was 250 basis points activation impact, 160 basis points mix, 100 SG&A. Which of those components reverse most meaningfully into H2 support that expectation for the guided margin? Assuming volume trends continue as you expect, how should we think about 2027 margin opportunity? If there's activation cost normalization, operating leverage or something else that could potentially be a key driver. Tim Boswell: I think, the comments for Q3 and Q4 obviously kind of carry into next year a little bit too, just depending on the overall demand market. As we look into Q3, for example, I think the biggest, we'll see some impact from the D&I revenue mix subsiding a little bit. Our large event had a very high component of logistics as we were moving units in and out over a three-month period. You'll see improvement there. I think the outsized kind of increase that we saw in the second quarter in our cost of leasing. I think we'll still be up year-over-year to support higher activity, but it won't be quite as big of a drag in the third quarter as we saw in the second quarter. That's how you kind of get the probably 200 to 300 basis points of expansion into Q3. Into Q4, pretty significant expansion, I think, again. You'll have, again, some more, maybe 150 or so roughly of revenue mix improvement as you get to that Q4 kind of lower D&I activity. I think we will get some leverage within SG&A as we continue to build the top line. The last piece will be a little bit dependent on how much activity we see in Q4. We've got good visibility into large projects. If we see the more transactional things kind of stay where they're at, or if we see a seasonal decline as you usually see in fourth quarter, that's probably the one that you're going to see a range of outcomes. I think you probably still get 150 or so either way. You could get more if you see the normal kind of Q4 slowdown in that side of it. Pretty significant expansion, 200 to 300 basis points in Q3, and I think 300 to 500 basis points. Matt Jacobsen: Probably again into Q4 to kind of get you to the full year margin guide that we've given. Ronan Kennedy: Thank you very much. Tim Boswell: Looking into next year, obviously, we're not going to give you firm guidance thrown in, but it's kind of a mix of all the same levers. Obviously, if we enter on a growing lease revenue run rate, there's a positive operating leverage benefit there. If activation activity is still growing, but maybe not at the same rate next year, you get a benefit from work order costs in D&I mix. I mentioned the route optimization platform that we are rolling out currently. One of the objectives there is improving D&I profitability as well as customer communications and the customer experience. I think we've got opportunities in back office and bad debt, and sales work productivity is probably the other area where I think we've got some opportunities. You're not going to get a win out of every one of those, but it's nice to have optionality, and we'll be managing the mix of those options as best we can. Ronan Kennedy: Great. Thank you both very much. Appreciate it. Matt Jacobsen: Okay. Operator: Thank you. One moment for our next question. That will come from the line of Josh Chan with UBS. Your line is open. Josh Chan: Hi. Good afternoon. Thanks for taking my question. I was wondering, in past periods of kind of activity elevation, I guess, do you usually see a prolonged period of higher activity such that you will be spending more into a very strong recovery? Or can that be kind of lumpy in terms of how much activation spike you get? Tim Boswell: Hi, Josh. It's Tim, no cycle is ever the same, right? There is the potential for it to be lumpy. There's the potential for it to be sustained, time will tell, right? The point in our business is the flexibility we have around the timing with which we can kind of flex on and flex off those investments. While CapEx is up, a big chunk of it is our own refurbishment activity, which, as you know, we kind of revisit those work order production volumes at least every 90 days. If we wanted to shut them down, we can shut them down in about two weeks' time. We have no intention of doing that. But in this environment, as we progress through the second half, we're going to watch it really carefully to make sure that we're not overproducing going into next year. I'd be happy to continue at today's production rates because that'll just benefit the long-term lease revenue run rate in the business. I would focus more on the agility that we have to turn this on and off and control a big chunk of it in-house through the refurbishment process. We will have that be entirely demand-driven based on the activity we're seeing from the commercial organization. Josh Chan: That's great. Thanks for that color, Tim. Then maybe one follow-up on guidance. I guess, suppose you keep this leasing revenue momentum into Q3 and Q4, why wouldn't the full-year revenue be a bit stronger than what you said? Is it just rounding, or how should we think about kind of the cadence there? Matt Jacobsen: Yeah, no, I think we're getting to year-over-year growth in both quarters for leasing revenue. To your point, if activity remains elevated over what our base assumption is here, yes, you could do a little bit better. Some of this may depend on timing of some of these projects starting, and if more pulls in, you could be surprised to the positive there. I think right now we're being prudent. There's also the transactional activity that you don't know exactly how that's going to play out, right? We're looking at kind of the different range of outcomes, and we'll be nimble, as Tim was talking about. Tim Boswell: Just remember, there is going to be a sequential kind of step down from Q2 to Q3 due to the World Cup, right? That's kind of the new baseline starting point, and we expect that'll be up year-over-year and continue to grow sequentially. Really, D&I is the place where, depending on new project starts and the volume of those, that can move obviously more quickly than the lease revenue line on the P&L. Josh Chan: That makes a lot of sense. Yeah. Thanks so much for the color, and congrats on a good quarter. Matt Jacobsen: Great. Thanks, Josh. Operator: Thank you. If you would like to ask a question, please press *11. Our next question will come from the line of Faiza Alwi with Deutsche Bank. Your line is now open. Faiza Alwi: Yes. Hi. Thank you. Tim, you alluded to sort of internal initiatives in your prepared remarks, and I think it's come up a little bit during the course of the call where you've talked about win rates, but it seems like you're attributing that more to your capabilities. I'm curious if you can talk more about which of these internal initiatives do you think have been most impactful? Tim Boswell: Look, they're across both our kind of commercial organization and also our field and shared services operations. I'd say in the field, our commercial team, staffing, training, productivity. We've got a variety of initiatives kind of focused at that team. I'd say we're making progress, but we're certainly not done. Within the enterprise category, we did restructure that team and have been building out that team for the last 12 months. We really just started that at the end of Q2 last year and going into Q3. There, we're building momentum, and I think engaging with customers more effectively and being more successful. That's good. As you know, we have been kind of gradually building out new product lines around cold storage and industrial tenting, which is starting to gain some traction, and then our perimeter solution. Across our go-to-market and commercial strategy, those are the things that we're working on. Across our field op organization, I mentioned field operations rather, the route optimization platform, the real estate and fleet disposition plan, both have kind of margin benefits as we look into 2027, we think. In shared services, there's a fair amount of business process improvement work- Faiza Alwi: Yep. Tim Boswell: going on behind the scenes. It's multi-pronged, but all for a reason, right, in terms of driving sustainable growth in the business and doing that in a really scalable way that pleases our customers. If we do all those things well, we'll be on a positive trajectory for a long time, I think. Faiza Alwi: Great. Thank you for that. Just to follow up on some of the fleet constraints that you're talking about. How should we think about where we are from an industry utilization perspective? Because if I think back to 2022, even 2023, that was a big help in terms of rate increases, pricing, all of that, because we were constrained post-COVID. I know that there's a lot of demand generally for modular units, certainly with respect to what you're talking about, but then also in other areas where you're not participating in, like residential areas for data center remote residential units for data center remote workers and things like that. Just want to get your perspective on where in the supply constraint cycle we are, and are you seeing higher costs for units overall? Tim Boswell: The market is definitely tightening in segments, right? It's not across the board. Based on the type of project activity that we see, I expect those constraints will persist for some time. Faiza Alwi: Yeah. Tim Boswell: Is my expectation. All else equal, that is supportive of the pricing environment. Inflation is still a very real impact, not just to us and our business, but for our customers and many of their inputs. That is reflective in new product cost that we see across our supply base. As you know, our supply base is a little bit different. We've got a variety of sources of new product, but we also have a very differentiated ability to reactivate and refurbish fleet that we already own. In many categories, though, we are looking at higher utilization levels and supplementing those categories with some new fleet. Faiza Alwi: Great. Thank you so much. Operator: Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Tim Boswell for any closing remarks. Tim Boswell: Great. Thank you for the questions, everybody. For those listening, thank you for your interest in WillScot. Again, to our team, thank you for taking care of each other and our customers and focusing on our execution plans for the second half of the year. With that, we can conclude the call. Operator: This concludes today's program. Thank you all for participating. You may now disconnect. Before you buy stock in WillScot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and WillScot wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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WillScot Holdings (WSC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a return to organic top-line growth in Q2, driven by a 16% year-over-year increase in modular activations and strong order book momentum. Performance was characterized by a distinct bifurcation in demand, where large-scale infrastructure, manufacturing, and data center projects offset headwinds in smaller, transactional product lines. Enterprise account revenue grew 21% year-over-year, validating the strategic pivot toward high-complexity projects that leverage the company's scale and operational capabilities. Delivery and installation revenue surged 25%, reflecting elevated mobilization activity and the logistical complexity of major deployments like the World Cup. Management attributes improved win rates to differentiated service levels and the ability to navigate labor and supply chain constraints better than smaller competitors. Strategic diversification into climate-controlled storage and perimeter solutions is gaining traction, with these newer offerings expected to exit 2026 at a 20% growth rate. The company is executing a significant fleet upgrade, balancing new investments with a real estate and fleet disposition plan to optimize the portfolio for high-value complex projects. Increased full-year 2026 revenue and EBITDA guidance based on sustained leasing revenue inflection and a commercial pipeline stretching into 2027. Net CapEx outlook raised to $375 million to support demand-driven investments in high-utilization fleet categories and large-scale project opportunities. Anticipate significant sequential margin expansion in H2 2026 as upfront activation costs moderate and recurring lease revenue builds. Guidance assumes continued strength in large project starts while remaining prudent regarding economic uncertainty and potential project timing push-outs. Deployment of a new route optimization and dispatch software platform is expected to drive operational efficiencies and margin benefits heading into 2027. The World Cup event contributed approximately $13 million in Q2 revenue and 750 modular units on rent, creating a non-recurring headwind for 2027 comparisons. Q2 margins were temporarily pressured by 250 basis points due to upfront modular activation costs and 160 basis points from a higher mix of delivery and installation revenue. Management noted that while large project demand is robust, inflationary pressures and labor constraints remain persistent challenges for the broader construction industry. Fleet investments are being focused on versatile, high-return categories to mitigate the risk of overproduction if market demand shifts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management sees no risk of rates turning negative, noting that large projects often command strong rates, high VAPS penetration, and longer durations. Newer, differentiated fleet products entering the mix are expected to be supportive of higher overall modular rates. The project involved 2,000 units split between modular and storage, with most remaining 2026 impact limited to $5 million in Q3 dismantle revenue. Excluding the World Cup, underlying leasing revenue was essentially flat in Q2, providing a baseline for expected organic growth in the second half. Project delays are considered the 'norm,' but the high volume of opportunities allows the company to backfill delays with new starts. Large and mega-project opportunities in the pipeline increased 14% year-over-year, providing confidence in sustained investment levels. Expect 200-300 basis points of expansion in Q3 and 300-500 basis points in Q4 as high-cost activation activity levels off. Operating leverage from growing lease revenue and improved sales productivity are expected to be key drivers heading into 2027.

Interested in WillScot Holdings Corporation? Here are five stocks we like better. Q2 revenue rose 4% year over year to $612 million, exceeding expectations, while adjusted EBITDA reached $228 million. WillScot raised its 2026 outlook to approximately $2.3 billion in revenue and $920 million in adjusted EBITDA. Large projects drove growth, with modular activations up 16%, pending orders up 13%, and enterprise account revenue up 21%. World Cup-related activity contributed about $13 million in second-quarter revenue, with another $5 million expected in Q3. Adjusted EBITDA margin declined to 37.2% as WillScot invested in delivery capacity, fleet upgrades and higher operating costs, but management expects significant margin expansion in the second half. Full-year net capital expenditure guidance increased to approximately $375 million to support demand extending into 2027. Small-Cap Titans: 3 Russell 2000 Winners for 2025 WillScot (NASDAQ:WSC) reported second-quarter 2026 revenue growth and raised its full-year outlook as demand from large projects supported higher leasing, delivery and installation activity. Management said it is increasing fleet investment and operating spending to support a growing pipeline extending into 2027, while acknowledging continued softness in more transactional product lines. Total revenue rose 4% year over year to $612 million, above the company’s prior expectation of about $585 million. Leasing and services revenue increased 6%, aided by a more than 25% increase in delivery and installation revenue. Leasing revenue increased 2% to approximately $450 million. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Is Avis Budget Group A Value Play? Earnings Have This To Say “A top priority this year has been returning to organic top-line growth, which we achieved in the second quarter and are positioned to sustain through the remainder of the year,” President and Chief Executive Officer Tim Boswell said. WillScot said large-project demand remained strong, with modular activations up 16% year over year during the quarter and modular pending orders up 13% as of the call. Excluding activity tied to the World Cup, modular activations rose about 10%, according to Boswell. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company supported a range of customer projects involving critical infrastructure, manufacturing, power generation, data centers, retail operations and special events. Enterprise account revenue increased 21% year over year in the quarter, while newer offerings including climate-controlled storage, Clearspan industrial tenting and perimeter solutions are expected to exit 2026 at roughly a 20% growth rate, management said. WillScot deployed more than 2,000 units into and out of World Cup host cities during the past three months. Chief Financial Officer Matt Jacobsen said the event generated roughly $13 million of second-quarter revenue, split about 40% from rental revenue and 60% from delivery and installation. About $5 million of primarily delivery and installation revenue related to dismantling activity is expected in the third quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The World Cup contribution included roughly 750 modular units on rent on a year-over-year basis. Jacobsen said that, excluding the event, combined modular, storage and value-added product leasing revenue was essentially flat year over year in the second quarter. Nevertheless, the company expects year-over-year leasing revenue growth through the rest of 2026. Net income was $47 million, while diluted earnings per share was $0.26, flat from the prior-year quarter. Adjusted net income was $52 million, or $0.28 per diluted share. Adjusted EBITDA totaled $228 million, exceeding the company’s outlook of $223 million, while adjusted EBITDA margin was 37.2%. The margin fell about 500 basis points year over year and declined sequentially from the first quarter as WillScot spent more to meet accelerating activation demand. Jacobsen said the company incurred approximately $17 million more in cost of leasing and unit transfer expenses than a year earlier, reducing margin by about 250 basis points. Higher delivery and installation revenue mix accounted for another 160 basis points of margin impact, while higher sales headcount, variable compensation and provisions for credit losses contributed to the remaining pressure. Management expects “significant sequential margin expansion” in the third and fourth quarters as delivery and installation mix moderates and lease revenue builds. Jacobsen said the company could see flat to positive year-over-year EBITDA margin comparisons by the fourth quarter. WillScot generated $162 million of operating cash flow and $55 million of adjusted free cash flow during the quarter. Net capital expenditures were $114 million as the company invested in higher-value products and refurbishment of its fleet. The company raised its full-year net capital expenditure outlook to approximately $375 million. The incremental investment is intended for new units and refurbishment of highly utilized fleet to serve large-scale projects, including known opportunities into early 2027. Boswell said the planned fleet investments, work-order activity and fleet dispositions mean 2026 will likely represent “the most significant upgrade to our modular fleet in company history.” He added that WillScot’s capital investments are demand-driven and that much of its refurbishment capacity can be adjusted quickly if market activity changes. At quarter-end, WillScot had net debt of approximately $3.5 billion and leverage of 3.7 times last-12-month adjusted EBITDA. The company reported roughly $1.5 billion of availability under its asset-based lending facility and said it has no debt maturities until August 2028. It used remaining free cash flow during the quarter for its dividend program and $27 million of debt repayment. Based on first-half results and commercial momentum, WillScot raised its 2026 revenue outlook by $50 million to approximately $2.3 billion. The increase includes roughly $25 million of expected additional leasing revenue and $25 million of delivery and installation revenue. The company also raised its adjusted EBITDA outlook to approximately $920 million. For the third quarter, it expects revenue of approximately $585 million, up about 3% year over year, and adjusted EBITDA of approximately $232 million, implying a 39.7% margin. Management said it remains cautious about demand differences between large and small projects. Boswell said transactional storage customers remain under pressure, although the business has stabilized in some areas. He also pointed to labor constraints, supply-chain pressures and inflation as factors affecting customers and project timing. Still, management said higher win rates on complex projects, fleet constraints in certain categories and demand across multiple end markets support its investment plans. “The large and mega projects that we’re seeing were up another 14% year-over-year in terms of new opportunities coming into the pipeline,” Boswell said, adding that data centers represent only about a quarter of the company’s project activity. WillScot (NASDAQ: WSC) is a leading North American provider of modular space and portable storage solutions. The company designs, manufactures, leases and sells temporary and permanent modular buildings to serve sectors such as education, healthcare, construction, industrial and government. Its modular space offerings range from single‐unit office trailers and classrooms to complex multi‐unit configurations tailored to diverse project requirements. In addition to modular structures, WillScot offers a broad portfolio of portable storage containers and related services, including site logistics, customization, delivery and installation. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "WillScot Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $612 million, up 4% year-over-year. Leasing and Services Revenue: Increased 6% year-over-year. Leasing Revenue: Approximately $450 million, up 2% year-over-year. Delivery and Installation Revenue: Increased over 25% year-over-year. Net Income: $47 million, with diluted EPS of $0.26, flat year-over-year. Adjusted Net Income: $52 million, with adjusted diluted EPS of $0.28. Adjusted EBITDA: $228 million, with a margin of 37.2%. Value-Added Product Leasing Revenue: Approximately $103 million, up 3% year-over-year. Net Cash Provided by Operating Activities: $162 million in the quarter. Net CapEx: $114 million invested in Q2. Adjusted Free Cash Flow: $55 million for the quarter. Net Debt: Approximately $3.5 billion, with leverage of 3.7x last 12 months adjusted EBITDA. Modular Activations: Up 16% year-over-year in the quarter. Modular Pending Orders: Up 13% year-over-year. Enterprise Account Revenue: Up 21% year-over-year in the quarter. Average Modular Units on Rent: Within 450 units of the prior year. Full Year 2026 Revenue Outlook: Approximately $2.3 billion, a $50 million increase from prior outlook. Full Year 2026 Adjusted EBITDA Outlook: Approximately $920 million. Q3 2026 Revenue Outlook: Approximately $585 million, up about 3% year-over-year. Q3 2026 Adjusted EBITDA Outlook: Approximately $232 million, or about a 39.7% margin. Net CapEx Outlook for 2026: Increased to approximately $375 million. Warning! GuruFocus has detected 10 Warning Signs with WSC. Is WSC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue grew 4% year-over-year to $612 million, with leasing and services revenue up 6%. Modular activations increased 16% year-over-year, and the order book is up 13%, indicating strong demand. Enterprise account revenue surged 21% year-over-year, reflecting successful commercial strategy execution. Leasing revenue inflected to growth, up 2% year-over-year, with expectations for continued growth in the second half. The company raised its full-year 2026 revenue and adjusted EBITDA outlook, signaling confidence in momentum. Adjusted EBITDA margin compressed 500 basis points year-over-year due to upfront costs and revenue mix. Portable storage unit-on-rent headwinds persist, with only slight activation growth driven by the World Cup. Excluding the World Cup, combined leasing revenue for modular, storage, and VAPS was essentially flat year-over-year. Free cash flow was pressured by increased CapEx, with adjusted free cash flow of only $55 million in Q2. The company faces ongoing headwinds in transactional product lines and economic uncertainty, with project delays being common. Q: Can you provide more color on the sustainability of the large project demand environment, the order book, and win rates, particularly regarding the mix between modular and storage?A: Tim Boswell (CEO) noted that modular activations and the order book are up double digits across both enterprise and non-enterprise customers. While storage activations are up about 2% year-over-year, this is driven by enterprise activity, with local customers still down but stabilizing. He highlighted that while large projects can be delayed, new opportunities frequently emerge to replace them. The pipeline for large and mega projects is up 14% year-over-year, with data centers representing only about a quarter of that activity, indicating diversity across end markets. Win rates have improved, particularly as project complexity increases, reflecting the company's operational capabilities and service levels. Q: What is the expected impact of the World Cup on Q2 and Q3 results, and how should we think about the comp for next year?A: Matt Jacobsen (CFO) detailed that the World Cup involved about 2,000 units, split roughly evenly between modular and storage. The revenue contribution in Q2 was approximately $13 million, split about 40% rental and 60% delivery and installation (D&I). The remaining impact in Q3 is primarily about $5 million of D&I related to dismantling. Excluding the World Cup, combined leasing revenue for modular storage and VAPS was essentially flat year-over-year in Q2, which serves as a baseline for future growth. Q: Given the strong momentum from large projects, is there a risk that modular rates could turn negative in 2027 due to project mix?A: Tim Boswell (CEO) stated there is no risk from the large project mix, as newer and differentiated fleet products are supportive of higher modular rates. While growth in panelized and flex fleet could be a net mix headwind, large projects generally command strong rates, good VAPS penetration, and better duration. Matt Jacobsen (CFO) added that the blended portfolio rate increased 3% in the quarter, and incremental investments are being made in opportunities with returns potentially better than average, suggesting no downside risk and possibly an upside opportunity. Q: Should we expect free cash flow to be down year-over-year in the second half due to the step-up in CapEx, and do these higher-value product categories require more CapEx as a percentage of sales?A: Matt Jacobsen (CFO) confirmed that free cash flow will likely see a similar dynamic in Q3 as investments continue toward the $375 million net CapEx guide, with monitoring into Q4. He clarified that the higher-value units, such as those used for complexes, are not new to the fleet and do not require a different CapEx profile. Tim Boswell (CEO) added that underwriting thresholds for ROIC have not changed, and the investments are focused on areas with attractive returns, long duration, and increasing fleet constraints, which support a strong rate environment. Q: Can you break down the margin impacts in Q2 and how they will reverse in the second half to support the guided margin expansion?A: Matt Jacobsen (CFO) explained that Q2 margins were pressured by 250 basis points from increased activation costs, 160 basis points from revenue mix (higher D&I), and 100 basis points from SG&A. For Q3, he expects 200-300 basis points of sequential margin expansion as D&I mix subsides and cost of leasing increases moderate. For Q4, he anticipates another 300-500 basis points of expansion driven by further mix improvement, SG&A leverage, and normal seasonality, potentially leading to flat or positive year-over-year EBITDA margins by Q4. Q: What is the visibility into 2027 that supports the increased CapEx investment, and how are you mitigating the risk of project pushouts?A: Tim Boswell (CEO) stated that the probability-adjusted project pipeline supports the current CapEx levels. While project delays are common, the volume of activity is sufficient that new projects replace delayed ones. The investments are in versatile fleet categories, and the pipeline for large projects is growing. He also noted that the enterprise account strategy is still building momentum, which should contribute more large project activity. The company maintains agility by reviewing work order production volumes every 90 days and can adjust quickly if demand changes. Q: What were the modular activation numbers excluding the World Cup, and what is the outlook for units on rent in the back half?A: Matt Jacobsen (CFO) clarified that modular activations were up 16% year-over-year including the World Cup, but approximately 10% excluding it. On units on rent, he noted that of the roughly 2,000 unit sequential growth in modular, about half was World Cup-related and will come off rent. He does not expect flat sequential units on rent in the back half as a base case due to this drop and normal Q4 seasonality, but sees potential for inflection, particularly on the modular side. Q: Can you discuss VAP trends, penetration rates, and whether attach rates are materially different on large projects?A: Tim Boswell (CEO) stated that VAPS revenue was up about 3% year-over-year in Q2. Penetration rates are historically highest in single-wide mobile offices, which has been a weaker category, creating a mix headwind. He noted that attach rates on large projects are not materially different from other segments. The company is focusing on reinvigorating the VAP portfolio and highlighted new offerings like Perimeter Solutions, climate-controlled storage, and industrial tenting, which are growing at roughly a 20% CAGR and becoming more meaningful contributors to lease revenue. Q: In past periods of elevated activity, has the spending into a recovery been prolonged or lumpy, and how should we think about the flexibility of the investment?A: Tim Boswell (CEO) acknowledged that no cycle is the same and activity can be lumpy or sustained. He emphasized the company's flexibility, noting that a large portion of CapEx is refurbishment activity, which can be adjusted quicklyproduction volumes are reviewed every 90 days and can be shut down in about two weeks if needed. He stated there is no intention to do so currently, but the company will monitor production rates to avoid overproducing into next year, keeping investments entirely demand-driven. Q: Which internal initiatives have been most impactful in driving the improved win rates and commercial momentum?A: Tim Boswell (CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Exceeded Q2 2026 Outlook for Revenue and Adjusted EBITDA Raises 2026 Full Year Outlook for Revenue, Adjusted EBITDA and Net CAPEX on Continued Commercial Momentum SCOTTSDALE, Ariz., Aug. 06, 2026 (GLOBE NEWSWIRE) -- WillScot Holdings Corporation (“WillScot” or the “Company”) (Nasdaq: WSC), a leader in innovative temporary space solutions, today announced second quarter 2026 results, including key performance highlights and market updates, and raised its 2026 full year outlook. Q2 20261 Generated revenue of $612 million, gross profit margin percentage of 50.0%, and net income of $47 million. Reported Adjusted Net Income of $52 million and Adjusted EBITDA of $228 million at a 37.2% margin. Reported diluted and Adjusted Diluted Earnings Per Share of $0.26 and $0.28, respectively. Generated leasing and services revenue of $586 million, up 6.2% year-over-year with a 1.5% increase in leasing revenue and a 25.3% increase in delivery and installation revenue driven by large complex installation activity and a significant event project during the quarter. Generated Net cash provided by operating activities of $162 million and Adjusted Free Cash Flow of $55 million. Invested $114 million in Net CAPEX with increases for new rental equipment and refurbishments to support demand and order activity. Increased previously issued full year 2026 outlook for revenue, Adjusted EBITDA, and Net CAPEX given momentum in commercial activity. Tim Boswell, President and Chief Executive Officer of WillScot, commented, "Our second quarter 2026 results reflect continued progress across our key commercial and operational priorities. Large project and event activity, combined with our Enterprise Accounts and verticals strategies, drove year-over-year modular unit activation growth for the third consecutive quarter and a return to year-over-year revenue growth. We believe that our expanded product offering and operational capabilities are a winning combination in this market environment, and we continue to see strong year-over-year growth in our order book heading into the second half of the year. To support this momentum, we are advancing our fleet readiness plans with increased work order and refurbishment activity, as well as new fleet investment in our highest demand and most differentiated fleet categories. And we are complementing these efforts with the continued rollout of our route optimization and dispatch platform and expansion of our field and project management services all of which support the superior execution that we bring to our customers." Boswell continued, "While overall non-residential construction activity remains muted, the mix of that activity, combined with our go-to-market strategy, our offering, and our operational capabilities, is driving momentum into the second half of the year. We are raising our 2026 outlook for Revenue and Adjusted EBITDA modestly, recognizing both this top-line momentum and the continued uncertain economic environment. And we are raising our outlook for capital expenditures based on specific project opportunities we expect to execute heading into 2027. Overall, I am incredibly proud of how our team has responded in this market environment. We are capturing and creating new commercial opportunities, expanding our capabilities to build upon our competitive strengths, and executing operationally on behalf of our customers, all with a clear focus on driving long-term shareholder value creation." Matt Jacobsen, Chief Financial Officer of WillScot, commented, "Second quarter 2026 revenues of $612 million and Adjusted EBITDA of $228 million exceeded our outlook, supported by solid leasing and services revenue growth. Leasing revenue continued to improve sequentially, driven by large project activity. And we were pleased to see leasing revenue inflect to year-over-year growth in the quarter earlier than expected, driven in part by a significant event project. Margin performance in the quarter reflects elevated variable costs supporting modular space unit activation growth, in addition to the revenue mix impact of higher delivery and installation revenue as we expected. These margin pressures are normal in periods of elevated activity. And our unit activation trends, pending order book, and continued investments in the fleet reinforce our confidence in sustained leasing revenue growth in the second half of this year." Jacobsen concluded, "Based on first half 2026 results and current commercial demand, we are raising our 2026 outlook to $2.3 billion in revenue and $920 million in Adjusted EBITDA. Large project demand remains solid, with our differentiated product lines and service capabilities driving strong win rates. To support this growth, we are raising our Net CAPEX outlook to $375 million for 2026. The incremental capital will be used to purchase and refurbish fleet in our highest demand product categories, serving large projects that we expect to activate in the second half of the year and into early 2027. Based on our top-line momentum and large project pipeline, we anticipate year-over-year leasing revenue trends to continue improving while variable activation costs begin to taper sequentially and help drive significant sequential margin expansion through the remainder of 2026. Despite these encouraging trends, we will continue to take a measured approach in our outlook." Second Quarter 2026 Results1 (a) Includes revenue from clearspan structures. (b) Includes $12.6 million and $9.5 million of service revenue for the three months ended June 30, 2026 and 2025, respectively and $22.8 million and $18.7 million for the six months ended June 30, 2026 and 2025, respectively. (c) Includes primarily damage billings, delinquent payment charges, and other processing fees associated with leasing arrangements, and is partially offset by write-offs of specific uncollectible lease receivables recorded as a reduction to revenue of $10.3 million and $15.1 million, for the three months ended June 30, 2026 and 2025, respectively, and $23.4 million and $25.7 million for the six months ended June 30, 2026 and 2025, respectively. Capitalization and Liquidity Update1 As of and for the three months ended June 30, 2026, except where noted: Net cash provided by operating activities was $162 million, resulting in $55 million of Adjusted Free Cash Flow after Net CAPEX investments. Invested $114 million of Net CAPEX, supporting both maintenance capex needs and growth in higher value products for strong ongoing large project demand. Total debt was $3,495 million and net debt was $3,477 million, representing a $27 million reduction in our total debt balance in the quarter. We have no debt maturities until August 2028. Availability under our asset-based revolving credit facility ("ABL Facility") was approximately $1.5 billion. Weighted average pre-tax interest rate, inclusive of $1.25 billion of fixed-to-floating swaps of 1-month SOFR at 3.54%, was approximately 5.7%. Estimated annual cash interest expense based on our current debt structure and benchmark rates is approximately $201 million, or approximately $215 million inclusive of non-cash amortization of deferred financing fees. Our debt structure is approximately 90% / 10% fixed-to-floating after giving effect to the interest rate swaps. Net Debt to Adjusted EBITDA was at 3.7x based on our last 12 months Adjusted EBITDA of $932 million. Paid quarterly cash dividend of $0.07 per share on June 17, 2026 to shareholders of record as of June 3, 2026. 2026 Full Year Outlook1The Company raised its full year 2026 outlook provided in May 2026. This outlook uses approximate figures and is subject to risks and uncertainties, including those described in "Forward-Looking Statements" below. ____________________1 - 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, Net Debt, Net Debt to Adjusted EBITDA ratio, Net CAPEX and Return on Invested Capital are financial measures that are not required by, or calculated in accordance with, generally accepted accounting principles in the US ("GAAP"). Further information and reconciliations for these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP are included at the end of this press release. Information reconciling forward-looking Adjusted EBITDA and Net CAPEX to the most directly comparable GAAP financial measures is unavailable to the Company without unreasonable effort and, therefore, neither the most directly comparable GAAP financial measures nor reconciliations to the most directly comparable GAAP measures are provided. 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, Net Debt, and Net Debt to Adjusted EBITDA ratio. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, financial measures calculated in accordance with GAAP. Other companies may calculate these non-GAAP financial measures differently, and, therefore, the Company's non-GAAP financial measures may not be directly comparable to similarly-titled measures of other companies. For reconciliations of the non-GAAP financial measures used in this press release (except as explained below), see “Reconciliation of Non-GAAP Financial Measures" included in this press release. Information regarding the most directly comparable GAAP financial measures and reconciling forward-looking Adjusted EBITDA and Net CAPEX to those GAAP financial measures is unavailable to the Company without unreasonable effort. We cannot provide the most comparable GAAP financial measures nor reconciliations of forward-looking Adjusted EBITDA and Net CAPEX to the most directly comparable GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income, and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. Although we provide outlooks for Adjusted EBITDA and Net CAPEX that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA and Net CAPEX calculations. The Company provides Adjusted EBITDA and Net CAPEX guidance because we believe that Adjusted EBITDA and Net CAPEX, when viewed with our results under GAAP, provides useful information for the reasons noted below. Conference Call Information WillScot will host a conference call and webcast to discuss its second quarter 2026 results and the 2026 outlook at 5:30 p.m. Eastern Time on Thursday, August 6, 2026. To access the live call by phone, use the following link: https://register-conf.media-server.com/register/BIb04ece17a5f44b15829bc446fa8ad149 You will be provided with dial-in details after registering. To avoid delays, we recommend that participants dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast will also be accessible via the "Events & Presentations" section of the Company's investor relations website: www.investors.willscot.com. Choose "Events" and select the information pertaining to the WillScot Second Quarter 2026 Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software. For those unable to listen to the live broadcast, an audio webcast of the call will be available for 12 months on the Company’s investor relations website. About WillScot WillScot (Nasdaq: WSC) is a leading provider of innovative turnkey space solutions in North America, helping customers keep projects moving and operations running. The Company partners with critical industries including construction, manufacturing, healthcare, government, energy and education to deliver the right solutions coupled with a high level of customer service. WillScot’s comprehensive portfolio of products – including modular complexes, dry and cold storage containers, blast-resistant buildings, clearspan industrial structures, fencing, and add-on furnishings and equipment – is customizable and flexible to support any project need. Headquartered in Scottsdale, Ariz., WillScot operates from a network of approximately 240 branch locations in the U.S., Canada, and Mexico. Forward-Looking Statements This press release contains forward-looking statements (including the guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words "estimates," "expects," "anticipates," "believes," "forecasts," "plans," "intends," "may," "will," "should," "shall," "outlook," "guidance," "see," "have confidence" and variations of these words and similar expressions identify forward-looking statements, which are generally not historical in nature. Certain of these forward-looking statements include statements relating to our operating capabilities, project pipeline (including large scale projects), order activation trends, leasing revenue trends and expectations regarding year-over-year leasing revenue growth, margin expansion, VAPS penetration, growth milestones, and expectations regarding capital allocation. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other important factors, many of which are outside our control, which could cause actual results or outcomes to differ materially from those discussed in or implied by the forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, they are predictions and we can give no assurance that any such forward-looking statement will materialize. Important factors that may affect actual results or outcomes include, among others, economic conditions and changes therein, including financial market conditions and levels of end market demand, as a result of macroeconomic and geopolitical conditions, including international armed conflicts; our ability to effectively compete in the modular space and portable storage industries; our ability to effectively manage our credit risk, collect on our accounts receivable, or recover our rental equipment from customers; our ability to implement our Network Optimization Plan; laws and regulations governing antitrust, climate related disclosures, cybersecurity and information technology, privacy, government contracts, anti-corruption, and the environment; the actions of activist shareholders; our ability to successfully acquire and integrate new operations; risks associated with cybersecurity threats and failure of our management information systems; trade policies and changes in trade policies, including the imposition of or increases in tariffs, their enforcement, trade restrictions, and broader economic measures and their consequences; fluctuations in interest rates and commodity prices; risks associated with labor relations, labor costs and labor disruptions; changes in the competitive environment of our customers as a result of the economic climate in which they operate and/or economic or financial disruptions to their industry; our ability to adequately protect our intellectual property and other proprietary rights that are material to our business; natural disasters and other business disruptions such as pandemics; our ability to establish and maintain the appropriate physical presence in our markets; property, casualty or other losses not covered by our insurance; our ability to close our unit sales transactions; our ability to achieve our sustainability goals; operational, economic, political, and regulatory risks; effective management of our rental equipment; the effect of changes in state building codes on our ability to remarket our buildings; significant increases in the costs and restrictions on the availability of raw materials and labor; fluctuations in fuel costs or a reduction in fuel supplies; our reliance on third-party manufacturers and suppliers; impairment of our goodwill and intangible assets; our ability to use our net operating loss carryforwards and other tax attributes; our ability to recognize deferred tax assets, such as those related to tax loss carryforwards, and utilize future tax savings; unanticipated changes in tax obligations, adoption of new tax legislation, or exposure to additional income tax liabilities; our ability to access the capital and credit markets or the ability of key counterparties to perform their obligations to us; our ability to service our debt and operate our business; our ability to incur significant additional amounts of debt and avoid risks associated with substantial indebtedness; covenants that limit our operating and financial flexibility; and such other risks and uncertainties described in the periodic reports we file with the US Securities and Exchange Commission ("SEC") from time to time (including our Annual Report on Form 10-K for the year ended December 31, 2025), which are available through the SEC’s EDGAR system at www.sec.gov and on our website. Any forward-looking statement speaks only at the date on which it is made, and the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Additional Information and Where to Find It Additional information can be found on the Company's website at www.willscot.com. Reconciliation of Non-GAAP Financial Measures In addition to using GAAP financial measurements, we use certain non-GAAP financial measures to evaluate our operating results. Set forth below are definitions of the non-GAAP financial measures used in this press release, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, and the reasons why we believe these measures provide useful information to investors. Each of these non-GAAP financial measures has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for analysis of, results reported under GAAP. Our measurements of these metrics may not be comparable to similarly titled measures of other companies. Adjusted EBITDA and Adjusted EBITDA Margin We define EBITDA as net income plus net interest (income) expense, income tax expense (benefit), depreciation and amortization. Our adjusted EBITDA ("Adjusted EBITDA") reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what we consider transactions or events not related to our core business operations: Currency (gains) losses, net on monetary assets and liabilities denominated in foreign currencies other than the subsidiaries’ functional currency. Restructuring costs, lease impairment expense, and other related charges associated with restructuring plans designed to streamline operations and reduce costs including employee and lease termination costs. Goodwill and other impairment charges related to non-cash costs associated with impairment charges to goodwill, other intangibles, rental fleet and property, plant and equipment. Costs to integrate acquired companies, including outside professional fees, non-capitalized costs associated with system integrations, non-lease branch and fleet relocation expenses, employee relocation and training costs, and other costs required to realize cost or revenue synergies. Transaction costs including legal and professional fees and other transaction specific related costs. Non-cash charges for stock compensation plans. Other expense, including consulting expenses related to certain one-time projects, financing costs not classified as interest expense, gains and losses on disposals of property, plant, and equipment, unrealized gains and losses on investments, costs to implement the Company's real estate exits prior to the approval of the Network Optimization Plan, and non-equity executive transition costs. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We evaluate business performance utilizing Adjusted EBITDA and Adjusted EBITDA Margin as shown in the reconciliations below. We believe that evaluating performance excluding such items noted above is meaningful because it provides insight with respect to the intrinsic and ongoing operating results of the Company and captures the business performance, inclusive of indirect costs. We believe that Adjusted EBITDA and Adjusted EBITDA Margin (as defined below) are useful to investors because they (i) allow investors to compare performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance; (ii) are used by our board of directors and management to assess our performance; (iii) may, subject to certain limitations, enable investors to compare the performance of the Company to its competitors; (iv) provide additional tools for investors to use in evaluating ongoing operating results and trends; and (v) align with definitions in our ABL Facility. The following table provides reconciliations of net income to Adjusted EBITDA: (a) For the six months ended June 30, 2026, other included $1.8 million in non-equity executive transition costs. The following table provides comparisons of Adjusted EBITDA Margin to Gross Profit Margin: Net Debt and Net Debt to Adjusted EBITDA Ratio Net Debt to Adjusted EBITDA ratio is defined as Net Debt divided by Adjusted EBITDA from the last twelve months. We define Net Debt as total debt net of total cash and cash equivalents. Management believes that Net Debt to Adjusted EBITDA ratio provides useful information to management and investors in evaluating our borrowing capacity and allocation strategies. The following table provides a reconciliation of Net Debt to Adjusted EBITDA ratio: Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted Weighted Average Diluted Shares Outstanding We define Adjusted Net Income as net income, plus certain non-cash items and the effect of what we consider transactions not related to our core business operations, including: Restructuring costs, lease impairment expense, and other related charges associated with restructuring plans designed to streamline operations and reduce costs including employee and lease termination costs. Goodwill and other impairment charges related to non-cash costs associated with impairment charges to goodwill, other intangibles, rental fleet and property, plant and equipment. Depreciation expense related to real estate exits. Equity-based executive transition costs. Costs to integrate acquired companies, including outside professional fees, non-capitalized costs associated with system integrations, non-lease branch and fleet relocation expenses, employee relocation and training costs, and other costs required to realize cost or revenue synergies. Transaction costs including legal and professional fees and other transaction specific related costs. Other expense, including consulting expenses related to certain one-time projects, financing costs not classified as interest expense, gains and losses on disposals of property, plant, and equipment, unrealized gains and losses on investments, costs to implement the Company's real estate exits prior to the approval of the Network Optimization Plan, and non-equity executive transition costs. We define Adjusted Diluted Earnings Per Share as Adjusted Net Income divided by Adjusted Weighted Average Diluted 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. Management believes that Adjusted Net Income and Adjusted Diluted Earnings Per Share are important measures that allow investors to evaluate performance between periods on a more comparable basis and provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business. The following table provides reconciliations of Net income to Adjusted Net Income, Diluted earnings per share to Adjusted Diluted Earnings Per Share and weighted average diluted shares outstanding to Adjusted Weighted Average Diluted Shares Outstanding: (1) For the six months ended June 30, 2026, other included $1.8 million in non-equity executive transition costs. (2) We include estimated taxes at our current statutory tax rate of approximately 27% for the three and six months ended June 30, 2026, and approximately 25% for the three and six months ended June 30, 2025. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin We define Adjusted Free Cash Flow 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; and excluding payments for and proceeds from the implementation of the Network Optimization Plan and real estate exits prior to the approval of the Network Optimization Plan and payments for executive transition costs. Adjusted Free Cash Flow Margin is defined as Adjusted Free Cash Flow divided by Revenue. The Company believes that the presentation of Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin provide useful additional information concerning cash flow available to fund our capital allocation alternatives and allow investors to compare cash generation performance over various reporting periods and against peers. The following table provides reconciliations of net cash provided by operating activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin: Net CAPEX We define Net CAPEX as purchases of rental equipment and refurbishments and purchases of property, plant and equipment, less proceeds from the sale of rental equipment (excluding proceeds from the implementation of the Network Optimization Plan and real estate exits prior to the approval of the Network Optimization Plan) and proceeds from the sale of property, plant and equipment, which are all included in cash flows from investing activities. Management believes that the presentation of Net CAPEX provides useful information regarding the net capital invested in our rental fleet and property, plant and equipment each year to assist in analyzing the performance of our business. The following table provides reconciliations of Net CAPEX: Return on Invested Capital Return on Invested Capital is defined as Adjusted earnings before interest and amortization divided by Average Invested Capital. Management believes that the presentation of Return on Invested Capital provides useful information regarding the long-term health and profitability of the business relative to the Company's cost of capital. We define Adjusted earnings before interest and amortization as Adjusted EBITDA (see reconciliation above) reduced by depreciation and estimated taxes. We include estimated taxes at our current statutory tax rate. Average Invested Capital is calculated as an average of Net Assets, a four quarter average for annual metrics and two quarter average for quarterly metrics. Net assets is defined for purposes of the calculation below as total assets less goodwill, intangible assets, net, and all non-interest bearing liabilities. The following table provides reconciliations of Return on Invested Capital, which has been adjusted to reflect depreciation related to real estate exits prior to initiating our Network Optimization Plan.

WillScot (WSC) reported $612.15 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 3.9%. EPS of $0.28 for the same period compares to $0.27 a year ago. The reported revenue represents a surprise of +4.7% over the Zacks Consensus Estimate of $584.7 million. With the consensus EPS estimate being $0.24, the EPS surprise was +16.67%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how WillScot performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average modular space units on rent: 89,835 versus the three-analyst average estimate of 88,637. Average modular space monthly rental rate: $1,272.00 compared to the $1,264.89 average estimate based on three analysts. Average portable storage monthly rental rate: $287.00 versus $287.09 estimated by three analysts on average. Average portable storage units on rent: 100,270 versus 99,016 estimated by three analysts on average. Revenues- Leasing and services revenue- Leasing: $449.68 million compared to the $429.48 million average estimate based on two analysts. The reported number represents a change of +1.5% year over year. Revenues- Leasing and services revenue- Delivery and installation: $135.84 million versus the two-analyst average estimate of $123.46 million. The reported number represents a year-over-year change of +25.3%. Revenues- Leasing and services revenue: $585.53 million versus $552.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.2% change. Revenues- Sales revenue- Rental units: $12.04 million versus the two-analyst average estimate of $14.28 million. The reported number represents a year-over-year change of -25.2%. Revenues- Sales revenue- New units: $14.59 million compared to the $17.29 million average estimate based on two analysts. The reported number represents a change of -32.5% year over year. View all Key Company Metrics for WillScot here>>> Shares of WillScot have returned +5.7% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WillScot Holdings Corporation (WSC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WillScot (WSC) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this maker of portable classrooms, mobile offices and storage units would post earnings of $0.16 per share when it actually produced earnings of $0.21, delivering a surprise of +31.25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. WillScot, which belongs to the Zacks Real Estate - Operations industry, posted revenues of $612.15 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.70%. This compares to year-ago revenues of $589.08 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. WillScot shares have added about 41.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While WillScot has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for WillScot was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $556.7 million in revenues for the coming quarter and $1.10 on $2.25 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Logistic Properties of the Americas (LPA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Logistic Properties of the Americas' revenues are expected to be $14.14 million, up 22% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WillScot Holdings Corporation (WSC) : Free Stock Analysis Report Logistic Properties of the Americas (LPA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research