Willscot Class A Stock Earnings Reports

WillScot delivered a solid start to 2026 with Q1 revenue of $549M and adjusted EBITDA of $211M, exceeding prior outlook. Key operational trends: modular activations rose (second consecutive quarter of year-over-year activation growth), delivery & installation (D&I) revenue grew ~12% YoY driven by large/mega projects (data centers, power, events), and VAPS penetration ticked up modestly to 17.7% of revenue. Management raised full-year guidance to ~ $2.25B revenue, ~$915M adjusted EBITDA and ~ $325M net CapEx, citing stronger-than-expected large project pipeline and increased conviction that leasing revenue will inflect to YoY growth in the second half of 2026. Margin compression in Q1 (38.5% adjusted EBITDA margin) was mainly volume/mix-driven (higher unit-prep costs, up 9% rental costs, commissions up 33%, and higher D&I mix), expected to persist into Q2 but to abate into H2 as activations convert to units-on-rent. Cash generation remains strong: $191M operating cash, $116M adjusted free cash flow (21% margin) in Q1; the company reduced debt by $76M and returned $20M to shareholders. Balance sheet: net debt of $3.5B, ~3.7x leverage, ~90% of debt effectively fixed, ample liquidity. Management continues network optimization (real estate/fleet dispositions), targeted fleet investments (complex modular and FLEX), and sales organization changes (regional layer, enterprise focus) to capture higher-quality, longer-duration projects. Risks: continued softness in local markets, timing of project starts, and near-term margin pressure from activation-related costs.