Willscot Class A Stock Earnings Reports

WillScot reported mixed Q3 2025 results with stable sequential leasing revenues (after adjusting for an accounts-receivable cleanup) but lower year-over-year revenue driven by AR write-offs and lower project delivery revenue. Adjusted EBITDA margin remained strong (42.9%) and adjusted free cash flow was healthy ($122M in the quarter; $397M YTD). Management emphasized a strategic shift toward higher-value, differentiated offerings (FLEX, complexes, climate-controlled storage, VAPS, clearspan/perimeter) and improving local sales execution, enterprise account penetration, and customer experience. Leadership announced a more conservative guidance approach to avoid negative surprises and reiterated accountability tied to internal targets. They launched a multiyear network and fleet optimization plan (targeting real estate reductions and disposal of excess fleet), estimating $250M–$350M of rental fleet net book value that could be disposed and potential annual real estate/facility cost avoidance of $20M–$30M over 3–5 years. The company amended its ABL facility (lowering borrowing costs and extending maturity), has no debt maturities until 2028, continues to invest selectively in high-return categories, and plans to allocate capital toward debt reduction as growth reaccelerates. Management expects the accounts-receivable cleanup noise to diminish in 2026, sees enterprise and certain adjacencies growing into 2026, but notes traditional storage remains weak and broader non-residential construction indicators have not yet confirmed a durable bottom.