WillScot Holdings Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Generated revenue of $601.3 million for the quarter, up from $566.8 million in Q3 2025.
• Reported net income of $51.6 million for the quarter, compared to $43.3 million in Q3 2025.
• Adjusted EBITDA was $233.6 million for the quarter, down from $243.3 million in Q3 2025, with a margin of 38.8% (up 160 basis points sequentially from Q2 2026).
• Adjusted Net Income was $53.2 million for the quarter, compared to $54.6 million in Q3 2025.
• Diluted EPS was $0.28 for the quarter, up from $0.24 in Q3 2025; Adjusted Diluted EPS was $0.29, down from $0.30 in Q3 2025.
• Gross profit margin was 50.7% for the quarter, up from 49.7% in Q3 2025.
• Net cash provided by operating activities was $198.0 million for the quarter, up 4% year-over-year from $191.2 million.
• Adjusted Free Cash Flow was $78.4 million for the quarter, down from $123.6 million in Q3 2025.
• Return on Invested Capital (ROIC) was 14.6% for the quarter, up from 14.3% in Q3 2025.
• Net debt was $3,434 million as of September 30, 2026, with a Net Debt to Adjusted EBITDA ratio of 3.7x based on the last 12 months.
• Total debt was $3,449 million, with no maturities until August 2028.

Guidance and Future Outlook:

• Raised full-year 2026 revenue outlook to $2.340 billion from previous guidance.
• Maintained full-year 2026 Adjusted EBITDA outlook at $920 million.
• Raised full-year 2026 Net CAPEX outlook to $400 million.
• Provided early 2027 outlook for mid-single digit percentage growth in Adjusted EBITDA.
• Expects leverage to approach 3.0x as it exits 2027.
• Anticipates sustained variable costs in Q4 2026 and into 2027 to support demand, which may impact sequential margin expansion typical in Q4.
• Notes potential risks to the pace of data center build-outs as a factor for 2027 growth.

Business Segments and Product Lines:

• Leasing and services revenue totaled $572.6 million for the quarter, up 7.5% year-over-year.
• Leasing revenue increased 4.0% year-over-year to $451.7 million.
• Delivery and installation revenue increased 22.7% year-over-year to $120.9 million.
• Modular space units-on-rent increased 1.2% year-over-year, driven by a 12% year-over-year acceleration in activation growth.
• Revenue from Enterprise Accounts increased 15% year-over-year.
• Net CAPEX of $123 million was invested, prioritizing new rental equipment and refurbishments in highly utilized product lines.
• Paid down $57 million of outstanding debt during the quarter.

Market and Competitive Landscape:

• Management noted a positive inflection in units-on-rent and building momentum in the business.
• The revenue mix is shifting in favor of highest value offerings with top customers.
• Order book levels are expected to remain elevated due to increased modular activations and delivery/installation revenues in Q4.
• The company operates from approximately 230 branch locations in the U.S., Canada, and Mexico.

Risks and Challenges:

• Potential risks to the pace of data center build-outs could impact 2027 growth.
• Increased variable costs and higher-than-expected delivery and installation revenues acted as short-term margin headwinds in the quarter.
• Forward-looking statements are subject to risks including economic conditions, geopolitical events, regulatory changes, competition, credit risk, cybersecurity threats, labor relations, and interest rate fluctuations.

Management Commentary and Tone:

• CEO Tim Boswell stated results exceeded expectations for revenue and Adjusted EBITDA, citing strong indicators of momentum and a differentiated value proposition.
• Boswell highlighted that margins and return on invested capital increased sequentially despite absorbing higher variable costs.
• CFO Matt Jacobsen noted that the acceleration of modular activation growth resulted in an earlier-than-expected inflection to year-over-year modular units-on-rent growth.
• Management expressed confidence in a balanced initial outlook for 2027, balancing debt reduction with investments in attractive opportunities.

Other Key Points:

• Paid a quarterly cash dividend of $0.07 per share on September 16, 2026.
• Availability under the asset-based revolving credit facility (ABL Facility) was approximately $1.6 billion as of September 30, 2026.
• Weighted average pre-tax interest rate was approximately 5.6%, inclusive of $1.25 billion of fixed-to-floating swaps.
• Estimated annual cash interest expense is approximately $196 million, or $210 million inclusive of non-cash amortization of deferred financing fees.
• The company's debt structure is approximately 90% fixed-to-floating after giving effect to interest rate swaps.
• Deferred revenue and customer deposits increased to $256.1 million as of September 30, 2026, from $237.3 million at December 31, 2025.