WillScot — Third Quarter 2026 Earnings Summary

Financial Performance

• Generated revenue of $601.3 million for the three months ended September 30, 2026, compared to $566.8 million in the prior year period.
• Reported net income of $51.6 million for the quarter, up from $43.3 million year-over-year.
• Reported Adjusted Net Income of $53.2 million and Adjusted EBITDA of $233.6 million, representing a 38.8% margin, an increase of 160 basis points sequentially from Q2 2026.
• Gross profit margin was 50.7% for the quarter, compared to 49.7% in the prior year period.
• Leasing and services revenue totaled $572.6 million, a 7.5% increase year-over-year, driven by a 4.0% increase in leasing revenue and a 22.7% increase in delivery and installation revenue.
• Net cash provided by operating activities was $198.0 million, a 4% increase year-over-year.
• Adjusted Free Cash Flow was $78.4 million for the quarter, down from $123.6 million in the prior year period.
• Net CAPEX investments totaled $123.1 million for the quarter.
• Paid down $57 million of outstanding debt during the quarter.
• Total debt was $3,449 million with net debt of $3,434 million as of September 30, 2026.
• Net Debt to Adjusted EBITDA ratio was 3.7x based on the last 12 months of Adjusted EBITDA.
• Return on Invested Capital was 14.6% for the quarter, up from 14.3% in the prior year period.

Guidance and Future Outlook

• Raised full-year 2026 revenue outlook to $2.340 billion, up 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 the company exits 2027.
• Anticipates sustained variable costs in Q4 2026 and into 2027 to support demand, which may impact sequential margin expansion typically seen in the fourth quarter.
• Notes potential risks to the pace of data center build-outs as a factor for 2027 growth.

Business Segments and Product Lines

• Modular space units-on-rent increased 1.2% year-over-year, with activation growth accelerating to 12% year-over-year in the quarter.
• Revenue from Enterprise Accounts increased 15% year-over-year in the quarter.
• Modular activations increased year-over-year for the fourth consecutive quarter.
• Net CAPEX was prioritized for new rental equipment and refurbishments in highly utilized product lines to support major project activity and Enterprise Accounts.
• Investment in highly utilized fleet categories is strengthening the leasing revenue run-rate heading into 2027.

Market and Competitive Landscape

• Management states that momentum is building in the business and the differentiated value proposition is resonating in the market.
• Revenue mix is shifting in favor of highest value offerings with top customers.
• Order book growth is expected to remain elevated due to increased modular activations and delivery/installation revenues.
• Company operates from a network of 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 costs, and interest rate fluctuations.

Management Commentary and Tone

• Tim Boswell, President and CEO, stated results exceeded expectations for revenue and Adjusted EBITDA, citing strong indicators of business momentum and a positive inflection in units-on-rent.
• Boswell noted that margins and return on invested capital increased sequentially despite higher mix of delivery and installation activity.
• Matt Jacobsen, CFO, highlighted that Adjusted EBITDA margins expanded 160 basis points sequentially while absorbing increased variable costs.
• Management expressed confidence in a balanced initial outlook for 2027, citing improving operating trajectory and disciplined capital allocation.
• Jacobsen emphasized that the combination of elevated order book levels and growth in activation is strengthening the leasing revenue run-rate.

Other Key Points

• Paid a quarterly cash dividend of $0.07 per share on September 16, 2026.
• No debt maturities are scheduled until August 2028.
• Availability under the asset-based revolving credit facility (ABL Facility) was approximately $1.6 billion.
• 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.
• 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.
• Restructuring costs for the nine months ended September 30, 2026, were $18.1 million.