WillScot Mobile Mini (WSC) Bank of America Leveraged Finance Conference summary

Business overview and recent developments

• Largest turnkey temporary space provider in North America, serving construction, education, commercial, and retail markets.

• Generates $2.25 billion in revenue with 43% EBITDA margins, targeting 45%-50% over time.

• About 23% of revenue converts to free cash flow, supporting investments and shareholder returns.

• Capital allocation: 25% to reinvestment, 25% to M&A, 50% to leverage management and shareholder returns, including a new dividend.

• Facing a non-residential construction slowdown, focusing on operational improvements and internal growth levers.

Market dynamics and growth outlook

• Large enterprise projects remain strong, with enterprise accounts up 9% year-over-year and expected to grow.

• Smaller projects, representing 80% of business, remain weak since early 2023, but some improvement seen in construction indicators.

• Increased sales team by 10% to drive internal growth, aiming for organic volume growth in the next few quarters.

• Lease durations average over three years, providing revenue stability and visibility despite market downturns.

• Modular order book flat year-over-year; storage orders down 6%, with revenue expected to recover before volume.

Operational initiatives and network optimization

• Announced network optimization: selling 10% of rental fleet and reducing acreage by 20% to cut real estate costs.

• Integration of field leadership and systems post-merger enables branch consolidation and efficiency.

• Plan aims to avoid $20-$30 million in future real estate cost increases while maintaining growth capacity.

• Utilization rates expected to rise but remain below levels that would constrain demand (targeting below 85%).

• Optimization supports EBITDA margin expansion goals without impacting 2025 investor day targets.