WillScot Mobile Mini (WSC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $560M, down 5% year-over-year, with Adjusted EBITDA at $229M (40.9% margin) and net income of $43M; results aligned with expectations and full-year outlook reaffirmed.

• Over 75% of revenue is from recurring leasing, supporting predictable cash flow and resilience through cycles.

• Returned $45M to shareholders via $32M in share repurchases and a $13M dividend; advanced acquisition pipeline.

• Board changes include new independent directors and leadership succession.

• Continued investment in fleet and new product lines, with $62M Net CAPEX in Q1.

Financial highlights

• Q1 revenue of $560M, down 5% year-over-year, with gross profit of $300.4M (53.7% margin) and Adjusted EBITDA margin at 40.9%.

• Net income was $43M, down 23.4% year-over-year; Adjusted Free Cash Flow was $145M (25.9% margin).

• Modular units on rent declined 5%, storage units down 16% year-over-year; average modular rental rate up 5% to $1,209, storage up 2% to $267.

• Value-added products/services (VAPs) revenue penetration increased to 17.2% of total revenue.

• Net CAPEX for Q1 2025 was $62M, in line with seasonal trends.

Outlook and guidance

• 2025 guidance reaffirmed: revenue $2,275M–$2,475M, Adjusted EBITDA $1,000M–$1,090M, Net CAPEX $225M–$305M.

• Pending order book up 7% year-over-year, supporting Q2 lease activations and sequential revenue improvement.

• Anticipate easing volume headwinds and modest top-line growth in H2 2025; flattish Adjusted EBITDA margins expected.

• Multiple paths to achieve 3–5 year targets: $3B revenue, $1.5B Adjusted EBITDA, $700M Adjusted Free Cash Flow.

• Guidance assumes stable macro conditions; further macro erosion could pressure results.