WillScot Mobile Mini (WSC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $559.6M–$560M, down 4.7–5% year-over-year, with net income of $43M and diluted EPS of $0.23; Adjusted EBITDA was $228.8M–$229M at a 40.9% margin, supported by resilient recurring leasing and VAPS penetration.

• Over 75% of revenue is from recurring leasing, providing predictable cash flow; VAPS revenue grew to 17.2% of total revenue, progressing toward a 20–25% target.

• Returned $45M to shareholders via $32M in share repurchases and a $13M dividend; board transitions included new independent directors and a new non-Executive Independent Chairman.

• Reaffirmed full-year 2025 outlook for revenue, Adjusted EBITDA, and Net CAPEX, citing a 7% year-over-year increase in the pending order book driven by large accounts.

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

Financial highlights

• Revenue declined 4.7–5% year-over-year to $559.6M–$560M; net income was $43M, down 23.4% from Q1 2024.

• Gross profit was $300.4M with a 53.7% margin; Adjusted EBITDA margin was 40.9% (down 130–140 bps year-over-year).

• Adjusted Free Cash Flow was $144.8M–$145M (25.9–26% margin), up 120 bps year-over-year.

• Average modular units on rent declined 5–5.5%; portable storage units on rent declined 15.9–16% year-over-year.

• Modular space average monthly rental rate increased 5–5.2% to $1,209; portable storage rate rose 1.9–2% to $267.

Outlook and guidance

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

• Q2 revenue expected to improve sequentially, down ~2.5% year-over-year; modest top-line growth anticipated in H2 2025 as volume headwinds ease.

• Guidance assumes stable macro conditions; further macro erosion could pressure results, but order backlog up 7% year-over-year supports confidence.

• Management targets $3B revenue, $1.5B Adjusted EBITDA, and $700M Adjusted Free Cash Flow in 3–5 years.