WillScot Mobile Mini (WSC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $589.1 million, down 2.6–3% year-over-year, with Adjusted EBITDA of $248.9–$249 million at a 42.3% margin, and net income of $47.9–$48 million, reflecting broadly in-line performance with expectations.

• Lease revenues improved 2% sequentially but declined 3.4% year-over-year, with higher average rates and VAPS penetration offsetting lower units on rent.

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

• Strategic focus remains on large, long-duration projects and enterprise accounts, with smaller project demand lagging due to macroeconomic uncertainty.

• Customer satisfaction and Net Promoter Scores improved, driven by operational and technological enhancements.

Financial highlights

• Gross profit for Q2 2025 was $296.1 million, with a gross margin of 50.3%, and net income rose to $47.9–$48 million from a prior year loss.

• Adjusted Free Cash Flow for Q2 2025 was $130–$130.3 million at a 22.1% margin; net cash from operations was $205 million, up 17% year-over-year.

• LTM Adjusted EBITDA margin was 43.8%; LTM Adjusted Free Cash Flow margin was 23.6–24%.

• Return on Invested Capital for Q2 2025 LTM was 13.8–15.5%, within the 15–20% target range.

• Value-added products and services (VAPs) contributed 17% of total revenue, up 40 basis points year-over-year.

Outlook and guidance

• Full-year 2025 revenue outlook narrowed to $2.3–$2.35 billion and Adjusted EBITDA to $1–$1.02 billion, reflecting continued macroeconomic headwinds.

• Free cash flow guidance raised to $500–$550 million for the year, supported by tax legislation and working capital improvements.

• Net CAPEX for FY 2025 projected at $250–$300 million.

• Modest sequential revenue growth expected in Q3, but total revenue projected to be down ~3% year-over-year due to non-recurring large projects in the prior year.

• Management targets $3 billion annualized revenue, $1.5 billion Adjusted EBITDA, and $700–$900 million Adjusted Free Cash Flow in 3–5 years.