Willscot Holdings Corporation · NASDAQ:WSC
Willscot — Q1 2025 Earnings Presentation
43 slides from Willscot's earnings presentation, May 1, 2025
Slide 1: Quarterly Investor Presentation First Quarter 2025
QUARTERLY INVESTOR PRESENTATION FIRST QUARTER 2025 May 1, 2025
Slide 2: Safe Harbor
SAFE HARBOR Forward Looking Statements Non-GAAP Financial Measures This presentation contains forward-looking statements (including the guidance/outlook This presentation includes non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free c
Slide 3: Table of Contents
04 18 22 WillScot Business Q1 2025 Q1 2025 Overview Operating Results Financial Review TABLE OF CONTENTS 29 31 Company Values Appendix 3
Slide 4: A Decade on the Road to Growth
A DECADE ON THE ROAD TO GROWTH Essentials: WillScot of Reinvented yesteryear FLEX is here to stay Our leadership Replicating success in modular is bolstered More than Thinking BIG & staying cold modular: 2015 unlocking storage 2016 Built to withstand: 2018 BRM’s Fully-integrated, 2019 primed for gro
Slide 5: The Continuous Evolution of Turnkey Spaces
THE CONTINUOUS EVOLUTION OF TURNKEY SPACES Leading Onsite Comfort & Facilities Turnkey Storage Solutions Clearspan Structures From restrooms to efficient climate-control, we aim to make Highly customized storage solutions to help Expansive, durable, and highly configurable your site as comfortable a
Slide 6: WSC Formula to Drive Sustainable Growth and Returns
WSC FORMULA TO DRIVE SUSTAINABLE GROWTH AND RETURNS 1 Clear Market Leadership #1 In ~$20B North American market for flexible space solutions >25% Unlevered IRRs on new fleet investments 2 Compelling Unit Economics and Long-Lived Assets 20-30 yrs Useful lives of Modular and Storage Assets ~3 year Ave
Slide 7: Our Next Growth Milestones: $3B Revenue, $1.5B Adjusted EBITDA, $700M Adjusted Free Cash Flow
OUR NEXT GROWTH MILESTONES: $3B REVENUE, $1.5B ADJUSTED EBITDA, $700M ADJUSTED FREE CASH FLOW Performance 3 – 5 Year Operating 3,000 Metric1 Ranges LTM as of Q1 2025 % | $M (‘25 Investor Day) Revenue CAGR2 5 - 10% (1)% 2,396 50% Adjusted EBITDA Margin3 45 - 50% 44.1% 44% Return On Invested Capital3
Slide 8: We Offer the Most Flexible and Cost-Effective Temporary Space Solutions
WE OFFER THE MOST FLEXIBLE AND COST-EFFECTIVE TEMPORARY SPACE SOLUTIONS One of our first cross-sell of clearspan in Liberty Hill, Texas Rebuilding King Kamehameha elementary school in Pulelehua, HI Jobsite HQ during Montreal Olympic Stadium roof replacement Tennessee Titans football stadium Advent H
Slide 9: Our Scale Is a Key Competitive Advantage and a Value Driver for Our Customers
OUR SCALE IS A KEY COMPETITIVE ADVANTAGE AND A VALUE DRIVER FOR OUR CUSTOMERS ▪ We leverage our scale to win locally ▪ ~127M square feet of turnkey space relocatable anywhere in North America ▪ Sophisticated commercial and operational technology platform ▪ ~4,500 experts safely work ~9M hours annual
Slide 10: Our Business Is Inherently Sustainable
OUR BUSINESS IS INHERENTLY SUSTAINABLE Alternatives Our circular economy solutions Ready to Work solution Permanent new construction Incorporates VAPS to drive reuse ▪ We have implemented of more products and equipment, Requires extensive materials in addition to the units circular economy and resou
Slide 11: Our Lease Revenues Compound Predictably, with Stability Through Cycles
OUR LEASE REVENUES COMPOUND PREDICTABLY, WITH STABILITY THROUGH CYCLES $1.8B Leasing Revenue LTM GDP¹ Non-residential construction square foot starts¹ Lease Revenue2 Increase of ~81% $1.0B Lease Revenue2 2019 2020 2021 2022 2023 / 2024 “Normal” Demand COVID Shock Post-COVID Inflection “Exceptional”
Slide 12: Our Turnkey VAPS Solutions Drive Predictable Multi-Year Growth
OUR TURNKEY VAPS SOLUTIONS DRIVE PREDICTABLE MULTI-YEAR GROWTH IN VARIOUS ECONOMIC CYCLES $3.00B ▪ 26% VAPS Revenue CAGR from 2012-2024 ▪ 10-20% VAPS Revenue CAGR from 2024-2029 $2.40B supports 5-10% Total Revenue CAGR Adjacency VAPS Customer-Driven NPI & NPD + Pragmatic $0.75B + Innovation Strategi
Slide 13: We Serve Diverse Customer Segments and Can Reposition Within Them
WE SERVE DIVERSE CUSTOMER SEGMENTS AND CAN REPOSITION WITHIN THEM Revenue By Customer Segment1 Customer Segment Outlook Engineering & Architecture – 2% ▪ Continued multi-year demand from strategic onshoring with infrastructure demand, creating Highway & Heavy Construction – 4% tailwinds in manufactu
Slide 14: We Have Compelling Unit Economics
WE HAVE COMPELLING UNIT ECONOMICS Illustrative unit level cumulative cash flow 1 Maintenance Proceeds Capital investment Rapid Low annual Realized residual Average acquisition payback of maintenance values average >50% ▪ IRR 30%+ over Portable Storage cost of ~$4K ~30 months costs of original factor
Slide 15: Our Organic Growth Algorithm Supports Continued Profitable Growth
OUR ORGANIC GROWTH ALGORITHM SUPPORTS CONTINUED PROFITABLE GROWTH Customer Flexible space Turnkey value Ease of doing Benefits solutions proposition business Growth Rate + Organic Lease Operational 45% - 50% Volume Revenue Adjusted Algorithm VAPS Excellence Growth EBITDA Margin Financial ~500 Impact
Slide 16: Resilient Business with Idiosyncratic Growth Levers, Countercyclical Capex & Flexible Variable Cost Structure
RESILIENT BUSINESS WITH IDIOSYNCRATIC GROWTH LEVERS, COUNTERCYCLICAL CAPEX & FLEXIBLE VARIABLE COST STRUCTURE Carve-Out and Minimal North American Investment under Transforming Accelerating Growth Global Ownership Structure for Growth Avg. EBITDA 282 173 780 less Net Capex ▪ Capex is discretionary d
Slide 17: Table of Contents
04 18 22 WillScot Business Q1 2025 Q1 2025 Overview Operating Results Financial Review TABLE OF CONTENTS 29 31 Company Values Appendix 17
Slide 18: Our Portfolio of Units on Rent Is Underpinned by 3-Year Lease Duration
OUR PORTFOLIO OF UNITS ON RENT IS UNDERPINNED BY 3-YEAR LEASE DURATION Average Modular Space Units on Rent1 in thousands ▪ 5% Y/Y decline in average modular units on rent, with strength 99.8 95.8 98.9 95.7 98.2 94.9 97.7 90.5 92.7 in industrial and manufacturing, offset by headwinds from commercial
Slide 19: Our Consistent Rental Rate Performance Reflects Our Differentiated Value Proposition
OUR CONSISTENT RENTAL RATE PERFORMANCE REFLECTS OUR DIFFERENTIATED VALUE PROPOSITION Modular Space Unit Average Monthly Rental Rate1 $/unit per month ▪ Modular space unit average monthly rental rate increased 1,149 1,209 1,091 1,176 1,130 1,199 1,145 1,215 5% Y/Y to $1,209 in Q1 2025 1,031 ▪ ~12% Mo
Slide 20: VAPS Portfolio Is a Value Differentiator and an Example of Innovation
VAPS PORTFOLIO IS A VALUE DIFFERENTIATOR AND AN EXAMPLE OF INNOVATION DRIVING PREDICTABLE MULTI-YEAR GROWTH VAPS Revenue % of total revenue 20% - 25% CRM harmonization 17.2% 16.7% 16.6% 16.8% 16.7% 16.8% 16.5% 16.4% 16.4% 16.6% 15.9% 16.0% 15.7% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 21: Table of Contents
04 18 22 WillScot Business Q1 2025 Q1 2025 Overview Operating Results Financial Review TABLE OF CONTENTS 29 31 Company Values Appendix 21
Slide 22: Revenue and Adjusted EBITDA in Q1 2025
REVENUE AND ADJUSTED EBITDA IN Q1 2025 Revenue Adjusted EBITDA1 ▪ Total revenues down 5% Y/Y $M $M ▪ Leasing revenue decreased 6% Y/Y ▪ Driven by volume declines, with modular units on rent down 5% and 700 storage units on rent down 16% ▪ Offset by VAPS penetration and increased rates and contributi
Slide 23: Free Cash Flow Driven by Predictable, Recurring Lease Revenues and Capital Management
FREE CASH FLOW DRIVEN BY PREDICTABLE, RECURRING LEASE REVENUES AND CAPITAL MANAGEMENT Net Cash Provided By Operating Activities1 $M ▪ Continued strong operating cash flow from predictable, recurring 209 207 202 219 lease revenues 176 191 202 192 149 ▪ Net Capex in line with normal seasonality 179 ▪
Slide 24: We Maintain Appropriate Leverage and a Flexible Long-Term Debt Structure
WE MAINTAIN APPROPRIATE LEVERAGE AND A FLEXIBLE LONG-TERM DEBT STRUCTURE Liquidity and Debt Maturity Profile1 $M ▪ Leverage at 3.5x last-twelve-months Adj. EBITDA of $1.04B $1,625 ▪ ~$1.6B available liquidity in our revolving credit facility $1,515 $500 $500 $500 $500 ▪ Weighted average pre-tax inte
Slide 25: Expansion in Cash from Operations Supports Balanced Capital Allocation
EXPANSION IN CASH FROM OPERATIONS SUPPORTS BALANCED CAPITAL ALLOCATION Capital Allocation Framework $849 LTM Capital Allocated Capital Allocation Framework 2021 Investor Day $M | % 2025 Investor Day % % 25% 230 25% 299 27% 35% Cumulative 45% 50% Cash from ~$5B2 Operations2 81 10% 13 25% 1% 25% 226 5
Slide 26: Delivering Strong ROIC Within Our 15 – 20% Target Range
DELIVERING STRONG ROIC WITHIN OUR 15 – 20% TARGET RANGE1 Return on Invested Capital Build $M | % 3,500 20% 17.7% 16.7% 3,000 16.2% 15.4% 15% 2,500 11.7% 2,000 9.6% 10% 1,500 1,000 5% 500 - 0% 2020 2021 2022 2023 2024 Q1 2025 LTM Average Invested Capital Adjusted Earnings Before Interest and Amortiza
Slide 27: 2025 Financial Outlook Remains Unchanged
2025 FINANCIAL OUTLOOK REMAINS UNCHANGED $M 2025 Outlook Revenue $2,275 - $2,475 Adjusted EBITDA1 $1,000 - $1,090 Net CAPEX $225 - $305 ▪ Revenue range midpoint assumes Q2 activity levels supported by current order book and stable macro into 2H ▪ Incremental demand, pricing, and VAPS performance cou
Slide 28: Table of Contents
04 18 22 WillScot Business Q1 2025 Q1 2025 Overview Operating Results Financial Review TABLE OF CONTENTS 29 31 Company Values Appendix 28
Slide 29: Our Company Values
OUR COMPANY VALUES WE ARE Dedicated To Committed To Driven To Health & Safety Inclusion & Diversity Excellence We take responsibility for our own We are stronger together when we We measure success through our well-being and for those around us. celebrate our differences and strive results and the a
Slide 30: Table of Contents
04 18 22 WillScot Business Q1 2025 Q1 2025 Overview Operating Results Financial Review TABLE OF CONTENTS 29 31 Company Values Appendix 30
Slide 31: Appendix
APPENDIX WILLSCOT RIGHT FROM THESTART = 21
Slide 32: Summary P&L, Balance Sheet and Cash Flow Items
SUMMARY P&L, BALANCE SHEET AND CASH FLOW ITEMS Key Profit & Loss Items Three Months Ended March 31 (in thousands) 2025 2024 Leasing and Services Leasing $434,390 $460,601 Delivery and Installation 88,661 100,362 Sales New Units 22,437 13,499 Rental Units 14,063 12,719 Total Revenues 559,551 587,181
Slide 33: Consolidated Quarterly Performance
CONSOLIDATED QUARTERLY PERFORMANCE Modular Space Unit Average Monthly Rental Rate1 Portable Storage Unit Average Monthly Rental Rate1 $/unit per month $/unit per month 1,215 1,209 281 1,199 262 262 263 265 267 1,176 242 223 1,145 1,149 1,130 1,091 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 2
Slide 34: Consolidated Quarterly Performance
CONSOLIDATED QUARTERLY PERFORMANCE1,2 Quarterly Results for the three months ended March 31, 2025: (in thousands, except for units on rent Q1 Q2 Q3 Q4 TOTAL and monthly rental rate) Revenue $559,551 $559,551 Gross profit $300,366 $300,366 VAPS percentage of revenue 17.2% Adjusted EBITDA $228,785 $22
Slide 35: Reconciliation of Non-GAAP Measures – Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES – ADJUSTED EBITDA Adjusted EBITDA is a non-GAAP measure defined as net income (loss) before income tax expense (benefit), net interest (income) expense, depreciation and amortization adjusted for certain items considered non-core to our business operations includi
Slide 36: Reconciliation of Non-GAAP Measures – Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES – ADJUSTED EBITDA Adjusted EBITDA is a non-GAAP measure defined as net income (loss) before income tax expense (benefit), net interest (income) expense, depreciation and amortization adjusted for certain items considered non-core to our business operations includi
Slide 37: Reconciliation of Non-GAAP Measures – Adjusted EBITDA Margin %
RECONCILIATION OF NON-GAAP MEASURES – ADJUSTED EBITDA MARGIN % We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. Management believes that the presentation of Adjusted EBITDA Margin provides useful information to investors regarding the performance of our business. The following
Slide 38: Reconciliation of Non-GAAP Measures – Net Debt to Adjusted EBITDA Ratio
RECONCILIATION OF NON-GAAP MEASURES – NET DEBT TO ADJUSTED EBITDA RATIO Net Debt to Adjusted EBITDA ratio is defined as Net Debt divided by Adjusted EBITDA from the last twelve months. We define Net Debt as total debt net of total cash and cash equivalents. Management believes that the presentation
Slide 39: Reconciliation of Non-GAAP Measures – Net CAPEX
RECONCILIATION OF NON-GAAP MEASURES – NET CAPEX We define Net CAPEX as purchases of rental equipment and refurbishments and purchases of property, plant and equipment (collectively, "Total Capital Expenditures"), less proceeds from the sale of rental equipment and proceeds from the sale of property,
Slide 40: Reconciliation of Non-GAAP Measures – Adjusted Free Cash Flow and Margin
RECONCILIATION OF NON-GAAP MEASURES – ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW MARGIN Adjusted Net Cash Provided By Operating Activities is defined as net cash provided by operating activities excluding one-time, nonrecurring payments for the McGrath termination fee and transaction costs
Slide 41: Reconciliation of Non-GAAP Measures – Return on Invested Capital
RECONCILIATION OF NON-GAAP MEASURES – RETURN ON INVESTED CAPITAL Return on Invested Capital is defined as Adjusted earnings before interest and amortization divided by Average Invested Capital. Management believes that the presentation of Return on Invested Capital provides useful information regard
Slide 42: Reconciliation of Non-GAAP Measures – Return on Invested Capital
RECONCILIATION OF NON-GAAP MEASURES – RETURN ON INVESTED CAPITAL Return on Invested Capital is defined as Adjusted earnings before interest and amortization divided by Average Invested Capital. Management believes that the presentation of Return on Invested Capital provides useful information regard
Slide 43: WillScot
WILLSCOT RIGHT FROM THESTART = 3.