Willscot Holdings Corporation · NASDAQ:WSC
Willscot — Q2 2025 Earnings Presentation
43 slides from Willscot's earnings presentation, Jul 31, 2025
Slide 1: Quarterly Investor Presentation Second Quarter 2025
QUARTERLY INVESTOR PRESENTATION SECOND QUARTER 2025 July 31, 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 WillScot Business Q2 2025 TABLE OF Overview Operating Results CONTENTS 22 29 Q2 2025 Appendix Financial Review 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 FCF
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 Q2 2025 % | $M (‘25 Investor Day) Revenue CAGR2 5 - 10% (2)% 2,396 50% Adjusted EBITDA Margin3 45 - 50% 43.8% 44% Return On Invested Capital3
Slide 8: We Offer the Most Flexible and Cost-Effective, Turnkey Temporary Space Solutions
WE OFFER THE MOST FLEXIBLE AND COST-EFFECTIVE, TURNKEY TEMPORARY SPACE SOLUTIONS 8
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 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 11: 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 12: 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 2025 Pre-COVID COVID shock Exceptional demand Non-Residential cont
Slide 13: 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 14: 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 – 3% Continued multi-year demand from strategic onshoring with infrastructure demand, creating tailwinds in manufacturing, industrial, education, and H
Slide 15: We Have Compelling Unit Economics
WE HAVE COMPELLING UNIT ECONOMICS Illustrative unit level cumulative cash flow1 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 factory
Slide 16: 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 17: Table of Contents
04 18 WillScot Business Q2 2025 TABLE OF Overview Operating Results CONTENTS 22 29 Q2 2025 Appendix Financial Review 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 99.8 95.8 98.9 95.7 98.2 94.9 97.7 92.7 90.5 90.3 6% Y/Y decline in average modular units on rent, demand remains more resilient in industrial and manufacturing, while commercia
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 1,149 1,209 1,237 1,145 1,215 Modular space unit average monthly rental rate increased 1,091 1,176 1,130 1,199 1,031 5% Y/Y to $1,237 in Q2 2025 ~
Slide 20: VAPS Portfolio Is a Value Differentiator and Example of Innovation
VAPS PORTFOLIO IS A VALUE DIFFERENTIATOR AND AN EXAMPLE OF INNOVATION DRIVING PREDICTABLE MULTI-YEAR GROWTH VAPS Revenue VAPS % of Revenue LTM VAPS % of Revenue % of total revenue CRM harmonization 20% - 25% 16.1% 16.3% 16.5% 16.6% 16.5% 16.5% 16.5% 16.6% 16.8% 16.9% 15.9% 15.9% 16.0% 15.7% 15.9% 16
Slide 21: Table of Contents
04 18 WillScot Business Q2 2025 TABLE OF Overview Operating Results CONTENTS 22 29 Q2 2025 Appendix Financial Review 21
Slide 22: Revenue and Adjusted EBITDA in Q2 2025
REVENUE AND ADJUSTED EBITDA IN Q2 2025 Revenue Adjusted EBITDA1 Total revenues and Adjusted EBITDA down 3% and 6% Y/Y, $M $M respectively Leasing revenue decreased 3% Y/Y 700 Driven by volume declines across both modular and storage Partially offset by VAPS penetration and increased rates an
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 Net cash provided by operating activities up 17% Y/Y reflects $M strong profitability and increased focus on back office productivity and working capital management 209
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 3.6x last-twelve-months Adj. EBITDA of $1.03B $134M deployed towards tuck-in acquisitions in Q2 2025 $1,601 $1,582 ~$1.6B available liquidity in our revolving credit fac
Slide 25: Expansion in Cash from Operations Supports Balanced Capital Allocation
EXPANSION IN CASH FROM OPERATIONS SUPPORTS BALANCED CAPITAL ALLOCATION Capital Allocation Framework $954 LTM Capital Allocated Capital Allocation Framework 2021 Investor Day $M | % 2025 Investor Day % % 25% 264 251 25% 28% 26% Cumulative 45% 50% Cash from ~$5B1 Operations1 26 3% 187 25% 226 19% 25%
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% 3 to 5-year targeted 17.7% ROIC operating range 16.7% 3,000 15.4% 15.5% 15% 2,500 11.7% 2,000 9.6% 10% 1,500 1,000 5% 500 - 0% 2020 2021 2022 2023 2024 Q2 2025 LTM Average Invested Capital Adju
Slide 27: Revised 2025 Financial Outlook Reflects Macro Views on 2H25
REVISED 2025 FINANCIAL OUTLOOK REFLECTS MACRO VIEWS ON 2H25 $M 2025 Outlook Revenue $2,300 - $2,350 Adjusted EBITDA1 $1,000 - $1,020 Net CAPEX1 $250 - $300 Revenue range narrowed to reflect cautious outlook for second half of the year given more clarity on interest rates and trade policy Acceler
Slide 28: Table of Contents
04 18 WillScot Business Q2 2025 TABLE OF Overview Operating Results CONTENTS 22 29 Q2 2025 Appendix Financial Review 28
Slide 29: Appendix
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Slide 30: 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 June 30 Six Months Ended June 30 (in thousands) 2025 2024 2025 2024 Leasing and Services Leasing $442,916 $458,592 $877,306 $919,193 Delivery and Installation 108,452 108,147 197,113 208,509 Sales New Units 21,
Slide 31: Consolidated Quarterly Performance
CONSOLIDATED QUARTERLY PERFORMANCE Modular Space Average Units on Rent and Utilization1,2 107,241 106,676 105,928 104,688 102,338 101,832 101,728 101,599 100,182 100,130 99,565 100,312 100,747 102,013 102,903 103,126 99,826 98,939 98,169 97,665 95,817 95,671 94,899 92,742 90,548 90,285 73.1% 72.8% 7
Slide 32: Consolidated Quarterly Performance
CONSOLIDATED QUARTERLY PERFORMANCE1,2 Quarterly Results for the three months ended June 30, 2025: (in thousands, except for units on rent Q1 Q2 Q3 Q4 TOTAL and monthly rental rate) Revenue $559,551 $589,083 $1,148,634 Gross profit $300,366 $296,070 $596,436 VAPS percentage of revenue 17.2% 17.0% 17.
Slide 33: 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 to exclude certain non-cash items and the effect of what we consider tra
Slide 34: 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 to exclude certain non-cash items and the effect of what we consider tra
Slide 35: 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 Adjusted EBITDA Margin is useful to investors because it (i) allows investors to compare performance over various reporting periods on a con
Slide 36: 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 Adjusted EBITDA Margin is useful to investors because it (i) allows investors to compare performance over various reporting periods on a con
Slide 37: 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 38: 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 39: 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 Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP measures. We define Adjusted Free Cash Flow as net cash provided by operating activities; less purchases of rental equipment and pr
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 Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP measures. We define Adjusted Free Cash Flow as net cash provided by operating activities; less purchases of rental equipment and pr
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