WillScot (NASDAQ:WSC) Issues Quarterly Earnings Results

WillScot (NASDAQ:WSC) issued its quarterly earnings results on Thursday. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.01, FiscalAI reports. The business had revenue of $601.34 million for the quarter, compared to analyst estimates of $586.11 million. WillScot had a positive return on equity of 21.62% and a negative net margin of 3.00%.

Here are the key takeaways from WillScot’s conference call:

• Q3 revenue rose 6% year over year to $601 million, ahead of expectations, and adjusted EBITDA of $234 million also exceeded the company’s outlook. WillScot raised its 2026 revenue forecast to $2.34 billion while maintaining adjusted EBITDA guidance at $920 million.
• Modular activity is improving: units on rent grew 1.2% year over year, activations rose 12%, and the modular pending order book was up more than 20%. Management sees a volume tailwind entering 2027 and expects low-single-digit organic revenue growth and mid-single-digit organic EBITDA growth, while noting uncertainty around future data center project starts.
• Near-term margins remain pressured by upfront activation, transfer, logistics, and delivery-and-installation costs, so stronger activity is not immediately flowing through to EBITDA. Portable storage leasing revenue fell 7% year over year, and management expects storage volumes to remain down.
• The company invested $123 million in net capital expenditures during Q3, with more than 90% of incremental fleet already rented or assigned to customer orders. Despite higher growth investment, WillScot repaid $57 million of debt in the quarter, ended at 3.7x leverage, and said it expects leverage to approach 3x by the end of 2027.

WillScot Stock Down 7.6%

NASDAQ:WSC traded down $1.46 on Thursday, reaching $17.84. 4,247,277 shares of the stock traded hands, compared to its average volume of 2,493,475. The company has a market capitalization of $3.23 billion, a price-to-earnings ratio of -46.95, a PEG ratio of 1.14 and a beta of 1.37. WillScot has a 12 month low of $14.91 and a 12 month high of $29.77. The company has a current ratio of 0.81, a quick ratio of 0.74 and a debt-to-equity ratio of 3.80. The company’s fifty day simple moving average is $18.09 and its 200 day simple moving average is $21.84.

Wall Street Analyst Weigh In

WSC has been the topic of a number of analyst reports. UBS Group decreased their price objective on WillScot from $29.00 to $18.00 and set a “neutral” rating on the stock in a research note on Friday, October 16th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of WillScot in a report on Monday, August 17th. Citigroup reduced their price objective on WillScot from $30.00 to $21.00 and set a “buy” rating on the stock in a research report on Monday, October 12th. Robert W. Baird reduced their price objective on WillScot from $28.00 to $21.00 and set a “neutral” rating on the stock in a research report on Monday, October 12th. Finally, Barclays upped their target price on WillScot from $24.00 to $26.00 and gave the stock an “equal weight” rating in a research note on Monday, August 10th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $24.86.

WillScot Company Profile

WillScot Holdings Corporation (NASDAQ: WSC) provides flexible workspace and storage solutions primarily to customers across North America. The company offers modular buildings, mobile offices, portable classrooms, storage units and other temporary or permanent space solutions for businesses, schools, construction sites, health care organizations, government agencies and other institutions.

In addition to renting and selling modular space and portable storage products, WillScot provides related services such as delivery, installation, relocation, site improvements, furnishings and facility services.