WillScot Mobile Mini’s second quarter was marked by in-line revenue but a sharp miss on non-GAAP profit, prompting a significant negative market reaction. Management attributed the quarter’s results to persistent softness in small project demand, especially among local and regional customers, as well as ongoing macroeconomic uncertainty. CEO Brad Soultz noted the contrast between robust activity in large, complex projects and sluggish performance in smaller, transaction-driven segments, stating that “many customers are continuing to take a wait-and-see approach” due to uncertainty around trade and monetary policy.
Is now the time to buy WSC? Find out in our full research report (it’s free).
WillScot Mobile Mini (WSC) Q2 CY2025 Highlights:
- Revenue: $589.1 million vs analyst estimates of $587.5 million (2.6% year-on-year decline, in line)
- Adjusted EPS: $0.27 vs analyst expectations of $0.35 (23.4% miss)
- Adjusted EBITDA: $248.9 million vs analyst estimates of $249.2 million (42.3% margin, in line)
- The company dropped its revenue guidance for the full year to $2.33 billion at the midpoint from $2.38 billion, a 2.1% decrease
- EBITDA guidance for the full year is $1.01 billion at the midpoint, below analyst estimates of $1.04 billion
- Operating Margin: 21.5%, up from -0.9% in the same quarter last year
- Market Capitalization: $4.50 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WillScot Mobile Mini’s Q2 Earnings Call
- Angel Castillo (Morgan Stanley) asked about sources of sequential improvement in modular rental rates and value-added products. President Tim Boswell explained that modular strength is concentrated in FLEX units for large projects, while VAPS per unit is up due to renewed sales focus, but overall order rates plateaued in late Q2.
- Brent Thielman (D.A. Davidson) inquired about drivers behind expected margin gains in Q3. CFO Matt Jacobsen highlighted ongoing benefits from delivery and installation in-sourcing, cross-training drivers, and further SG&A leverage as the main contributors.
- Steven Ramsey (Thompson Research Group) sought details on enterprise leasing growth and its impact on overall revenue stability. Boswell clarified that enterprise modular units on rent were up 4%, driven by large, longer-duration projects, and that this segment is a key source of resilience.
- Margaret Grady Miller (Jefferies) questioned the outlook for storage segment demand, particularly in retail remodel activity. Boswell noted some improvement in Q1 but emphasized that remodel activity is short-cycle and unlikely to drive sustained unit growth without broader macro recovery.
- John Ronan Kennedy (Barclays) asked how interest rate and trade policy uncertainty is reflected in the company’s outlook. Jacobsen responded that no material improvement in small project demand is expected before 2026, with any benefit from potential rate cuts likely lagging into next year.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will focus on (1) whether order rates for small modular and storage projects show signs of bottoming or recovery, (2) continued margin expansion from operational and technology initiatives, and (3) the pace of integration and growth in newly acquired climate-controlled storage offerings. The evolution of interest rate and trade policy, as well as trends in retail remodel activity, will also be important to watch.
WillScot Mobile Mini currently trades at $24.35, down from $29.35 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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