WillScot tops Q3 profit estimates, raises 2026 revenue outlook

WillScot (WSC) topped third-quarter profit estimates and raised its 2026 revenue forecast, while keeping its Adjusted EBITDA forecast unchanged.

Shares rose 1.0% at 9:44 a.m. ET, from a $17.84 close.

Here's how the company did:

• Adjusted EPS: 29 cents per share vs. 30 cents a year earlier, against the 28-cent consensus estimate
• Revenue: $601.34 million vs. $566.84 million a year earlier, against the $589.49 million estimate
• Adjusted EBITDA: $233.55 million vs. $243.31 million a year earlier, at a 38.8% margin

Net income was $51.6 million, up from $43.3 million a year earlier. Diluted earnings were 28 cents per share, against 24 cents.

Leasing and services revenue rose 7.5% year-over-year to $572.57 million. Adjusted EBITDA margin was up 160 basis points from the second quarter.

2026 guidance

It raised its 2026 revenue outlook to $2.340 billion from $2.3 billion in August.

It kept the Adjusted EBITDA outlook at $920 million and raised its Net CAPEX outlook to $400 million from $375 million.

President and Chief Executive Officer Tim Boswell said, "Overall, our improving run-rate, organic growth investments, and margin initiatives support mid-single digit percentage growth in Adjusted EBITDA in 2027."

Leverage is expected to be approaching 3.0x as it exits 2027. Net Debt to Adjusted EBITDA was 3.7x at quarter-end.

Segment results

Modular space units-on-rent rose 1.2% year-over-year, after activations grew 12% in the quarter.

Delivery and installation revenue rose 22.7% from a year earlier, while leasing revenue rose 4.0%. Revenue from Enterprise Accounts was up 15% year-over-year.

Net income swung from a profit of $43.3 million in the third quarter of 2025 to a loss of $187.3 million in the fourth quarter of 2025.

Costs and cash

Restructuring costs were $1.38 million in the quarter.

Net cash from operating activities was $198 million, up 4% year-over-year. After $123 million of Net CAPEX, Adjusted Free Cash Flow was $78 million.

The company paid down $57 million of debt, leaving total debt at $3.45 billion. It has no debt maturities until August 2028.

Weighted average pre-tax interest rate was about 5.6%, and estimated annual cash interest expense is about $196 million. Availability under its asset-based revolving credit facility was about $1.6 billion.