WillScot (NASDAQ:WSC) Posts Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• WillScot beat Q1 estimates with $0.21 EPS vs. $0.16 expected and revenue of $548.6M vs. $518.2M, but revenue was down 2% year‑over‑year and EPS fell from $0.26 a year earlier.
• Management raised full‑year 2026 guidance to about $2.25 billion in revenue and ~$915 million in Adjusted EBITDA, citing improving commercial momentum (activations +10%, enterprise revenue +12%) and strong Q1 adjusted free cash flow of $116 million used for buybacks/dividends and debt reduction.
• Near‑term margin pressure remains a concern: Q1 adjusted EBITDA margin compressed to 38.5% due to higher unit prep/delivery/rental costs, rising commissions, and a roughly $50 million headwind from storage/unit‑on‑rent declines.

WillScot (NASDAQ:WSC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.05, FiscalAI reports. The business had revenue of $548.63 million for the quarter, compared to analyst estimates of $518.17 million. WillScot had a positive return on equity of 20.42% and a negative net margin of 2.32%.The firm's revenue for the quarter was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.26 EPS.

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

• WillScot raised full‑year 2026 guidance to about $2.25 billion in revenue and ~$915 million in Adjusted EBITDA and now expects leasing revenue to inflect year‑over‑year in the second half of 2026.
• Commercial momentum is improving — total activations were up ~10% year‑over‑year in Q1 (modular activations up ~8%), while enterprise accounts revenue rose 12% and the enterprise pending order book is >25% higher ex‑World Cup.
• The business generated strong cash flow and returned capital — Q1 adjusted free cash flow was $116 million (21% margin), the company repurchased shares and paid dividends (~$20 million), and reduced debt by $76 million with ample liquidity.
• Near‑term margin pressure and local market softness — Q1 Adjusted EBITDA margin compressed to 38.5% due to higher unit prep, delivery & installation mix, rental costs (+9%) and commissions (+33%), and storage/container unit‑on‑rent declines (a previously noted ~$50 million headwind).

WillScot Stock Performance

WSC traded down $0.10 during midday trading on Thursday, reaching $23.30. The company's stock had a trading volume of 2,789,274 shares, compared to its average volume of 2,530,239. The stock has a market cap of $4.21 billion, a P/E ratio of -77.67, a PEG ratio of 1.72 and a beta of 1.31. The company has a fifty day simple moving average of $19.74 and a 200 day simple moving average of $20.19. The company has a current ratio of 0.86, a quick ratio of 0.78 and a debt-to-equity ratio of 4.15. WillScot has a twelve month low of $14.91 and a twelve month high of $31.88.

WillScot Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 18th. Shareholders of record on Wednesday, March 4th were issued a $0.07 dividend. The ex-dividend date of this dividend was Wednesday, March 4th. This represents a $0.28 dividend on an annualized basis and a yield of 1.2%. WillScot's dividend payout ratio (DPR) is -93.33%.

Institutional Trading of WillScot

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. lifted its position in shares of WillScot by 334.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 5,522,450 shares of the company's stock worth $103,988,000 after acquiring an additional 4,250,951 shares during the period. Turtle Creek Asset Management Inc. lifted its position in shares of WillScot by 71.7% in the 3rd quarter. Turtle Creek Asset Management Inc. now owns 8,730,347 shares of the company's stock worth $184,298,000 after acquiring an additional 3,645,350 shares during the period. Primecap Management Co. CA lifted its position in shares of WillScot by 210.9% in the 4th quarter. Primecap Management Co. CA now owns 4,267,400 shares of the company's stock worth $80,355,000 after acquiring an additional 2,894,900 shares during the period. Coliseum Capital Management LLC lifted its position in shares of WillScot by 70.7% in the 4th quarter. Coliseum Capital Management LLC now owns 5,111,602 shares of the company's stock worth $96,251,000 after acquiring an additional 2,117,247 shares during the period. Finally, Alyeska Investment Group L.P. bought a new stake in shares of WillScot in the 4th quarter worth approximately $34,159,000. Institutional investors and hedge funds own 95.81% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on WSC shares. DA Davidson lowered their price objective on WillScot from $32.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Oppenheimer increased their price objective on WillScot from $24.00 to $25.00 and gave the company an "outperform" rating in a report on Monday, February 23rd. Weiss Ratings reissued a "sell (d+)" rating on shares of WillScot in a report on Wednesday, January 21st. Wall Street Zen lowered WillScot from a "hold" rating to a "sell" rating in a report on Monday, February 23rd. Finally, Morgan Stanley increased their price objective on WillScot from $21.00 to $23.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $23.50.

WillScot Company Profile

WillScot NASDAQ: WSC is a leading North American provider of modular space and portable storage solutions. The company designs, manufactures, leases and sells temporary and permanent modular buildings to serve sectors such as education, healthcare, construction, industrial and government. Its modular space offerings range from single‐unit office trailers and classrooms to complex multi‐unit configurations tailored to diverse project requirements.

In addition to modular structures, WillScot offers a broad portfolio of portable storage containers and related services, including site logistics, customization, delivery and installation.

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