WillScot Holdings Corporation reported fourth‑quarter 2025 results that included $566 million in revenue and $250 million in adjusted EBITDA, translating to a 44.2% margin. The company posted an adjusted diluted earnings per share of $0.29, falling short of the $0.33 consensus estimate. The revenue beat was driven by a 0.8% sequential increase in leasing revenue, while the margin compression reflected a shift in the revenue mix and higher health‑insurance costs.
Revenue for the quarter was down 6.1% year‑over‑year, falling from $603 million in Q4 2024. The decline was largely attributed to a reduction in seasonal retail container volumes from a single customer and a cleanup of out‑of‑period accounts receivable. The company’s adjusted EBITDA margin fell from 47.3% in Q4 2024 to 44.2% in Q4 2025, a 3.1‑percentage‑point contraction that management said was due to a 50‑basis‑point mix shift and an additional 60‑basis‑point compression from elevated health‑insurance costs.
Leasing revenue grew sequentially, and modular space leasing remained flat year‑over‑year, a sign that the lease portfolio is stabilizing. "Revenue from modular products was effectively flat year‑over‑year. So the lease portfolio is stabilizing as a result of our initiatives despite the continued contraction of nonresidential square footage starts in Q4," said President and CEO Tim Boswell. Enterprise‑account revenue rose 7% for the full year and 10% in Q4 excluding one large seasonal container customer, underscoring the company’s focus on high‑margin, high‑value product lines.
For 2026, WillScot guided to $2.175 billion in revenue and $900 million in adjusted EBITDA, a 42.9% margin. CFO Matt Jacobsen described the outlook as "a conservative view relative to our current run rate beginning the year and does not include benefits from ongoing internal initiatives." The guidance includes a $50 million headwind in the traditional storage business, but also highlights continued growth in enterprise accounts and the expansion of its high‑value product mix. The company’s Network Optimization Plan is expected to deliver $25‑$30 million in annual real‑estate cost savings over the next four years, offsetting a $302 million non‑cash restructuring charge recorded in Q4 2025.
The results illustrate a company that is successfully shifting toward higher‑margin offerings while managing headwinds from a cyclical downturn in non‑residential construction. The revenue beat, despite a year‑over‑year decline, signals resilience in leasing and enterprise demand. The EPS miss reflects the impact of the restructuring charge and health‑insurance cost compression, but the company’s guidance remains conservative, suggesting confidence in its strategic initiatives and a path to positive organic growth in the second half of 2026.
Overall, WillScot’s fourth‑quarter performance demonstrates disciplined cost control and a strengthening product mix, even as it navigates a challenging macro environment. The company’s focus on high‑margin products, coupled with planned cost savings, positions it to recover as the construction cycle improves.
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