WillScot Holdings Corp (WSC): Results of Operations and Financial Condition
WillScot Holdings Corp (WSC) filed an SEC Form 8-K — Results of Operations and Financial Condition. WILLSCOT REPORTS SECOND QUARTER 2026 RESULTS AND RAISES 2026 FULL YEAR OUTLOOK Exceeded Q2 2026 Outlook for Revenue and Adjusted EBITDA Raises 2026 Full Year Outlook for Revenue, Adjusted EBITDA and Net CAPEX on Continued Commercial Momentum SCOTTSDALE, August 6, 2026 - WillScot
How this was made
The 30-second read
Why it matters
The key tradable update is the raised 2026 outlook for revenue, Adjusted EBITDA, and Net CAPEX, supported by Q2 revenue and Adjusted EBITDA exceeding outlook. However, the filing also shows year-over-year declines in gross profit margin, Adjusted EBITDA margin, and adjusted free cash flow, which can temper the market reaction.
Market read
Guidance increase plus Q2 beat is a direct catalyst for WSC positioning into the second half of 2026, with margin and cash flow trends as key risk factors.
What to watch
Net income, adjusted net income, and adjusted free cash flow declined year over year, suggesting the earnings quality of the beat may be less durable than revenue growth.
WillScot Reports Second Quarter 2026 Results and Raises 2026 Full Year Outlook
Revenue returned to year-over-year growth, leasing and services revenue increased, and the Company raised its full-year revenue, Adjusted EBITDA and Net CAPEX outlook. Net income, Adjusted EBITDA, cash flow, and margins were below the prior-year quarter amid elevated activation costs and delivery and installation revenue mix.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 612,151 | – | – |
| Net incomeGAAP | $ 46,973 | – | – |
| Adjusted Net Incomenon-GAAP | $ 51,711 | – | – |
| Adjusted EBITDAnon-GAAP | $ 227,884 | – | – |
| Gross profit marginGAAP | 50.0 % | – | – |
| Adjusted EBITDA Margin (%)non-GAAP | 37.2 % | – | – |
| Net cash provided by operating activitiesGAAP | $ 162,264 | – | – |
| Adjusted Free Cash Flownon-GAAP | $ 55,086 | – | – |
| Diluted earnings per shareGAAP | $ 0.26 | – | – |
| Adjusted Diluted Earnings Per Sharenon-GAAP | $ 0.28 | – | – |
| Weighted average diluted shares outstandingGAAP | 181,808,591 | – | – |
| Adjusted weighted average diluted shares outstandingnon-GAAP | 181,808,591 | – | – |
| Net cash provided by operating activities marginGAAP | 26.5 % | – | – |
| Adjusted Free Cash Flow Margin (%)non-GAAP | 9.0 % | – | – |
| Return on Invested Capitalnon-GAAP | 14.4 % | – | – |
| Net CAPEXnon-GAAP | $114 million | – | – |
| Six months ended June 30 revenueGAAP | $ 1,160,779 | – | – |
| Six months ended June 30 net incomeGAAP | $ 75,096 | – | – |
| Six months ended June 30 Adjusted Net Incomenon-GAAP | $ 90,558 | – | – |
| Six months ended June 30 Adjusted EBITDAnon-GAAP | $ 438,898 | – | – |
| Six months ended June 30 gross profit marginGAAP | 51.0 % | – | – |
| Six months ended June 30 Adjusted EBITDA Margin (%)non-GAAP | 37.8 % | – | – |
| Six months ended June 30 net cash provided by operating activitiesGAAP | $ 353,322 | – | – |
| Six months ended June 30 Adjusted Free Cash Flownon-GAAP | $ 170,642 | – | – |
| Six months ended June 30 diluted earnings per shareGAAP | $ 0.41 | – | – |
| Six months ended June 30 Adjusted Diluted Earnings Per Sharenon-GAAP | $ 0.50 | – | – |
| Six months ended June 30 weighted average diluted shares outstandingGAAP | 181,641,748 | – | – |
| Six months ended June 30 Adjusted weighted average diluted shares outstandingnon-GAAP | 181,641,748 | – | – |
| Six months ended June 30 net cash provided by operating activities marginGAAP | 30.4 % | – | – |
| Six months ended June 30 Adjusted Free Cash Flow Margin (%)non-GAAP | 14.7 % | – | – |
| Six months ended June 30 Return on Invested Capitalnon-GAAP | 13.6 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Modular space leasing revenueIncludes revenue from clearspan structures. | $ 256,829 | – | – |
| Portable storage leasing revenue | $ 74,944 | – | – |
| VAPS and third-party leasing revenuesIncludes $12.6 million of service revenue for the three months ended June 30, 2026. | $ 103,386 | – | – |
| Other leasing-related revenueIncludes primarily damage billings, delinquent payment charges, and other processing fees associated with leasing arrangements, and is partially offset by write-offs of specific uncollectible lease receivables recorded as a reduction to revenue of $10.3 million. | $ 14,525 | – | – |
| Leasing revenueLeasing revenue continued to improve sequentially, driven by large project activity. | $ 449,684 | – | 1.5% |
| Delivery and installation revenueDriven by large complex installation activity and a significant event project during the quarter. | $ 135,844 | – | 25.3% |
| Total leasing and services revenueSupported by solid leasing and services revenue growth. | $ 585,528 | – | 6.2% |
| New unit sales revenue | $ 14,587 | – | – |
| Rental unit sales revenue | $ 12,036 | – | – |
2026 Full Year Outlook outlook
- Revenue$2,300
- NoteAdjusted EBITDA $920
- NoteNet CAPEX $375
Capital returns
- Paid quarterly cash dividend of $0.07 per share on June 17, 2026 to shareholders of record as of June 3, 2026.
What drove it
- Large project and event activity, Enterprise Accounts and verticals strategies drove year-over-year modular unit activation growth for the third consecutive quarter.
- Leasing and services revenue growth reflected a 1.5% increase in leasing revenue and a 25.3% increase in delivery and installation revenue.
- The Company cited a significant event project as a contributor to leasing revenue inflecting to year-over-year growth earlier than expected.
- The Company is increasing work order and refurbishment activity, investing in new fleet in high-demand differentiated categories, rolling out route optimization and dispatch, and expanding field and project management services.
- The raised Net CAPEX outlook reflects specific project opportunities expected to be executed heading into 2027.
Concerns
- Overall non-residential construction activity remains muted.
- Margin performance reflected elevated variable costs supporting modular space unit activation growth.
- Higher delivery and installation revenue affected revenue mix and margins.
- Net income, Adjusted Net Income, Adjusted EBITDA, operating cash flow, Adjusted Free Cash Flow, gross profit margin, Adjusted EBITDA Margin, and Return on Invested Capital were lower than the prior-year quarter.
- The Company cited a continued uncertain economic environment and said it would maintain a measured approach in its outlook.
What to watch
- Year-over-year leasing revenue trends and large-project demand during the second half of 2026.
- Conversion of the pending order book and specific project opportunities into fleet activations through early 2027.
- Whether variable activation costs taper sequentially as expected.
- The Company's anticipated significant sequential margin expansion through the remainder of 2026.
- Execution of increased fleet purchases and refurbishments under the $375 Net CAPEX outlook.
Balance sheet and cash flow
- Net cash provided by operating activities was $162 million, resulting in $55 million of Adjusted Free Cash Flow after Net CAPEX investments.
- Invested $114 million of Net CAPEX.
- Total debt was $3,495 million and net debt was $3,477 million, representing a $27 million reduction in our total debt balance in the quarter.
- We have no debt maturities until August 2028.
- Availability under the asset-based revolving credit facility was approximately $1.5 billion.
- Weighted average pre-tax interest rate, inclusive of $1.25 billion of fixed-to-floating swaps of 1-month SOFR at 3.54%, was approximately 5.7%.
- Estimated annual cash interest expense based on the current debt structure and benchmark rates is approximately $201 million, or approximately $215 million inclusive of non-cash amortization of deferred financing fees.
- Debt structure is approximately 90% / 10% fixed-to-floating after giving effect to the interest rate swaps.
- Net Debt to Adjusted EBITDA was at 3.7x based on last 12 months Adjusted EBITDA of $932 million.
Analysis
WillScot reported Q2 2026 revenue of $ 612,151, compared with $ 589,083 in the prior-year quarter, while management said the result exceeded its outlook. Total leasing and services revenue was $ 585,528, with leasing revenue of $ 449,684 and delivery and installation revenue of $ 135,844. The Company attributed activity to large projects and a significant event project, alongside Enterprise Accounts and verticals strategies. Management said modular unit activation growth was positive year over year for the third consecutive quarter and that leasing revenue returned to year-over-year growth earlier than expected.
Profitability and cash flow trailed the prior-year quarter. Net income was $ 46,973 versus $ 47,939, Adjusted EBITDA was $ 227,884 versus $ 248,913, and Adjusted EBITDA Margin was 37.2 % versus 42.3 %. Gross profit margin was 50.0 % versus 50.3 %. Management attributed the margin pressure to elevated variable costs tied to modular space unit activation growth and to the mix impact of higher delivery and installation revenue. It characterized these pressures as normal during periods of elevated activity.
Capital spending increased to support demand and fleet readiness. The Company invested $114 million of Net CAPEX for maintenance needs and growth in higher-value products supporting large-project demand. Net cash provided by operating activities was $162 million and Adjusted Free Cash Flow was $55 million after Net CAPEX investments. Total debt was $3,495 million and net debt was $3,477 million, while Net Debt to Adjusted EBITDA was 3.7x based on last 12 months Adjusted EBITDA of $932 million. The Company also paid a quarterly cash dividend of $0.07 per share.
The full-year outlook was raised to revenue of $2,300, Adjusted EBITDA of $920, and Net CAPEX of $375. Management said the incremental capital would purchase and refurbish fleet in high-demand product categories for large projects expected to activate in the second half of 2026 and into early 2027. It expects year-over-year leasing revenue trends to continue improving and variable activation costs to taper sequentially, supporting significant sequential margin expansion through the remainder of 2026.
The central items to monitor are large-project pipeline conversion, the durability of leasing revenue growth beyond the significant event project, activation-cost normalization, and delivery and installation mix. The Company continues to flag muted overall non-residential construction activity and an uncertain economic environment, even as it cites strong order-book growth and solid large-project demand.
Management, verbatim
While overall non-residential construction activity remains muted, the mix of that activity, combined with our go-to-market strategy, our offering, and our operational capabilities, is driving momentum into the second half of the year. We are raising our 2026 outlook for Revenue and Adjusted EBITDA modestly, recognizing both this top-line momentum and the continued uncertain economic environment.
Tim Boswell, President and Chief Executive Officer of WillScot
Second quarter 2026 revenues of $612 million and Adjusted EBITDA of $228 million exceeded our outlook, supported by solid leasing and services revenue growth. Leasing revenue continued to improve sequentially, driven by large project activity.
Matt Jacobsen, Chief Financial Officer of WillScot
Based on first half 2026 results and current commercial demand, we are raising our 2026 outlook to $2.3 billion in revenue and $920 million in Adjusted EBITDA.
Matt Jacobsen, Chief Financial Officer of WillScot
Not in the filing
stated, not guessed- GAAP operating income
- GAAP gross profit
- Cash and cash equivalents balance
- Prior-quarter comparisons for reported Q2 2026 metrics
- Year-over-year percentage changes for total revenue, net income, Adjusted EBITDA, cash flow, EPS, margins, and most revenue components
- Full-year 2026 guidance for gross margin, operating expenses, tax rate, GAAP net income, GAAP EPS, operating cash flow, and free cash flow
- Share repurchases
- Previous May 2026 outlook figures needed for guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with Item 2.02 results and an accompanying press release (EX-99.1) covering Q2 2026 performance and updated 2026 outlook.
Ticker impact
WillScot reported Q2 2026 revenue of $612M and raised 2026 outlook to $2.3B revenue and $920M Adjusted EBITDA.
Likely near-term positive bias as guidance is increased, tempered by disclosed margin and FCF declines.
The filing explicitly states Q2 results exceeded outlook and provides higher 2026 targets for revenue, Adjusted EBITDA, and Net CAPEX, which typically supports valuation multiples despite margin/FCF softness.
Market effects
Signals continued demand for modular space and event-related leasing activity despite muted non-residential construction.
No specific regional impact disclosed beyond commercial momentum.
Primarily US commercial real estate services exposure; no global macro linkage stated.
Counterpoint
The guidance raise may be offset by ongoing margin pressure from elevated variable activation costs and weaker year-over-year free cash flow.
Key entities
- issuerWillScot Holdings Corporation
Reported Q2 2026 results and raised full-year 2026 outlook for revenue, Adjusted EBITDA, and Net CAPEX.
- executiveTim Boswell
CEO commentary highlighting commercial momentum, order book growth, and fleet readiness plans.
- executiveMatt Jacobsen
CFO commentary attributing margin pressures to elevated variable costs and delivery/installation mix.
