Q3 FY2026
Filed Nov 5, 2026WillScot reported third quarter 2026 revenue of $601 million and Adjusted EBITDA of $234 million, exceeded its Q3 outlook for revenue and Adjusted EBITDA, raised full-year revenue and Net CAPEX outlook, and maintained its Adjusted EBITDA outlook.
Revenue, leasing and services activity, modular activations, units-on-rent, operating cash flow and gross margin improved year-over-year. However, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted Free Cash Flow were below prior-year levels, while elevated delivery, installation and activation activity increased variable costs and limited seasonal margin expansion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $601.3M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $304.8M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 50.7 % | – | – |
| Operating income, three months ended September 30, 2026GAAP | $126.2M | – | – |
| Net income, three months ended September 30, 2026GAAP | $51.58M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.28 | – | – |
| Adjusted Net Income, three months ended September 30, 2026non-GAAP | $53.16M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $233.6M | – | – |
| Adjusted EBITDA Margin, three months ended September 30, 2026non-GAAP | 38.8 % | up 160 basis points sequentially from the second quarter 2026 | – |
| Adjusted Diluted Earnings Per Share, three months ended September 30, 2026non-GAAP | $0.29 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $198.0M | – | increased 4% year-over-year |
| Adjusted Free Cash Flow, three months ended September 30, 2026non-GAAP | $78.42M | – | – |
| Adjusted Free Cash Flow Margin, three months ended September 30, 2026non-GAAP | 13.0 % | – | – |
| Net CAPEX, three months ended September 30, 2026non-GAAP | −$123.1M | – | – |
| Return on Invested Capital, three months ended September 30, 2026non-GAAP | 14.6 % | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $1.76B | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 50.9 % | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $340.4M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $126.7M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $0.70 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $672.4M | – | – |
| Adjusted Diluted Earnings Per Share, nine months ended September 30, 2026non-GAAP | $0.79 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $551.3M | – | – |
| Adjusted Free Cash Flow, nine months ended September 30, 2026non-GAAP | $249.1M | – | – |
| Net CAPEX, nine months ended September 30, 2026non-GAAP | −$326.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Modular space leasing revenue, three months ended September 30, 2026Includes revenue from clearspan structures. | $256.3M | – | – |
| Portable storage leasing revenue, three months ended September 30, 2026 | $74.18M | – | – |
| VAPS and third-party leasing revenues, three months ended September 30, 2026Includes $12.3 million of service revenue for the three months ended September 30, 2026. | $104.4M | – | – |
| Other leasing-related revenue, three months ended September 30, 2026Includes primarily damage billings, delinquent payment charges, and other processing fees associated with leasing arrangements, partially offset by write-offs of specific uncollectible lease receivables recorded as a reduction to revenue of $7.0 million. | $16.83M | – | – |
| Leasing revenue, three months ended September 30, 2026Management cited strong leasing and services revenue growth. | $451.7M | – | 4.0% increase in leasing revenue |
| Delivery and installation revenue, three months ended September 30, 2026Higher-than-expected delivery and installation revenues supported 12% year-over-year growth in modular unit activations. | $120.9M | – | 22.7% increase in delivery and installation revenue |
| Total leasing and services revenue, three months ended September 30, 2026Leasing revenue and delivery and installation revenue increased year-over-year. | $572.6M | – | up 7.5% year-over-year |
| New unit sales revenue, three months ended September 30, 2026 | $14.38M | – | – |
| Rental unit sales revenue, three months ended September 30, 2026 | $14.39M | – | – |
| Modular space leasing revenue, nine months ended September 30, 2026Includes revenue from clearspan structures. | $756.9M | – | – |
| Portable storage leasing revenue, nine months ended September 30, 2026 | $221.7M | – | – |
| VAPS and third-party leasing revenues, nine months ended September 30, 2026Includes $35.1 million of service revenue for the nine months ended September 30, 2026. | $304.9M | – | – |
| Other leasing-related revenue, nine months ended September 30, 2026Includes primarily damage billings, delinquent payment charges, and other processing fees associated with leasing arrangements, partially offset by write-offs of specific uncollectible lease receivables recorded as a reduction to revenue of $30.3 million. | $43.46M | – | – |
| Leasing revenue, nine months ended September 30, 2026 | $1.33B | – | – |
| Delivery and installation revenue, nine months ended September 30, 2026 | $356.2M | – | – |
| Total leasing and services revenue, nine months ended September 30, 2026 | $1.68B | – | – |
| New unit sales revenue, nine months ended September 30, 2026 | $37.96M | – | – |
| Rental unit sales revenue, nine months ended September 30, 2026 | $41.02M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 outlook
- Revenue$2,340
- NoteAdjusted EBITDA: $920
- NoteNet CAPEX: $400
- Note2027 Adjusted EBITDA: mid-single digit percentage growth
- NoteLeverage: approaching 3.0x as we exit 2027
Capital returns
- Paid quarterly cash dividend of $0.07 per share on September 16, 2026 to shareholders of record as of September 2, 2026.
- Paid down $57 million of outstanding debt.
What drove it
- Leasing revenue increased 4.0% year-over-year and delivery and installation revenue increased 22.7% year-over-year.
- Modular space units-on-rent increased 1.2% year-over-year, accelerated by 12% year-over-year activation growth in the quarter.
- Revenue from Enterprise Accounts was up 15% year-over-year in the quarter.
- Management stated that order activity remained strong and that investments were directed toward highly utilized fleet categories, major project activity and Enterprise Accounts.
- The Company raised fourth-quarter expectations for modular activations and delivery and installation revenues and expects unit work order production levels to remain elevated.
Concerns
- Adjusted EBITDA was $233,551 (in thousands), compared with $243,307 (in thousands) in the prior-year quarter, and Adjusted EBITDA Margin was 38.8 % compared with 42.9 %.
- Adjusted Free Cash Flow was $78,425 (in thousands), compared with $123,594 (in thousands), while Net CAPEX was $(123,107) (in thousands), compared with $(69,022) (in thousands).
- Management expects sustained variable costs to support demand in the fourth quarter 2026 and into 2027, reducing the seasonal sequential margin expansion that would typically occur in the fourth quarter.
- Management identified potential risks to the pace of data center build-outs.
- Net Debt to Adjusted EBITDA Ratio was 3.7, and management said reducing leverage remains a priority.
What to watch
- Whether elevated modular activations and delivery and installation activity continue through the fourth quarter and broaden the demand profile.
- The degree to which investments in highly utilized fleet categories strengthen leasing revenue run-rate heading into 2027.
- Whether variable costs tied to delivery, installation and activation activity continue to constrain fourth-quarter margin expansion.
- Execution toward full-year 2026 revenue outlook of $2,340, Adjusted EBITDA outlook of $920 and Net CAPEX outlook of $400.
- Progress toward management's expectation that leverage will be approaching 3.0x as the Company exits 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $15,106 (in thousands) as of September 30, 2026.
- Total debt was $3,449,285 (in thousands) as of September 30, 2026.
- Net Debt was $3,434,179 (in thousands) as of September 30, 2026.
- Net Debt to Adjusted EBITDA Ratio was 3.7 as of September 30, 2026.
- Availability under the ABL Facility was approximately $1.6 billion.
- The Company has no debt maturities until August 2028.
- Weighted average pre-tax interest rate was approximately 5.6%.
- Estimated annual cash interest expense was approximately $196 million, or approximately $210 million inclusive of non-cash amortization of deferred financing fees.
- Total assets were $5,912,811 (in thousands) as of September 30, 2026.
- Long-term debt was $3,414,111 (in thousands) and current portion of long-term debt was $35,174 (in thousands) as of September 30, 2026.
Analysis
WillScot reported third-quarter revenue of $601,338 (in thousands), versus $566,841 (in thousands) a year earlier. Total leasing and services revenue was $572,567 (in thousands), with management citing a 4.0% increase in leasing revenue and a 22.7% increase in delivery and installation revenue. Activity indicators improved: modular space units-on-rent increased 1.2% year-over-year, modular activations grew 12% year-over-year, and Enterprise Account revenue increased 15% year-over-year.
The revenue mix favored delivery, installation and activation work. Management described these activities as short-term margin headwinds because of the associated variable costs, even as they support volume growth and the leasing revenue run-rate. Gross profit margin nevertheless improved to 50.7 % from 49.7 %. Adjusted EBITDA Margin was 38.8 %, compared with 42.9 % in the prior-year quarter, but management reported it was up 160 basis points sequentially from the second quarter 2026.
GAAP operating income was $126,246 (in thousands), compared with $118,806 (in thousands), while net income was $51,575 (in thousands), compared with $43,332 (in thousands). Adjusted EBITDA was $233,551 (in thousands), below $243,307 (in thousands) in the prior-year period. Adjusted Net Income was $53,161 (in thousands) compared with $54,595 (in thousands), and Adjusted Diluted Earnings Per Share was $0.29 compared with $0.30. The nine-month results also show lower profitability and cash conversion versus the prior-year period despite higher revenue.
Cash generation remained positive but reflected the Company's growth investment. Net cash provided by operating activities was $197,974 (in thousands), up 4% year-over-year, while Adjusted Free Cash Flow was $78,425 (in thousands) after Net CAPEX of $(123,107) (in thousands). The Company paid down $57 million of outstanding debt. At September 30, total debt was $3,449,285 (in thousands), Net Debt was $3,434,179 (in thousands), and Net Debt to Adjusted EBITDA Ratio was 3.7.
The Company raised its full-year 2026 revenue outlook to $2,340 and Net CAPEX outlook to $400, while maintaining Adjusted EBITDA outlook at $920. Management said higher expected fourth-quarter modular activations and delivery and installation revenue, together with order-book growth, should keep production elevated and strengthen the leasing revenue run-rate entering 2027. Its early 2027 outlook calls for mid-single digit percentage Adjusted EBITDA growth and leverage approaching 3.0x as it exits 2027, while noting risk around the pace of data center build-outs.
Management, verbatim
Our third quarter results exceeded our expectations for revenue and Adjusted EBITDA. Leasing revenue increased 4% and delivery and installation revenue increased 23% year-over-year. Modular activations increased year-over-year for the fourth consecutive quarter, driving a positive inflection in units-on-rent.
Tim Boswell, President and Chief Executive Officer of WillScot
Overall, our improving run-rate, organic growth investments, and margin initiatives support mid-single digit percentage growth in Adjusted EBITDA in 2027.
Tim Boswell, President and Chief Executive Officer of WillScot
Incorporating year-to-date 2026 results and ongoing activation levels, we are raising our 2026 outlook for revenue to $2.340 billion and maintaining Adjusted EBITDA at $920 million.
Matt Jacobsen, Chief Financial Officer of WillScot
Not in the filing
stated, not guessed- Previous-release outlook figures were not provided, so a metric-by-metric comparison of actual results with prior guidance cannot be made.
- Share repurchase activity was not reported.
- Full-year 2026 gross margin guidance was not reported.
- Full-year 2026 operating expense guidance was not reported.
- Full-year 2026 tax rate guidance was not reported.
- GAAP effective tax rate for the third quarter 2026 was not reported.
- Prior-quarter figures were not reported for most operating metrics.
- A discrete GAAP free cash flow measure was not reported; the filing reported non-GAAP Adjusted Free Cash Flow.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.