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Sep 30, 2024

WillScot Mobile Mini Q3 2024 Earnings Report

WillScot Mobile Mini's Q3 2024 performance reflected outstanding margin and cash flow, with a focus shifting towards growth in 2025.

Key Takeaways

WillScot Mobile Mini reported Q3 2024 revenue of $601 million. The company's Adjusted EBITDA was $267 million, up 1% year-over-year, with a margin of 44.4%. Adjusted Free Cash Flow was $143 million, representing a 24% margin. The company is reducing its outlook to a midpoint of $1,060 million of Adjusted EBITDA for 2024.

Generated revenue of $601 million, including a $180 million McGrath RentCorp merger agreement termination fee.

Adjusted income from continuing operations, excluding certain charges, was $72 million, with Adjusted Diluted Earnings Per Share at $0.38.

Adjusted EBITDA reached $267 million, a 1% increase, with Adjusted EBITDA Margin expanding to 44.4%.

Adjusted Free Cash Flow was $143 million, reflecting a 24% margin.

Total Revenue
$601M
Previous year: $605M
-0.6%
EPS
$0.38
Previous year: $0.46
-17.4%
Avg Modular Rental Rate
$6
Previous year: $1.14K
-99.5%
Gross Profit
$321M
Previous year: $322M
-0.1%
Cash and Equivalents
$11M
Previous year: $5.79M
+90.8%
Free Cash Flow
-$60.1M
Previous year: $148M
-140.7%
Total Assets
$6.04B
Previous year: $6.08B
-0.6%

WillScot Mobile Mini

WillScot Mobile Mini

WillScot Mobile Mini Revenue by Segment

Forward Guidance

The company is reducing its outlook to a midpoint of $1,060 million of Adjusted EBITDA for 2024, reflecting the reality that non-residential construction markets are bottoming later than assumed in our prior outlook. The company thinks the combination of that moderation, improving commercial execution, and growing run-rates in newer product lines supports modest organic top-line growth with continued margin expansion in 2025, progressing towards our longer-term targets for Free Cash Flow and Return on Invested Capital.

Positive Outlook

  • Improving commercial execution.
  • Growing run-rates in newer product lines.
  • Supports modest organic top-line growth.
  • Continued margin expansion in 2025.
  • Progressing towards longer-term targets for Free Cash Flow and Return on Invested Capital.

Challenges Ahead

  • Non-residential construction markets are bottoming later than assumed in prior outlook.
  • Revenue for Q3 2024 was $601 million.
  • Adjusted EBITDA increased 1% year-over-year to $267 million.
  • Sequential progression of revenue from Q2 into Q3 was weaker than forecasted, primarily driven by softer volumes.
  • Volume headwinds continue to moderate.

Revenue & Expenses

Visualization of income flow from segment revenue to net income