WSC - Earnings call transcript Q4 2024 | WillScot Holdings Corporation

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Operator

Welcome to the Fourth Quarter 2024 WillScot Earnings Conference Call. My name is Cherie, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Charlie Wohlhuter.

Charlie. begin, may You

Charlie Wohlhuter

President Cherie. Quarter everyone, on XXXX Soultz, Officer. Tim include Thanks, Matt Officer; the Chief Jacobsen, today's welcome WillScot Brad Financial Boswell, Officer; Executive Fourth Earnings Chief Chief Good right. Operating and and afternoon, to call and All Call. Participants

containing on Today's like attention your to found Relations our harbor of the X, statements. safe material presentation be the section direct to Investor may WillScot I'd Slide website.

and our forward-looking making will presentation during We session. statements Q&A the be

Our of our a uncertainties, business subject of variety to and operations which are risks and control. many beyond are

As a today's results differ comments. materially result, from our actual may

For a in and our other factors and possible could more risks, SEC. filings please with our cause presentation the the the statements that actual refer results harbor differ description complete to to of safe

the With over that, I'll turn Soultz. to Brad call

Bradley Soultz

and and growth of afternoon, a market as remains solid strategic for Thanks, business solutions. results. and our durability pivotal everyone, the for our for space us was changes provider our strong, of financial turnkey WillScot, year Charlie. largest we thank marked by face, continued scalable end position today. modernize team challenges the delivered XXXX Despite you Good us that America's North joining business

customer and requisite the to WillScot marketing we we've way, and In and sales. XX, finalized unified sales brand experience. major WillScot Along platform execution. our streamlined in and expertise of the and we teams dispatch XXXX scale under to On year, service consolidated for then next the Mini systems over platforms Slide of QX, service operations our digital many adding field field enhanced Earlier tools growth. our introduced team, the for position and on We teams. integration the focused priorities strategic stage us for our and merged our better continued Mobile and

field to Tim across further is XXXX, aligned will back office, and opportunities our important team we though sales, improve operations for talk and priorities performance fully see more our accordingly. about

busy been of the X. foundation refining growth upcoming that already As full our strong backbone be plans, March the with all will Day on Investor focus laser our at on our display you we've can operational of which on tell, is

our of to Slide profile our of business X. is back to our customer our expand Turning that solution this needs A drive will and evaluate further best-in-class existing and to offerings We us first hallmark shareholder use capital serve to set. for We core affords differentiated complement our wide generation with adjacent value. solutions. strong then and us opportunities portfolio range allow this the

We approach through offerings, product have balanced and acquisitions. new in-house development, a both developing new to

which XXXX. we and evolve results profile. our solutions, recently from higher-value we of platforms In to differentiation growth storage solidified nodes also enhances return all see as now VAPS of in-house our which we towards ready and commercialization We've our XXXX, in these new full peers helping strong and adds already us greater and solutions for head are cold into perimeter added offering, structures clearspan

earlier avenue existing our growth all simply our demonstrates that believe We our continued Directors flows. to the of shareholders. generation, confidence quarterly the cash profitability, of dividend and strength a resilience week, strategic an on for return and recognizing in dividend improving In initiated capital provides our a cash of shareholders outlook capital additional this focus Board to our

X team. thank Nick Tim, over our for team pause hand years And Charlie has I'd welcome IR our before I to stewardship. it Nick within outstanding of well-deserved finance and like promotion accepted to to a to

in from time felt growth. I hear capacity. support he's Tim COO I'm excited you the our it announced, to focused was the appropriate for previously ongoing better to new the add role this and As and where Board to

Timothy Boswell

you, Brad, evening, good afternoon Thank good everybody. and and

As executing support go-to-market and to with initiatives building, field of capabilities, our strong sales XXXX Brad foundation teams year our them customers. across noted, to a was better serve

completing of year was we We this most efficiently to customer now the for team team North every systems final and every our accomplishments sales integration operations product was single to sales teams. of manager a at and every can XXXX. full market of in opportunity. our for One integration effectively unified geographic and accountable us to more the communicate market big ensuring one change This team have field as general a allows significant this our go a suite America, offerings and in

contact, have it embraced for and gives their to local Customers the development us command career clear love of Our it this in satisfaction. seeing and stabilizing roles teams turn, chain as accountability single our for a our we're In team, of customer transition. unlocks opportunities single in as sales performance. point improvements drive team growth well

stronger on execution into XXXX improving much we're and X areas. focused on as main in organization, heading So footing an

is our simply execution changes levers very core disruptive, now. improve a in push the enablement, in strong behind they the were of we are selling. also first The to while The sales made or area but us productivity. commercial executing creating XXXX said implemented reorganization, we

higher segmentation our conversion to actions product to pricing improved technology better our reps. capabilities recommend to implementing to new with bundling. We've with We've improve CRM quote rate introduced sales funnel and new tool and dashboard leads. we're upgraded configuration We've the improve our and a attainment digital quality fill sales to selling better marketing more both

give that certain in we these of to headcount conditions toolkit planning teams sales All sales add assuming remain And with supportive. place, markets, a stronger XXXX. are local our heading in into

and about efforts, we much talked externally. haven't those this Complementing

incredibly names that with enterprise portfolio. can well part of enterprise across as accounts of comparable these virtually in industry more North as an yet blue-chip portfolio companies every sector impressive customers do have comprised of We lot aren't We a America. our

to than we accounts, in stronger drive of market today So national between organic accounts levers penetration. years local our have our place improved efficiency in had with development and we've

this product we and XXXX, is execution storage on going contributors set us throw additions for of meaningful clearspan network. to the to also foundation start some across commercial available cold and fire In will some to allow offering. scaling Second, the heading both to our become the newer rate focus commercially now run broadly are into XXXX. these gas on our branch offerings, We're which expect ready our

storage dispatch field always optimize provided portfolio. operations now but the fully integrated excellence. our customer resources focus deliver with experience. been our and in In independently modular Third, we're a products operations a systems service the entire our position logistics product finally we're operator year the on integrated, harmonization renewing across of tools leading and of to our to last the our field, necessary We've

a delivery. significant market the such Our office, strategy and insourcing streamlining drivers, improved And as will point real all back important financial our resources customer leverages network and upside. address service trucks, and locations. This estate order-to-cash an in efficiency cluster workflow crews service in our drives with optimization increased pain

these meaningful experience. been Importantly, each surveys month prioritized on of initiatives a all the our based us that on customer thousands the that have and customer to areas impact have of operational point we receive

field I managers, training and for dial will operations, investments sales, management the complement adding established to highlight and team. is turning sales general The Across core an on fourth accountability. that human our team external been final and and marketing, we're have technology, shared talent we We're up area services performance and capital. prioritizing and

We fundamentals. have with amazing business an enviable

Our and been within focused competitive executing stronger, are on never levers positioning our has we're that the control.

expectations, far following seeing Matt, turning in Nonresidential quarters. starts a so to we're the start down the for with word although to So what construction quick QX, our continuing it was results mid-teens in ended reduced remain up square with last footage declines in several on year-over-year volumes before XXXX. QX to X% sluggish, line

Total activation to down that XX. low been units year, can have on due forecast partly which that digits it Slide several including this, to we volumes down schools prior been February activations high on large year. year, down Storage projects, following the single in Starting single digits. last and broken rent have delivered Maui modular but did is the you see trend,

transactional We those see to complexes and our order good in on so change trends. weaker more products, on continue activity rates no

the season, see still and wins and the after and And large up World Club as discuss. addition XXXX, we've It's guidance, call we for to Cup construction remodels the picking in upside disproportionate consistent infrastructure the deferred as demand from continue large-scale too construction expected will such and World FIFA a year in for years, this considered on early make in Cup as projects, QX being broader larger Matt back strength retailers, the scenarios to downside several which of are projects. to on

to categories, products and we our Wrapping execution, focused on near-term focused perspective, on with operational drive engagement From are people, field XXXX, operations and an customers. team. aligning our the commercializing systems deeper our new our product and priorities up commercial back-office in

are improvements all next which opportunities these about we employee our to in Day plan phase and We customer and WillScot's of importantly, are upon. beginning detail sentiment, areas, on see provide to excited most at We'll further build in evolution. Investor this

financials I'll pass review for of our it outlook. and a Matt to

Matthew Jacobsen

$X.XXX record and Slide growth year Tim. end you, year XX $X.X but modest quarter. what billion, levels in was we revenue with earnings challenging still billion overview XXXX markets, and QX begin year of delivered the respectively, call. on Thank on and we with our I'll Great. of our an EBITDA in the a to full line communicated adjusted

ability key the resilience model. business despite results sustain solid of underscores markets financial our Our end to in contraction

year-over-year at by down about Looking of declined million about with quarter, X% revenue the fourth leasing total $XXX X%. revenue

explained, volumes weaker. Tim were As

and impact now year-over-year However, small to help We're up products pricing in greater products grow seeing which X% average demand we for to over value-added perimeter for the were rates penetration continue year-over-year time. very monthly and and contribution a steady intend value-added our as around rental solutions, strategies storage. resulting modular X% offset from for up

operating ease adjusted basis XX.X% fourth QX would other our and the quarter to million. this drove volume quarter actions note, declines to expansion we margin margin year-over-year including flex year-over-year in we from the also of $XXX is points the I consecutive drove of to of end XXXX. helped EBITDA second Further, the the XX expansion in at realization of costs, took and ability savings

flow for quarter full of adjusted cash the in $XXX our million cash remained to flow year Slide operating profile Adjusted a $XXX with in the We million. XX. was which free fourth consistent Moving provided at was XX% for generated XXXX. Cash XXXX margin, activities by free strong.

multiple As you deployment. affords generation and robust us can see, our for options is cash and flow sustainable

the organically portfolio. cycle. M&A strength product the shows across of to acquisitions the investing and allocation On confidence Slide both X XX, and framework differentiate to have our commitment our but resiliency during We $XXX drive continued demonstrates also free the to and we further growth, our and our capital through through expanded year, cash investing our enhance offerings long-term flow million

share reducing Additionally, over last we of repurchases course XX diluted fully invested the our share X.X% the the $XXX over year, count in by months. million

XXXX, allocation a for Our strong to XX% saw return strategy disciplined as reinforcing our initiated this contributed returns. dividend cash capital Board our declaring share on And Directors you ability capital of earlier by week, $X.XX invested per to dividend. capital a our program generate

dividend we surplus now shareholders. to capital have another the With return program, to avenue

uncertainty outlook turning XX on the adjusted At billion reflects of XXXX. EBITDA. billion our time anticipate which spend macro Slide for We I'll believe midpoints, the back Before $X.XXX outlook it we year. the of Brad, we've and on entered $X.XXX revenue to upon some our

mid-teen As rest of market year-over-year only XXXX, the starts low saw the months with decline in construction through some single in the of of touched decreasing declines on, digits latter foot the versus year. square Tim moderation QX we nonresidential

to customers expect our although industrial that as there is cautious our implications. seem optimistic political many the still expectations moderate tariff regarding volume with We uncertainty. the rates but are headwinds now more through and U.S., longer stabilizes, macro interest we XXXX have Like for cautious given are we in certainty companies, higher

of our opportunities and have improved tangible see product growth in execution lines. across for to newer continue some very areas, certain commercial We we

the see We VAPS continuing for to modular VAPS Putting increase to penetration opportunities and our also laser-focused storage, rate average this in portfolio. are line half will the drive VAPS to volume-related incremental and continue and achieve we top and across of offset expanded we on year. optimization company, in we expect expect the customers the of our all which and product present growth as penetration diverse as together, second value reaccelerating entered we year rates inclusive offerings headwinds increasingly modest

based be the lower year. quarter on prior down We do, however, year to mid-single revenues digits first versus volumes expect entering the

below in to QX expect investing margin be although to are modestly to expect additional members in as similar we team We we year XXXX sales levels the progression prior be XXXX productivity some including drive prior commercial versus in in investments half We're ramp to XXXX. margin outlook outlook. more corresponding the compression the our the these of in year first which creates

increased we investments and improve to our exiting drive will activations these However, XXXX. organic believe and run growth rate help

a XXXX. net at XXXX guidance million investment increasing CapEx organic reflects for that numerous carryover XXXX bit delayed leasing was Our from of that run revenue the $XXX along drive midpoint anticipate will we rate into an of investment opportunities with

investment our well perimeter as in structures. as investments modular refurbishments new product, storage solutions, continued VAPS, complex including expect fleet clearspan We in and cold FLEX and

our million, of then, the guidance $XX taxes $XX million in million. cash increased about approximately changes think free adjusted and net of about of the of federal an cash we CapEx flow are at cash building free midpoint XXXX, key $XXX off As increase flow

we expect XX% $XX to total federal. about million our for taxes for federal partial This of income a the of cash million taxable So around of which about shield is be tax XXXX. $XX represents year,

a be taxpayer federal in to cash full expect XXXX. We

capital we some that opportunities believe to over have time. improve working We also

As XXXX million. that flow all we free for $XXX we together, expect of ballpark be the in put cash about to

with Things us nonresidential to I play variable we've that market. midpoints think base it's uncertainty won't could demand that predict here in our construction The case. ways XXXX the important walked different out like still the out. the the to exactly So through planned for remains reflect hardest is through play and

move year great the That's we meet near and as the second put of occurs in our the into to we end years, which a starts as demand equipment. half range costs So in refurbish range, months. the then rent QX unit term that see variable on could of with the higher to could should problem in as of compression subsides high accelerate, the higher would seasonally seasonally P&L most end the back CapEx margins in more the base have as to margins activity a additional in expand winter additional

other towards hand, third be the for starts lease a contraction, This could row outlook surprisingly which severity, which push continue our on duration. depending end That's a of decline, portfolio, be lower the year the X-year range. even would would long a to could our a the On environment of our with in period. challenging

However, aggressively operate did continue we we'll in know in expanding activations, team on investments if scenario, in how the our out that And costs investments. our like and just in in CapEx, to those incremental of and we and to don't take out sales back result we 'XX reduce pull variable XXXX. P&L

model of tight predictable. cash is by of the free of rather the in One and of features business any the business our scenarios flow remains range generated these

our to, operational our our commercial excellence, in as which, results. So on improving and backdrop, bookend alluded macro focused are both and Regardless those financial improve turn, execution of Brad and the scenarios Tim the forecast accuracy of our that we're overall outlook. our

Brad, closing hand for that, With it you I'll any to back thoughts.

Bradley Soultz

congratulations allocation. and remain role to Matt, capital programmatic With priority our I you, you would a our your just to as in Thank CFO. for acquisitions outlook, add respect tuck-in that high new

support last could guidance, the While acquisitions X a 'XX over potential of our largely pipeline considered not our pace current in we achieved the at continuation years.

growth. systems work our to drive heartfelt our more and at also we're new levers and of Investor and With this engagement we shareholders. Thank customers scaling you provide products weeks. complete, a for our focused X like In to would today, and in deeper customers. support XXXX, you you foundational on to we to I our us with with thank team, to excellence, extend which forward aligning look all details joining sharing aspects prioritizing largely Day our people,

This please concludes open Operator, our prepared the questions. line for remarks.

Operator

line of will question from come Stanley. Castillo our Morgan And with first Instructions] the [Operator Angel

Angel Castillo Malpica

normalized perhaps of the could business be kind that as to of outline of I think bit longer see slide could of more see in as the terms about the absence growth, I terms what back inorganic you we maintenance normal what in as term But in the which this in I your of of kind if of that net you of sort about more wondering kind of sales? is would maybe required of CapEx helpful. was CapEx if higher little comments you're drive think wanted dynamics investing to in. And CapEx separately, kind about around the you percentage do level to and growth year-over-year. continue business kind the to go of a to talk

Matthew Jacobsen

I'll Yes. is that. That's Matt. no address problem. This

As think look at. general we right business the look $XXX number I million at maintenance capital, now, good based a to is on

investing some are We areas. other in product

been, this in investing other will incrementally but little bit XXXX, solutions those, last as development a of Tim solar cold. areas on XXXX, product of some -- perimeter clearspan expanding have for We in product into these year in are one also we some more of a products. that bit of cold, We're other be these mentioned, now

for Obviously, depending these on ramp think will assumptions, is $XXX midpoint volume or I product of 'XX in are at a to right your kind categories of of based the different that range that taken really up environment of that guide and million ends volume going But forward. the down. kind neutral other range,

Angel Castillo Malpica

give AMR spread on I spot an then just you your And your the also kind -- and maybe was modular. us That's could for between update helpful. hoping of

of kind shaping just how of of up see the kind throughout exiting it where think sits kind XXXX? that you I and year

Matthew Jacobsen

Yes.

line right last at third It's we I on I change right XX% no modular, were now. think from quarter. think with quarter, -- QX in the really right for XX%

on real modular. change So no

look So we bit our little as rate but through continue real each there. change normal on a to to we forward, quarter process, push expect no

Operator

next for question, of Oppenheimer. come One that line from will the and moment Schneeberger with our Scott

Scott Schneeberger

the to past just on probably I of heard a speak a swing bridge. know you And bridge the then main about kind probably investment. cost summer carry be the like And a of guys prioritize But is EBITDA some get the next savings the there of course, What are and factors? then little what half could your sizable component. factor. the maybe drivers in of lot the a on from the to are which XXXX high is to you to macro there 'XX the XXXX going fill I'd speak a contribution, and through year lot EBITDA? to just deciding bit you guide for to a blanks were end low that year-over-year we've end

Matthew Jacobsen

Scott, volume bit probably storage. more maybe midpoint X% I'll we the mean That's straightforward. talk probably obviously, we're is I where Yes, at in first. little XX% modular and in the as year, down exiting look to

with headwind. starting we're that So

On and most the side, that not storage. We're on first modular making offsetting full quarter here up rate in XX%. of VAPs the the are

So the through way year. headwind, the We're and a that bit. our with starting storage to go as work we moderate expect we

of So starting that and again, in top working piece, line that's flattish growing of the and starting year, of modular back. through down kind more the kind storage

-- some benefits cost the originally we of the into maybe as some that better see half variable takeouts cost will have costs expected. from compensation performance look side, into XXXX, second the of that if in as 'XX QX do quarter. the we And come I have I'll did. did where we we we of sequentially talk look from the year, On fourth We the

first a starting organic bit in talked for growth drag we're resources then kind of an sales the the help add business. making here a we about, biannual And are will meeting We quarter. first company additional in to as quarter investment that little to in that the drive

the a in So At margin perspective, what second end headwind from I you some the that as a especially and in kind with like. the first half, of talked line, I of the of little about. bigger from SG&A the look bit it's half think year, of basically looks as those current are here relatively maybe forward in components

Scott Schneeberger

dig like For I'd my follow-up, a to little on just VAPS in bit.

both Looking initiatives at what for the much for I it's and been moving expect past LTM your see have that we to storage, drivers quarters, VAPS? What XXXX delivered X would the some rate that? be LTM rates? rates know stalled. we you get Are to for delivered there. And to target should over modular start over goal going of towards be able the pretty

Timothy Boswell

supplement. we're the look to by the features variability the process Scott, new start rep Tim. there and into terms can guided this to be across XXXX terms of our some of is is likely of performance making eliminate try by other heading introducing quoting change selling biggest here to mean I that I'll guys branch. and bundling when and in variability sales individual we or in

of still quote lot it close conversion terms between of You in see But XX% when a inconsistency penetration we it, products. quote rate. we value-added to for XX%

probably the So performance own team is management continued impacting that delivered our rate. the factor sales #X of

that's going lower offices per actually modular against our hood the under unit is highest into per our out. weakest on basis. all and the type fastest-growing units going from and VAPS details. the have a mobile get complexes thing working basis, on mix Another penetration penetration. have standpoint a Single-wide and that's FLEX a the won't fleet us probably that's FLEX I is of unit on they're volume But

to shift rate. delivered the the hood headwind mix that So is a under

stabilizing wide just help drive area. in actually would So improvement single the that mix some

newer -- The In this QX, LTM year think I VAPS seasonal a with was very about XX,XXX had it low right? on storage, effort, we this activations year, for penetration. this example, is

hood volumes. number. we're that core our to feel $XX under VAPS storage year, pushing what I rates about you're if to are the good headwind containers. the a we look start be storage where penetration And at pretty to going seeing that's So VAPs in across for

Operator

Blair. Tim Mulrooney question, will next from the our William that One line moment with of and for come

Timothy Mulrooney

your the Does can talk strong in about see a in but like for seasonal quarter, first in where second normalized the quarter. bit down XXXX? we Dodge you assume sequentially what's more activations, it With a embedded pattern, starts sequentially guidance little to respect up

last are year, what that said you that are the up in guide? XX% square quarter. haircutting footage you're think here? in assuming Is I second historically you starts sequentially Or the

Matthew Jacobsen

more This think speaking. seasonality, assuming is Tim. a we're Matt generally, Yes, normal I

yes, think than it's next little So couple a year have last I that more see ticks kind over here plays seen more normal would up. a But of how abnormal. the feel did QX we out bit how we'll Last year. of months and

Timothy Boswell

are seeing the in containers are continue And our in the net that into in are aligned February from I And Boswell, So would case the consistent that December year-over-year to going right? are just showing year, forecast. add, case of what Tim, embed this put activations but this rates some with strong guidance we did of we start order forecasted modulars sequential down is together. Tim increases the be we now ranges growth. to of we with in

So -- with and Matt's agree I assessment.

consistent we with I pretty in think sequential the cadence expect would what is year. normal a

Timothy Mulrooney

to about or no expect seen to pick year-to-date. buybacks did below for more what recently? buybacks in in which would any years Okay. looks the in by relative Was XXXX? me. one And few reason X% December count like XXXX, buybacks It up the you there share you with reduced no is you last over what for And more we've

Matthew Jacobsen

Day, But portfolio there change really more on approach. no of our policy update. here allocation bit kind I flavor buybacks, and sorry, -- Investor been there's we'll an our give capital the of to on think capital the it's mean, allocation our a kind at I

shareholders So we'll look leverage, options to manage cetera. value et to continue all at and to return

Bradley Soultz

value remains I'll to powerful add. is lever a this just Yes, for It shareholders. return Brad.

we discussed calls, For the year. on bit a were earlier last out of we've reasons market

of still is continue there capital flow. that So the the in it's extent this XX% to cash capital looks prioritize organic I to think framework. to free leaves is about about M&A no pipeline new return the our good. The dividend and We'll shareholders. half major our change allocation And

not it's here, another So just it's either/or avenue.

Operator

of El-Sabbahy our that come of moment question. the with from for America. next One Sherif And Bank line will

Sherif El-Sabbahy

I just wanted free cash checking flow. ask to on

expect year-over-year is free flow that consistent remain to basis? a Or that to where cash XXXX, For year-over-year? is expand see something on you margin margin going

Matthew Jacobsen

Yes.

I Sherif, Matt. think is the this two --

an CapEx. of we think hit then have And are midpoint will XXXX $XX to of to and from as changes taxes XXXX. about At in increase of year-over-year in guide, my move in million net a prepared I comments. really we expect were partial we look two million the we cash the 'XX, than our our in kind items as about 'XX in two I the taxpayer we be $XX do they higher XXXX be do

saw So we've put -- I'd well flow free X XXXX, we versus say in result kind margin the in range that the reduction those changes. out there. slight but of That what are a will really in the cash still we've within that

Operator

Ramsey come will of Thompson that And from question. the next Group. Steven our with line Research for moment One

Steven Ramsey

take FLEX rate through that and would 'XX boost delivered that the about increased expect so, I Do and the you And storage outlook to Wanted come for customer should remodels retail the product? if if XXXX. the that in up this to through? with correctly, outlook, think demand product 'XX heard set

Timothy Boswell

Tim. there. is this Steven, Two questions different

remodeling of pencil. But course system, related year. XXXX between albeit are play circled out deferred activity So related X,XXX in container year the through the some the through X,XXX that the the that orders will those we we was among and pick always we we to coming remodel that retailers first seeing had up to of serve. the activity larger is have big-box And expected in to

So it's nice coming activity that to see to back us. back and coming

modular of units to FLEX relates portfolio. Your the side the question second around

X% over units I are and now becoming think, So stackable portfolio units in rent that up, FLEX on units are these our are rent panelized, on office the of unit those that In X-foot shift of comments year-over-year. we report, it smaller mix on XX% as that those my impact units. to are by just the the AMR is about there XX-foot relates by

more to versatile they on higher they're better VAPS, customers. and pricing modular but higher unit our price capital bit little and foot. mousetrap tend So the a And return per per dilute in a for simply square

stock fleet of I the that over is will and the next really the shift adding the X continue of category only FLEX that modular course favor expect where we're gradually in mix So fleet, years. to

Steven Ramsey

I'm Okay. some Helpful. revenue point but and been and at, straight wanted think in And declining looking better. comps easing starts for then I QX, growth X least in expect showing nonres at XXXX? the do D&I year-over-year in quarters, revenue, Installation Delivery you square What footage, about start to at to getting

Matthew Jacobsen

I'll Matt. address is This Yes. one. that

are I returns of think there's actually definitely with a positive items few things reducing. there, them and some

or So deliver revenue a a with that. unit when return there's D&I we either associated unit,

comps you do so which the for a year-over-year I a in been of in good recurring as of versus revenue the standpoint. we XXXX reductions D&I at reason is has down quarters, leasing be returns, part couple think XXXX. do fewer some expect And thing the last from revenue still of look returns the to

a as overall So as in probably but looking of that revenues, a we recurring positive we're will year, the our -- headwind the for D&I of bit continue half at lease to be little especially first revenue.

Operator

next with Manav of our And come will Barclays. moment One that Patnaik question. for line from the

Ronan Kennedy

political being interest I'm greater If caution also Ronan longer referenced had implications. for potential for is on more I reference mistaken, on certainty with Manav. and customers but think This you hire not Kennedy tariff rates optimistic

also what can them, tariffs, the your with in to -- I potential the with guide? on policy, what's of to see regards both and regarding and aspects business immigration deportation that statement customer saying can but and for political outlook optimism So they're fiscal conversations contemplated we unpack

Timothy Boswell

is from Ron, the market. lot be not. There's with Obviously, it's activity mixed. the relates third-party seeing and as construction what is in of which related, core start data Tim. points some of to I'll hearing some to there, continue it which we're customers a But

down You've last got an in the ABI that dropped reading. XX to

So it's bipolar recent been the much the in like a electorate. bit since election, months

that's there. out So data one point that's

the of contractor also up slightly sequentially have You that backlogs December. ticked since end

consistent larger we our you customer more mix portfolio. and the portfolio what which hood if our product under perfectly of are backlogs look the in contractors, increasing the among there, And with see is

got that those our sector we're our both performing across was XXXX. revenue look end are traditional that and great not think us the business classrooms other And the are in education that product. with I FLEX we've in penetration there largest you As versus opportunity grower a like vertical targeting, for well markets

growth country. Utility is revenue expect the that for interesting based grid requirements would We're continue there, probably our infrastructure in the year-over-year activity surprisingly. seeing on not and

So probably the consistent just with what you reading headlines. would expect newspaper

becomes I As nature. there still a it puts high immigration, construction if here are the to relates headwind in and we've the as employment, really lot causing tariffs that it to immigration, activity of immigration around of in employment in construction remains project and you seen hypothesis I that effect and And make a building completions, mean, takes could relates could both tariffs things and and to before see enforcement country. of And of supplies supply starts which similar delays really, constraints. government a other chain on terms

border the wall activity in said, coming past more long-term hard container be a potential done time to it the If it from and terms tighten could that good cetera. obviously it support. tariff of as of in And China. supply there That to construction, investment, that's impact reduces relates predict it's reshoring et for us. related domestic opportunities immigration activity, We've demand-related could if results the in those. of It market in to

on to really things it's But the of could container how say soon a the benefit be business. too play out. So those side of all that

end I'd to left policy be year, right the and these to there I made. a optimism the fair the now say different out uncertainty election cycle also of all U.S. are being of related amount made think at but with around you decisions that more cycle definitely the business there's

Ronan Kennedy

mega projects confirm is and contextualize stable. 'XX kind covering or if expectation of Thank or all I for just volume what I mega could the for That's then is Can from of the aspects see was from And helpful. that consistent of question. on the 'XX? or you think referenced had the you that terms demand it you -- in very referenced call in contributions and

Timothy Boswell

remains honestly, I look demand when prominent across it's really across pervasive into theme to portfolio, say and it it some in quantify still even cases. Canada we geographies, other a that up can't way than at our very activity

complex within you those We're as in cadence the any So projects. think change to rock containers we ground And solid, business, and don't lines been remain projects. the win portfolio, offices the least that's the those our units consistent in relative like products mobile and and positioned weaker a of disproportionately were offices see about performance product transactional FLEX of single-wide at level for now year.

Operator

with that come from Baird. and of Andrew Wittmann One our the question, moment for line will next

Andrew J. Wittmann

positive to I do guidance bit your kind that's for at a modular outlook, in to of you ask expect Great. guidance they'll end question what's touched rent the does remain In inflect when a on maybe low it on, into ask negative your little directly. the assume year. more the units a or Maybe midpoint? been territory? but of And that wanted assumed your

when on inflection Just for there kind want might of be to understand UOR an modular?

Matthew Jacobsen

answer going we're that the of is, through is short crossing truth. know for could this going we the the what later you're don't year, just that headwinds provide are think we I move as And to Andy, our yet the midpoint in that mean assuming guide, we know exactly but -- our are year. basically the don't obviously, end at really In Yes. the subside to maybe markets year. the

maybe at doesn't get moving end probably if So at the it don't low of of sooner the know. end takes there at range, could activity high We you're forward. range, that all. And up, you happen the the

outcomes. kind different of bands guidance the reflects the So those around

Andrew J. Wittmann

just benefiting helpful. storage was AMR change think there. Then business guess a from one, I answer in a -- That's your the for cold I the with Okay. mix to this while, I but know

the large out. fourth basically that mix think year-over-year, that, X% quarter, as guess, Is effect is AMR the from a right? the I now now? I Is of kind like-for-like of

Matthew Jacobsen

less. Yes, or more

I think to increase overall our mix as products. continue the cold of in will we storage go forward,

the at in we XXXX. of had still the So are storage you in that like-for-like slight end that there year, as is but cold benefit

that look So as is at our but AMRs we of X% that, shift steady. accounting that's most up container year-over-year, for mix are that

Operator

our next the One moment and with question, of Thielman will line that Davidson. from come D.A. for Brent

Brent Thielman

quick I guess question. a

with especially and there? be the an might now, would due anomaly to mix in exit we're rate storage. trying little into more be a of shift the What And it opposed guess terms modular about to union helpful. as understand to rent the and market XXXX in be just state might units surprising thinking I the this was to think mean the on ask possibly to FLEX, I'm of I just simply what utilization. Just as right

Timothy Boswell

This is Tim.

and think has what's modular I from real are So end change and us of unit And from rent in level kind albeit only we forward in between the lower the just resulted starting that see that activity is was year-over-year. there levels the and QX on line point. that the at activation of that our today. perspective What itself down of with the matters end we're QX least forecast in going we levels really what activity quarter-to-date, of slightly seeing

laid far, so what seeing is consistent we're Matt So, the that out. plan with

Brent Thielman

in expansion XXXX, into just in given then year-end, rate for understand, the just you're we've look I seen to for matter? for get a penetration to in factored guidance storage VAPs where you moderate and handle storage guess, I good here opposed Okay. growth to as and just the And to seeing modular as trying I'm within rate that clearly core want rate what's

Matthew Jacobsen

storage, as those take that the VAPS will for Matt. things storage. one. in at mean to This seeing I we we're contribute Yes. same continue to mentioned storage some that Tim AMR. of I'll is on look

think would in our on the core I on rate of the say containers. assumptions I pace growth

X small seen rates subdued that in as would have time. gone QX much we've last years Our assumptions what or of a there since ago. increase X But they over are been from we've steady year and

So a coming of what case increase from VAPS. I a kind bit would is little modest with base our more say think

Operator

One And Jefferies. for of from next with our that will moment the line Ng question. come Phil

Philip Ng

busy Matt, terms of Tim was your you pointed out roles. integrating force. Congrats, in and kind guys of a guess XXXX new the in sales I year

some to of has guess, of your role, mixed. and new of I these kind that the for go after to for of you'll new enterprise are a what how It sounds you kind more in simulate realigning sales the So kind execution of be new hammering these And tools cross-sell little you're Are the talked accounts. have some COO focus really KPIs drive And performance sales you been force actions? Tim, there? like these you to about looking force.

Timothy Boswell

taking management And one be from incentives And standpoint at them. expectations standpoint. right? performance extent realigning the performance execution, Yes. to I sales a a commercial a at productivity tools had, better roles and also across visibility And sales hard an than look both layer, the and first from accountability got to our all mean we're going ever there's is to use right? also we and levels. we've intend absolutely, We've

In there the talking improvements some terms productivity overall of gets an range I that do that sales how we're probably approaching opportunity believe is from the for about. upside we're you organization the within year standpoint,

talked are I supportive. the X% the the there high potential place, teens course Matt on organization is the maybe in system add done low the do to markets As to into because the if and about, we've sales year of think got the end, the platform reorganization and through upwards

So this also in top I is we've we that and which bottom where the of both to new know organization, lines that's area a some think product key can core focus. within we execute the and across introduced, the a better, is

there. foundational there. about working survey There's see opportunity this capital I is in a some time. it. field and I an Then enterprise-level back talked order think Within shared to because operations I process there's management. benefit customer There's for there. a the and elevated and priority. some that capital data And as office Then some detractor performance services. services, and of been P&L experience done, a talked about work we've opportunity of know customer a satisfaction have it and human We retention We shared satisfaction processes these cash and

So are focused the those I'm year. of broad the X quite first in on categories that half

Philip Ng

terms in, you And -- I of more or whether for then baked storage? maybe 'XX. least give us color it's in AMR think on for what's how growth, guidance a Can 'XX you, a at modular Matt, for given little Are you storage. last still quarter, AMR talking backdrop? on those about potentially modular, about little were are demand mid-single-digit maybe in scope? differently low Or you single-digit thinking the within it guys growth your

Matthew Jacobsen

Yes.

that's the I Phil, right. think at midpoint,

bit didn't quicker. And go going get higher some to our base the obviously, accelerates lower you a -- of to it bit range end little that that go think be when in of if you But the of case. that would the start a that quite end range, higher the little I could to way. the

still it's have with ago. year we think would I thought a pretty what consistent

any surprises we We here quarter. last had perspective from a since rate haven't spoke really

Philip Ng

steady delivery of there. up. you sure commented terms in to has Is has been much the side make just on pretty been units storage weaker rate storage I what for because And that want to earlier? demand

Matthew Jacobsen

what changed. then last My kind about it of AMR, And from and been we AMR. comments been was talking and if on have that to pretty a the side, that's were It's Phil, since we QX right. heard I I to QX little on And helping delivered the modestly. are kind then year storage your a of on consistent of the little progress I said. how increasing more. with stable rates now bit increase kind The mentioned of storage VAPs question earlier, as bit

Operator

Alwy from moment Bank. And the come line of our that will with question. next One for Deutsche Faiza

Faiza Alwy

really you I there maybe you us the portfolio? Tim, to bit know Curious, haven't overall give color these appreciate accounts, much. said too accounts us about opportunity enterprise sizing mentioned of the more. just the we little bit the you and talked help Great. a And a this more what's relative can

Timothy Boswell

in of customer quickly time stable. It the X.X% But more largest than the blessing and or in here way really is And curse such more fragmented doesn't this weeks' is detail. very portfolio, talk right, why this we'll of revenue. one no it's move the about so which And it's our diversified the is Yes. because and other, portfolio. resilient and a X

of the as just largest about America ballpark weighted largest towards revenue, all about North generate XX% you of general customers XXX top to sense, of of well million as many a Our the total, in $XXX give the heavily retailers. contractors

names that's majority have have our we you had we The U.S. But across which vast a only that by selling that aligned all, unique geographically we vertically every all a first when So got of What defined you've selling of major value in that economy. historically right? find within local of game is geographies, across ZIP all, development a layer of codes, footprint. working industry selling territory customers. town. we the blue-chip are got customers almost we're aligned proposition And haven't are can do the take vertical XXX across company our we've in in about business would those resources, second the to

we I to have. So portfolio. accounts share we think we've have enterprise to that opportunity a add those an wallet absolutely in that already And opportunity got

one and of resourcing initiatives So that's about, talking what I'm this the that around year. that's we're

Faiza Alwy

for Great. Matt, a question you. And then,

little quarter mentioned first the EBITDA will quarterly a You and be lower. cadence modestly that bit margins the

Just first range be if around wondering to little specific margins? the EBITDA bit for confusion, I'm the could a you avoid quarter more

Matthew Jacobsen

probably adding in points we're basis that a is as have the so Yes, guide think about. coming -- as the some our headcount of first little XXX I and of somewhere here or of somewhere I we're into we our sure. mean midpoint bit those quarter headwinds sales talking

it could but a be could -- that's where set that's be, Obviously, range. the about that's So little it. we've better,

Operator

questions to Wohlhuter at in for like remarks. turn time. any I over no the now would showing call queue the this further to closing back I'm Charlie

Charlie Wohlhuter

you for today. all in Thank your you, Thank WillScot interest Cherie.

questions any have day. and contact please additional after have you, call, a me. today's you great Thank If

Operator

program. concludes participating. This for you all Thank today's

You may now disconnect.

WillScot (WSC) 20 Feb 252024 Q4 Earnings call transcript