The following is a summary of the WillScot Holdings Corporation (WSC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Adjusted EBITDA margins reached record levels at 44.4% with adjusted free cash flow and return on invested capital also near record levels.

• Gross margin expansion was achieved through reductions in variable costs by over $20 million.

• Revenue of $601 million, a slight decrease of 1% year over year, driven primarily by volume headwinds impacting storage leasing revenues and delivery/installation revenues.

• Adjusted EBITDA of $267 million, adjusted income from continuing operations of $72 million, and adjusted diluted earnings per share of $0.38.

• Certified stable and predictable free cash flow with an adjusted free cash flow per share increase of 13% to $3.12 over the last 12 months.

Business Progress:

• Continued investment in operational efficiency and new product introductions, including climate control storage, clear span structures, and sanitation solutions.

• Successfully completed major system integrations and consolidated under the WillScot brand.

• High focus on cross-selling and optimizing sales and operations through new digital marketing, customer service, and sales tools.

Opportunities:

• Expansion of portfolio with newer product lines like climate control storage and clear span structures, driving growth in total addressable market.

• Organic investments, acquisitions, and innovations expected to further enhance the product offerings and market reach.

• Strategic focus on optimizing and leveraging operational and digital advancements to fuel growth and customer engagement in 2025.

Risks:

• Ongoing volume headwinds due to non-residential construction market contractions and delays in project starts, exacerbated by political and economic uncertainties.

• Potential reduction in customer engagement and orders due to shorter-term economic fluctuations and election implications.

• Moderating but persistent challenges from the market environment, which remains worse than anticipated.

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