Thu, May 1, 9:07 PM (21 days ago)
**WillScot Holdings Corporation (WSC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue decreased by 4.7% to $559.6 million, driven by a 5.7% decrease in leasing revenue due to reduced demand and fewer deliveries. New unit sales revenue increased by 66.2%, and rental unit sales revenue increased by 10.6%. - **Profit Margins:** Gross profit decreased by 5.2% to $300.4 million, resulting in a gross profit margin of 53.7%. Operating income decreased by 8.1% to $119.4 million. - **Net Income:** Net income decreased by 23.4% to $43.1 million, with an effective tax rate of 29.4%. - **Cash Flow:** Net cash provided by operating activities decreased by 0.9% to $206.6 million. Net cash used in investing activities decreased by 46.0% to $64.9 million. Net cash used in financing activities increased by 46.4% to $139.9 million. **Key Metrics and Trends:** - **Adjusted EBITDA:** Decreased by 7.8% to $228.8 million. - **Capital Expenditures:** Net CAPEX decreased by 4.5% to $61.8 million. - **Dividends and Share Repurchases:** Declared a quarterly dividend of $0.07 per share, totaling $13.0 million. Repurchased 1,094,932 shares for $32.0 million. - **Debt Management:** Issued $500.0 million in 6.625% senior secured notes due 2030 and used proceeds to redeem $526.5 million in 6.125% senior secured notes due 2025. **Uncertainties and Future Operations:** - **Economic Conditions:** Higher interest rates and reduced construction project starts impacted demand. - **Market Risks:** Exposed to interest rate and foreign currency exchange rate fluctuations. - **Operational Risks:** Dependence on third-party manufacturers and suppliers, potential disruptions from natural disasters or pandemics. **Conclusion:** WillScot Holdings Corporation faced challenges in Q1 2025 due to economic conditions and reduced demand, leading to decreased revenue and profitability. However, the company managed cash flow effectively, maintained a strong balance sheet, and continued to return value to shareholders through dividends and share repurchases. The focus on cost management and strategic financial decisions positions WillScot to navigate uncertainties and pursue growth opportunities.