NASDAQ$WSC

WillScot Mobile Mini Holdings Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

WillScot Mobile Mini's financial performance in Q2 2023 was marked by revenue growth, margin expansion, and strong free cash flow generation.

WillScot Mobile Mini reported an 11% increase in revenue to $582 million for Q2 2023. The company's Adjusted EBITDA increased by 25% to $261 million, with a margin of 44.9%. Free cash flow reached $160 million, up 130% year-over-year. The company reaffirmed its Adjusted EBITDA guidance of $1,025 million to $1,075 million.

  • Revenue increased by 11% to $582 million, and income from continuing operations increased by 46% to $88 million.
  • Adjusted EBITDA margin from continuing operations expanded by 500 basis points year-over-year to 44.9%.
  • Free cash flow increased by 130% year-over-year to $160 million, with a free cash flow margin of 27%.
  • The company invested $70 million in three acquisitions and returned $239 million to shareholders through share repurchases.

Headline financials

Total Revenue

$582M

Previous: $582M+0.1%
EPS (adj)

$0.43

Previous: $0.32+34.4%
Capital Expenditures

-$11.2M

Previous: -$20.3M+44.8%
Free Cash Flow

$76.5M

Previous: $53.1M+44.1%
Net Income

$87.7M

Previous: $73.4M+19.6%
Operating Income

$167M

Previous: $132M+26.5%
Gross Profit

$328M

Previous: $309M+6.2%
Cash & Equivalents

$7.66M

Previous: $11.7M-34.6%
Total Assets

$5.72B

Previous: $5.98B-4.4%
Stock-Based Comp

$9.35M

Previous: $9.29M+0.6%

Revenue & EPS history

WillScot Mobile Mini · Revenue · Quarterly

$582M

Q2 2023+0.1%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

WillScot Mobile Mini · $582M total across 4 segments · Q2 2023

  • Modular space leasing
    $449M+4.8%
  • Delivery and installation
    $113M-10.1%
  • Rental unit sales
    $11M-33.4%
  • New unit sales
    $9M-18.8%

Forward guidance

The company is maintaining its 2023 Adjusted EBITDA guidance at a range of $1,025 million to $1,075 million and expects that margins will continue to trend stronger than our original expectations. Free Cash Flow in 2023 will exceed $500 million.

Tailwinds

  • Long-duration pricing tailwinds
  • Value-Added Products tailwinds
  • Structural margin improvements across all revenue lines in both segments
  • Strong tuck-in pipeline through the remainder of the year
  • Margins will continue to trend stronger than our original expectations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.6%

Avg return

30 days after

43%

17 / 40 earnings

Positive

+10.4%

Q2 2020

Best reaction

-15.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+11.2%+12.5%
Q4 2025+3.0%-1.1%-23.0%
Q3 2025-1.4%-5.6%-10.9%
Q1 2025+6.5%+3.4%+5.2%
Q4 2024-8.8%-12.1%-23.1%
Q3 2024-15.4%-5.9%-2.4%
Q2 2024-13.4%-15.4%-6.0%
Q1 2024+2.0%+7.0%+7.7%
Q4 2023-2.9%-3.7%-6.9%
Q3 2023-10.0%-9.7%+8.0%
Q2 2023-12.1%-11.8%-15.1%
Q1 2023+4.7%+4.8%+3.8%
Q4 2022-5.1%-3.1%-13.0%
Q3 2022+5.2%+6.9%+12.6%
Q2 2022+5.9%+7.0%+3.8%
Q1 2022+2.2%-0.3%+3.9%
Q4 2021+4.0%-4.1%+10.5%
Q3 2021+4.1%+8.7%+13.4%
Q2 2021+1.2%-0.7%+3.7%
Q1 2021-2.7%-5.2%-3.6%
Q4 2020+0.4%-1.5%-0.9%
Q3 2020+9.5%+14.3%+17.0%
Q2 2020+10.4%+10.7%+7.8%
Q1 2020-5.7%-7.5%+14.5%
Q4 2019-5.9%-16.5%-45.3%
Q3 2019-0.2%+1.3%+8.4%
Q2 2019-2.9%-11.7%-12.4%
Q1 2019+6.5%+1.5%+0.1%
Q4 2018+7.0%+5.3%+14.7%
Q3 2018+6.4%+1.2%-21.5%
Q2 2018-2.7%-1.5%+4.9%
Q1 2018-1.2%-0.8%-5.9%
Q2 2017-1.5%-1.1%-1.1%
Q3 2017+0.0%-1.0%+14.4%
Q1 2017+0.0%+0.5%+0.2%
Q2 2016+0.0%+0.5%+0.5%
Q4 2016+0.0%+0.5%+0.5%
Q3 2016-0.5%+0.0%+0.0%
Q4 2015+0.0%
Q3 2015-0.3%

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