Temporary space provider WillScot (NASDAQ:WSC) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 2.6% year on year to $589.1 million. On the other hand, the company’s full-year revenue guidance of $2.33 billion at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP profit of $0.27 per share was 23.4% below analysts’ consensus estimates.
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WillScot Mobile Mini (WSC) Q2 CY2025 Highlights:
- Revenue: $589.1 million vs analyst estimates of $587.5 million (2.6% year-on-year decline, in line)
- Adjusted EPS: $0.27 vs analyst expectations of $0.35 (23.4% miss)
- Adjusted EBITDA: $248.9 million vs analyst estimates of $249.2 million (42.3% margin, in line)
- The company dropped its revenue guidance for the full year to $2.33 billion at the midpoint from $2.38 billion, a 2.1% decrease
- EBITDA guidance for the full year is $1.01 billion at the midpoint, below analyst estimates of $1.04 billion
- Operating Margin: 21.5%, up from -0.9% in the same quarter last year
- Free Cash Flow Margin: 22.1%, down from 28% in the same quarter last year
- Market Capitalization: $5.49 billion
"Our second quarter 2025 financial results were broadly in line with our expectations with an Adjusted EBITDA Margin of 42.3%, and an Adjusted Free Cash Flow Margin of 22.1%," said Brad Soultz, Chief Executive Officer of WillScot.
Company Overview
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ:WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, WillScot Mobile Mini’s 17.3% annualized revenue growth over the last five years was incredible. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. WillScot Mobile Mini’s recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. 
We can better understand the company’s revenue dynamics by analyzing its most important segments, Leasing and Delivery and Installation, which are 75.2% and 18.4% of revenue. Over the last two years, WillScot Mobile Mini’s Leasing revenue (recurring) was flat while its Delivery and Installation revenue (non-recurring) averaged 5.1% year-on-year declines. 
This quarter, WillScot Mobile Mini reported a rather uninspiring 2.6% year-on-year revenue decline to $589.1 million of revenue, in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months. While this projection implies its newer products and services will spur better top-line performance, it is still below average for the sector.
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Operating Margin
WillScot Mobile Mini has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 20%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, WillScot Mobile Mini’s operating margin rose by 1.3 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, WillScot Mobile Mini generated an operating margin profit margin of 21.5%, up 22.4 percentage points year on year. The increase was solid, and because its revenue and gross margin actually decreased, we can assume it was more efficient because it trimmed its operating expenses like marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
WillScot Mobile Mini’s EPS grew at an astounding 27.2% compounded annual growth rate over the last five years, higher than its 17.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into WillScot Mobile Mini’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, WillScot Mobile Mini’s operating margin expanded by 1.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For WillScot Mobile Mini, its two-year annual EPS declines of 10.1% mark a reversal from its (seemingly) healthy five-year trend. We hope WillScot Mobile Mini can return to earnings growth in the future.
In Q2, WillScot Mobile Mini reported adjusted EPS at $0.27, down from $0.39 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects WillScot Mobile Mini’s full-year EPS of $1.38 to grow 25.7%.
Key Takeaways from WillScot Mobile Mini’s Q2 Results
We struggled to find many positives in these results. Its EPS missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 19.9% to $23.50 immediately following the results.
WillScot Mobile Mini may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.