Willscot Holdings Corp.

Rental & Leasing Services • Industrials • Scottsdale, AZ, United States • WSC (NCM)

Quarter: Q4 2025 Reported: December 22, 2025 Sentiment: Positive

WillScot Holdings Corporation provides turnkey temporary space solutions in the United States, Canada, and Mexico. The company leases, sells, delivers, and installs modular space solutions and portable storage products. It offers modular space solutions, such as modular office complexes, mobile offices, classrooms, blast-resistant modules, clearspan structures, and sanitation solutions; and portable storage solutions, including portable storage and climate-controlled containers and trailers. The company also provides workstations, furniture, appliances, media packages, power and solar solutions, telematics, connectivity and data solutions, security and protection products, entrance packages, electrical and lighting products, organization and space optimization assets, perimeter solutions, and other items. It serves customers in the construction and infrastructure, commercial and industrial, and energy and natural resources markets, as well as governments and institutions. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. The company was founded in 1944 and is headquartered in Scottsdale, Arizona.

Analysis Summary

WillScot Holdings Corporation has initiated a significant Network Optimization Plan, approved by its Board of Directors on December 18, 2025, aimed at optimizing its real estate footprint and rental fleet following the integration of modular and storage field operations in 2024. This multi-year initiative involves exiting approximately 115 branch and drop lot locations, encompassing 725 acres, which constitutes about 25% of the Company's leased real estate. Concurrently, the plan necessitates the abandonment of approximately 51,000 rental fleet units, primarily long idle, non-standard, or high-repair-cost units, with a net book value of up to $315 million (before $8 million in scrap proceeds).

Financially, the plan will lead to a substantial non-cash accelerated depreciation charge of approximately $303 million recorded in the fourth quarter of 2025. Additionally, the Company anticipates future cash expenditures for unit disposal estimated at $40 million to $50 million through 2029, with net cash costs of approximately $20 million expected in 2026. Prior to this, $41 million in incremental rental equipment depreciation was recorded for the eleven months ended November 30, 2025, related to earlier disposal activities.

Management commentary highlights the strategic benefits, projecting annual real estate cost reductions of $25 million to $30 million over the next four years. The Company expects these actions to be accretive to profitability starting in 2027 and beyond, emphasizing that the plan will leave adequate idle fleet to meet future demand and maintain all market coverage and customer service capabilities. This proactive measure reflects a commitment to operational efficiency and long-term value creation, leveraging previous integration efforts.

Competitive positioning and market trends are not explicitly detailed in this specific Form 8-K, which focuses solely on the restructuring activities. However, the initiative suggests a focus on optimizing internal resources to better compete.

Risk factors include the immediate impact of the $303 million non-cash charge on Q4 2025 earnings, the multi-year nature of the plan with associated future cash costs, and the inherent uncertainties in achieving the projected cost savings and profitability accretion. The Company also acknowledges general risks associated with forward-looking statements, including industry, global, and economic conditions, which could affect the actual outcomes of the plan.

Key Highlights

• Board approved a multi-year Network Optimization Plan on December 18, 2025.
• Plan involves exiting 115 locations (725 acres, 25% of leased acreage) over four years.
• Disposal of approximately 51,000 rental units (up to $315 million net book value).
• Expects a $303 million non-cash accelerated depreciation charge in Q4 2025.
• Anticipates $25 million to $30 million in annual real estate cost savings over the next four years.
• Projected to be accretive to profitability from 2027 and beyond.
• Estimated future cash expenditures of $40 million to $50 million for unit disposal through 2029, with $20 million net cash costs in 2026.

Financial Metrics

eps

revenue

USD

guidance

net income

USD

growth rates

net cash costs 2026

20 million USD

future disposal cash costs

40-50 million USD

restructuring charge q4 2025

303 million USD

annual real estate cost savings

25-30 million USD

prior depreciation 11 months 2025

41 million USD

Stock Performance (90 Days)

Data through Dec 24, 2025

Layoff Events

Earnings Calls

Positive Signals

• Board approval following robust strategic analysis.
• Expected annual real estate cost savings of $25 million to $30 million.
• Anticipated accretion to profitability from 2027 and beyond.
• Commitment to maintaining adequate idle fleet and market coverage/customer service.
• Disposal focused on long idle, non-standard, or higher repair cost units.

Risks & Concerns

— Significant non-cash accelerated depreciation charge ($303 million) impacting Q4 2025 results.
— Future cash expenditures for unit disposal ($40 million to $50 million) through 2029.
— Uncertainty in achieving the projected annual cost savings and profitability accretion.
— Potential for unforeseen costs or operational disruptions during the multi-year execution.
— General risks associated with forward-looking statements, including economic and industry conditions.