WillScot's Q1 2025 Earnings Call: Unpacking Contradictions in Order Book Growth, Seasonality, and Market Dynamics

Order book growth and customer demand, seasonality and order book ramp-up, pricing strategy and cost management, economic uncertainty and order book growth, modular and storage segment performance are the key contradictions discussed in WillScot's latest 2025Q1 earnings call.



Order Book and Revenue Outlook:
- WillScot reported its pending order book was up 7% year-over-year, supporting expected new lease activation levels in the second quarter.
- Despite macroeconomic uncertainties, the growth in orders is driven by demand from larger accounts, offsetting weakness in local accounts.

Value-Added Products (VAPs) Strength:
- VAPs contributed over 17% of total revenue in Q1, surpassing 11.5% the previous year, with a goal to reach 20-25% of total revenue in three to five years.
- This increase is attributed to deeper penetration of VAPs offerings across core product lines and improved product mix.

Delivery and Installation Margins:
- Delivery and installation margins contracted year-over-year in Q1, driven by lower margin seasonal transportation activity and in-sourcing initiatives.
- Despite this, WillScot is actively working on margin expansion through logistics improvements and in-house resource utilization.

Capital Allocation and Shareholder Returns:
- The company returned $45 million to shareholders in Q1 through share repurchases and dividends, and it continues to opportunistically repurchase shares.
- This strategy is supported by a strong cash flow position and proven capital allocation framework, balancing shareholder returns with strategic growth investments.