WillScot Holdings Corporation

Welcome to the second quarter, 2025, Will Scott Earnings Conference Call. My name is Cherie, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct the question and answer session. Please note that this conference is being recorded. I will now turn the call over to Charlie Woolhutter. Charlie, you may begin.

All right. Thank you, Sheree. Good afternoon and welcome to the Will Scott second quarter 2025 earnings call. Participants on today's call include Brad Soltz, Chief Executive Officer, Tim Boswell, President and Chief Operating Officer, and Matt Jacobson, Chief Financial Officer. Today's presentation material may be found on our investor relations website at investors.willscott.com. I'd like to direct your attention to slide two, containing our safe harbor statements. We will be making forward-looking statements during the presentation in our Q&A session. Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control. Therefore, our actual results may differ materially from comments made on today's call. For a more complete description of the factors that could cause actual results to differ and other possible risks, please refer to the Safe Harbor Statements in our presentation in our filings with the SEC. And with that, it's my pleasure to turn the call over to Brad Sulz again.

Thanks, Charlie. Good afternoon, everyone, and thank you for joining us today. I'm Brad Sulz, Chief Executive Officer of Will Scott. Please turn to slide seven in our Q2 earnings release deck. Our second quarter financial results were broadly in line with our expectations. We delivered adjusted EBITDA of $249 million, represented a 42.3% margin, or an increase of 140 basis points sequentially. On a trailing 12-month basis, our adjusted EBITDA margin stands at 43.8%. I was pleased with both the sequential improvement in lease revenues and our continued robust adjusted free cash flow performance of $130 million at 22.1% margin in the quarter, and 23.6 percent margin over the past 12 months, which will continue to be supported by the impact of recent legislation changes, which Matt will discuss later. During the quarter, we continued to execute against our long-term capital allocation framework, funding growth CapEx investments in our flex, complex fleet, and new adjacencies, and we deployed $134 million towards tuck-in acquisitions, which included the addition of a leading regional climate-controlled temporary storage business. Customer demand for this product is high and fits well with our portfolio and service capabilities. We also continue to return value to shareholders through share repurchases and dividends. Our focus on further advancing service excellence is also showing positive signs in customer satisfaction as we optimize our platform. Addressing feedback from our customer base has been a major focal point for us and is being recognized through higher net promoter scores, particularly in the work we're doing to improve our ordered cash process, which Tim will further expand upon. Both process-driven and technological enhancements are elevating the customer experience, increasing the ease of doing business with us, and beginning to unlock some of our working capital opportunities we previously highlighted. This is just one of the many internal opportunities we have that set us up for achieving the milestones we outlined at our March 2025 Investor Day, achieving $3 billion in revenue, $1.5 billion in adjusted EBITDA, and $700 million in adjusted free cash flow all in the next three to five years. Now turning to the broader macroeconomic environment, although large projects do continue to remain robust, we're expecting second-half demand to be below our prior expectations, giving lingering questions around the ultimate implications from trade and U.S. monetary policies, resulting in ongoing certainty in many of our end markets. Many customers are continuing to take a wait-and-see approach, which is influencing current and near-term demand. This is generally contained among the smaller projects, which tend to be more interest rate and economic sensitive. Unlike the larger projects, where demand remains strong and our ability to serve is unmatched. Looking ahead, I'm very excited about how our strategic initiatives are evolving and set us up for continued success. I'll now turn it over to Tim to discuss these initiatives in more detail.