WillScot Holdings Corporation

and an over 30% year-over-year increase in commission payouts. And that is despite a continued 6% year-over-year decline of non-residential construction starts square footage and continued contraction of the architectural billings index in the quarter. So while we have not seen stabilization across all of our local markets, the favorable mix of end-market activity combined with better internal execution are providing commercial momentum. Operationally, I'm very proud of how our field and central teams are executing across multiple priorities. We are on track with our network optimization efforts, including real estate and fleet dispositions, while simultaneously supporting elevated activity levels and fleet investments in high demand product categories. We are increasing work order volumes to drive unit availability and reduce lead times. The ability to reactivate large volumes of vital equipment quickly and cost effectively in a rising demand environment is a significant competitive advantage, while we also make meaningful and deliberate new fleet investments to further differentiate our offering long term. And we mobilize this capacity with in-house expertise better than anyone in the industry. Continuing to develop these capabilities, we are rolling out enhanced dispatch and route optimization tools across the field. These tools are improving utilization of our drivers and trucking fleet, as well as our service and setup teams, reducing average miles per route, and enhancing the customer experience through more effective omnichannel communication. And we are focused on improving service levels across all customer touchpoints to improve the experience and ease of doing business while reducing our cost to serve. And we're doing all of this safely. Our recordable incident rate dropped below 0.5 for the last three months, That is exceptional performance, and that's a direct result of disciplined execution and a strong safety culture across the organization. So thank you again and great work by our team. The common denominator in delivering successful outcomes is our people. Will Scott was again recertified as a great place to work for the fourth consecutive year, which is a designation based entirely on independent employee feedback and a reflection of our company culture. Engagement compounds when we execute at a high level, and engaged teams deliver better results for customers and for shareholders. Looking out through 2026, we remain cautious around local market demand, but believe we are better positioned than ever to win when these markets stabilize and return to growth. Meanwhile, our other commercial strategies to develop enterprise accounts, new verticals, and our differentiated offerings all shows strong momentum. And we expect that our multi-year operational improvement roadmap will continue to be a source of both differentiated execution capabilities and structural margin expansion over time. Our focus is clear. Execute on initiatives within our control, strengthen our competitive positioning, serve our customers exceptionally well, be a great place to work, and drive long-term shareholder value. I'll now turn the call over to Matt to go into more detail on Q1 and our outlook. Matt?

Thanks, Tim. Starting with the quarter, our first quarter results exceeded our expectations entering the year, despite continued softness across certain end markets, Tim noted. Beginning on slide four, total revenue for the quarter was $549 million, modestly lower year over year due to lower sales activity, but ahead of our outlook. Importantly, Leasing and services revenue was up year-over-year by 2 million, or about half a percent, due to the strong growth in delivery and installation revenues on increased activation volumes and large complex activity in the quarter. Breaking this down a bit further, leasing revenue totaled $426 million, down approximately 2% year-over-year, reflecting ongoing pressure in local markets, with container unit on rent volumes driving the majority of the overall decline. Pricing and product mix continued to offset a portion of the volume impacts, and VAPS revenue in the quarter ticked up modestly year over year in absolute dollars and rose 50 basis points year over year to 17.7% of total revenue. In contrast, delivery and installation revenue increased more than 12% year over year to $100 million. Large project demand is driving solid activation growth. Modular unit activations exceeded our internal expectations and increased 8% year over year in Q1, marking the second consecutive quarter of year over year activation growth. This is a testament to the hard work at all levels of the company, executing against our strategic plans and a positive indication of the continued improving commercial demand that we're seeing, even despite some continued and market softness. As Tim mentioned, we believe that our ability to execute on large projects is a competitive advantage and we're seeing continued increased activity levels on these types of projects, proving our position as a solutions provider of choice in the industry. Based on where we stand today, Coupled with our activation activity and the pending order book, we now have increased conviction around leasing revenue inflecting to year-over-year growth at some point in the second half of 2026. Adjusted EBITDA for the quarter was $211 million with an adjusted EBITDA margin of 38.5%. Margins were down year-over-year largely due to higher variable costs and increased delivery and installation activity. Importantly, this margin pressure stems from the gross margin line reflecting unit preparation costs associated with increased volumes, which is common in a period where we're increasing activations and working towards leasing revenue and an eventual unit on rent inflection. The large project activity we're seeing typically comes with long durations and solid returns, but there is a timing element around revenue recognition and cost absorption. While that affects margins in the near term, these activations increase fleet utilization and support leasing revenue run rates in subsequent periods. so very much a positive for units on rent and the underlying business trends. Importantly, we continue to see opportunities for efficiency gains through operational initiatives that Tim mentioned, and we expect to see positive operating leverage in the business as we return to growth. Adjusted net income in the quarter was $39 million, and adjusted diluted earnings per share was $0.21. The impacts of lower container unit on rent volumes, lower sales, and increased unit preparation costs year over year in the quarter were partially offset by lower SG&A depreciation and interest expense alongside a lower share count from repurchases. Overall, we're encouraged by the quality of activity in the quarter and the implications that it has on the remainder of the year. Turning to cash flow on slide six, the business continues to generate strong and predictable cash flows, and we're reinvesting more of those cash flows into driving growth in the business. Net cash provided by operating activities was $191 million in the quarter, which included approximately $14 million of costs associated with network optimization and executive transition costs. Given our strong large project demand, we reinvested $89 million of net CapEx in the quarter, which increased about 40% year over year. Adjusted free cash flow generated in the quarter was $116 million at a 21% margin. This equates to adjusted free cash flow per share of $0.64 at our current share count or $2.54 over the last 12 months. The increase in adjusted free cash flow year-over-year was entirely due – pardon me. The decrease in adjusted free cash flow year-over-year was entirely due to increased net capex investment to support fleet growth in higher value product categories and the project demand pipeline. These are value accretive investments which have strong returns and position us well for future growth. Free cash flow in the period supported a $76 million reduction for outstanding debt and funded $20 million of returns to shareholders through our quarterly dividend and share repurchase programs. From a balance sheet perspective on slide eight, we ended the quarter with net debt of $3.5 billion and leverage of 3.7 times. Our debt maturity profile remains favorable with no maturities until August of 2028, and our weighted average cash interest rate is approximately 5.7%. with roughly 90 percent of our debt effectively fixed, inclusive of our interest rate swaps. We have approximately $1.5 billion of availability under our ABL facility, so ample liquidity with a flexible governance structure. Now on to slide nine. Based on our first quarter performance and our current order book visibility, we are raising our full year 2026 outlook. We now expect revenue of approximately $2.25 billion, adjusted EBITDA of approximately $915 million, and net capex of approximately $325 million. As we discussed in the prior two quarters, our conservative approach to our outlook is unchanged and does not assume a recovery in the local markets. We continue to drive internal plans and compensation targets for the year that exceed the increased revenue and EBITDA guidance we laid out today. The increase in revenue and adjusted EBITDA reflects stronger than expected project activity and improved visibility into the middle of the year. Our large-scale modular project pipeline is giving us more confidence that leasing revenues can inflect year-over-year at some point in the second half of 2026, which is now implied in the current outlook. Looking into Q2, we believe total revenues for the quarter will increase about 7% sequentially from Q1 2026 to approximately $585 million in Q2 of 2026, driven by higher leasing and delivery and installation revenues. Given the size of the large project pipeline, We expect to incur additional unit prep costs in Q2. Additionally, increased delivery and installation revenue mix, including that which is related to our support of the World Cup event, will provide sequential margin pressure. Increasing leasing revenue should offset a good portion of these headwinds, but we expect Q2 margins to be pressured by about 30 basis points sequentially from Q1. As a result, we expect adjusted EBITDA of approximately $223 million in Q2. As Tim mentioned, serving these types of projects is part of our unique value proposition that differentiates us with a full suite of capabilities to serve our customers. Again, these are all strong investments with solid return profiles. In conjunction with this spend, our increase in net capex reflects higher investment in select product categories tied to those projects. Local demand remains stable, but we remain cautious about this segment of the market. As such, we believe that targeted investments and higher return opportunities is the right approach to maximize long-term value. Looking at a few other items for Q2, we expect depreciation and amortization expense in the period to be approximately $100 million, interest expense to be about $54 million, and our effective tax rate to be around 27%. To wrap up, Q1 was a strong start to the year and reinforces our confidence in the durability of our business model. We're investing to support growth and growing demand in high-quality opportunities, maintaining balance sheet strength, and returning capital to shareholders, all while positioning the company for improved performance as we move through the year. With that, I'll turn it back to Tim. Thanks, Matt.

We've all put in a lot of hard work over the last few years to integrate and reposition our business in a challenging market backdrop. Those efforts have put us in a position today to execute at a higher level, capture new market opportunities, and deliver on expectations. And our team is committed to continuing to raise the bar in performance standards while executing in the right way, consistent with our values. All of that makes me really proud to be part of the Will Scott team. I believe that our business has never been better positioned to compete and win than we are today. And I'm confident that together we can deliver on our commitments for sustainable long-term growth and value creation. Thanks again to our team for the strong start to the year. This concludes our prepared remarks. I'll turn it back to the operator for Q&A.