WillScot (NASDAQ:WSC) reported second-quarter 2026 revenue growth and raised its full-year outlook as demand from large projects supported higher leasing, delivery and installation activity. Management said it is increasing fleet investment and operating spending to support a growing pipeline extending into 2027, while acknowledging continued softness in more transactional product lines.
Total revenue rose 4% year over year to $612 million, above the company’s prior expectation of about $585 million. Leasing and services revenue increased 6%, aided by a more than 25% increase in delivery and installation revenue. Leasing revenue increased 2% to approximately $450 million.
Large Projects Drive Activations and Revenue
WillScot said large-project demand remained strong, with modular activations up 16% year over year during the quarter and modular pending orders up 13% as of the call. Excluding activity tied to the World Cup, modular activations rose about 10%, according to Boswell.
The company supported a range of customer projects involving critical infrastructure, manufacturing, power generation, data centers, retail operations and special events. Enterprise account revenue increased 21% year over year in the quarter, while newer offerings including climate-controlled storage, Clearspan industrial tenting and perimeter solutions are expected to exit 2026 at roughly a 20% growth rate, management said.
WillScot deployed more than 2,000 units into and out of World Cup host cities during the past three months. Chief Financial Officer Matt Jacobsen said the event generated roughly $13 million of second-quarter revenue, split about 40% from rental revenue and 60% from delivery and installation. About $5 million of primarily delivery and installation revenue related to dismantling activity is expected in the third quarter.
The World Cup contribution included roughly 750 modular units on rent on a year-over-year basis. Jacobsen said that, excluding the event, combined modular, storage and value-added product leasing revenue was essentially flat year over year in the second quarter. Nevertheless, the company expects year-over-year leasing revenue growth through the rest of 2026.
Margins Decline as Company Funds Growth
Net income was $47 million, while diluted earnings per share was $0.26, flat from the prior-year quarter. Adjusted net income was $52 million, or $0.28 per diluted share.
Adjusted EBITDA totaled $228 million, exceeding the company’s outlook of $223 million, while adjusted EBITDA margin was 37.2%. The margin fell about 500 basis points year over year and declined sequentially from the first quarter as WillScot spent more to meet accelerating activation demand.
Jacobsen said the company incurred approximately $17 million more in cost of leasing and unit transfer expenses than a year earlier, reducing margin by about 250 basis points. Higher delivery and installation revenue mix accounted for another 160 basis points of margin impact, while higher sales headcount, variable compensation and provisions for credit losses contributed to the remaining pressure.
Management expects “significant sequential margin expansion” in the third and fourth quarters as delivery and installation mix moderates and lease revenue builds. Jacobsen said the company could see flat to positive year-over-year EBITDA margin comparisons by the fourth quarter.
Higher Capital Spending Supports Pipeline
WillScot generated $162 million of operating cash flow and $55 million of adjusted free cash flow during the quarter. Net capital expenditures were $114 million as the company invested in higher-value products and refurbishment of its fleet.
The company raised its full-year net capital expenditure outlook to approximately $375 million. The incremental investment is intended for new units and refurbishment of highly utilized fleet to serve large-scale projects, including known opportunities into early 2027.
Boswell said the planned fleet investments, work-order activity and fleet dispositions mean 2026 will likely represent “the most significant upgrade to our modular fleet in company history.” He added that WillScot’s capital investments are demand-driven and that much of its refurbishment capacity can be adjusted quickly if market activity changes.
At quarter-end, WillScot had net debt of approximately $3.5 billion and leverage of 3.7 times last-12-month adjusted EBITDA. The company reported roughly $1.5 billion of availability under its asset-based lending facility and said it has no debt maturities until August 2028. It used remaining free cash flow during the quarter for its dividend program and $27 million of debt repayment.
Outlook Raised for 2026
Based on first-half results and commercial momentum, WillScot raised its 2026 revenue outlook by $50 million to approximately $2.3 billion. The increase includes roughly $25 million of expected additional leasing revenue and $25 million of delivery and installation revenue.
The company also raised its adjusted EBITDA outlook to approximately $920 million. For the third quarter, it expects revenue of approximately $585 million, up about 3% year over year, and adjusted EBITDA of approximately $232 million, implying a 39.7% margin.
Management said it remains cautious about demand differences between large and small projects. Boswell said transactional storage customers remain under pressure, although the business has stabilized in some areas. He also pointed to labor constraints, supply-chain pressures and inflation as factors affecting customers and project timing.
Still, management said higher win rates on complex projects, fleet constraints in certain categories and demand across multiple end markets support its investment plans. “The large and mega projects that we’re seeing were up another 14% year-over-year in terms of new opportunities coming into the pipeline,” Boswell said, adding that data centers represent only about a quarter of the company’s project activity.
About WillScot (NASDAQ:WSC)
WillScot (NASDAQ: WSC) is a leading North American provider of modular space and portable storage solutions. The company designs, manufactures, leases and sells temporary and permanent modular buildings to serve sectors such as education, healthcare, construction, industrial and government. Its modular space offerings range from single‐unit office trailers and classrooms to complex multi‐unit configurations tailored to diverse project requirements.
In addition to modular structures, WillScot offers a broad portfolio of portable storage containers and related services, including site logistics, customization, delivery and installation.
