WillScot Holdings CorpWSC
WillScot Holdings Corp Segments Disclosure
Segment Reporting
The Company's two operating segments (US and Other North America) are aggregated into one reportable segment as the operating segments share similar economic characteristics (e.g., comparable gross margins and comparable adjusted earnings before interest, taxes, depreciation and amortization margins) and similar qualitative characteristics as the operating segments offer similar products and services to similar customers, use similar methods to distribute products and are subject to similar competitive risks.
The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer ("CEO"), who reviews operating results to make decisions about allocating resources and assessing performance for the entire company.
Refer to Note 5 for revenue by geographic area and revenue by major product and service lines. Refer to Note 7 for rental equipment by geographic area. Refer to the Consolidated Balance Sheet for total assets. Refer to the Consolidated Statement of Cash Flows for total expenditures for additions to long-lived assets.
The Company defines EBITDA as net income (loss) plus interest (income) expense, income tax (benefit) expense, depreciation and amortization. The Company reflects further adjustments to EBITDA (“Adjusted EBITDA”) to exclude certain non-cash items and the effect of what the Company considers transactions or events not related to its core and ongoing business operations. The measure of profit or loss used by the CODM to evaluate operating segment performance and allocate resources is Adjusted EBITDA. Adjusted EBITDA is used to determine capital allocation between operating segments and certain aspects of management's compensation. Management believes that evaluating operating segment performance excluding such items is meaningful because it provides insight with respect to the intrinsic and ongoing operating results of the Company. The Company considers Adjusted EBITDA to be an important metric because it reflects the business performance of the segments, inclusive of indirect costs.
The following table sets forth certain information regarding significant expense categories for the years ended December 31, 2025, 2024, and 2023, respectively.
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Leasing and services revenue: | |||||||||||||||||
| Unit leasing and other rental-related | $ | 1,351,476 | $ | 1,442,235 | $ | 1,441,987 | |||||||||||
| VAPS and third-party leasing | 397,547 | 397,640 | 391,948 | ||||||||||||||
| Delivery revenue | 205,671 | 224,371 | 273,598 | ||||||||||||||
| Installation revenue | 183,216 | 194,510 | 163,581 | ||||||||||||||
| Sales revenue: | |||||||||||||||||
| New units | 77,941 | 74,499 | 48,129 | ||||||||||||||
| Rental units | 65,595 | 62,463 | 45,524 | ||||||||||||||
| Total revenues | 2,281,446 | 2,395,718 | 2,364,767 | ||||||||||||||
Less:(a) | |||||||||||||||||
| Costs of leasing and services: | |||||||||||||||||
| Unit leasing | 299,167 | 316,422 | 328,124 | ||||||||||||||
| VAPS and third-party leasing | 72,436 | 68,656 | 70,343 | ||||||||||||||
| Delivery | 171,202 | 176,551 | 185,639 | ||||||||||||||
| Installation | 152,201 | 152,329 | 131,478 | ||||||||||||||
| Costs of sales: | |||||||||||||||||
| New units | 53,164 | 45,554 | 26,439 | ||||||||||||||
| Rental units | 35,720 | 32,224 | 23,141 | ||||||||||||||
Employee SG&A expense(b) | 270,986 | 247,886 | 257,327 | ||||||||||||||
Other segment items(c) | 255,531 | 292,936 | 280,811 | ||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 971,039 | $ | 1,063,160 | $ | 1,061,465 | |||||||||||
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(b) Employee SG&A expense consists of salaries and wages, bonuses, commissions, payroll taxes, and employee benefits.
(c) Other segment items consist of service agreements and professional fees, real estate and occupancy costs, travel, bad debt expense, marketing and advertising, taxes, and other miscellaneous expenses.
The following tables present a reconciliation of the Company’s (Loss) income from continuing operations to Adjusted EBITDA for the years ended December 31, 2025, 2024, and 2023, respectively:
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| (Loss) income from continuing operations | $ | (52,990) | $ | 28,129 | $ | 341,844 | |||||||||||
| Income tax (benefit) expense from continuing operations | (2,431) | 8,475 | 126,575 | ||||||||||||||
| Depreciation and amortization | 430,021 | 384,972 | 338,654 | ||||||||||||||
| Restructuring costs, lease impairment expense and other related charges | 302,804 | 9,435 | 22 | ||||||||||||||
| Interest expense, net | 231,511 | 227,311 | 205,040 | ||||||||||||||
| Loss on extinguishment of debt | 5,364 | — | — | ||||||||||||||
| Stock compensation expense | 38,426 | 35,966 | 34,486 | ||||||||||||||
| Integration and transaction costs | 3,103 | 8,172 | 12,625 | ||||||||||||||
| Currency losses, net | 210 | 593 | 6,754 | ||||||||||||||
| Termination fee | — | 180,000 | — | ||||||||||||||
| Impairment loss on intangible asset | — | 132,540 | — | ||||||||||||||
| Impairment loss on long-lived asset | — | 374 | — | ||||||||||||||
Other(a) | 15,021 | 47,193 | (4,535) | ||||||||||||||
| Adjusted EBITDA | $ | 971,039 | $ | 1,063,160 | $ | 1,061,465 | |||||||||||
(a) For the year ended December 31, 2025, other included $5.1 million in non-equity executive transition costs and $3.8 million in costs to implement the Company's real estate exit initiatives prior to approval of the Network Optimization Plan. For the year ended December 31, 2024, other included $42.4 million in legal and professional fees related to the terminated merger with McGrath.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.