Fourth consecutive miss. WillScot Mobile Mini posted Q4 EPS of $0.24, falling 17.2% short of the $0.29 consensus and marking the fourth straight quarter of earnings disappointments. Revenue of $2.32B came in flat year-over-year as weakness in seasonal storage and soft end markets offset modular space demand. Shares ticked up 2.1% to $22.03 in Wednesday trading despite the miss, suggesting investors had braced for worse.
The seasonal storage problem. Management pointed to a $20 million revenue shortfall in seasonal retail storage as the primary culprit behind lowered full-year guidance. The portable storage segment, typically driven by retailers needing temporary capacity during peak seasons, underperformed original expectations as consumer spending patterns shifted. This comes atop sequential revenue declines from $589M in Q2 to $567M in Q3, reflecting broader demand pressures across the rental and leasing services sector.
Margin compression accelerates. Operating margin of 21.2% remained stable, but profit margin of 9.6% continued its downward trajectory from double-digit levels in prior years. Net income for the quarter totaled $43.3M, down from $47.9M in Q2 2025. The company’s trailing twelve-month EPS of $1.21 now sits well below forward estimates of $1.08, signaling Wall Street expects further pressure ahead. Forward P/E of 20.4x trades at a premium to the trailing multiple of 18.2x despite deteriorating fundamentals.
Leadership shake-up in progress. Executive Chairman Worthing Jackman, who joined the board a year ago and took the chairman role in June 2025, emphasized accountability and strategic realignment on the Q3 call. CEO Bradley Soultz echoed the message, stating “we are fully aligned to deliver on our commitments and to drive profitability and returns higher.” The leadership changes come as analysts from Morgan Stanley, Citigroup, and Barclays pressed management on guidance misses across three consecutive quarters. William Blair and Robert W. Baird participated in the 59-minute conference call that revealed growing concern about execution.
Stock still underwater year-to-date. Despite Wednesday’s modest gain, shares remain 6.9% below their 200-day average of $23.65 and have struggled to regain momentum after plunging from $22.66 in mid-January to current levels. Trading volume of 248K shares on earnings day came in well below recent averages, suggesting limited conviction in either direction. The $24.60 average analyst price target implies 11.7% upside from current levels, but achieving that requires reversing the trend of persistent earnings disappointments.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.