Shares of WillScot Corporation (WSC) plummeted by over 12% in pre-market trading on Wednesday, following the release of the company's third-quarter 2024 financial results. Despite reporting record profitability, with an adjusted EBITDA margin of 44.4% and a 13% increase in adjusted free cash flow per share, WillScot's top-line performance was dampened by ongoing volume headwinds.

The company's revenue for the quarter declined by 1% year-over-year to $601 million, primarily driven by a 13% drop in storage leasing revenues and a 1% decrease in delivery and installation revenues. The modular leasing segment, however, showed resilience with a 4% year-over-year increase in revenues.

According to Timothy Boswell, President and CFO of WillScot, the company experienced a significant contraction in nonresidential construction square footage since the global financial crisis, impacting order activity and causing caution towards year-end. Additionally, WillScot faced challenges from approximately $203 million of broken deal costs, including a termination fee related to the McGrath acquisition, which affected financial metrics.