Core Insights - Wabash is showcasing its DuraPlate® dry van platform and digital innovations at the 2026 TMC Annual Meeting, emphasizing the integration of durable engineering and digital intelligence to enhance trailer lifecycle performance [1][6] Product Innovations - The DuraPlate® dry van platform features advanced cargo assurance technology, digital configuration, order tracking tools, and OEM-backed parts solutions aimed at extending asset life and maximizing revenue potential [2][3] - A new cargo assurance solution integrates a digitally connected cargo door and intelligent locking system with the TrailerHawk.AITM technology platform, enhancing cargo security and shipment visibility [3][4] - The TrailerHawk.AI platform is currently in use for inspections, verification, and asset visibility, providing real-time alerts and chain-of-custody tracking [4] Digital Solutions - Wabash is highlighting a suite of digital innovations that simplify specification, maintenance planning, and parts ordering, supported by a nationwide dealer network [5] - Technologies on display include advanced edge detection, interior cargo cameras, Kinedyne cargo management systems, and a Phillips rearview camera system, all designed to improve operational efficiency [4][5] Strategic Focus - The company aims to support fleets throughout the full lifecycle of trailers by combining durable engineering, parts availability, service support, and digital innovations to enhance operational efficiency and asset longevity [6]

Core Insights - Wabash is collaborating with UP.Labs to enhance innovation and modernize customer experience through AI [1] - The company has launched Wabash Venture Lab along with its first two startups, SpecSync and PartsPulse [1] - Wabash is introducing two new tools, Spec It and Stock It, aimed at simplifying made-to-order products [1]

Core Insights - Wabash has introduced a cargo assurance solution that transforms trailers into secure, connected systems aimed at preventing cargo theft rather than merely documenting losses after they occur [1][2] Group 1: Product Overview - The new solution integrates a physical locking mechanism with a mobile application to create a digital seal and manage cargo access during transit [2] - This initiative follows Wabash's acquisition of TrailerHawk.AI in February 2025, enhancing its technological capabilities [2] Group 2: Industry Context - The American Transportation Research Institute (ATRI) estimates that cargo theft costs the industry approximately $6.6 billion annually, highlighting the need for improved security measures [2] Group 3: Technological Advancements - Wabash's cargo assurance solution addresses significant gaps in traditional cargo security by providing multiple secure points of contact at the cargo door, enabling encrypted communication and in-transit monitoring [3] - The system requires rigorous driver verification, including uploading a commercial driver's license and using phone biometrics for application access [4] Group 4: Operational Features - The platform logs detailed information about every cargo access event, including the "who, what, where, when, and why," allowing shippers to configure access permissions based on geofenced locations or require physical authorization from consignees [5] - This digital system replaces traditional wrap-around seals, enhancing security and control over cargo access [5]

Production Forecast - ACT forecasts annual new trailer production levels for 2027, 2028, 2029, and 2030 of approximately 257,000, 297,000, 307,000, and 299,000, respectively, while FTR forecasts approximately 231,000, 291,000, and 298,000 for the same years [34]. Financial Position - The company has a strong balance sheet and liquidity profile, which positions it well to adapt to changes in the industry and demand environment [34]. - The 12-month backlog decreased by 29% to $576 million and total backlog decreased by 40% to $705 million as of December 31, 2025, primarily due to a challenging market environment [75]. - The largest customer accounted for 15% of aggregate net sales in 2024 and 12% in 2023, with the five largest customers together accounting for approximately 35% of net sales in 2025 [66]. - Raw material costs as a percentage of net sales increased slightly in 2025 compared to 2024, with significant price fluctuations posing risks to operations [74]. - The company has $21.5 million in raw material purchase commitments through December 2026, an increase from $15.0 million in the previous year, primarily due to fixed price contracts for aluminum [264]. - A hypothetical 10% change in commodity prices based on raw material purchase commitments would result in a corresponding change in cost of goods sold of approximately $2.2 million over a one-year period [264]. - As of December 31, 2025, the company had $45.0 million in floating rate debt, with a 100 basis-point change in the floating interest rate resulting in a $0.5 million change in interest expense over a one-year period [265]. - The company is subject to fluctuations in the Mexican peso exchange rates, but a 10% change would have an immaterial impact on its results of operations [266]. Diversity and Inclusion - In 2025, 53% of total hourly hires and 44% of total salaried hires were women and/or minorities, reflecting the company's commitment to diversity and inclusion [44]. Safety and Compliance - The OSHA Total Recordable Incident Rate (TRIR) was 4.2 in 2025, indicating the company's ongoing focus on workplace safety [42]. - The company is committed to compliance with environmental laws and regulations, with no anticipated material adverse effects on its business from future compliance costs [81]. Innovation and Technology - The company is focused on maintaining a leading position in product development, particularly with DuraPlate products and EcoNex Technology, which aims to improve thermal efficiency and reduce material weight [35][52]. - The company has launched a research and development project in partnership with Purdue University to investigate an experimental trailer that recaptures its own electricity [54]. - The company has expanded its product offerings to include a diverse range of connected solutions for the transportation and logistics industries, focusing on innovative technologies [60]. - The Trailers as a Service (TaaS) initiative provides flexible, on-demand access to trailer capacity through subscription-based programs, enhancing customer value [70]. - The company holds or has applied for a total of 142 patents in the U.S. and 151 patents or registered designs in foreign countries, providing a significant competitive advantage in the transportation equipment market [76]. - The DuraPlate patent portfolio includes patents that extend until 2036, with certain U.S. patents not expiring until 2027 or later, enhancing the company's market position in trailer manufacturing [77]. - The company acquired assets from TrailerHawk ai LLC in 2025, including patents for cargo security devices, aiming to address cargo theft challenges in the U.S. supply chain [78]. - The company believes its proprietary DuraPlate and DuraPlate Cell Core production processes provide a significant competitive advantage beyond patent protection [77]. Community Engagement - The company dedicated 6,305 volunteer hours in 2025, contributing to community support initiatives [47]. Leadership Development - The company has completed over 15 one-on-one coaching engagements for senior executives in 2025 to enhance leadership skills [39]. Brand Recognition - The company was recognized in TIME magazine's America's Best Midsize Companies list in 2025, highlighting its brand strength and market position [57]. Organizational Development - The Wabash Management System (WMS) is designed to drive organizational transformation and improve employee performance through a Lean mindset [57]. - The company aims to redefine total compensation and benefits into a holistic offering that inspires growth and performance [46]. Distribution Network - The distribution network includes 18 independent dealers with approximately 55 locations for van trailers and over 1,100 partners for truck body commercial networks [58]. - The company has established a digital marketplace through Linq Venture Holdings LLC to enhance parts and services capabilities in the transportation and logistics distribution industry [64].

Core Insights - Wabash has introduced a next-generation cargo assurance solution aimed at preventing cargo theft, integrating a digitally connected cargo door and intelligent locking system with the TMTrailerHawk.AI technology platform [1][3] Industry Context - Cargo theft is a significant issue in the U.S. supply chain, costing the industry approximately $6.6 billion annually according to research from the American Transportation Research Institute (ATRI) [2] Company Solution - The new cargo assurance solution transitions the industry from reactive loss response to proactive detection and accountability, providing verified access, exception alerts, and a comprehensive record of custody [2] - Traditional cargo security measures are deemed insufficient, as they lack true access control and verification of individuals handling the freight. Wabash's solution offers real-time visibility and alerts, transforming cargo assurance from passive monitoring to active assurance [3] Technological Features - The solution addresses orchestrated cargo theft by validating driver identity and carrier relationships, thereby enhancing control during cargo handoffs [4] - Wabash's approach combines digital identity, physical access control, and chain-of-custody tracking, which is already in use with carriers for inspections and asset visibility [5] Implementation Timeline - The cargo assurance solution will first be available as a retrofit option for TaaS Pools in 2026, followed by options for new Wabash trailers or retrofits in 2027 [5] Event Participation - Wabash will showcase live demonstrations of the cargo door and lock, along with TrailerHawk.AI workflows at the Manifest 2026 event, including a breakout session on the future of cargo assurance [6]

Core Viewpoint - Wabash National is navigating a prolonged downturn in the freight market, which has impacted its fourth-quarter performance and is expected to keep demand soft into early 2026. The company is focusing on liquidity, cost alignment, and expanding recurring revenue streams while acknowledging limited visibility on the industry's recovery timeline [4][3][2]. Financial Performance - In Q4, Wabash reported consolidated revenue of $321 million, with an adjusted EBITDA of -$26.2 million and an adjusted net loss of -$37.8 million (-$0.93 per share) [5][10]. - The Parts & Services segment grew by 33% year-over-year, despite the broader original-equipment market being down over 40% from its peak in 2023 [11]. - The company shipped approximately 5,901 new trailers and 1,343 truck bodies in the quarter, but faced operational inefficiencies due to lower-than-expected production volumes [9]. Cost Management and Actions - Wabash has idled manufacturing facilities in Little Falls and Goshen, incurring about $16 million in non-cash charges in Q4, with an expectation of an additional $4-5 million in charges in H1 2026 [6][7]. - These actions are anticipated to generate approximately $10 million in annualized savings, primarily from fixed manufacturing overhead and operating expenses [7][8]. Market Conditions and Outlook - The company is observing early signs of stabilization in parts of the freight market, such as stabilizing freight volumes and improving fleet utilization, but these have not yet led to increased order activity [2]. - Wabash expects the first quarter of 2026 to be the weakest of the year for both revenue and operating margins, with guidance for revenue between $310 million and $330 million and adjusted EPS of -$0.95 to -$0.05 [17]. Capital Allocation and Investments - In 2025, Wabash generated $12 million in operating cash flow but reported -$31 million in free cash flow, excluding a $30 million legal settlement [13]. - The company invested $5 million in capital expenditures and $7 million in revenue-generating assets for its Trailers as a Service (TaaS) initiative during Q4 [14]. - Wabash ended 2025 with $235 million in liquidity and plans to prioritize paying down its asset-based lending facility [16]. Industry Context - The transportation industry is facing prolonged softness in demand, which has affected customer spending decisions [3]. - Wabash is monitoring antidumping and countervailing duty petitions related to imported trailer products, with preliminary determinations expected in early 2026 [18]. - The company does not anticipate incurring material costs from the antidumping process, and any potential duties would apply to named foreign competitors if determinations are affirmative [18].

Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, and adjusted operating margin was -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing a trend of sequential and year-over-year growth [21][13] Market Data and Key Metrics Changes - The transportation industry faced prolonged softness in demand, with freight, construction, and industrial activity operating below normalized levels [3][5] - Early signs of stabilization in freight volumes were noted, but these have not yet translated into increased order activity [5][10] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - Actions taken in 2025 are believed to strengthen the company's foundation and improve its ability to perform through the cycle [4] - The company is investing in parts and services as a more durable revenue stream, with a growth of 33% year-over-year in this segment [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that the demand environment is expected to remain difficult in the first quarter of 2026, with revenue guidance set between $310 million and $330 million [11][24] - There is confidence that 2026 will represent an improvement from 2025, despite the uncertainty in the timing and shape of the demand recovery [11][25] Other Important Information - The idling of manufacturing facilities resulted in approximately $16 million of total charges during the quarter, all of which were non-cash [8] - The company expects to recognize an additional $4 million-$5 million in charges in the first half of 2026, primarily related to severance and exit-related costs [8] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management confirmed that they are not exiting the refrigerated market and are repositioning products for an improving market [32][33] Question: Continuation of parts and services run rate into 2026 - Management expects nice growth in 2026, with quarterly averages continuing from Q4, but margins may face pressure due to market conditions [34][36] Question: Changes in refrigerated truck bodies and cost structure - Management assured that capacity for refrigerated truck bodies remains intact and that strategic actions taken will optimize overhead [45][46] Question: Customer optimism and market recovery - Management noted that initial tailwinds for trailer demand are stabilizing, but it is too early to predict a significant recovery [51][52] Question: Tariff impacts on cost of goods sold - Management clarified that the impact of tariffs on material costs is minimal, with market price competition being the primary driver of margin compression [92]

Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, while adjusted operating margin came in at -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing the trend of both sequential and year-over-year revenue growth [21][13] Market Data and Key Metrics Changes - Demand across both the trailer and truck body industries remains soft, with freight, construction, and industrial activity operating below normalized levels [10][5] - The domestic trailer industry has filed antidumping and countervailing duty petitions concerning certain imported trailer products, with investigations currently in early stages [9] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - The idling of manufacturing facilities is part of a longer-term strategy to reduce overall fixed costs and improve cost structure [7][8] - The Parts and Services segment is seen as a durable and resilient earnings stream, with growth expected to continue despite market challenges [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was a challenging year with prolonged softness in demand, but actions taken have strengthened the company's foundation for future recovery [3][4] - The company expects the first quarter of 2026 to be the weakest of the year in terms of revenue and operating margins, but anticipates improvement for the full year [11][24] - Management remains cautious about the demand environment but sees early signs of stabilization in certain parts of the freight transportation market [5][10] Other Important Information - The company expects to recognize additional charges related to the idling of facilities, with ongoing annualized cost savings projected at approximately $10 million [8] - The company is maintaining a conservative approach to cash management and does not anticipate near-term investments in revenue-generating assets for the Trailers as a Service initiative [23] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management clarified that they are not exiting the refrigerated market and are repositioning products for future demand [32][33] Question: Continuation of Parts and Services growth into 2026 - Management expects nice growth in 2026 for Parts and Services, with margins anticipated to improve after Q1 [34][36] Question: Strategic actions and cost structure implications - Management confirmed significant impairment related to shutdowns and indicated that the operating expense differential is a temporary situation [47][48] Question: Customer optimism and market recovery - Management noted that while there are positive initial signs, it is too early to predict a significant demand increase for trailers in 2026 [51][52] Question: Tariff impacts on cost of goods sold - Management indicated that the impact on margins is more related to market pricing competition rather than direct material costs from tariffs [94]

Financial Data and Key Metrics Changes - In Q4 2025, consolidated revenue was $321 million, with adjusted gross margin at -1.1% and adjusted operating margin at -13.6% [20][21] - Adjusted EBITDA was -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders was -$37.8 million, or -$0.93 per diluted share [22] - Full-year operating cash generation totaled $12 million, with free cash flow at -$31 million, excluding a $30 million legal settlement [23] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million with non-GAAP operating income of -$31.7 million, or -12.1% of sales [22] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, showing year-over-year growth of 33% [22][14] Market Data and Key Metrics Changes - The transportation industry faced prolonged softness in demand, with freight, construction, and industrial activity operating below normalized levels [5][10] - Early signs of stabilization in freight volumes and gradual improvement in fleet utilization rates were noted, but these have not yet translated into increased order activity [5][6] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - Actions taken in 2025 are believed to strengthen the company's foundation and improve its ability to perform through the cycle [4] - The company is investing in its parts and service business, which has shown resilience and growth, and is expected to operate in the high teens EBITDA over time [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment is expected to remain difficult in Q1 2026, with revenue guidance of $310 million to $330 million and adjusted earnings per share between -$0.95 and -$0.05 [11][25] - The first quarter is anticipated to be the weakest of the year in terms of revenue and operating margins, but there is confidence that 2026 will show improvement compared to 2025 [11][25] Other Important Information - The company idled manufacturing facilities in Little Falls and Goshen, resulting in approximately $16 million in non-cash charges during the quarter [8] - The domestic trailer industry has filed antidumping and countervailing duty petitions concerning certain imported trailer products, with investigations currently underway [9] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management confirmed that they are not exiting the refrigerated market and are repositioning products for future demand [32][33] Question: Continuation of parts and services growth into 2026 - Management expects to see continued growth in the parts and services segment in 2026, with potential margin improvements after Q1 [34][36] Question: Update on imported trailers and potential dumping - Management clarified that Wabash is not negatively impacted by the ongoing investigations and that any penalties would apply to international competitors [60][62] Question: Capital allocation strategy moving forward - The company plans to prioritize paying down debt, maintaining dividends, and funding internal capital expenditures, with a focus on liquidity management [77][78]

Fourth Quarter 2025 Earnings Release Changing How the World Reaches You® February 4, 2026 Safe Harbor Statement & Non-GAAP Financial Measures This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts of future events. All statements contained in this presentation other than statements of historical fact are forward-looking s ...