Financial Performance - Net sales for Q3 2025 decreased by $82.4 million, or 17.8%, compared to Q3 2024, totaling $381.6 million[130]. - Gross profit for Q3 2025 was $15.7 million, a decrease of $40.3 million from Q3 2024, with a gross profit margin of 4.1% compared to 12.1% in the prior year[136]. - For the first nine months of 2025, net sales decreased by $308.6 million, or 20.2%, totaling $1.2 billion[143]. - Gross profit for the first nine months of 2025 was $76.1 million, a decrease of $146.0 million from the prior year, with a gross profit margin of 6.2% compared to 14.5% in 2024[149]. Sales and Shipment Data - Transportation Solutions segment sales fell by $81.0 million, or 19.5%, to $334.5 million, while Parts & Services segment sales increased by $8.6 million, or 16.5%, to $61.0 million[130][132]. - New trailers shipped in Q3 2025 totaled 6,940 units, a decrease of 8.5% from 7,585 units in Q3 2024[130]. - Used trailers shipped in Q3 2025 increased to 20 units from 10 units in Q3 2024, marking a 100% increase[130]. - P&S segment sales for the first nine months of 2025 were $172.7 million, an increase of $16.2 million, or 10.4%, compared to the same period in 2024[145]. Cost and Expenses - Cost of sales in Q3 2025 was $365.9 million, down $42.1 million, or 10.3%, from the previous year[133]. - Cost of sales decreased by $162.6 million, or 12.4%, to $1,145.2 million in the first nine months of 2025 compared to the prior year[146]. - TS segment cost of sales was $1,039.4 million, a decrease of $162.5 million, or 13.5%, driven by lower shipment volumes and a $98.5 million decrease in materials costs[147]. - General and administrative expenses for Q3 2025 decreased significantly to (13.2)% of net sales, compared to 103.2% in Q3 2024, primarily due to the impacts of the Product Liability Matter[138]. - Selling expenses were $18.3 million, a decrease of $3.8 million, or 17.2%, compared to the prior year, with selling expenses as a percentage of net sales increasing to 1.5%[152]. Tax and Interest - The effective tax rate for Q3 2025 was 22.5%, compared to 24.7% for the same period in the prior year[142]. - Income tax expense was $87.0 million in the first nine months of 2025, compared to an income tax benefit of $92.2 million in the prior year, with an effective tax rate of 25.0%[156]. - Interest expense for Q3 2025 was $5.4 million, slightly up from $5.0 million in Q3 2024[141]. - Interest expense under the Revolving Credit Agreement for the nine-month period ended September 30, 2025, was approximately $1.5 million, compared to $0.6 million for the same period in 2024[178]. Liquidity and Capital Expenditures - As of September 30, 2025, liquidity was $355.9 million, a decrease of 12% from $404.9 million a year earlier, primarily due to lower available capacity on the Revolving Credit Agreement[159]. - The company paid approximately $10.5 million in dividends and repurchased shares totaling $30.3 million during the first nine months of 2025[158]. - Capital expenditures for property, plant, and equipment were approximately $20.2 million for the first nine months of 2025, with expectations for total capital expenditures in the range of $25 to $30 million for the full year[184][185]. Backlog and Industry Outlook - As of September 30, 2025, the 12-month backlog decreased to $658 million, a 19% decline from $813 million on December 31, 2024[192]. - Total backlog as of September 30, 2025 was $829 million, down 29% from $1,169 million on December 31, 2024[192]. - The trailer industry is projected to produce approximately 188,000 trailers in 2025, representing a decrease of 20.7% compared to 2024[194]. - ACT forecasts annual new trailer production levels for 2026 to be around 205,000, indicating a recovery trend after the decline in 2025[195]. Commitments and Risks - The company had $18.7 million in purchase commitments for various raw material commodities through January 2026[189]. - A hypothetical 10% change in commodity prices would result in a corresponding change in cost of goods sold of approximately $1.9 million[200]. - The company had $25.0 million in floating rate debt outstanding as of September 30, 2025, with a potential $0.3 million change in interest expense for a 100 basis-point change in rates[201]. - A 10% change in the Mexican peso exchange rates would have an immaterial impact on the company's results of operations[202]. Strategic Focus - The company aims to leverage its strong balance sheet and liquidity profile to adapt to changes in the industry and demand environment[195]. - The company continues to prioritize the safety of employees and the financial well-being of the organization amid economic uncertainties[197].

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 was $382 million, below the guidance range of $390 to $430 million due to challenging market conditions [25][31] - Gross margin was 4.1% and adjusted operating margin was negative 6.2%, both below expectations [25] - Adjusted EBITDA was negative $5 million, or negative 1.4% of sales, with adjusted net income attributable to common stockholders at negative $21.2 million, or negative $0.51 per diluted share [25][26] - Full-year 2025 revenue guidance was lowered to approximately $1.5 billion, with EPS expected between negative $1.95 and negative $2.05 [31][32] Business Line Data and Key Metrics Changes - Transportation Solutions generated $334 million in revenue with negative $13 million in operating income [26] - Parts and Services delivered $61 million in revenue and $6.6 million in operating income, marking the third consecutive quarter of revenue growth [26][24] - Parts and Services segment grew 16% year-over-year and about 2% sequentially, demonstrating resilience in a down market [16][24] Market Data and Key Metrics Changes - Demand across the transportation industry remained below expectations, with order intake and backlog coming in below expectations [3][4] - Backlog declined to about $800 million at the end of Q3 [10] - The truck body business faced significant challenges, with larger fleets pulling back due to ongoing housing market stagnation and reduced consumer confidence [4][10] Company Strategy and Development Direction - The company is focused on maintaining cost discipline, pursuing share gains, and strengthening service and distribution capabilities [5][6] - Continued expansion of Parts and Services is seen as a key strategy to emerge stronger when demand normalizes [6][24] - The company is preparing for a potential recovery in 2026, driven by replacement needs and improving freight conditions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that market conditions are expected to remain soft in the near term, particularly through Q4 [4][10] - There is cautious optimism for a gradual recovery in 2026, supported by tightening capacity in the market [11][12] - The company remains committed to maintaining rigorous safety, quality, and compliance standards while managing risks [9] Other Important Information - A settlement related to a 2019 legal matter resulted in a net adjustment of approximately $81 million in Q3, with the company's payment obligation being around $30 million [8][9] - Total liquidity, including cash and available borrowings, stood at $356 million as of September 30 [27] Q&A Session Summary Question: Can you discuss the impact of Section 232 tariffs on your business? - Management explained that the Section 232 tariffs are intended to level the playing field for domestic OEMs, with a minimal direct impact of about $1 million from vendor price increases due to tariffs in Q3 [40][50] Question: What is the expected shipment count for Q4 based on your revenue guidance? - Management indicated that truck body shipments are expected to be significantly lower in Q4, estimating around 2,000 units compared to approximately 3,000 in Q3 [52][56] Question: Are you seeing any growth in the platform trailer market? - Management noted that there are tailwinds in the platform trailer segment, with customer sentiment indicating a potential uptick in freight demand [68][70] Question: How is the pricing environment shaping up as you look into 2026? - Management stated that while there are opportunities for positive pricing influence in certain niches, overall ASPs are lower compared to 18 months ago, aligning with market expectations for 2026 [77] Question: What is the current state of the national trailer fleet and capacity? - Management anticipates a meaningful level of capacity will exit the market over the next six months, which could positively influence freight pricing dynamics [78][80]

Third Quarter 2025 Earnings Release Changing How the World Reaches You® Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest & excludes loss from unconsolidated entity and is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under GAAP, but that management would not consider important in ev ...

Financial Performance - The Company's net sales for Q3 2025 were $381.6 million, a decrease of 17.8% compared to Q3 2024[3] - Consolidated gross profit for the quarter was $16 million, representing 4.1% of sales[3] - GAAP diluted earnings per share (EPS) was $0.97, while Non-GAAP adjusted EPS was $(0.51)[5] - Net sales for Q3 2025 were $381.6 million, a decrease of 17.7% compared to $464.0 million in Q3 2024[24] - Gross profit for Q3 2025 was $15.7 million, down 72.0% from $56.0 million in Q3 2024[24] - Net income attributable to common stockholders for Q3 2025 was $40.0 million, compared to a net loss of $330.2 million in Q3 2024[24] - Total net external sales for the nine months ended September 30, 2025, were $1,221,301, a decrease of 20% compared to $1,529,926 in 2024[30] - Adjusted operating (loss) income for the nine months ended September 30, 2025, was $(51,148), compared to $90,310 in 2024, indicating a significant decline[32] - Gross profit for the nine months ended September 30, 2025, was $76,111, down from $222,113 in 2024, reflecting a decrease of 65.7%[30] - The company reported a net income attributable to common stockholders of $261,329 for the nine months ended September 30, 2025, compared to a loss of $(283,041) in 2024[34] Sales and Backlog - Total backlog as of September 30, 2025, was approximately $829 million, indicating a cautious approach to capital spending by customers[4] - Transportation Solutions segment net sales decreased by 19.5% year-over-year to $334.5 million, with an operating loss of $13.1 million[8] - Parts & Services segment reported net sales of $61.0 million, an increase of 16.5% compared to the prior year quarter[9] - Units shipped for new trailers in Q3 2025 were 6,940, a decrease of 8.5% from 7,585 in Q3 2024[28] - New trailers shipped decreased to 21,869 units in 2025 from 25,330 units in 2024, representing a decline of 13.5%[30] - The company shipped 9,257 new truck bodies in the nine months ended September 30, 2025, down from 11,245 in 2024, a decline of 17.7%[30] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q3 2025 were $91.7 million, down from $115.5 million at the beginning of the period[26] - The company reported a net cash provided by operating activities of $69.1 million for the nine months ended September 30, 2025, compared to $36.4 million for the same period in 2024[26] - Free cash flow for the nine months ended September 30, 2025, was $8,704, compared to $(15,890) in 2024, showing an improvement in cash generation[36] Debt and Assets - Total current assets increased to $603.5 million in Q3 2025 from $594.5 million in Q4 2024[22] - Total liabilities decreased to $929.8 million in Q3 2025 from $1.2 billion in Q4 2024[22] - Long-term debt increased to $422.7 million in Q3 2025 from $397.1 million in Q4 2024[22] Operational Performance - The Truck Body business faced challenging market conditions, with demand easing across most end markets[6] - The Company remains cautiously optimistic about a gradual recovery in 2026, supported by pent-up replacement needs and improving freight conditions[6] - The Company is focused on managing its cost base while maintaining liquidity to navigate near-term challenges and invest in long-term growth[6] - Transportation Solutions segment reported a loss from operations of $13,116 in Q3 2025 compared to income of $29,162 in Q3 2024[38] - For the nine months ended September 30, 2025, Transportation Solutions had a loss from operations of $10,396 compared to income of $130,335 in the same period of 2024[38] - Parts & Services segment reported income from operations of $6,621 in Q3 2025, down from $8,316 in Q3 2024[38] - For the nine months ended September 30, 2025, Parts & Services reported income from operations of $22,591, down from $30,923 in the same period of 2024[38] Adjusted Metrics - Adjusted segment EBITDA for Transportation Solutions was $(598) in Q3 2025, down from $41,396 in Q3 2024, resulting in a margin of (0.2)% versus 10.0%[38] - Adjusted segment EBITDA for the nine months in Transportation Solutions was $26,505 in 2025, significantly lower than $165,990 in 2024, with a margin of 2.5% compared to 12.0%[38] - Adjusted segment EBITDA for Parts & Services was $7,738 in Q3 2025, compared to $8,867 in Q3 2024, resulting in a margin of 12.7% versus 16.9%[38] - Adjusted segment EBITDA for Parts & Services was $26,126 in 2025, compared to $32,536 in 2024, with a margin of 15.1% versus 20.8%[38] Other Financial Adjustments - The Missouri legal matter resulted in an adjustment of $(81,207) for the three months ended September 30, 2025, impacting the overall financial results significantly[34] - The company experienced impairment and other net charges of $219 in Q3 2025, compared to a gain of $(51) in Q3 2024[38]

Core Insights - Wabash reported a net sales of $381.6 million for Q3 2025, a decrease of 17.8% compared to Q3 2024 [2][7] - The company recognized a GAAP operating income of $58 million, primarily due to an $81 million gain from a legal settlement, while the non-GAAP adjusted operating loss was $23.6 million [2][7] - Total backlog as of September 30, 2025, was approximately $829 million, indicating a cautious approach from customers regarding capital spending [3][7] - The full-year revenue outlook has been reduced to $1.5 billion, with non-GAAP adjusted EPS guidance lowered to a range of $(1.95) to $(2.05) [3][7] Financial Performance - The gross profit for Q3 2025 was $16 million, representing 4.1% of sales, compared to a gross profit of $56 million or 10.8% of sales in Q3 2024 [2][9] - The company shipped 6,940 trailers and 3,065 truck bodies in Q3 2025, down from 7,585 trailers and 3,630 truck bodies in Q3 2024 [6][30] - Transportation Solutions segment net sales were $334.5 million, a decrease of 19.5% year-over-year, while Parts & Services saw a 16.5% increase in net sales to $61 million [9][31] Market Conditions - The Truck Body business faced challenging market conditions, with demand easing across various sectors including freight activity and construction [4][7] - The company remains cautiously optimistic about a gradual recovery in 2026, driven by pent-up replacement needs and improving freight conditions [4][7] Segment Highlights - The Transportation Solutions segment reported an operating loss of $13.1 million, while Parts & Services generated an operating income of $6.6 million [9][31] - The gross profit margin for the Transportation Solutions segment was 1.5% in Q3 2025, compared to 10.9% in Q3 2024 [8][31] Cash Flow and Balance Sheet - As of September 30, 2025, total assets were approximately $1.35 billion, with total liabilities of about $929.8 million [22][23] - Cash and cash equivalents decreased to $91.7 million from $115.5 million at the end of the previous year [23][27]

Core Viewpoint - Wabash National has settled a significant legal case involving a nuclear verdict, which initially posed a financial threat exceeding $460 million, but has now reduced its exposure to $30 million out-of-pocket expenses beyond insurance payouts [1][3][8]. Group 1: Legal Case Details - The original verdict against Wabash was one of the largest nuclear verdicts recorded, particularly against a publicly traded trucking-related defendant [2]. - The Missouri Circuit Court later reduced the punitive damages to $108 million, while the compensatory award remained at $11.5 million [5]. - The trial lasted two weeks, with the jury reaching a verdict after only three hours of deliberation [6]. Group 2: Incident Background - The case stemmed from a 2019 crash involving a Wabash trailer, where two individuals were killed when a car collided with the trailer [6]. - Testimony indicated that the car was traveling at approximately 45 miles per hour at the time of the accident [6]. - Wabash's defense argued that its trailer's rear guard barriers complied with government specifications at the time of manufacture [6]. Group 3: Settlement Context - Wabash's settlement was disclosed in an SEC filing, but no media statement was issued publicly [7]. - The company maintains that the original verdict was not supported by the facts or law, yet opted for a settlement to mitigate financial risk [8].

Core Insights - Wabash has introduced new Trailers as a Service (TaaS) offerings aimed at transforming trailer capacity sourcing and management across North America [1][2] Group 1: TaaS Offerings - The TaaS portfolio includes two main solutions: TaaS Pools and TaaS Plus, each addressing specific challenges for shippers, 3PLs, and carriers [2][4] - TaaS Pools offers a universal trailer pool that simplifies management by providing access to a nationwide pool of trailers, enhancing dock efficiency and ensuring consistent availability [3] - TaaS Plus is tailored for 3PLs and brokers, allowing them to operate similarly to asset carriers without the capital burden of ownership, featuring three service tiers for varying levels of support [4] Group 2: Technology Integration - Both TaaS offerings leverage TrailerHawk.ai, a platform that enhances visibility and analytics for trailer management, including replenishment and utilization [5] - The integration of advanced technology with operational expertise aims to improve efficiency and reduce waste in the supply chain [6] Group 3: Company Vision and Commitment - Wabash's mission focuses on providing flexible and scalable trailer solutions to help logistics providers navigate supply chain challenges [6] - The company emphasizes the importance of cost, assurance, and flexibility in trailer procurement, aiming to meet customer needs without asset ownership [6][8]

Core Points - Wabash (NYSE: WNC) will host a quarterly earnings conference call on October 30, 2025, at 12:00 p.m. ET to discuss its financial results for Q3 2025 [1] - The call will be accessible via a dedicated phone line and will also be available for replay on the company's website [2] - Wabash specializes in optimizing supply chains through innovative physical and digital technologies, offering a range of products and services in transportation, logistics, and infrastructure markets [3] Company Overview - Wabash is headquartered in Lafayette, Indiana, and designs, manufactures, and services products such as dry and refrigerated trailers, truck bodies, and platform trailers [3] - The company provides additional services through Wabash Marketplace and Wabash Parts, including a nationwide parts and service network and Trailers as a Service (TaaS)℠ [3] - Wabash aims to enable businesses to thrive in the present while preparing for future challenges, encapsulated in its slogan "Changing How the World Reaches You®" [3]

Core Insights - Wabash has opened a new Parts and Services facility in Gary, Indiana, strategically located along I-65 to enhance access to parts and services for customers in the Midwest [1][2] - The new facility is part of Wabash's initiative to expand its national Parts and Services platform, which includes new upfit centers and a growing dealer network [2][3] - Wabash's Parts and Services business is experiencing strong growth, with upfit volumes expected to more than double in 2025 [3] Company Strategy - The new Midwest facility aims to provide a comprehensive solution for Wabash Genuine Parts and the Ready-to-Mount (RTM) truck body program, ensuring rapid turnaround times [4] - The facility will also support refrigerated truck bodies and diesel truck repair services, addressing the needs of fleets in a high-demand region [4][5] - Wabash views its Parts and Services as essential for connecting manufacturing with long-term customer support, thereby adding stability to the business [4] Market Demand - There is a growing demand for upfit solutions among various customer segments, including national leasing fleets and small businesses seeking customized equipment [5] - The Gary facility enhances Wabash's market presence, improving turnaround speed and reducing downtime for customers [5] - The new facility follows the recent opening of another Parts and Services center in the Atlanta area, with plans for additional locations in 2026 [5]

Core Insights - Wabash is expanding its network in the Southeast, particularly in the Atlanta region, through the opening of a new Parts & Service center, dealer expansion with Fleetco, and the addition of CS Truck and Trailer to its Preferred Partner Network [2][3][6] Group 1: New Parts & Service Center - The new Parts & Service center in Atlanta is strategically located to enhance access to parts, service, and truck body upfitting, offering Wabash's Ready-to-Mount (RTM) truck bodies for dry freight and platform applications [3] - The center aims to provide faster turnaround times for in-stock chassis and joins existing service centers in California, Florida, Ohio, Pennsylvania, and Texas [3] Group 2: Fleetco Dealer Expansion - Fleetco has expanded its representation of Wabash in the greater Atlanta market, enhancing trailer sales and broadening Wabash's dealer footprint in the Southeast [4] - This partnership allows customers to access new and used equipment through a trusted dealer, improving service and expertise [5] Group 3: Preferred Partner Network Addition - Wabash has added three CS Truck and Trailer locations to its Preferred Partner Network in Georgia, enhancing service and maintenance access to customers through authorized dealerships [6] - The Preferred Partner Network is a key component of Wabash's strategy to make high-quality parts more accessible nationwide [6] Group 4: Strategic Vision - The expansion efforts in Atlanta reflect Wabash's strategy to build a comprehensive partner ecosystem that improves customer service and support across the Southeast [3][7] - The combination of service centers, dealer partners, and the Preferred Partner Network is designed to increase coverage and enhance the overall customer experience [7]