Core Viewpoint - Wabash (NYSE: WNC) will host a quarterly earnings conference call to discuss its financial results for Q2 2025 on July 25, 2025, at 12:00 p.m. ET [1]. Group 1: Earnings Call Details - The earnings call will be accessible via a conference call number and will also be available for replay shortly after the presentation [2]. - Related materials, including the earnings press release and slides, will be posted on Wabash's website by 7:00 a.m. ET on the day of the call [2]. Group 2: Company Overview - Wabash is a leader in connected solutions for the transportation, logistics, and distribution industries, focusing on innovative products and services [3]. - The company designs and manufactures a variety of products, including trailers and specialty food-grade processing equipment, aimed at enhancing customer operations [3].

Core Insights - Wabash recognizes 38 top suppliers with the 2024 Supplier Awards for excellence in supply chain performance [1][2] - Fastenal and Whiting Door are awarded the Pinnacle Award, the highest honor for supplier of the year [2][4] - The awards are based on criteria such as innovation, quality, delivery, cost, and service [2] Company Highlights - Fastenal operates over 3,600 locations in 25 countries, providing a wide range of industrial supplies and services [3] - Fastenal's approach combines local expertise, technology, and logistics to enhance customer supply chains [3] - Whiting Door, founded in 1953, specializes in manufacturing roll-up doors and has a strong reputation for quality and innovation [4] - Whiting Door has three manufacturing locations and emphasizes ISO-certified processes and continuous improvement [4] Supplier Relationships - Wabash emphasizes the importance of collaborative supplier relationships for delivering innovative solutions [3] - Fastenal's partnership with Wabash focuses on operational integration and driving efficiencies [5] - Whiting Door highlights a long-standing relationship with Wabash based on shared goals and customer service [5] Awards and Recognition - In addition to the Pinnacle Award, 29 companies received Platinum Awards for ongoing excellence in supply chain performance [5] - Distinguished Supplier Awards were given to companies for outstanding customer service and business responsiveness [7]

Group 1 - Wabash National Corporation (NYSE: WNC) is currently facing challenges, indicating a downturn in performance [1] - The company was previously reaffirmed as a 'buy' candidate in early September of the previous year, suggesting a shift in sentiment [1] Group 2 - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, highlighting the importance of financial health for investment decisions [1] - The service offers a stock model account and in-depth cash flow analyses for exploration and production firms, providing subscribers with valuable insights [2]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Wabash National Corporation and its officers or directors [1] Financial Performance - Wabash reported an operating loss of $9.8 million in its Transportation Solutions segment for Q1 2025, a significant decline from an operating profit of $44.25 million in Q1 2024 [3] - The gross profit for Wabash in Q1 2025 was $19 million, down from $76.4 million in Q1 2024 [3] - The company revised its annual revenue forecast to approximately $1.8 billion, a decrease from the previous projection of $1.9 billion made in February 2025 [3] Market Reaction - Following the announcement of its financial results, Wabash's stock price fell by $3.05 per share, or 30.62%, closing at $6.91 per share on April 30, 2025 [4]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Wabash National Corporation and its executives [1] Financial Performance - Wabash reported an operating loss of $9.8 million in its Transportation Solutions segment for Q1 2025, a significant decline from an operating profit of $44.25 million in Q1 2024 [2] - The company's gross profit for Q1 2025 was $19 million, down from $76.4 million in Q1 2024 [2] - Wabash revised its annual revenue forecast to approximately $1.8 billion, a decrease from the previous projection of $1.9 billion made in February 2025 [2] Market Reaction - Following the announcement of its financial results, Wabash's stock price dropped by $3.05 per share, or 30.62%, closing at $6.91 per share on April 30, 2025 [3]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving Wabash National Corporation and its officers or directors [1] Financial Performance - Wabash reported an operating loss of $9.8 million in its Transportation Solutions segment for Q1 2025, a significant decline from an operating profit of $44.25 million in Q1 2024 [3] - The gross profit for Wabash in Q1 2025 was only $19 million, compared to $76.4 million in Q1 2024 [3] - The company revised its annual revenue forecast to approximately $1.8 billion, down from the previous projection of $1.9 billion issued in February 2025 [3] Market Reaction - Following the announcement of its financial results, Wabash's stock price fell by $3.05 per share, or 30.62%, closing at $6.91 per share on April 30, 2025 [4]

Core Insights - Wabash has partnered with Echo Global Logistics to enhance Echo's drop trailer program and service offerings, leveraging Wabash's Trailers as a Service (TaaS) solution [1][4] - The partnership aims to meet the growing demand for flexible freight options, allowing Echo to access trailer capacity on demand without the complexities of fleet ownership [2][3] - Wabash's TaaS provides a comprehensive solution that includes trailer capacity, maintenance, repair, and telematics, streamlining operations for Echo and enabling them to focus on tech-enabled freight solutions [3][4] Company Overview - Wabash is a leading provider of solutions that optimize supply chains across transportation, logistics, and infrastructure markets, headquartered in Lafayette, Indiana [6] - The company designs, manufactures, and services a wide range of products, including van trailers, flatbed trailers, and tank trailers, supporting first-to-final mile operations [6] - Echo Global Logistics is a prominent provider of technology-enabled transportation and supply chain management services, headquartered in Chicago, with over 30 offices in North America [7] - Echo offers freight brokerage and managed transportation solutions across various modes, utilizing advanced technology to analyze data from a network of over 50,000 transportation providers [7]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Wabash National reported Q1 2025 net sales of $380.9 million, with net income surging to $230.9 million due to a $342 million liability reduction [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at $1.415 billion, while liabilities decreased significantly to $1.010 billion, boosting equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $81,036 | $115,484 | | Total current assets | $657,568 | $594,488 | | Total assets | $1,415,193 | $1,411,529 | | **Liabilities & Equity** | | | | Total current liabilities | $415,364 | $308,409 | | Long-term debt | $417,317 | $397,142 | | Other non-current liabilities | $177,420 | $516,152 | | Total liabilities | $1,010,101 | $1,221,703 | | Total stockholders' equity | $403,841 | $188,830 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales decreased to $380.9 million, but a legal liability reduction boosted net income to $230.9 million Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $380,890 | $515,276 | | Gross profit | $19,003 | $76,446 | | Income from operations | $314,551 | $29,575 | | Net income attributable to common stockholders | $230,941 | $18,167 | | Diluted EPS | $5.36 | $0.39 | | Dividends declared per share | $0.08 | $0.08 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations improved to $0.3 million, while investing and financing activities used $33.8 million and $0.4 million respectively Q1 2025 vs Q1 2024 Cash Flows (in thousands) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(272) | $(17,410) | | Net cash used in investing activities | $(33,818) | $(19,185) | | Net cash used in financing activities | $(358) | $(26,890) | | Net decrease in cash and cash equivalents | $(34,448) | $(63,485) | | Cash and cash equivalents at end of period | $81,036 | $115,786 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the TrailerHawk.ai acquisition, a $342 million product liability adjustment, and segment performance - On February 3, 2025, the Company acquired TrailerHawk.ai, LLC for an initial purchase price of **$2.5 million** (less a $0.8 million allowance), release of $3.1 million in notes, and potential earnout payments up to **$15.0 million** The acquisition added **$8.2 million** to Goodwill[30](index=30&type=chunk) - The company's product liability matter award was reduced by the court to an 'Adjusted Award' of **$119.5 million** (**$108 million** punitive, **$11.5 million** compensatory) This resulted in a **$342 million** reduction to the previously recorded charge, which was recognized as a credit to General and Administrative expenses in Q1 2025[105](index=105&type=chunk)[106](index=106&type=chunk) Segment Performance - Q1 2025 (in thousands) | Segment | Total Net Sales | Gross Profit | (Loss) Income from Operations | | :--- | :--- | :--- | :--- | | Transportation Solutions | $346,803 | $8,414 | $(9,798) | | Parts & Services | $51,955 | $10,589 | $6,910 | - The company repurchased **1,033,764 shares** during the quarter as part of its buyback program As of March 31, 2025, **$110.5 million** remained available under the program, which expires in February 2027[115](index=115&type=chunk)[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales decreased 26.1% to $380.9 million, while liquidity remained strong at $310.0 million despite market uncertainty [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Net sales declined 26.1% to $380.9 million, driven by lower Transportation Solutions sales, while G&A expenses decreased significantly Net Sales by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Transportation Solutions | $346,803 | $470,428 | (26.3%) | | Parts & Services | $51,955 | $49,234 | 5.5% | | **Total** | **$380,890** | **$515,276** | **(26.1%)** | - New trailer shipments decreased by **26.0%** to **6,290 units**, and new truck body shipments decreased by **18.7%** to **3,000 units** compared to Q1 2024[133](index=133&type=chunk) - Gross profit margin decreased to **5.0%** in Q1 2025 from **14.8%** in Q1 2024, primarily due to lower sales volumes, especially in the Transportation Solutions segment where the margin fell to **2.4%** from **13.4%**[130](index=130&type=chunk)[138](index=138&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity stood at $310.0 million, with cash used for dividends and stock repurchases, and debt primarily from Senior Notes - Total liquidity (cash plus available borrowings) was **$310.0 million** as of March 31, 2025, down from **$421.9 million** at December 31, 2024[147](index=147&type=chunk)[162](index=162&type=chunk) - In Q1 2025, the company used cash for **$16.5 million** in stock repurchases and **$3.9 million** in dividend payments, offset by **$20.0 million** in net borrowings under the revolving credit facility[168](index=168&type=chunk) Contractual Obligations Summary as of March 31, 2025 (in thousands) | Obligation | Total | | :--- | :--- | | Total debt (including interest) | $494,822 | | Operating Leases | $39,670 | | Other commercial commitments | $111,372 | | **Total Obligations** | **$645,864** | [Backlog and Outlook](index=39&type=section&id=Backlog%20and%20Outlook) Total backlog increased 5% sequentially to $1.224 billion but decreased 32% year-over-year, reflecting softened demand and revised industry forecasts Backlog Comparison (in millions) | Backlog Type | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | 12-month backlog | $841 | $813 | $1,507 | | Total backlog | $1,224 | $1,169 | $1,803 | - Industry forecasts for 2025 U.S. trailer production are down, with ACT projecting **204,000 units** and FTR projecting **217,000 units**, representing decreases of **13.9%** and **5.7%** from 2024, respectively[180](index=180&type=chunk) - Longer-term forecasts from ACT and FTR predict a recovery, with production levels expected to rise to between **245,000** and **299,000 units** annually from 2026 to 2030[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from commodity prices, interest rates, and foreign exchange, with limited impact from hypothetical changes - A hypothetical **10%** change in commodity prices would result in a **$1.2 million** change in cost of goods sold based on purchase commitments of **$12.3 million** through December 2025[186](index=186&type=chunk) - Interest rate risk is primarily tied to the **$20.0 million** outstanding on the Revolving Credit Agreement A **100 basis-point** change in the floating rate would impact annual interest expense by approximately **$0.2 million**[187](index=187&type=chunk) - Foreign exchange rate risk, mainly from the Mexican peso, is deemed to have an immaterial impact on the company's results of operations[188](index=188&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 31, 2025[189](index=189&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[190](index=190&type=chunk) [PART II – OTHER INFORMATION](index=41&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 14 for legal proceedings, highlighting the product liability case with a reduced award under appeal - For information on legal proceedings, the report directs readers to Note 14, "Commitments and Contingencies" in Part I, Item 1[191](index=191&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The primary risk is the product liability lawsuit; failure to further reduce the $119.5 million award could materially impact financials - The company emphasizes the risk from the 'Product Liability Matter' where a court reduced a punitive damage award to **$108 million**, with a compensatory award of **$11.5 million**[193](index=193&type=chunk) - The company has filed a notice of appeal and warns that failure to further reduce the award could materially and adversely affect its financial condition, results of operations, and cash flows[194](index=194&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,261,527 shares** for **$16.4 million** in Q1 2025, with **$110.5 million** remaining for buybacks Share Repurchases - Q1 2025 | Month (2025) | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January | 272,675 | $16.25 | | February | 596,225 | $12.69 | | March | 392,627 | $11.22 | | **Total** | **1,261,527** | **$13.00** | - As of March 31, 2025, **$110.5 million** remained available for repurchase under the company's stock buyback program[195](index=195&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements in Q1 2025[196](index=196&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including officer certifications and iXBRL formatted financial statements

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenue was $381 million, with a shortfall of approximately $55 million due to lower than expected shipments of trailers and truck bodies [30] - Adjusted net income attributable to common stockholders was negative $24.8 million, or negative $0.58 per diluted share [31] - Adjusted EBITDA was negative $9 million, representing negative 2.4% of sales [30] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $347 million with an operating loss of negative $10 million, impacted by lower demand and labor cost exposure [31] - Parts and Services generated revenue of $52 million with operating income of $6.9 million, showing year-over-year revenue growth despite market conditions [31][32] Market Data and Key Metrics Changes - The total backlog at the end of Q1 was approximately $1.2 billion, indicating a slight sequential increase [18] - The trailer industry has experienced eight consecutive quarters of contraction in orders, leading to an aging of fleets across the industry [18] Company Strategy and Development Direction - The company is focusing on growing its parts and services revenue to create a more durable and resilient business model, reducing exposure to cyclicality [20][28] - The strategic initiative includes expanding the Trailers as a Service (TaaS) offering, which has over 1,000 trailers deployed [23][29] Management's Comments on Operating Environment and Future Outlook - Management noted a broader macro-driven slowdown affecting customer decision-making and capital expenditure plans, leading to a downward revision of industry forecasts for 2025 [5][6] - The updated guidance for 2025 revenue is approximately $1.8 billion, reflecting a reduction of about $200 million from previous estimates [33] Other Important Information - The company is navigating ongoing legal matters related to a 2019 motor vehicle accident, with a reduced judgment amount of $119.5 million [17] - The company has a liquidity position of $310 million as of March 31, 2025, including cash and available borrowings [32] Q&A Session Summary Question: Concerns about decremental margins and EPS loss - Management clarified that pricing pressure around commodities is accounted for in the full-year guidance, and they do not expect an oversized reduction in profitability [39][40] Question: Outlook for parts and services - Management expressed optimism about maintaining growth in parts and services despite weakness in original equipment sales, expecting sequential growth throughout the year [44] Question: Total TaaS units and growth expectations - The company reported over 1,000 TaaS units deployed and anticipates growth in this segment throughout 2025 [53][55] Question: Liquidity and capital allocation - Management discussed their liquidity strategy, emphasizing flexibility in capital allocation based on market conditions [62] Question: Impact of weather on Q1 performance - Management acknowledged that weather affected manufacturing and cost alignment, but they expect improved conditions in Q2 [64][66]

Financial Data and Key Metrics Changes - In Q1, consolidated revenue was $381 million, with a revenue shortfall of approximately $55 million due to lower than expected shipments [30][31] - Adjusted net income attributable to common stockholders was negative $24.8 million, or negative $0.58 per diluted share [31] - Adjusted EBITDA was negative $9 million, or negative 2.4% of sales [30] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $347 million with an operating loss of negative $10 million, indicating a decline in demand for equipment [31] - Parts and Services generated revenue of $52 million and operating income of $6.9 million, showing year-over-year revenue growth despite market conditions [31][32] Market Data and Key Metrics Changes - The total backlog at the end of Q1 was approximately $1.2 billion, showing a slight sequential increase [17] - The trailer industry has experienced eight consecutive quarters of contraction in orders, leading to aging fleets across the industry [18] Company Strategy and Development Direction - The company is focusing on growing parts and services revenue to reduce exposure to cyclicality, with a strategic initiative to integrate these offerings across its equipment solutions portfolio [20][28] - The company is expanding its Trailers as a Service initiative, which includes maintenance, repair, and telematics, to provide a comprehensive solution for customers [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted a broader macro-driven slowdown affecting customer decision-making and capital expenditure plans, leading to a cautious outlook for 2025 [4][5] - The updated guidance for 2025 revenue is approximately $1.8 billion, reflecting a reduction of about $200 million from previous estimates [33][34] Other Important Information - The company is navigating ongoing legal matters related to a 2019 motor vehicle accident, with a jury initially awarding $462 million in damages, later amended to $119.5 million [16] - The company has a liquidity position of $310 million as of March 31, with a net debt leverage ratio of 3.2 times [32] Q&A Session Summary Question: Concerns about decremental margins and EPS loss - Management clarified that pricing pressure around commodities is accounted for in the full-year guidance, and they do not expect an oversized reduction in profitability [41][42] Question: Outlook for parts and services - Management expressed optimism about maintaining growth in parts and services despite weakness in original equipment sales, expecting sequential growth into Q2, Q3, and Q4 [45][46] Question: Total TOS units and growth potential - Management reported over 1,000 trailers deployed in the Trailers as a Service initiative, with expectations for continued growth throughout the year [55][56] Question: Liquidity and capital allocation - Management discussed their liquidity strategy, emphasizing flexibility in capital allocation based on market conditions, including traditional CapEx and share repurchases [63][64] Question: Impact of weather on Q1 performance - Management acknowledged that weather affected manufacturing and cost alignment, but they expect improved conditions in Q2 [66][67]