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]

Financial Performance - Revenue for Q1 2025 was $381 million[17] - GAAP Operating Income was $314.6 million, while Non-GAAP Adjusted Operating Loss was $(27.4) million[17] - GAAP Diluted EPS was $5.36, while Non-GAAP Adjusted Diluted EPS was $(0.58)[17] - Net cash used in operating activities was $(0.3) million, and free cash flow was $(29.1) million[24] Segment Performance - Transportation Solutions revenue was $347 million with an operating margin of (2.8)%[20] - Parts & Services revenue was $52 million with an operating margin of 13.3%[20] - Transportation Solutions adjusted segment EBITDA margin was 0.8%, while Parts & Services adjusted segment EBITDA margin was 15.5%[43] 2025 Outlook - The company reduced its 2025 outlook to a revenue midpoint of $1.8 billion and a Non-GAAP adjusted EPS midpoint of $(0.60)[13] - SG&A is projected to be approximately $170 million, and capital expenditures are expected to be between $50 million and $60 million[31] Capital Allocation - Capital expenditures accounted for 18.8% ($8.7 million), expenditures for revenue generating assets accounted for 43.3% ($20.1 million), dividends accounted for 8.4% ($3.9 million), and share repurchases accounted for 29.5% ($13.7 million) of Q1 capital allocation[26]

Media Contact: Dana Stelsel Director, Communications (765) 771-5766 dana.stelsel@onewabash.com Investor Relations: Ryan Reed VP, Corporate Development & IR (765) 490-5664 ryan.reed@onewabash.com Wabash Announces First Quarter 2025 Results LAFAYETTE, Ind. – April 30, 2025 – Wabash (NYSE: WNC), a leader in end-to-end supply chain solutions for the transportation, logistics and infrastructure markets, today reported results for the quarter ended March 31, 2025. The Company's net sales for the first quarter of ...