Wabash National(US:WNC)2025-10-30 20:01Financial 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].