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].