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].

Wabash National (WNC) Q1 2025 Earnings Call April 30, 2025 12:00 PM ET Company Participants Ryan Reed - VP - Corporate Development, IR and FP&ABrent Yeagy - President, CEO & Director of the BoardMike Pettit - Senior VP & Chief Growth OfficerPatrick Keslin - SVP & CFOJeff Kauffman - Partner, Transportation & Logistics Equity Research Conference Call Participants Michael Shlisky - Managing Director & Senior Equity Research Analyst Operator Thank you for standing by. My name is Ian, and I will be your conferen ...

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]

Core Insights - Wabash reported a significant decline in net sales for Q1 2025, totaling $380.9 million, which is a 26.1% decrease compared to Q1 2024 [2] - The company recognized a $342 million gain related to a legal verdict reduction, resulting in a GAAP operating profit of $314.6 million, while the non-GAAP adjusted operating loss was $27.4 million [2][4] - Total backlog as of March 31, 2025, was approximately $1.2 billion, reflecting a 5% increase from the end of 2024 but a 32% decrease from Q1 2024 [3] Financial Performance - The gross profit for the quarter was $19.0 million, representing 5.0% of sales, a significant drop from previous periods [2][8] - GAAP diluted earnings per share (EPS) was reported at $5.36, while the non-GAAP adjusted EPS was $(0.58) [2][8] - The company has revised its full-year revenue outlook to approximately $1.8 billion and adjusted EPS guidance to a range of $(0.85) to $(0.35) [4] Business Segments - Transportation Solutions segment generated net sales of $346.8 million, a decrease of 26.3% year-over-year, with an operating loss of $9.8 million [9][10] - Parts & Services segment saw a net sales increase of 5.5% year-over-year, totaling $52.0 million, with an operating income of $6.9 million [10][9] Market Conditions - The company noted that tariff-related uncertainties have led customers to delay equipment investment decisions, impacting overall demand [5][4] - Despite the current challenges, the company anticipates a future demand catch-up due to an aging fleet that will require replacement [5] Operational Adjustments - The company has taken steps to align direct labor costs with market conditions following weaker-than-expected demand [4] - Wabash's manufacturing and supply base are primarily located in the U.S., which helps mitigate direct tariff impacts [5]