Third Quarter 2025 Earnings Release Changing How the World Reaches You® Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest & excludes loss from unconsolidated entity and is calculated by adding back segment depreciation and amortization expense to segment operating income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under GAAP, but that management would not consider important in ev ...

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]

Core Insights - Wabash has announced a strategic partnership with UP.Labs to co-develop Wabash Venture Lab and two AI-driven startups aimed at enhancing configuration workflows and aftermarket parts optimization [1][2] Group 1: Partnership Overview - The partnership initiated in fall 2024 is part of Wabash's transformation strategy focused on long-term customer value, operational efficiency, and sustainable growth [2] - The collaboration aims to create tools tailored to Wabash's business needs, leveraging UP.Labs' expertise in venture building [7] Group 2: Startup Developments - The first startup will develop an AI-powered tool to streamline the specification process for made-to-order trailers and truck bodies, significantly reducing the time for generating and reviewing quotes [3][4] - The second startup will focus on an intelligent software platform that utilizes predictive analytics for the production, distribution, and pricing of aftermarket parts, targeting inefficiencies in fragmented supply chains [5][6] Group 3: Expected Outcomes - Wabash anticipates that the new tools will unlock efficiencies across the manufacturing value chain, including production scheduling and supply planning [4] - The ventures are already in development and are expected to deliver initial minimum viable product (MVP) capabilities later this year, with potential for integration into Wabash's ecosystem [9] Group 4: Broader Business Strategy - This partnership aligns with Wabash's broader innovation strategy, which includes recent joint ventures like Wabash Parts and Wabash Marketplace, reflecting a commitment to enhancing customer experience through a dynamic ecosystem [8]