Core Insights - Wabash reported a net sales of $458.8 million for Q2 2025, a decrease of 16.7% compared to Q2 2024 [2][7] - The company experienced a GAAP operating loss of $4.8 million, primarily due to a $5 million loss related to a legal verdict [2][7] - Total backlog as of June 30, 2025, was approximately $1.0 billion, indicating a cautious approach from customers regarding capital spending [3][7] Financial Performance - Consolidated gross profit for Q2 2025 was $41.4 million, representing 9.0% of sales, down from 16.2% in Q2 2024 [2][8] - Non-GAAP adjusted operating loss for the quarter was $0.1 million, while GAAP diluted earnings per share were $(0.23) [2][7] - The company reduced its full-year revenue outlook to approximately $1.6 billion and adjusted EPS guidance to a range of $(1.30) to $(1.00) [3][4] Market Environment - Demand in the trailer industry remains muted, with industry forecasts suggesting that 2025 shipment volumes will fall below basic replacement demand [4][7] - The company is cautiously optimistic about a return to growth in 2026 based on early discussions with customers and current industry forecasts [4][7] Business Segment Highlights - In Q2 2025, new trailers shipped totaled 8,640, down from 9,245 in Q2 2024, while new truck bodies shipped were 3,190, down from 3,925 [6][28] - Transportation Solutions segment net sales were $400.2 million, a decrease of 19.7% year-over-year, with an operating loss of $12.5 million [8][29] - Parts & Services segment net sales increased by 8.8% year-over-year to $59.7 million, with an operating income of $9.1 million [9][29]

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]