Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, and adjusted operating margin was -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing a trend of sequential and year-over-year growth [21][13] Market Data and Key Metrics Changes - The transportation industry faced prolonged softness in demand, with freight, construction, and industrial activity operating below normalized levels [3][5] - Early signs of stabilization in freight volumes were noted, but these have not yet translated into increased order activity [5][10] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - Actions taken in 2025 are believed to strengthen the company's foundation and improve its ability to perform through the cycle [4] - The company is investing in parts and services as a more durable revenue stream, with a growth of 33% year-over-year in this segment [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that the demand environment is expected to remain difficult in the first quarter of 2026, with revenue guidance set between $310 million and $330 million [11][24] - There is confidence that 2026 will represent an improvement from 2025, despite the uncertainty in the timing and shape of the demand recovery [11][25] Other Important Information - The idling of manufacturing facilities resulted in approximately $16 million of total charges during the quarter, all of which were non-cash [8] - The company expects to recognize an additional $4 million-$5 million in charges in the first half of 2026, primarily related to severance and exit-related costs [8] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management confirmed that they are not exiting the refrigerated market and are repositioning products for an improving market [32][33] Question: Continuation of parts and services run rate into 2026 - Management expects nice growth in 2026, with quarterly averages continuing from Q4, but margins may face pressure due to market conditions [34][36] Question: Changes in refrigerated truck bodies and cost structure - Management assured that capacity for refrigerated truck bodies remains intact and that strategic actions taken will optimize overhead [45][46] Question: Customer optimism and market recovery - Management noted that initial tailwinds for trailer demand are stabilizing, but it is too early to predict a significant recovery [51][52] Question: Tariff impacts on cost of goods sold - Management clarified that the impact of tariffs on material costs is minimal, with market price competition being the primary driver of margin compression [92]

Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, while adjusted operating margin came in at -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing the trend of both sequential and year-over-year revenue growth [21][13] Market Data and Key Metrics Changes - Demand across both the trailer and truck body industries remains soft, with freight, construction, and industrial activity operating below normalized levels [10][5] - The domestic trailer industry has filed antidumping and countervailing duty petitions concerning certain imported trailer products, with investigations currently in early stages [9] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - The idling of manufacturing facilities is part of a longer-term strategy to reduce overall fixed costs and improve cost structure [7][8] - The Parts and Services segment is seen as a durable and resilient earnings stream, with growth expected to continue despite market challenges [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was a challenging year with prolonged softness in demand, but actions taken have strengthened the company's foundation for future recovery [3][4] - The company expects the first quarter of 2026 to be the weakest of the year in terms of revenue and operating margins, but anticipates improvement for the full year [11][24] - Management remains cautious about the demand environment but sees early signs of stabilization in certain parts of the freight transportation market [5][10] Other Important Information - The company expects to recognize additional charges related to the idling of facilities, with ongoing annualized cost savings projected at approximately $10 million [8] - The company is maintaining a conservative approach to cash management and does not anticipate near-term investments in revenue-generating assets for the Trailers as a Service initiative [23] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management clarified that they are not exiting the refrigerated market and are repositioning products for future demand [32][33] Question: Continuation of Parts and Services growth into 2026 - Management expects nice growth in 2026 for Parts and Services, with margins anticipated to improve after Q1 [34][36] Question: Strategic actions and cost structure implications - Management confirmed significant impairment related to shutdowns and indicated that the operating expense differential is a temporary situation [47][48] Question: Customer optimism and market recovery - Management noted that while there are positive initial signs, it is too early to predict a significant demand increase for trailers in 2026 [51][52] Question: Tariff impacts on cost of goods sold - Management indicated that the impact on margins is more related to market pricing competition rather than direct material costs from tariffs [94]

Financial Data and Key Metrics Changes - In Q4 2025, consolidated revenue was $321 million, with adjusted gross margin at -1.1% and adjusted operating margin at -13.6% [20][21] - Adjusted EBITDA was -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders was -$37.8 million, or -$0.93 per diluted share [22] - Full-year operating cash generation totaled $12 million, with free cash flow at -$31 million, excluding a $30 million legal settlement [23] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million with non-GAAP operating income of -$31.7 million, or -12.1% of sales [22] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, showing year-over-year growth of 33% [22][14] Market Data and Key Metrics Changes - The transportation industry faced prolonged softness in demand, with freight, construction, and industrial activity operating below normalized levels [5][10] - Early signs of stabilization in freight volumes and gradual improvement in fleet utilization rates were noted, but these have not yet translated into increased order activity [5][6] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - Actions taken in 2025 are believed to strengthen the company's foundation and improve its ability to perform through the cycle [4] - The company is investing in its parts and service business, which has shown resilience and growth, and is expected to operate in the high teens EBITDA over time [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment is expected to remain difficult in Q1 2026, with revenue guidance of $310 million to $330 million and adjusted earnings per share between -$0.95 and -$0.05 [11][25] - The first quarter is anticipated to be the weakest of the year in terms of revenue and operating margins, but there is confidence that 2026 will show improvement compared to 2025 [11][25] Other Important Information - The company idled manufacturing facilities in Little Falls and Goshen, resulting in approximately $16 million in non-cash charges during the quarter [8] - The domestic trailer industry has filed antidumping and countervailing duty petitions concerning certain imported trailer products, with investigations currently underway [9] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management confirmed that they are not exiting the refrigerated market and are repositioning products for future demand [32][33] Question: Continuation of parts and services growth into 2026 - Management expects to see continued growth in the parts and services segment in 2026, with potential margin improvements after Q1 [34][36] Question: Update on imported trailers and potential dumping - Management clarified that Wabash is not negatively impacted by the ongoing investigations and that any penalties would apply to international competitors [60][62] Question: Capital allocation strategy moving forward - The company plans to prioritize paying down debt, maintaining dividends, and funding internal capital expenditures, with a focus on liquidity management [77][78]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 was $382 million, below the guidance range of $390 to $430 million due to challenging market conditions [25][31] - Gross margin was 4.1% and adjusted operating margin was negative 6.2%, both below expectations [25] - Adjusted EBITDA was negative $5 million, or negative 1.4% of sales, with adjusted net income attributable to common stockholders at negative $21.2 million, or negative $0.51 per diluted share [25][26] - Full-year 2025 revenue guidance was lowered to approximately $1.5 billion, with EPS expected between negative $1.95 and negative $2.05 [31][32] Business Line Data and Key Metrics Changes - Transportation Solutions generated $334 million in revenue with negative $13 million in operating income [26] - Parts and Services delivered $61 million in revenue and $6.6 million in operating income, marking the third consecutive quarter of revenue growth [26][24] - Parts and Services segment grew 16% year-over-year and about 2% sequentially, demonstrating resilience in a down market [16][24] Market Data and Key Metrics Changes - Demand across the transportation industry remained below expectations, with order intake and backlog coming in below expectations [3][4] - Backlog declined to about $800 million at the end of Q3 [10] - The truck body business faced significant challenges, with larger fleets pulling back due to ongoing housing market stagnation and reduced consumer confidence [4][10] Company Strategy and Development Direction - The company is focused on maintaining cost discipline, pursuing share gains, and strengthening service and distribution capabilities [5][6] - Continued expansion of Parts and Services is seen as a key strategy to emerge stronger when demand normalizes [6][24] - The company is preparing for a potential recovery in 2026, driven by replacement needs and improving freight conditions [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that market conditions are expected to remain soft in the near term, particularly through Q4 [4][10] - There is cautious optimism for a gradual recovery in 2026, supported by tightening capacity in the market [11][12] - The company remains committed to maintaining rigorous safety, quality, and compliance standards while managing risks [9] Other Important Information - A settlement related to a 2019 legal matter resulted in a net adjustment of approximately $81 million in Q3, with the company's payment obligation being around $30 million [8][9] - Total liquidity, including cash and available borrowings, stood at $356 million as of September 30 [27] Q&A Session Summary Question: Can you discuss the impact of Section 232 tariffs on your business? - Management explained that the Section 232 tariffs are intended to level the playing field for domestic OEMs, with a minimal direct impact of about $1 million from vendor price increases due to tariffs in Q3 [40][50] Question: What is the expected shipment count for Q4 based on your revenue guidance? - Management indicated that truck body shipments are expected to be significantly lower in Q4, estimating around 2,000 units compared to approximately 3,000 in Q3 [52][56] Question: Are you seeing any growth in the platform trailer market? - Management noted that there are tailwinds in the platform trailer segment, with customer sentiment indicating a potential uptick in freight demand [68][70] Question: How is the pricing environment shaping up as you look into 2026? - Management stated that while there are opportunities for positive pricing influence in certain niches, overall ASPs are lower compared to 18 months ago, aligning with market expectations for 2026 [77] Question: What is the current state of the national trailer fleet and capacity? - Management anticipates a meaningful level of capacity will exit the market over the next six months, which could positively influence freight pricing dynamics [78][80]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $21.6 million for Q2 2025, which was over 70% greater than street expectations, primarily driven by a 31% increase in higher margin parts and services revenue [5][8] - Company-wide revenues, including Diamond Power, were $170.8 million, slightly ahead of street expectations, while revenues from continuing operations without Diamond Power were $144.1 million, roughly the same as Q2 2024 [7][13] - Adjusted EBITDA from continuing operations was $15.1 million in Q2 2025, a 90% increase compared to $8 million in Q2 2024 [8][16] Business Line Data and Key Metrics Changes - The parts and services business saw a 31% increase in revenues compared to 2024, driven by rising demand for power and electricity from AI-driven data centers and increased base load generation usage [4][14] - Global parts and service revenue increased by $15.4 million compared to 2024, reflecting the growing need for electricity from fossil fuels [14][16] Market Data and Key Metrics Changes - The company anticipates an increase in base load generation by up to 120 gigawatts over the next ten years, primarily driven by data centers [4][25] - The backlog at the end of Q2 was $418.1 million, a 49% increase compared to the same period in 2024, indicating strong demand for services [11] Company Strategy and Development Direction - The company is focusing on exiting certain large new build projects internationally while expanding its parts and services presence globally [6] - The strategic vision includes exploring the sale of non-strategic assets and refinancing options to reduce debt obligations [10][17] - The company is actively pursuing large upgrades and new builds in the U.S. to support power generation needs, with key announcements expected by the end of the year [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive cash flows in 2025, driven by asset sales, debt reduction, and improved cash flows [9][17] - The company is well-positioned to capitalize on the growing demand for baseload generation while supporting energy security and transition [19] Other Important Information - The sale of Diamond Power International for gross proceeds of $177 million significantly improved the company's balance sheet and net leverage ratios [9][10] - The company has entered into a private bond exchange to reduce annual interest expenses and extend debt maturity [10] Q&A Session Summary Question: Current demand for energy on the thermal side of the business - Management noted an expected increase in baseload generation demand in North America, with potential new coal-fired generation projects being explored [24][25] Question: Thoughts on the second half of the year - Management anticipates a strong year due to the higher margin parts and services aspect, with guidance to be provided before the end of the year [29] Question: Confidence in returning to positive free cash flow in 2025 - Management expressed confidence that the second half of the year will generate positive cash flow, supported by asset sales and growing parts and services revenue [30][31] Question: Dynamic of extending the life of plants on parts and service business - Extending the life of plants creates opportunities for increased parts and services revenue as plants require ongoing maintenance and efficiency improvements [37][38] Question: Bright Loop pipeline and potential projects - Management indicated that there are well over 10 projects in the BrightLoop pipeline, focusing on producing steam and hydrogen while offering CO2 capture options [40][42]