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]

Core Insights - Wabash has introduced new Trailers as a Service (TaaS) offerings aimed at transforming trailer capacity sourcing and management across North America [1][2] Group 1: TaaS Offerings - The TaaS portfolio includes two main solutions: TaaS Pools and TaaS Plus, each addressing specific challenges for shippers, 3PLs, and carriers [2][4] - TaaS Pools offers a universal trailer pool that simplifies management by providing access to a nationwide pool of trailers, enhancing dock efficiency and ensuring consistent availability [3] - TaaS Plus is tailored for 3PLs and brokers, allowing them to operate similarly to asset carriers without the capital burden of ownership, featuring three service tiers for varying levels of support [4] Group 2: Technology Integration - Both TaaS offerings leverage TrailerHawk.ai, a platform that enhances visibility and analytics for trailer management, including replenishment and utilization [5] - The integration of advanced technology with operational expertise aims to improve efficiency and reduce waste in the supply chain [6] Group 3: Company Vision and Commitment - Wabash's mission focuses on providing flexible and scalable trailer solutions to help logistics providers navigate supply chain challenges [6] - The company emphasizes the importance of cost, assurance, and flexibility in trailer procurement, aiming to meet customer needs without asset ownership [6][8]

Core Insights - Wabash has partnered with Echo Global Logistics to enhance Echo's drop trailer program and service offerings, leveraging Wabash's Trailers as a Service (TaaS) solution [1][4] - The partnership aims to meet the growing demand for flexible freight options, allowing Echo to access trailer capacity on demand without the complexities of fleet ownership [2][3] - Wabash's TaaS provides a comprehensive solution that includes trailer capacity, maintenance, repair, and telematics, streamlining operations for Echo and enabling them to focus on tech-enabled freight solutions [3][4] Company Overview - Wabash is a leading provider of solutions that optimize supply chains across transportation, logistics, and infrastructure markets, headquartered in Lafayette, Indiana [6] - The company designs, manufactures, and services a wide range of products, including van trailers, flatbed trailers, and tank trailers, supporting first-to-final mile operations [6] - Echo Global Logistics is a prominent provider of technology-enabled transportation and supply chain management services, headquartered in Chicago, with over 30 offices in North America [7] - Echo offers freight brokerage and managed transportation solutions across various modes, utilizing advanced technology to analyze data from a network of over 50,000 transportation providers [7]