Latest news with #BrentYeagy
Yahoo
30-04-2025
- Business
- Yahoo
New decline on weak earnings delivers fresh pain to Wabash stock
Wabash has reported first-quarter earnings that missed projections for the already-battered trailer and equipment manufacturer and sent the company's stock plunging again. At approximately 10:30 am EDT, Wabash (NYSE: WNC) stock was at $7.39, a decline of $2.58 or 25.85% on the day. Its intraday low was $7.07. Its 52-week high was July 16, when it hit $24.03. Among some of the key data points in the earnings report: Wabash shipped 6,290 trailers in the first quarter, compared to 8,500 in the first quarter of 2025. Truck body shipments were 3,000, compared to 3,690. Sequentially, the company shipped 6,770 trailers in the fourth quarter of 2024. It reported an operating loss of $9.8 million in its Transportation Solutions segment, down from an operating profit of $44.25 million in the corresponding quarter of 2024. Gross profit – defined as net sales less the cost of sales – plunged to $19 million from $76.4 million a year earlier. Sales revenue fell to $380.9 million from $515.3 million. Adjusted non-GAAP earnings before interest, taxes, depreciation and amortization for Wabash as a whole was a $9.2 million loss compared to earnings of $45.6 million a year ago. And things aren't looking much better going forward. Wabash also disclosed a revised forecast for the year, which estimates annual revenue of roughly $1.8 billion. Its earlier forecast, released in February, called for full-year revenue of $1.9 billion to $2.1 billion. Net sales in 2024 were $1.95 billion, and were $2.5 billion a year earlier. Wabash had forecast earnings per diluted share of 85 cents to $1.05. It now says its non-GAAP adjusted EPS guidance is for a per-share loss of 35 cents to 85 cents. Wabash's earnings call with analysts is scheduled for noon Wednesday. Net income actually was positive, owing to a positive charge Wabash took due to the reduction in the size of the St. Louis-area nuclear verdict it faces. Wabash booked net income of $231 million as a result of the recent adjustment of the verdict. The adjustment was $342 million. Net income for Wabash a year ago was $18.2 million. President and CEO Brent Yeagy said the non-GAAP earnings per share of negative 58 cents was a result of revenue falling short of projections. He blamed macroeconomics as a key reason. Yeagy cited a 'general weakening in market conditions.' 'We have since reduced direct labor to align cost with market conditions,' he said in the company's earnings statement. 'Tariff-related uncertainty has caused customers to delay equipment investment decisions.' Wabash is in position to dodge most tariffs, Yeagy said. But that doesn't mean it won't be affected. 'Wabash's manufacturing footprint and our supply base are both heavily levered to the United States positioning us to avoid direct impact from tariffs,' he said in the earnings statement. 'However, second order tariff effects have been meaningful in the short-term as customers have reduced capital expenditure plans until their own customers have greater clarity.' Yeagy said demand for Wabash's products will be less than replacement levels, 'resulting in an aging of the fleet which will require catch-up in coming years. Longer term, we believe the administration's activities to leverage a revitalization of U.S. manufacturing could be meaningfully positive for trucking and specifically trailer demand.' If there was a bright spot in the earnings, it was Wabash's Parts & Services segment. Yeagy called it 'an important longer-term source of stability for our portfolio.' For the quarter, net sales at Parts & Services totaled $52 million, up 5.5% from the first quarter of 2024. But income from operations in Parts & Services was down to $6.9 million from $10.5 million a year earlier. The segment's adjusted EBITDA margin was 15.5% compared to 22.5% a year ago. More articles by John Kingston Werner CEO Leathers confronts losses, outlines plans to bounce back TFI's Bedard upbeat on revamped US LTL operations even as numbers sink 2 more charged in death of Louisiana staged truck accident witness The post New decline on weak earnings delivers fresh pain to Wabash stock appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Wabash (NYSE:WNC) Misses Q1 Revenue Estimates, Stock Drops 12.9%
Semi trailers and liquid transportation container manufacturer Wabash (NYSE:WNC) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 26.1% year on year to $380.9 million. The company's full-year revenue guidance of $1.8 billion at the midpoint came in 3.9% below analysts' estimates. Its non-GAAP loss of $0.58 per share was significantly below analysts' consensus estimates. Is now the time to buy Wabash? Find out in our full research report. Revenue: $380.9 million vs analyst estimates of $409.9 million (26.1% year-on-year decline, 7.1% miss) Adjusted EPS: -$0.58 vs analyst estimates of -$0.28 (significant miss) Adjusted EBITDA: -$9.20 million vs analyst estimates of $5.86 million (-2.4% margin, significant miss) The company dropped its revenue guidance for the full year to $1.8 billion at the midpoint from $2 billion, a 10% decrease Adjusted EPS guidance for the full year is -$0.60 at the midpoint, missing analyst estimates by 201% Operating Margin: 82.6%, up from 5.7% in the same quarter last year Free Cash Flow was -$8.97 million compared to -$36.6 million in the same quarter last year Backlog: $1.2 billion at quarter end, down 33.3% year on year Market Capitalization: $421.2 million "During the first quarter, our GAAP EPS was $5.36, primarily as a result of recognizing a $342 million gain in connection with the reduction of a legal verdict," said Brent Yeagy, president and chief executive officer. With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Wabash's demand was weak over the last five years as its sales fell at a 3.6% annual rate. This was below our standards and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Wabash's recent performance shows its demand remained suppressed as its revenue has declined by 16.1% annually over the last two years. Wabash isn't alone in its struggles as the Heavy Transportation Equipment industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. We can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Wabash's backlog reached $1.2 billion in the latest quarter and averaged 32.8% year-on-year declines over the last two years. Because this number is lower than its revenue growth, we can see the company hasn't secured enough new orders to maintain its growth rate in the future. This quarter, Wabash missed Wall Street's estimates and reported a rather uninspiring 26.1% year-on-year revenue decline, generating $380.9 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 9.3% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and implies its newer products and services will fuel better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Wabash was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.8% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Looking at the trend in its profitability, Wabash's operating margin decreased by 6.3 percentage points over the last five years. Wabash's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q1, Wabash generated an operating profit margin of 82.6%, up 76.8 percentage points year on year. The increase was solid, and because its revenue and gross margin actually decreased, we can assume it was more efficient because it trimmed its operating expenses like marketing, R&D, and administrative overhead. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Sadly for Wabash, its EPS declined by 30.6% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Diving into the nuances of Wabash's earnings can give us a better understanding of its performance. As we mentioned earlier, Wabash's operating margin improved this quarter but declined by 6.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Wabash, its two-year annual EPS declines of 73.7% show it's continued to underperform. These results were bad no matter how you slice the data. In Q1, Wabash reported EPS at negative $0.58, down from $0.39 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Wabash's full-year EPS of $0.21 to grow 352%. We struggled to find many positives in these results. Revenue and EPS in the quarter missed. Its full-year revenue guidance missed significantly and its full-year EPS guidance fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 12.9% to $8.68 immediately after reporting. Wabash may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
30-04-2025
- Business
- Associated Press
Wabash Announces First Quarter 2025 Results
LAFAYETTE, Ind., April 30, 2025 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), a leader in end-to-end supply chain solutions for the transportation, logistics and infrastructure markets, today reported results for the quarter ended March 31, 2025. The Company's net sales for the first quarter of 2025 were $380.9 million, reflecting a 26.1% decrease compared to the same quarter of the previous year. The Company generated consolidated gross profit of $19.0 million, equivalent to 5.0% of sales. GAAP operating profit amounted to $314.6 million as the company recognized a $342 million gain in connection with the reduction of a legal verdict. Non-GAAP adjusted operating loss was $27.4 million for the quarter, representing (7.2)% of sales. First quarter GAAP diluted earnings per share was $5.36 or $(0.58) on a Non-GAAP adjusted basis. As of March 31, 2025, total Company backlog stood at approximately $1.2 billion, a sequential increase of 5% from year-end 2024 and a decrease of 32% compared to the first quarter of 2024 as new order activity remained modest. 'During the first quarter, our GAAP EPS was $5.36, primarily as a result of recognizing a $342 million gain in connection with the reduction of a legal verdict,' said Brent Yeagy, president and chief executive officer. 'While the reduction in this verdict was a positive development in our efforts to bring this matter to a more reasonable conclusion, there is more work to do, highlighted by our recent filing of notice of appeal. Excluding the gain, non-GAAP adjusted EPS was $(0.58) during the first quarter as revenue came in below our expectations amid a general weakening in market conditions. We have since reduced direct labor to align cost with market conditions. While tariff-related uncertainty has caused customers to delay equipment investment decisions, it's important to highlight the growth in our Parts & Services segment, which we see as an important longer-term source of stability for our portfolio.' For the full-year ending December 31, 2025, the Company reduced its revenue outlook to roughly $1.8 billion and reduced its Non-GAAP adjusted EPS guidance to a range of $(0.85) to $(0.35). 'Wabash's manufacturing footprint and our supply base are both heavily levered to the United States positioning us to avoid direct impact from tariffs. However, second order tariff effects have been meaningful in the short-term as customers have reduced capital expenditure plans until their own customers' have greater clarity,' explained Yeagy. 'As a result of the weaker than anticipated first quarter and softer outlook, we have reduced our full year guidance. As we look further forward, we believe it's important for the medium term to point out that demand in 2025 is currently projected to undercut replacement levels, resulting in an aging of the fleet which will require catch-up in coming years. Longer term, we believe the administration's activities to leverage a revitalization of U.S. manufacturing could be meaningfully positive for trucking and specifically trailer demand.' Business Segment Highlights The table below is a summary of select segment operating and financial results prior to the elimination of intersegment sales for the first quarter of 2025 and 2024. A complete disclosure of the results by individual segment is included in the tables following this release. During the first quarter, Transportation Solutions generated net sales of $346.8 million, a decrease of 26.3% compared to the same quarter of the previous year. Operating loss for the quarter amounted to $9.8 million, representing (2.8)% of sales. Parts & Services' net sales for the first quarter were $52.0 million, an increase of 5.5% compared to the prior year quarter. Operating income for the quarter amounted to $6.9 million, or 13.3% of sales. Non-GAAP Measures In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information included in this release contains non-GAAP financial measures, including adjusted operating (loss) income, adjusted EBITDA, adjusted net (loss) income attributable to common stockholders, adjusted diluted (loss) earnings per share, free cash flow, adjusted segment EBITDA, and adjusted segment EBITDA margin. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net (loss) income, and reconciliations to GAAP financial statements should be carefully evaluated. Adjusted operating (loss) income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company's operating results as they are not indicative of the Company's core operating results or may obscure trends useful in evaluating the Company's continuing activities. Accordingly, the Company presents adjusted operating (loss) income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income to provide investors with a better understanding of the Company's view of our results as compared to prior periods. A reconciliation of adjusted operating (loss) income to operating income, the most comparable GAAP financial measure, is included in the tables following this release. Adjusted EBITDA includes noncontrolling interest & excludes loss from unconsolidated entity and is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, the Missouri legal matter, impairment and other, net, and other non-operating income and expense. Management believes providing adjusted EBITDA is useful for investors to understand the Company's performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of adjusted EBITDA, when combined with the GAAP presentations of operating income and net income, is beneficial to an investor's understanding of the Company's operating performance. A reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure, is included in the tables following this release. Adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share reflect an adjustment for the Missouri legal matter and the related tax effect of that adjustment. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company's prior year periods and, when combined with the GAAP presentation of net income and diluted net income per share, is beneficial to an investor's understanding of the Company's performance. A reconciliation of adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share to net income attributable to common stockholders and diluted earnings per share, the most comparable GAAP financial measures, are included in the tables following this release. Free cash flow is defined as net cash used in operating activities minus cash payments for capital expenditures minus expenditures for revenue generating assets. Management believes providing free cash flow is useful for investors to understand the Company's performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash used in operating activities, is beneficial to an investor's understanding of the Company's operating performance. A reconciliation of free cash flow to cash used in operating activities, the most comparable GAAP financial measure, is included in the tables following this release. 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 under GAAP, but that management would not consider important in evaluating the quality of the Company's segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA Margin is calculated by dividing Adjusted segment EBITDA by segment total net sales. A reconciliation of adjusted segment EBITDA to income from operations, the most comparable GAAP financial measure, is included in the tables following this release. Information reconciling any forward-looking Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, Adjusted Segment EBITDA and Adjusted Segment EBITDA Margin to GAAP financial measures is unavailable to us without unreasonable effort. We cannot provide reconciliations of the above noted forward looking non-GAAP measures to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flows, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. First Quarter 2025 Conference Call Wabash will discuss its results during its quarterly investor conference call on Wednesday, April 30, 2025, beginning at 12:00 p.m. EDT. The call and an accompanying slide presentation will be accessible on the 'Investors' section of the Company's website at The conference call will also be accessible by dialing (800) 715-9871, conference ID 9986205. A replay of the call will be available on the site shortly after the conclusion of the presentation. About Wabash (NYSE: WNC) is the visionary leader of connected solutions for the transportation, logistics and distribution industries that is Changing How the World Reaches You®. Headquartered in Lafayette, Indiana, the company enables customers to thrive by providing insight into tomorrow and delivering pragmatic solutions today to move everything from first to final mile. Wabash designs, manufactures, and services a diverse range of products, including: dry freight and refrigerated trailers, flatbed trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at Safe Harbor Statement This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey the Company's current expectations or forecasts of future events. All statements contained in this press release other than statements of historical fact are forward-looking statements. These forward-looking statements include, among other things, all statements regarding the Company's outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies, our expectations for improved financial performance during the course of the year and our expectations with regards to capital allocation. These and the Company's other forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Without limitation, these risks and uncertainties include the risks related to the Missouri product liability action and the unfavorable jury verdict, the highly cyclical nature of our business, uncertain economic conditions including the possibility that customer demand may not meet our expectations, our backlog may not reflect future sales of our products, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company's manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes, costs of indebtedness, and our ability to execute on our long-term strategic plan. Readers should review and consider the various disclosures made by the Company in this press release and in the Company's reports to its stockholders and periodic reports on Forms 10-K and 10-Q. 1 Adjusted operating (loss) income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income (loss) under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company's operating results as they are not indicative of the Company's core operating results or may obscure trends useful in evaluating the Company's continuing activities. Accordingly, the Company presents adjusted operating (loss) income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income to provide investors with a better understanding of the Company's view of our results as compared to prior periods. 1 Adjusted operating (loss) income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company's operating results as they are not indicative of the Company's core operating results or may obscure trends useful in evaluating the Company's continuing activities. Accordingly, the Company presents adjusted operating (loss) income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income to provide investors with a better understanding of the Company's view of our results as compared to prior periods. 1 Adjusted EBITDA includes noncontrolling interest & excludes loss from unconsolidated entity and is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, the Missouri legal matter, impairment and other, net, and other non-operating income and expense. Management believes providing adjusted EBITDA is useful for investors to understand the Company's performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of adjusted EBITDA, when combined with the GAAP presentations of operating income and net income, is beneficial to an investor's understanding of the Company's operating performance. 2 Adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share reflect an adjustment for the Missouri legal matter and the related tax effect of that adjustment. 1 Free cash flow is defined as net cash used in operating activities minus cash payments for capital expenditures minus expenditures for revenue generating assets. Management believes providing free cash flow is useful for investors to understand the Company's performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash used in operating activities, is beneficial to an investor's understanding of the Company's operating performance. 1 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 under GAAP, but that management would not consider important in evaluating the quality of the Company's segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA margin is calculated by dividing Adjusted segment EBITDA by segment total net sales. Media Contact: Dana Stelsel Director, Communications (765) 771-5766 [email protected] Investor Relations: Ryan Reed VP, Corporate Development & IR (765) 490-5664 [email protected]
