Latest news with #Wabash
Yahoo
23-05-2025
- Business
- Yahoo
Double whammy for Wabash: 2 key agencies cut debt rating on trailer builder
Trailer manufacturer Wabash National, which has seen its stock price drop by more than 60% in the past year, saw its debt rating downgraded by both S&P Global Ratings and Moody's this month. The latest move came earlier this week when S&P Global (NYSE: SPGI) cut its rating on Wabash (NYSE: WNC) to B+ from BB-. The move was foreshadowed in November when S&P Global Ratings lowered Wabash's outlook to negative. Most downgrades come after a company is first reduced to a negative outlook, just as an upgrade usually comes after a positive outlook. Earlier this month, Moody's (NYSE: MCO) cut its rating on Wabash National to B1. B1 is considered equivalent to a B+ rating from S&P ratings are four notches below the cutoff at S&P between investment-grade and non-investment-grade debt. A spokesman for Wabash declined comment. Wabash National has been at a B+ rating at S&P Global previously in the past decade. A review of past actions by the ratings agency shows that the company's debt rating has bounced between BB- and B+ several times. It also had climbed to a BB rating back in 2016. 'Wabash National Corp.'s credit measures will worsen below expectations for the rating in 2025 as trailer deliveries have declined from freight carriers delaying capital expenditures,' S&P said in a report announcing the downgrade. 'The timing for a recovery and the magnitude of a potential rebound is uncertain, and we see significant risk to the forecast; however, our base case reflects the assumption that trailer deliveries will improve somewhat in 2026, which could improve the company's credit measures.'Moody's summation of its change sounded a similar theme. 'The rating downgrades and negative outlook reflect our expectation for a meaningful decline in Wabash's earnings in 2025 amid a persistent down cycle in trailer production,' the agency said. 'Uncertainty resulting from the implementation of US tariffs has negatively impacted end market demand for new trailers and truck equipment and caused Wabash's customers to delay investments in their transportation fleets. Consequently, Wabash's credit metrics are projected to deteriorate significantly in 2025, including a substantial increase in financial leverage.' S&P said it expects debt to earnings before interest, taxes, depreciation and amortization at Wabash to be 8.9x in 2025, after previously assuming 3.6x. Its free operating cash flow (FOCF) margin is now expected to be 0.5% this year after an earlier estimate of 8.2%. The FOCF margin is the free cash flow that a company generates per dollar of revenue earned. S&P removed the negative outlook on Wabash National and moved it up to stable. That is not always automatic; a rating can be downgraded and the negative outlook kept on with the expectation that more downgrades might be in the offing. S&P said the stable outlook 'reflects our expectation that the company's S&P Global Ratings-adjusted debt to EBITDA could improve to 4x and S&P Global Ratings-adjusted FOCF to debt could strengthen to the high-single-digit area percent area in 2026 as freight demand improves.' The decline in Wabash's stock price is not a factor in its debt rating from either S&P or Moody's. The ratings agencies are concerned with liquidity and the various leverage ratios, as their focus is on a company's ability to fund its debt obligations. Moody's said it expects Wabash to 'maintain adequate liquidity … supported by an expectation of positive free cash flow of around $20 million in 2025 as working capital needs decline and offset the drop in earnings.' It also said it expects Wabash to 'minimize' capital expenditure spending this year. On the company's most recent quarterly earnings call with analysts, CFO Pat Keslin talked about the decisions Wabash National will face in what to do with its sources of liquidity, including its cash on the books plus the revolving credit lines available to it. Keslin reviewed the company's outstanding debt obligations, the largest of which do not mature until 2028. Wabash's capital expenditures are targeted to be $50 million to $60 million this year, but Keslin on the call suggested that could change. 'Given the heightened uncertainty in 2025, our capital expenditure plans are flexible,' he said. 'While it would not be our preference, we do have room to bring down capital outlays if the outlook dictates. The same goes for the rest of our capital allocation priorities. I would say that generally we do have quite a bit of flexibility with regard to how we allocate capital in 2025 depending on how market conditions evolve.'Later, in response to an analyst question, he expanded on that theme. 'We also pay the dividend, just like we always do,' Keslin said. 'We will continue to do that, but then as it pertains to share repurchases, traditional CapEx investment, more investment in tasks, all of those items we will evaluate on an as-needed basis certainly to what our liquidity position looks like and what we expect the future markets to look like.' Wabash's current quarterly dividend is 8 cents per share. With the battering Wabash's stock price has taken, that payout is resulting in a yield of about 3.6%, significantly higher than the yield being paid by some of the companies that might be current or prospective Wabash customers. (Covenant Logistics (NYSE: CVLG) is at about 1.25%; Werner Enterprises (NASDAQ: WERN) is at about 2.1%.) Both agencies raised as a concern the nuclear verdict against Wabash in Missouri. Moody's said whatever the outcome of the case, it expects Wabash would fund the payout with debt. That could be an issue if the debt issuance comes at a time when the trailer market hasn't improved, Moody's said. 'We could lower the rating if it funds the liability with debt and trailer demand improvement is delayed further from its current near trough levels,' it said. S&P said the verdict poses a 'significant risk to Wabash if payment is required before operating conditions improve.' An initial verdict of $450 million from September was cut to $108 million in March. The company's first-quarter earnings reflected just how weak the trailer market is. In 2025's first quarter, it produced 6,290 trailers and 3,000 truck bodies. That's down from 8,500 and 3,690, respectively, from the first quarter of 2024. Gross profit fell to $8.4 million from $63.1 million, and gross profit margin declined to 2.4% from 13.4%. Operating income was negative $9.8 million, down from an operating profit a year earlier of $44.2 million. More articles by John Kingston As shippers adjust to tariffs, the message at Momentum is: Don't forget the TMS Werner suspends 401(k) match for employees to cut costs Georgia tort reform aims to change practices in judicial 'hell hole' The post Double whammy for Wabash: 2 key agencies cut debt rating on trailer builder appeared first on FreightWaves. 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
Yahoo
13-05-2025
- Business
- Yahoo
Wabash National Corporation (WNC): A Bull Case Theory
We came across a bullish thesis on Wabash National Corporation (WNC) on Substack by DeepValue Capital. In this article, we will summarize the bulls' thesis on WNC. Wabash National Corporation (WNC)'s share was trading at $9.25 as of May 12th. WNC's trailing P/E was 6.13 according to Yahoo Finance. A tractor-trailer speeding along a modern highway, showing the power of the transportation solutions. Wabash National Corporation (WNC), widely perceived by the market as a 'busted trailer stock,' is quietly positioning itself for a significant turnaround as the freight cycle begins to reset. Despite a sharp 70% decline in its stock price over the past year, Wabash is not merely a cyclical metal bender—it is transforming into a modern, vertically integrated logistics solutions provider with growing exposure to higher-margin aftermarket services, trailer technology innovation, and subscription-based models. Its core business remains in transportation solutions, including dry and refrigerated trailers, tankers, and flatbeds, but WNC has strategically expanded into aftermarket parts and services and invested in ESG-friendly innovations like DuraPlate® and EcoNex™ materials. It is also exploring emerging segments like electric and autonomous trailers and Trailers-as-a-Service (TaaS), targeting long-term fleet contracts that could provide recurring revenue. Joint ventures like the Wabash Marketplace (Fernweh) and Wabash Parts (HTI) are efforts to digitize operations and scale aftermarket margin streams, reinforcing the shift beyond just manufacturing. The cyclical downturn in trailer demand—down ~30% in 2024—has depressed results, but signs of recovery are building. Backlogs now cover nine months of production, and the company expects 2025 deliveries to rise year-over-year but still fall below replacement demand, implying a likely rebound in 2026. Wabash's management is proactively executing a 'downturn playbook,' aggressively cutting costs to align with current demand while preparing to capitalize on the next upturn. Financial discipline remains strong, with historical capital returns (ROIC and ROCE) averaging ~13% between 2016 and 2023, and buybacks reducing the share count by 5% annually over the same period—clear signs of shareholder-friendly capital allocation. These moves, combined with the operational reset, suggest that WNC could be at the early stages of a multi-year recovery cycle. If free cash flow returns to $200 million at the peak of the next cycle—a level previously reached—a conservative 6x multiple implies a $1.2 billion valuation, more than triple its current ~$349 million market cap. That would represent 243% upside or a 51% CAGR over three years, assuming execution aligns with macro trends. Questions remain about WNC's ability to monetize newer segments like TaaS and electrification, the sustainability of demand across cycles, and how management's track record will hold in a full rebound. Still, the combination of rising backlogs, strong buyback discipline, and optionality from tech and services presents an asymmetric risk/reward. If the freight cycle turns and management executes, Wabash could evolve from a discarded cyclical into a 3x opportunity over the next few years. Wabash National Corporation (WNC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held WNC at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of WNC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WNC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
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]
