• Consolidated Revenue: $381 million for Q1 2025.
• New Trailer Shipments: Approximately 6,290 units.
• Truck Body Shipments: 3,000 units.
• Gross Margin: 5% for Q1 2025.
• Adjusted Operating Margin: Negative 7.2% for Q1 2025.
• Adjusted EBITDA: $9 million or 2.4% of sales.
• Adjusted Net Income: Negative $24.8 million or negative $0.58 per diluted share.
• Transportation Solutions Revenue: $347 million with an operating loss of negative $10 million.
• Parts and Services Revenue: $52 million with operating income of $6.9 million.
• Total Backlog: Approximately $1.2 billion at the end of Q1 2025.
• Liquidity: $310 million as of March 31, 2025.
• Net Debt Leverage Ratio: 3.2 times.
• Capital Expenditure: $9 million for traditional CapEx and $20.1 million for trailers as a service initiative.
• Share Repurchase: $13.7 million in Q1 2025.
• Dividend: $3.9 million returned to shareholders.
• 2025 Revenue Guidance: Reduced to approximately $1.8 billion.
• 2025 EPS Guidance: Range of negative $0.85 to negative $0.35.
• Q2 2025 Revenue Guidance: $420 million to $460 million.
• Q2 2025 EPS Guidance: Negative $0.25 to negative $0.35.

• Warning! GuruFocus has detected 2 Warning Sign with WNC.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wabash National Corp (NYSE:WNC) achieved positive year-on-year revenue growth in its parts and services segment during the first quarter.
• The company successfully doubled its Upfit volumes year over year in Q1, showcasing strong performance in this area.
• Wabash National Corp (NYSE:WNC) is expanding its trailers as a service initiative, adding more customers and increasing operational capabilities.
• The company is strategically focusing on growing its parts and services revenue to reduce exposure to cyclicality and enhance stability.
• Wabash National Corp (NYSE:WNC) is advancing its technological capabilities through partnerships, such as with Up Labs, to enhance customer experience and operational efficiency.

Negative Points

• The business environment has softened, with customers delaying decision-making, leading to a broader macro-driven slowdown.
• Wabash National Corp (NYSE:WNC) experienced a revenue shortfall of about $55 million in the first quarter due to weaker-than-anticipated volumes.
• The company reported lower-than-expected gross margins of 5% and adjusted operating margins of negative 7.2% during the quarter.
• Tariff-related uncertainty is constraining customers' capital expenditure plans, impacting Wabash National Corp (NYSE:WNC)'s financial outlook.
• The company has revised its 2025 revenue outlook downward to approximately $1.8 billion and EPS to a range of negative $0.85 to negative $0.35.

Q & A Highlights

Q: Your updated outlook implies a significant decline in EPS for 2025. Have there been issues with steel pricing or other factors affecting margins? A: Patrick Keslin, CFO: The pricing pressure around commodities is factored into our guidance. We don't expect an oversized reduction in profitability. The decline is more about adjusting to market dynamics and labor imbalances rather than structural changes.

Q: With concerns about new volumes, does the outlook for parts and services improve as customers maintain older fleets longer? A: Mike Pettit, Chief Growth Officer: While the outlook hasn't increased, we're maintaining growth in parts and services despite weaknesses in other areas. We expect sequential growth in Q3 and Q4, maintaining our year-end expectations.

Q: Can you provide more details on the trailers as a service initiative and its growth potential? A: Mike Pettit, Chief Growth Officer: We have over 1,000 units deployed and are seeing demand beyond traditional trailer sales. We expect growth throughout 2025, with increased customer engagement and capabilities to support this initiative.

Q: How should we think about your liquidity position and access to capital if market conditions worsen? A: Patrick Keslin, CFO: We have $310 million in liquidity, including cash and revolver availability. Our capital allocation is flexible, and we'll evaluate investments based on market conditions, maintaining our dividend and considering share repurchases as needed.

Q: Given the Q1 loss and guidance for Q2, what drives the expectation of positive earnings in the second half of 2025? A: Brent Yeagy, CEO: The assumption is that uncertainty does not worsen. We're not expecting a near-term demand improvement but are prepared for a stable environment. The expectation is based on current conditions, not on anticipated improvements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.