Wabash National (NYSE:WNC) executives told investors the company is operating through a prolonged freight downturn that continued to pressure fourth-quarter performance and is expected to keep demand soft into early 2026. Management emphasized a focus on liquidity, cost alignment, and expanding recurring revenue streams, while acknowledging limited visibility on the timing and pace of an industry recovery.
Management frames 2025 as a difficult downcycle
President and CEO Brent Yeagy described 2025 as “a challenging year across the transportation industry,” citing prolonged softness in demand and uncertainty that affected customer spending decisions. Yeagy said Wabash remained disciplined by preserving its balance sheet and liquidity and aligning its cost structure with market conditions.
Cost actions include idling Little Falls and Goshen facilities
During the quarter, Wabash took additional cost actions, including idling manufacturing facilities in Little Falls and Goshen. Yeagy said the moves are intended to better align production capacity with demand and reduce fixed costs over the next market cycle. The company recorded about $16 million of total charges in the quarter related to the actions, which management characterized as non-cash.
Wabash expects an additional $4 million to $5 million of charges in the first half of 2026, with roughly $1 million to $2 million expected to be cash expenditures, primarily tied to severance and other exit-related costs. Management said the actions are expected to generate about $10 million in ongoing annualized savings, largely from fixed manufacturing overhead and operating expenses.
In the question-and-answer session, Yeagy said the idling does not represent an exit from refrigerated products. He stated Wabash is not pulling out of the refrigerated trailer market and retains refrigerated truck body capacity across its network. He described the Little Falls action as a “timeout” to reposition the product and cost structure ahead of what the company believes could be an improving market into 2027, while the Goshen shutdown was described as an overhead optimization enabled by structural changes made over the last several years.
Fourth-quarter results show losses; Parts and Services posts growth
CFO Pat Keslin reported fourth-quarter consolidated revenue of $321 million. Wabash shipped approximately 5,901 new trailers and 1,343 truck bodies in the quarter. Keslin said lower-than-expected production volumes within the truck body business created operational inefficiencies, contributing to an adjusted gross margin of -1.1% and an adjusted operating margin of -13.6%. Adjusted results excluded the non-cash charges related to idling the two facilities.
Adjusted EBITDA was -$26.2 million (or -8.1% of sales). Adjusted net income attributable to common stockholders was -$37.8 million, or -$0.93 per diluted share.
By segment:
- Transportation Solutions revenue was $263 million with non-GAAP operating income of -$31.7 million (or -12.1% of sales).
- Parts and Services revenue was $64.5 million with operating income of $5.1 million (or 7.9% of sales).
Chief Growth Officer Mike Pettit said Parts and Services grew 33% year-over-year and about 6% sequentially in the fourth quarter, even as the broader original-equipment market remains down more than 40% from its 2023 peak. He noted margins in the segment remain below longer-term expectations due to weak demand in higher-margin OE parts and startup costs tied to recent upfit expansions, but reiterated an expectation that the business can operate in the “high teens EBITDA” over time.
Pettit highlighted upfit momentum, saying Wabash shipped about 550 upfit units in the fourth quarter and about 2,050 for the full year. He said 2025 volume was more than double 2023 levels. The company opened three new upfit centers in the second half of 2025—Northwest Indiana, Atlanta, and Phoenix—and said the expanded footprint positions it to exceed 2,500 upfit units in 2026.
Cash flow, liquidity, and capital allocation
Keslin said full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025, excluding a $30 million legal settlement paid in the fourth quarter. Liquidity (cash plus available borrowings) totaled $235 million at December 31.
In the fourth quarter, Wabash invested $5 million in capital expenditures and $7 million in revenue-generating assets for its Trailers as a Service (TaaS) initiative. The company also repurchased $0.7 million of shares and paid a quarterly dividend of $3.2 million. For the full year, Wabash invested $25 million in traditional capex, $48 million in revenue-generating assets, repurchased $34 million of shares, and returned $13.8 million via dividends.
Looking to 2026, Keslin said the company does not anticipate additional near-term investments in TaaS after establishing the foundation in 2025. In Q&A, he said maintenance capex in 2026 is expected to be similar to 2025 (about $26 million), and would still include some growth capex, but not related to TaaS.
On capital deployment priorities, Keslin said the company ended 2025 with $45 million drawn on its asset-based lending facility, and that paying down the ABL would be a primary use of cash as it becomes available. He added that beyond internal capex and the dividend, the company would reevaluate share repurchases or potential paydown of high-yield bonds due in 2028.
Guidance limited to Q1 2026; anti-dumping case monitored
Given limited visibility, management provided guidance only for the first quarter of 2026. Yeagy said Wabash expects revenue of $310 million to $330 million and adjusted EPS of -$0.95 to -$0.05, describing the first quarter as likely the weakest of the year for both revenue and operating margins. Keslin also cited an operating margin midpoint of approximately -15% and described continued deferred capital spending and uncertainty carrying into 2026. Both Yeagy and Keslin said they expect 2026 to improve versus 2025, though the recovery timing remains uncertain.
Management also discussed antidumping and countervailing duty petitions filed by the domestic trailer industry regarding certain imported trailer products. Yeagy said formal investigations are in early stages. He noted the U.S. International Trade Commission’s preliminary determination was expected on or about February 6, subject to possible delays, while preliminary determinations from the Commerce Department are expected later in the year with final determinations thereafter. In Q&A, Yeagy said Wabash does not expect to incur material costs from the process and explained that potential duties and penalties would apply to named foreign competitors if determinations are affirmative, with a final determination generally expected in the second half of 2026.
Yeagy also addressed profitability pressures, saying the margin dynamics reflected market pricing competition to win units in a low-volume environment rather than tariff-driven material costs, which he described as minimal in direct impact.
About Wabash National (NYSE:WNC)
Wabash National Corporation (NYSE: WNC) is a leading designer and manufacturer of transportation equipment and supply chain solutions. The company’s product portfolio includes dry freight van trailers, refrigerated vans, tank trailers, platform trailers, flatbeds and composite bodies. Wabash National also offers railcar products and modular building solutions, serving customers in a wide range of end markets such as food and beverage, chemicals, agriculture, waste management and construction.
Founded in 1985 and headquartered in Lafayette, Indiana, Wabash National has built a reputation for innovation in lightweight materials, advanced manufacturing processes and telematics integration.
