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:
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.
St. Louis ruling had impact on bottom line
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.
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