Wabash entered a challenging first quarter, with the company’s results falling short of Wall Street’s expectations and the stock reacting sharply to the downside. Management attributed the underperformance to a broad macroeconomic slowdown driving reduced customer demand, as well as increased uncertainty around tariffs and regulatory changes. CEO Brent Yeagy noted, “Third-party industry forecasts for 2025 have been steadily revised downward,” and described the downturn in orders as industry-wide rather than isolated to any one segment. Despite the tough environment, the company’s Parts & Services division achieved year-over-year revenue growth, partially offsetting the softness in its core trailer business.
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Wabash (WNC) Q1 CY2025 Highlights:
- 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: -$14.71 million vs analyst estimates of $5.86 million (-3.9% 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
- Backlog: $1.2 billion at quarter end, down 33.3% year on year
- Market Capitalization: $443.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Wabash’s Q1 Earnings Call
- Mike Shlisky (D.A. Davidson) asked about the drivers of margin compression and whether steel pricing or other temporary factors contributed. CEO Brent Yeagy and Chief Growth Officer Mike Pettit responded that commodity pricing was accounted for and most margin pressure stemmed from labor imbalances due to rapidly changing order flow.
- Mike Shlisky (D.A. Davidson) also asked if Parts & Services outlook improved as customers maintain older fleets longer. Yeagy said growth in this segment remained consistent and is expected to continue sequentially throughout the year, but has not increased beyond prior expectations.
- Mike Shlisky (D.A. Davidson) inquired about declining profitability in Parts & Services despite higher sales. Pettit explained that Q1 2024 was unusually strong and that the business still targets high-teens EBITDA margins for the full year.
- Jeff Kauffman (Vertical Research Partners) questioned the underlying shipment assumptions in the updated guidance. VP Ryan Reed confirmed a slight step up in trailer and truck body shipments for Q2, with no major increases assumed for the full year.
- Jeff Kauffman (Vertical Research Partners) asked about liquidity and capital allocation if conditions worsen. CFO Pat Keslin detailed available cash, revolver capacity, and flexibility to adjust investments, emphasizing the company’s readiness to preserve financial strength.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will closely watch (1) signs of stabilization in new trailer orders and backlog levels as customer confidence returns, (2) further growth and margin improvement in the Parts & Services segment as new offerings scale, and (3) the impact of tariff and regulatory developments on both customer capital spending and Wabash’s cost structure. Progress in legal proceedings and the company’s ability to manage liquidity under continued market stress will also be key markers of operational resilience.
Wabash currently trades at $10.66, up from $9.96 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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