Wabash National (NYSE:WNC) released first-quarter financial results and hosted an earnings call on Friday. Read the complete transcript below.
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The full earnings call is available at https://events.q4inc.com/attendee/310958583
Summary
Wabash National reported first-quarter 2026 revenue of $303 million, slightly below guidance, with an adjusted non-GAAP EBITDA of negative $38 million due to lower production volumes.
The company is focusing on strategic initiatives such as digital enablement, parts and services expansion, and operational efficiency improvements to position for market recovery.
Wabash National expects revenue growth in Q2 2026 to range between $380 million and $400 million with adjusted EPS guidance between negative $0.40 and negative $0.60, indicating recovery from Q1 lows.
Despite current market softness, there is optimism for 2027 as freight indicators improve and customer engagement increases, suggesting readiness for capital spending.
Operational highlights include a 19% increase in backlog sequentially, improved safety metrics, and ongoing investment in digital tools and AI to enhance customer experience and operational efficiencies.
Full Transcript
OPERATOR
Thank you and good afternoon everyone. We appreciate you joining us on this call. With me today are Brent Yeage, President and Chief Executive Officer, and Pat Kesslin, Chief Financial Officer. Before we get started, please note that this call is being recorded. I’d also like to point out that our earnings release, the slide presentation supplementing today’s call, and any non GAAP reconciliations are available at ir.wabash.com Please refer to slide 2 in our earnings deck for the company’s Safe harbor disclosure addressing forward looking statements. I’ll now hand it off to Brent Thanks John. Before we begin, I want to recognize Mike Pettit who as of April 8th is transitioning out of Wabash. Mike has been a meaningful contributor to
Brent Yeage (President and Chief Executive Officer)
Wabash for 14 years and has played an important role in shaping our culture and our strategy. His impact on the organization is lasting and we are grateful for his leadership and commitment to Wabash. We wish him all the best as he enters this new chapter of his life. As we entered the first quarter, we did so with a clear eyed view of the environment in front of us. Freight markets were uncertain and customers continued to act cautiously. Order patterns were uneven, asset utilization inconsistent and capital decisions across the industry were being evaluated carefully. At the same time, we were encouraged by early signs of stabilization and improving fundamentals that typically precede a broader recovery. Now, as we move into the second quarter of 2026, both our customers and our visibility continues to improve and it shows an environment that is building to set up for a constructive 2027 as spot rates, contract rates, capacity and demand all are coming together to drive back to replacement demands for equipment and possibly beyond as fleets begin to plan more confidently. Against that backdrop, our priorities have not changed. We are focused on controlling what we control, protecting margins through the cycle and executing against our long-term strategy. That means aligning costs to demand, maintaining pricing discipline and continuing to invest in areas that differentiate Wabash, particularly parts and services, digital-enablement and our manufacturing operations. The actions we have taken positions us favorably for the market’s return versus prior down cycles. We are deploying capital more effectively, more efficiently and at levels above what has been historically possible, managing liquidity with discipline and building a business that will emerge from this cycle stronger, more resilient and better positioned to perform as market growth accelerates. Execution remains the focus in Q1. Key operating metrics, including on time to promise first time quality and total recordable incident rates, continue to improve and set new benchmarks. That performance reflects the experience, commitment and capability of our team and I want to recognize our employees for their continued focus and discipline. Market conditions in the first quarter were largely consistent with what we saw exiting last year. We are encouraged by the progress beginning to take shape across several underlying indicators. Improvements in spot rates and manufacturing activity, for example, are increasing visibility into recovery as evidenced by the 19% increase in backlog versus prior quarter to 837 million. While geopolitical uncertainty continues to influence customer behavior at present, with fleets remaining conservative, extending asset lives and prioritizing flexibility over expansion, the tone is shifting quickly and customers are increasingly engaging to discuss their future needs. As expected, the early stages of this recovery continue to be supply driven. Capacity continues to contract and as enhanced driver eligibility enforcement designed to improve safety across the industry, improves freight rates and begins to restore carrier profitability. At the same time, key freight indicators are exhibiting some of the strongest year over year performance, including the ATA for Hire Truck Tonnage Index having its largest year over year increase since October of 2022, and the logistics managers index increasing 4.2 points sequentially the fastest level of expansion since May of 2022. As this recovery builds, capital spending will follow. Wabash is well positioned to respond with the capabilities, capacity and customer relationships to support increased demand and increased market share. Looking ahead, our near term demand outlook remains balanced as customers convert improving profitability into capital spending decisions. Beyond that, the outlook is increasingly constructive as we move into 2027, multiple leading indicators continue to trend positively, customer conversations are becoming more optimistic and the very positive impact of the recent change in section 232 tariffs and the forthcoming positive progression of the anti dumping and counter daily duty process further supports our confidence as we approach the Q3 and Q4 bid season for 2027. While we prepare to exit this stage of the market cycle, operational discipline and cost management remains foundational to how we run the business for both near term assuredness and long term improved profitability. That means staying disciplined on costs, protecting liquidity and remaining ready for multiple scenarios. The plant idling actions announced in our January 2026 call are progressing as planned with 3 million of the costs referenced in our prior call recognized in Q1 2026 and in line with projections. Beyond those actions, we continue to evaluate opportunities to rationalize our portfolio and right size fixed costs while remaining committed to our strategy of delivering industry leading supply chain solutions from first to final line. Our objective is straightforward renew costs in a sustainable way that protects margins and liquidity today and creates leverage for improved profitability and cash generation as volumes recover. We remain agile and prepared to adjust spending including capital expenditures as conditions evolve. At this time, we have been deliberate about what we do not Investments in safety, quality and customer support remain non negotiable. We continue to fund initiatives that expand recurring revenue and strengthen customer relationships, particularly …
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