Wabash National (WNC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 26.1% year-over-year to $380.9M, driven by broad-based delays in customer decision-making, reduced CapEx, and weaker Transportation Solutions demand.

• Net income attributable to common stockholders was $230.9M, up from $18.2M in Q1 2024, primarily due to a $342M reduction in a previously recorded legal charge; GAAP EPS was $5.36, while adjusted EPS was $(0.58).

• Parts & Services segment achieved positive year-over-year revenue growth and doubled upfit volumes, with continued expansion of TaaS and new locations planned.

• The company completed the acquisition of Trailerhawk.ai, enhancing digital and recurring revenue capabilities, and partnered with Up.Labs to develop AI-powered tools.

• Legal exposure from a 2019 accident was reduced from $462M to $119.5M, with an appeal underway.

Financial highlights

• Q1 2025 consolidated revenue was $380.9M, with 6,290 new trailers and 3,000 truck bodies shipped.

• Gross margin was 5.0%, down from 14.8% a year ago; adjusted operating margin was -7.2%.

• Adjusted EBITDA was $(9.2)M (-2.4% of sales), and adjusted net income was $(24.8)M.

• Free cash flow improved to $(29.1)M from $(36.6)M year-over-year; cash and cash equivalents at quarter-end were $81.0M.

• Net debt leverage ratio was 3.2x; debt-to-equity ratio was approximately 1.0:1.0.

Outlook and guidance

• 2025 revenue outlook reduced to ~$1.8B, with adjusted EPS guidance lowered to $(0.85) to $(0.35), reflecting softer demand and tariff-related uncertainty.

• Q2 revenue expected at $420–$460M and EPS at $(0.25) to $(0.35), with modestly positive EPS anticipated in the second half of 2025.

• Capital investment for 2025 expected at $50–$60M, with flexibility to adjust based on market conditions; tax rate at 25%.

• 12-month backlog as of March 31, 2025 was $841M–$1.2B, up sequentially but down year-over-year, reflecting softened demand.

• Industry forecasts for 2025 U.S. trailer production indicate a 5.7–13.9% decrease from 2024.