Earnings call transcript: Wabash National beats Q2 2025 forecasts, shares dip

Wabash National Corporation (WNC) reported better-than-expected earnings for the second quarter of 2025, with actual earnings per share (EPS) at -$0.15 compared to the forecast of -$0.30. Revenue reached $459 million, surpassing the anticipated $433.79 million. Despite these positive results, the company’s stock fell by 6.47% in pre-market trading, reflecting investor concerns over market conditions and future guidance. According to InvestingPro analysis, WNC is currently undervalued, with analysts maintaining a consensus "Buy" recommendation and a potential upside of 29% based on their target prices.

Key Takeaways

• Wabash National’s Q2 2025 EPS of -$0.15 exceeded forecasts by 50%.
• Revenue of $459 million surpassed expectations by 5.81%.
• Stock price declined by 6.47% following the earnings announcement.
• The company reduced its 2025 revenue outlook to $1.6 billion.
• Market softness and reduced trailer industry forecasts weigh on future outlook.

Company Performance

Wabash National demonstrated resilience in Q2 2025, managing to exceed both EPS and revenue expectations. The company’s strategic focus on parts and services, which saw a sequential growth of 15% and a year-over-year increase of 8.8%, contributed to this performance. However, the broader trailer industry faced a 13% reduction in forecasts for 2025, impacting Wabash’s market position.

Financial Highlights

• Revenue: $459 million, up from the forecast of $433.79 million.
• Earnings per share: -$0.15, better than the forecasted -$0.30.
• Gross margins stood at 9%.
• Adjusted EBITDA was $16 million, representing 3.6% of sales.
• Adjusted net income was -$6.1 million.

Earnings vs. Forecast

Wabash National’s Q2 2025 EPS of -$0.15 was a significant improvement over the forecasted -$0.30, marking a 50% surprise. This positive deviation from expectations was driven by stronger-than-anticipated revenue figures, which were 5.81% higher than predictions.

Market Reaction

Despite the earnings beat, Wabash National’s stock fell by 6.47% in pre-market trading, closing at $10.1. This decline reflects investor concerns about the company’s reduced 2025 revenue outlook and ongoing market softness. The stock is trading near its 52-week low of $6.78, highlighting the challenging market environment. InvestingPro metrics show the stock has experienced significant volatility, with a beta of 1.65 and a 51.59% decline over the past year. However, analysts maintain optimistic price targets ranging from $9.50 to $16.00 per share.

Outlook & Guidance

Wabash National revised its 2025 revenue outlook downward to $1.6 billion and projected an EPS range of -$1.00 to -$1.30. The company remains cautiously optimistic about 2026, expecting potential growth as market conditions stabilize and capital deployment returns to replacement levels.

Executive Commentary

CFO Pat Kesselin emphasized the company’s focus on long-term strategy despite current challenges, stating, "While 2025 has brought its share of challenges, we remain focused on disciplined execution and advancing our long-term strategy." Chief Growth Officer Mike Pettit expressed optimism for improvement in the latter half of the year, noting, "We expect the second half can be 20% better than the first half and that we can see on the top-line revenue."

Risks and Challenges

• Market Softness: Prolonged softness in the trailer market could continue to pressure sales.
• Reduced Industry Forecasts: A 13% reduction in trailer industry forecasts for 2025 could impact future performance.
• Capital Spending Hesitation: Customers’ "wait and see" approach could delay new orders.
• Freight Market Pressure: Ongoing pressure in the freight market may affect equipment demand.
• High Net Debt Leverage: A leverage ratio of 6.2x poses financial risks.

Q&A

During the earnings call, analysts questioned the potential for market recovery and the impact of ASP fluctuations due to trailer mix. Executives highlighted the company’s resilience and market share, expressing confidence in a 2026 recovery driven by carrier fleet maintenance needs.

Full transcript - Wabash National (WNC) Q2 2025:

Jean, Conference Operator: Thank you for standing by. My name is Jean, and I will be your conference operator today. At this time, I would like to welcome everyone to the Wabash Second Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session.

Thank you. I would now like to turn the call over to Jake Page. Please go ahead.

Jake Page, Investor Relations, Wabash National Corporation: Thank you, and good morning, everyone. We appreciate you joining us on this call. With me today are Brent Yeage, President and Chief Executive Officer Pat Kesselin, Chief Financial Officer and Mike Pettit, Chief Growth Officer. Before we get started, 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.onewabash.com.

Please refer to Slide two in our earnings deck for the company’s Safe Harbor disclosure addressing forward looking statements. I’ll now hand it off to Brett.

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Thanks, Jay. Before we dive into the quarter, I want to take a moment to thank our incredible team. These continue to be challenging times across the industry, and I’m continually inspired by the dedication, resilience and heart our employees bring to their work. Whether it’s supporting our customers, helping each other or finding new ways to move the business forward, their efforts are what keep Wabash strong, and we’re truly grateful. As we reflect on the second quarter, the broader market dynamics we observed earlier in the year have largely persisted.

Economic conditions remain softer than anticipated at the start of 2025, with customers continuing to report increased hesitation in capital making. The slowdown is creating a ripple effect across the industry, contributing to more cautious behavior and tempered activity levels. Industry analysts have continued to lower their forecast for the remainder of the year, and for this quarter, we saw additional confirmation as several carriers revised their CapEx plans downward. These trends reflect a transportation market environment that remains under pressure rather than any product specific or segment driven softness. While the current climate brings headwinds, it also highlights the strategic foresight behind the way we have reshaped Wabash over the past several years.

Our organizational structure was intentionally designed to support agility and resiliency through the economic cycles. In our Transportation Solutions business, we’re proactively managing costs to align with reduced demand. At the same time, we’re maintaining momentum in parts and services, which once again delivered year over year revenue growth this quarter. This continued outperformance in parts and services reinforces our confidence in its role as a key driver of long term stability and growth. By integrating these offerings more deeply with our equipment solutions, we believe we’re laying the foundation for a more balanced business that can perform through varying market conditions.

Even in a softer environment for equipment demand, our parts and services business continued to deliver growth in Q2. I want to highlight a couple of wins in the quarter that speak to the momentum we’re building. First, congratulations to our FFIT team for another record quarter. Their efforts continue to drive significant growth as we are on pace to almost double units year over year. We also made meaningful progress with our trailers as a service and preferred parts network initiatives, both of which continue to gain traction as we expand our offerings.

Mike will share more details shortly, but these developments are strong indicators of how parts and services is helping bring greater balance and resilience to

Mike Pettit, Chief Growth Officer, Wabash National Corporation: the broader Wabash portfolio as we scale.

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: We continue to monitor inflationary pressures across our supply chain. While our 95% domestic sourcing and U. S.-based manufacturing footprint have helped insulate us from some of the volatility others are experiencing, we’re not entirely immune to cost increases, particularly key inputs and services. To date, we’ve been successful in holding off on price adjustments, and we remain focused on operational efficiency and cost discipline to offset as much pressure as possible. However, based on the current trajectory, we expect that pricing for twenty twenty six orders will need to be adjusted to reflect the rising cost environment.

As always, we’re committed to communicating transparently with customers and providing as much lead time as possible. We’re continuing to deliver the value and reliability they’ve come to expect from Wabash. Now to briefly touch on the ongoing legal matters stemming from a 2019 motor vehicle accident. In April, we filed a notice of appeal and posted the necessary appeal bond as we continue to pursue all available legal options to achieve a more reasonable outcome. We want to reiterate that we stand firmly behind the safety and integrity of our products and remain confident in our ultimate legal position.

Turning to the broader market environment, demand remains muted across the trailer industry. Industry forecasters have continued to revise their outlook downward, and recent updates now suggest that 2025 shipment volumes will fall well below basic replacement demand. This prolonged softness is reflected in our own backlog, which declined to approximately $1,000,000,000 at the end of Q2. While that’s not unexpected given the current landscape, it’s clear that customers continue to take a wait and see approach to capital spending. For now, we’ve undertaken a reassessment of 2025 and now expect midpoints of $1,600,000,000 in revenue and negative $1.15 of adjusted EPS.

Even with the revised guidance, we still expect to be near free cash flow breakeven for 2025, excluding our capital investments in trailers as a service. While our order book for 2026 is not yet open, we’re actively engaged in conversations with customers and preparing quotes for next year’s demand. Based on those early discussions and current industry forecasts, we’re cautiously optimistic that 2026 will reflect a return to growth. Of course, our outlook assumes relative stability in the broader environment. If we avoid further deterioration in business and consumer sentiment, we believe 2026 has the potential to align with current growth expectations.

As always, we’ll continue to monitor market signals closely and stay in close alignment with our customers as planning progresses. I’ll now turn the call over to Mike for his comments.

Mike Pettit, Chief Growth Officer, Wabash National Corporation: Thanks, Brent. Over the past couple of years, we’ve talked about turning parts and services into a steadier, higher margin engine within Wabash. The 2025 proves we are continuing to deliver on that strategy. Parts and services sits squarely between our first to final mile equipment portfolio and the connected support that keeps those assets running day in and day out. Think of this expanding parts and services segment as the connective tissue that combines our equipment portfolio with best in class partners across distribution, digital, maintenance and repair.

Together, we’re not only moving faster, we’re layering in entirely new forms of customer value creating durable improvements in Wabash’s financial performance. In the second quarter alone, the segment grew 15% sequentially and 8.8% year over year, while seeing EBITDA margins return to the high teens, right where we believe this business can perform on a sustainable basis. Keep in mind, this has all been done right into the teeth of a very difficult market backdrop, showing this growth is indeed structural and will provide stability for the enterprise for years to come. One of the clearest proof points behind the parts and services momentum is our Upbit business. Our Upbit offerings let us deliver fully tailored equipment in just a couple of weeks, combining the scale of truck body production with the deep customer intimacy that defines parts and services.

To put hard numbers around that, last year we completed approximately 1,100 upfit units. This year we doubled first quarter throughput to four zero six units and added another five fifty six in the second quarter, bringing the year to date unit count to nine sixty two units. On top of that, we are opening two new upfit centers, one in Northwest Indiana and another in Atlanta, giving us capability in two strategic markets and putting us on pace to exceed 2,000 units in 2025 while setting the stage for significantly more growth in 2026. Trailers as a Service, or TAS, is another example of Wabash extending our manufacturing and distribution leadership through business model innovation. We continue to thank shippers, carriers and brokers across North America, many of whom bundle the trailer itself with preventative maintenance, telematics, nationwide uptime support and repair management.

The result: customers focused on moving freight while Wabash handles the trailer, which maximizes customer value and efficiency. As mentioned in the first quarter, our acquisition of TrailerHawk accelerated the technology roadmap inside the past. In June, we rolled out version 1.2 of the TrailerHawk app, enabling shippers to reserve capacity directly on the platform while tracking assets in real time. Coming in the back half of the year, our predictive analytics alerts and automated tracking and billing, capabilities that turn raw data into actionable, measurable savings. We have been continuing to prepare our physical and digital capabilities for the eventual market upturn and will be ready to ramp pass when our customers require it.

Over the past year, we’ve also pushed hard on expanding our Preferred Partner Network, or PPN. We brought Dan Millar on board to lead this effort in September, a parts industry veteran with over twenty five years of experience. And in less than a year, we’re already seeing significant results. With our world class dealer group as the backbone, the network is extending our reach so that we can grow parts distribution, accelerate repair turnaround and provide the services and infrastructure that underpins TAS. Our North Star target is 300 points of service and parts distribution, and today, we’re well on our way.

The addition of 29 locations in the 2025 has grown our network to over 110 locations with more coming online every month. Each new location strengthens our network and provides after sales support for our customers. Financially, the rationale behind scaling parts and services couldn’t be clearer. While the freight market has continued to put pressure on equipment orders and transportation solutions, parts and services continues to deliver secular growth, stabilizing earnings through the cycle. As this segment expands, its higher margins will play an ever larger role in Wabash’s bottom line and cash flow generation.

But more importantly, we’re winning because we found new ways to serve our customers, innovative solutions that extend value far beyond the original equipment sale and well into the life of the asset. With that, I’ll hand the call back to Pat for his comments.

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: Thanks, Mike. Beginning with a review of our quarterly financial results. In the second quarter, our consolidated revenue was $459,000,000 During the quarter, we shipped approximately 8,640 new trailers and 3,190 truck bodies, slightly better than expectations resulting in a revenue on the top end of our April to $460,000,000 guidance range, gross margins of 9% and breakeven adjusted operating margins. As a reminder, the adjusted non GAAP numbers reflect the removal of items related to the Missouri legal verdict. In the second quarter, adjusted EBITDA was $16,000,000 or 3.6 percent of sales.

Finally, adjusted net income attributable to common stockholders was negative $6,100,000 or negative $0.15 per diluted share, beating expectations due to slightly higher revenue and cost containment actions throughout the quarter. Moving on to our reporting segments, Transportation Solutions generated revenue of $400,000,000 and operating income of $13,000,000 Parts and Services generated revenue of $60,000,000 and operating income of $9,100,000 We view the sequential and year over year revenue growth in the Parts and Services segment as particularly positive. Despite challenging market conditions, we have been able to execute on our strategy of building out more resilient and recurring revenue streams to our Parts and Services segment. Year to date operating cash flow was negative $16,100,000 as timing of revenue within the quarter created a drag on working capital in Q2. Regarding our balance sheet, our liquidity, which comprises both cash and available borrowings, was $312,000,000 as of June 30.

We finished Q2 with a net debt leverage ratio of 6.2 times. On capital allocation, during the second quarter, we directed $6,000,000 to traditional CapEx, invested $700,000 in revenue generating assets to support our trailers as a service initiative, utilized $10,400,000 to repurchase shares and returned $3,400,000 to shareholders via our quarterly dividend. Our capital allocation priorities remain disciplined and growth oriented. We continue to invest above our $20,000,000 to $25,000,000 annual maintenance CapEx to support organic growth initiatives. At the same time, we remain committed to our dividend and will evaluate share repurchases and strategic bolt on M and A opportunities in a balanced return driven framework.

I’ll provide additional color on our 2025 capital deployment plan shortly. Moving on to our guidance for 2025. We are reducing our revenue outlook to approximately $1,600,000,000 and EPS to a range of minus $1 to minus $1.3 From previous midpoints, this represents a reduction of roughly $200,000,000 in revenue and $0.55 of EPS. Ongoing economic uncertainty continued to weigh on our customers’ capital expenditure plans and contribute to a softer overall market environment. In Q2, third party trailer forecast dropped by roughly 13% for 2025, and our updated guidance reflects this sentiment.

The most significant changes from our prior outlook come from a reduction in volumes within Transportation Solutions flowing through to a decrease in gross profit equivalent to about $0.80 in EPS versus our prior guidance. This is partially offset by continued cost containment actions taken that recoup approximately $0.25 of EPS. In a continued environment of soft demand, our ability to stay agile and disciplined in cost management remains critical. I’m proud of how our team is executing Q2. They responded quickly and effectively, delivering strong progress on our cost containment initiatives.

We expect the same level of focus and execution to carry on in the second half of the year. As for the third quarter, our updated guidance implies third quarter revenue of $390,000,000 to $430,000,000 and EPS of minus $0.2 to minus $0.30 Moving on to capital deployment expectations for 2025. Given the updated outlook, we have reduced our anticipated traditional capital investment to be between 30,000,000 and $40,000,000 As mentioned on previous calls, our capital expenditure plans are flexible and capital outlays will continue to adjust as the market dictates. The same goes for the rest of our capital allocation priorities. I would say that generally, we have flexibility with regard to how we allocate capital in 2025 depending on how market conditions evolve.

While our first half free cash flow, excluding investment in trailers as a service, was negative $31,000,000 we expect to be near breakeven by the end of the year as we rightsize working capital to the current needs of the business. While 2025 has brought its share of challenges, we remain focused on disciplined execution and advancing our long term strategy. Our teams have shown strong resilience and sound judgment, particularly in managing costs and maintaining a healthy liquidity position to navigate the current environment. As we work through this cyclical trough, history reminds us that the rebound often comes stronger than expected. We’re positioning the business to be ready when that inflection point arrives, when market conditions stabilize and businesses regain the confidence to reinvest.

I’ll now turn the call back to the operator, and we’ll open it up for questions.

Jean, Conference Operator: Thank you. And your first question comes from the line of Mike Schlisky with D. A. Davidson. Please go ahead.

Mike Schlisky, Analyst, D.A. Davidson: Hi. Thanks for taking my questions. Fred, just looking at 2026 of the overall trailer cycle, just update us on kind of what you’re watching today? What has to happen for orders for order rates to kind of pick up? Are you hoping that or thinking that folks might be entering the trailer fleet market and making the market a little smaller for those who are are left, just better rates and volumes.

Jean, Conference Operator: Just give us sense as

Mike Schlisky, Analyst, D.A. Davidson: to maybe the, you know, two or three key things that you’re watching for currently.

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Yeah. So great question. So when we think about 2026, I think it really comes down to, capacity coming out of the market being the really the only factor right at this moment that we would be looking at in the context of the, I would say, the forecast that the third parties are putting out there at this moment in time. Now that’s echoed by our customers as well, who if you when you when you really talk around the horn with them, they believe that enough is starting to exit, as long as nothing else changes in the environment to see where they can look at, we’ll call it, you know, we’ll call directional capital deployment in line with those expectations, which is really nothing more than getting back to a at replacement level of, capital deployment and then eating into the debt slightly, the deficit that they’ve created by the underbody over the last couple of years. So I think that is the the main thing that we’re looking at right now.

And then the secondary thing that we’d be looking at is the fundamental freight producing subsectors of the market, which is really what would be the truly the more positive precipitating event that we’re all looking for that really changed the game going forward.

Mike Schlisky, Analyst, D.A. Davidson: I wanna follow-up with that question, Brent. Just asking little more broadly, do you get the sense that that the industry is is quietly being able to do a bit more with fewer assets these days? Has the industry gotten more efficient over the last couple of years? If you said AI, more efficient

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: No. You know, load board.

Mike Schlisky, Analyst, D.A. Davidson: Anything to tell us there is

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: the is the is the national fleet just shrinking because of technology and not due to volumes of like, great. And I I don’t have any there’s nothing that I see at this moment that would say there’s anything happening at scale around substantial efficiency that’s moving into the market through technology deployment right at this moment. I would say the the net inefficiency is still greater than efficiency being created.

Mike Pettit, Chief Growth Officer, Wabash National Corporation: Now that doesn’t mean that there’s

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: not inroads happening at the fleets, and it doesn’t mean that they’re not building platforms that ultimately show promise. But when you integrate, right, all of it happening right now plus the disruption that’s happening in logistics, I think it is much more of a market related situation as we sit here today. So I do not I would not expect to see as the market unfolds over the next three, four, five years, a depressing element relative to efficiency gains, not in my calculus right now.

Mike Schlisky, Analyst, D.A. Davidson: Got it. Thanks. And maybe just lastly, can you give us just a little more detail on the parts and service growth? That was pretty impressive. I am curious, do you think you know, the trajectory that that business is on, that you still got growth tailwinds into 2026?

And what might be behind that, whether it’s offerings or expanding the network, etcetera?

Mike Pettit, Chief Growth Officer, Wabash National Corporation: Yeah. I I think we we hit on that a little bit, but it’s up up it’s a big piece of it. Obviously, our parts initiative that we’ve been doing now for about three years is starting to get some traction, with our with our PPN expansion. We believe second half can be 20% better than the first half and that we can see on the top line revenue. We think we can grow in the 26% as well.

So we don’t we expect there’s a long runway ahead of us. We’re just getting started. So we’re coming off of a lower base, but we’re now hitting some levels that I think are meaningful from the top and bottom line that are starting to move the enterprise. That’s just going to keep going as we go forward. We resegmented in ’twenty one.

We’re at this point now where I think we’re finally starting to see that sustainable growth at levels that really will start to move the needle.

Mike Schlisky, Analyst, D.A. Davidson: Super, Mike. Thanks so much. I’ll pass it

Jeff Kaufman, Analyst, Vertical Research Partners: along. Bye.

Jean, Conference Operator: Your next question comes from the line of Jeff Kaufman with Vertical Research Partners. Please go ahead.

Jeff Kaufman, Analyst, Vertical Research Partners: Thank you. Good morning, everybody. Couple of questions. Thank you. That 30,000,000 to $40,000,000 in CapEx, does that include the investment in trailers as a service?

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: It does not. That would be just our traditional CapEx.

Jeff Kaufman, Analyst, Vertical Research Partners: Okay. And so where is the TOS fleet right now? And how much incremental investment went in 2025 to TOS?

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: So in terms of dollars that we’ve spent through the first half of the year, it’s roughly $21,000,000 I’ll let Mike expand on the where we’re at in terms of total trailers and deployment. But that’s the spend right now is about $21,000,000 through the first half of the year.

Mike Pettit, Chief Growth Officer, Wabash National Corporation: Yes. The total fleet is still directionally in line with what we said it was in Q1. It’s over 1,000 We’ve added a few in total. And I would say that we would expect it to grow second half. Obviously, that’s market driven.

But we would expect to see a move up in the second half from where we’ve been the last two quarters in terms of our total fleet and test.

Jeff Kaufman, Analyst, Vertical Research Partners: Okay. Thank you. Brent, in your comments, you talked about the need for price increase in 2026 to handle inflation. At least on my numbers, I’m calculating average sales price in the transportation business dropped by about 9% sequentially from 1Q to 2Q and is down about 13% year on year. What is driving that?

Is that a mix change? Is that because of the way contracts are structured? How should I think about that? And then how should I think about that moving forward to 3Q, 4Q?

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Yes. I’ll let Pat start and then I’ll follow-up.

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: Yes. The sequential ASP is almost entirely mix driven, Jeff. So if you were to do the percentage of the total trailers that are dry vans first quarter to second quarter with the increase in that percentage, it’s a drag on our ASP across the Transportation Solutions Group. If you were to look at it on a like for like basis and exclude that mix, ASP would be relatively flat to what

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: it was in the first quarter.

Jeff Kaufman, Analyst, Vertical Research Partners: Okay. So less tanks, more drives, it’s kind of more what’s driving it? Yes. Okay. And then the delivery number for 2Q86.4, congratulations, that was a lot higher than I thought it would be.

You mentioned in your comments a timing issue. Is that what happened here? Did we have more trailers that went in 2Q that maybe won’t go in 3Q, 4Q?

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: Yes. So the timing issue specifically that we mentioned was just around cash collections. So we did a very big June shipments. So as you know, you could straddle between June, July in Q2 and Q3. But that was that comment was specifically related to where our net working capital was at the end of the second quarter because we did have higher shipments in the quarter in that third month.

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Yes. I’ll give a little qualitative feedback on that, Jeff. I was overall pretty happy, all things being considered, with second quarter revenue, and specifically in the context of all of the, we’ll call it, tariff noise that jumped into the mix, you know, at the end of the first quarter. Right? So think about that affecting everything from incoming orders, push outs, and cancellation risk.

When I step back and look at what the industry did through what was called feedback on the street and through our supply chain, Wabash weathered that extremely well extremely well. Let me say that again. Extremely well in terms of continuity of production, and not having maybe the disruption that others have seen. And I think that’s gonna show in market share numbers when the year is all said and done, helped us dramatically in being able to leverage also cost reduction efforts because we’ve managed a much, again, relatively more stable platform than maybe some of the rest. And we hope maybe that we can take advantage of that when we go into 2026 as well.

So hey. The big numbers, you know, are are not what we’d like, but, pretty happy with the way we’re running the show right now when it comes to running the shop floor and making choices on how best to navigate this thing.

Jeff Kaufman, Analyst, Vertical Research Partners: All right. Can I follow that point because you did have a great quarter and the deliveries above what I expected, profits better than expected? As I look to the 25 guide of a loss of $1.15 at the midpoint or $1,600,000,000 in revenues, how much of that is the operations of the business that’s coming through? And how much of that is a drag on the P and L because of some of these new projects and new businesses that you’re funding?

Pat Kesselin, Chief Financial Officer, Wabash National Corporation: Yes. So I would say it’s market driven for sure. We do have some SG and A expenses related to our investments that we’re still going to continue to invest in future growth of the business. But for the most part, I mean, you could do the math on the top line drop from guide to guide. That’s entirely market driven.

And we’ve taken actions on the cost side that we feel are prudent given the market reality of what our top line is going to look like. And that’s what’s implied in the guide that we gave you.

Jeff Kaufman, Analyst, Vertical Research Partners: All right. So one final question and I’ll pass it on. So year to date, we’re looking at an operating earnings number of about a $0.73 loss. The guidance is for, let’s say, 1.15 for the full year. So we’re implying about a $0.40 loss for the second half of the year.

As I turn to the discussions for the New Year, as I turn to the benefits from the big beautiful bill and what that might mean for the industry, is your sense that we’re in the darkest part of the trailer cycle right now and that we you had mentioned in your comments you were hoping for a better ’26. Until the orders come in, we don’t know. But can you talk about this new activity and what gives you enthusiasm that maybe we’re seeing the darkest days right now?

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Yeah. The well, Jeff, I would like to say we’re in the darkest days. Yeah. There’s nothing that says that we’re so nothing that says that we’re not. The only thing that changes that statement is what happens in the future that we don’t know.

Something has to act. We’re probably on the market for that to to change the outlook of that. And your guess is as good as mine of what that may or may not be. When I talk to customers right now, I just had a discussion yesterday with a a one of the big ones, and the the being below replacement is a big deal now. And the the more prominent, well managed carriers are doing the best they can so that they can maintain so they can leverage margins going forward, right, when this thing goes.

Right? They’re not getting behind the curve too much right now. But they don’t have much further they can go before they are going to have to spend not only to get to replacement, which will be a bump from 2015 I’m sorry, 02/2025, but they’ve also got to start catching up some, which, you know, I’m kinda repeating myself. But that that’s a a very broad discussion that’s happening out there right now. And the general consensus that I’ve gotten is, hey.

If they can just hold what’s going on right now and we get a look and and it just gets, you know, a couple tenths of a percent of spot rate right now is not a bad thing. Right? You gotta go, that’s not very much. In the world we’re living in, if they can just knock off a few of those, that’s enough from what I’m getting for them to have to and want to spend a little more in 2026. And I think that’s that’s how I think about it.

And from where we’re at, hey. That’s a good story from being, like you said, in the darkest days because all you gotta then have happen is another the next shoe to drop, and this thing will take off again.

Jeff Kaufman, Analyst, Vertical Research Partners: Well, thank you for that perspective and best of luck. Thank you.

Brent Yeage, President and Chief Executive Officer, Wabash National Corporation: Thanks, Eric. Thanks.

Jean, Conference Operator: There are no further questions at this time. I will now turn the call back over to Jake Page for closing remarks.

Jake Page, Investor Relations, Wabash National Corporation: Thank you, everyone, for joining us today. We look forward to following up during the quarter. Have a great day. Thanks.

Jean, Conference Operator: Ladies and gentlemen, that concludes today’s call. Thank you for joining. You may now disconnect.

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