Wabash’s Q3 results drew a negative market response, as the company contended with a prolonged downturn in transportation equipment demand and missed Wall Street’s adjusted profit expectations. CEO Brent Yeagy cited “persistent uncertainty around consumer confidence” and continued delays in customer capital spending as central factors behind lower shipment volumes and backlog. The company’s parts and services segment was a bright spot, showing sequential and year-over-year revenue growth despite broader industry weakness. Management acknowledged the challenging environment, with Yeagy describing Q3 as “coming in below plan” and emphasizing the company’s need to “realign costs to current market realities.”
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Wabash (WNC) Q3 CY2025 Highlights:
- Revenue: $381.6 million vs analyst estimates of $381.5 million (17.8% year-on-year decline, in line)
- Adjusted EPS: -$0.51 vs analyst expectations of -$0.39 (31.5% miss)
- Adjusted EBITDA: -$8.95 million vs analyst estimates of -$3 million (-2.3% margin, significant miss)
- The company dropped its revenue guidance for the full year to $1.5 billion at the midpoint from $1.6 billion, a 6.3% decrease
- Management lowered its full-year Adjusted EPS guidance to -$2 at the midpoint, a 73.9% decrease
- Operating Margin: 15.1%, up from -93.3% in the same quarter last year
- Backlog: $829 million at quarter end, down 17.1% year on year
- Market Capitalization: $318.5 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 From Wabash’s Q3 Earnings Call
- Jeffrey Kauffman (Vertical Research Partners) asked how recent Section 232 tariffs will affect Wabash’s competitive position versus Mexican-based manufacturers. CEO Brent Yeagy explained that the tariffs target steel and aluminum content, with the primary benefits expected to materialize during the 2027 buying season as competitors adjust pricing and sourcing strategies.
- Kauffman (Vertical Research Partners) followed up regarding the immediate impact of tariffs in Q3, to which Chief Growth Officer Mike Pettit said the direct impact was minimal, with roughly $1 million in vendor pass-through costs, and that greater effects are anticipated in 2026.
- Kauffman (Vertical Research Partners) also requested shipment volume guidance for Q4. Pettit responded that truck body shipments are expected to decline significantly from Q3, with trailer deliveries “slightly lower” but did not provide exact figures.
- Michael Shlisky (D.A. Davidson) inquired about growth in platform trailers, referencing infrastructure and data center projects. Yeagy said the segment has stabilized and is seeing potential tailwinds, but order conversion depends on customer confidence and broader freight trends.
- Shlisky (D.A. Davidson) asked about the pace and impact of fleet reductions and “rightsizing.” Yeagy estimated that meaningful capacity reduction is occurring at the fastest pace yet in this cycle, which could rebalance the market and trigger replacement demand as early as mid-2026.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) order trends and backlog momentum as fleet replacement cycles accelerate, (2) the scaling and profitability of parts and services offerings, particularly new upfit locations and digital tools, and (3) the competitive effects of Section 232 tariffs as supply chain strategies shift industrywide. Execution on cost realignment and cash flow preservation will also be key areas of focus.
Wabash currently trades at $7.86, down from $8.30 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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