Wabash’s second quarter was marked by ongoing softness in the transportation equipment market, with management citing continued caution among customers and industry-wide reductions in capital spending. CEO Brent Yeagy described the environment as “softer than anticipated,” pointing to a ripple effect of hesitation and lower activity levels across the sector. Despite these headwinds, Wabash’s parts and services segment delivered sequential and year-over-year growth, which management highlighted as a sign of resilience amid challenging conditions.
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Wabash (WNC) Q2 CY2025 Highlights:
- Revenue: $458.8 million vs analyst estimates of $433.8 million (16.7% year-on-year decline, 5.8% beat)
- Adjusted EPS: -$0.15 vs analyst estimates of -$0.34 (55.4% beat)
- Adjusted EBITDA: $12.36 million vs analyst estimates of $8.3 million (2.7% margin, 48.9% beat)
- The company dropped its revenue guidance for the full year to $1.6 billion at the midpoint from $1.8 billion, a 11.1% decrease
- Management lowered its full-year Adjusted EPS guidance to -$1.15 at the midpoint, a 91.7% decrease
- Operating Margin: -1%, down from 7.9% in the same quarter last year
- Backlog: $1 billion at quarter end, down 23.1% year on year
- Market Capitalization: $433.5 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 Q2 Earnings Call
- Michael Shlisky (D.A. Davidson) asked about the factors that could lead to a trailer cycle recovery in 2026. CEO Brent Yeagy responded that capacity exiting the market is the key driver and that demand must return to replacement levels for a meaningful upturn.
- Shlisky followed up on industry efficiency gains, questioning if technology or AI were shrinking the national fleet. Yeagy stated there is no evidence of significant efficiency improvements at scale and that market-related factors are more influential.
- Shlisky inquired about the sustainability of parts and services growth into 2026. Chief Growth Officer Mike Pettit highlighted upfit and preferred partner network expansion as ongoing growth drivers, suggesting further gains are expected.
- Jeffrey Kauffman (Vertical Research Partners) pressed for details on TaaS fleet size and capital spend. CFO Patrick Keslin confirmed $21 million invested in the first half and over 1,000 trailers in service, expecting further growth depending on market conditions.
- Kauffman also asked about average sales price declines in Transportation Solutions. Keslin attributed the drop to product mix rather than pricing, with a shift toward more dry vans impacting results.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory analyst team will watch (1) the pace of recovery in equipment order rates and any signs of shifting customer sentiment, (2) continued growth and profitability in the parts and services segment as new upfit centers and partner locations come online, and (3) management’s ability to navigate input cost inflation and implement planned price adjustments for 2026 orders. Execution on Trailers as a Service growth and further expansion of the preferred partner network will also be important indicators of strategic progress.
Wabash currently trades at $10.54, down from $10.69 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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