Trailer giant Wabash reported its second consecutive record-setting quarter, with Q2 net sales reaching $686.6 million, a 6.8% increase compared to the same quarter of the previous year. Consolidated gross profit came in at $151 million, equivalent to 22% of sales. Operating income amounted to $103 million, representing 15% of sales for the quarter.
These results exceeded prior expectations, primarily due to the company's strong material margin, favorable product mix, and strong results from parts and services, tanks, and truck bodies, the quarterly filing noted.
As of June 30, total backlog stood at approximately $2.4 billion, an increase of 5% compared to the second quarter of 2022. Backlog expected to be shipped within the following 12-months amounted to approximately $2.1 billion.
“These financial results further reinforce our belief that Wabash's earnings power is structurally higher than previously anticipated,” said Brent Yeagy, president and chief executive officer. “We have transformed the way our company is perceived by customers, suppliers, and other stakeholders, while simultaneously reinvigorating organic growth. These are changes that will endure at any phase of the business cycle and we expect to continue to raise both the floor and ceiling of our earnings profile going forward.”
For the full-year ending December 31, Wabash updated its revenue outlook to a range of $2.6 billion to $2.8 billion with a revenue midpoint of $2.7 billion.
“Our execution during the first half of this year already positions 2023 as our best year in terms of financial achievements and we expect our backlog to support a strong second half," explained Yeagy. "As we continue to track the challenging market conditions affecting our customers, we look forward to improvement in freight rates as capacity and demand align more favorably.
“We view the return to more normal seasonality during this year's peak season for freight as a potentially significant turning point. Our focus remains on serving our customers with agility and responsiveness, adapting to the evolving market dynamics as we progress toward a brighter long-term future."
For Q2, Wabash shipped 11,825 trailers, compared to 13,670 trailers for the period last year (a 13.5% decrease). Truck body shipments for the quarter were 4,025, up from 3,950 (1.9%).