While Wabash has strategically diversified its product lines and services, the company is not immune to trailer market slumps. The second quarter earnings report reflects the ongoing downturn.
Wabash net sales for Q2 were $458.8 million, a 16.7% decrease compared to the same quarter of the previous year, the company reported July 25. And, with a “reassessment of 2025” revenue, the company now project midpoints of $1.6 billion in revenue, compared to $1.95 billion in 2024 and $2.54 billion in 2023.
“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," said Brent Yeagy, president and chief executive officer. “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.”
Wabash generated consolidated gross profit of $41.4 million, equivalent to 9.0% of sales. GAAP operating loss amounted to $4.8 million as the company recognized a $5 million loss in connection with the appeal bond and contingent interest expense associated with a legal verdict. Non-GAAP adjusted operating loss was $0.1 million for the quarter.
As of June 30, total backlog stood at approximately $1 billion, as customers continue to take a wait-and-see approach to capital spending, the Wabash report noted.
“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,” Yeagy said. “Based on those early discussions and current industry forecasts, we’re cautiously optimistic that 2026 will reflect a return to growth."
Segment highlights
For Q2, Wabash shipped 8,640 new trailers, compared to 9,245 trailers for the period last year. Truck body shipments for the quarter were 3,190, down from 3,925.
During the second quarter, Transportation Solutions generated net sales of $400.2 million, a decrease of 19.7% compared to the same quarter of the previous year. Operating loss for the quarter amounted to $12.5 million, representing 3.1% of sales.
Parts & Services' net sales for the second quarter were $59.7 million, an increase of 8.8% compared to the prior year quarter. Operating income for the quarter amounted to $9.1 million, or 15.2% of sales.
See the May print edition of Trailer/Body Builders for additional coverage of the Wabash Q2 report and executives' discussion with investment analysts.