Wabash — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 30, 2026, were $476.4 million, a 24.8% increase year-over-year compared to $381.6 million in the prior year period.
• Consolidated gross profit was $15 million, representing a 3.1% gross margin.
• GAAP operating loss was $20 million; Non-GAAP adjusted operating loss was $27 million, excluding a $7.5 million gain on the sale of a manufacturing facility and $0.5 million in facility idling costs.
• GAAP diluted earnings per share (EPS) was $(0.51); Non-GAAP adjusted diluted EPS was $(0.63).
• Total backlog stood at $1,198 million as of September 30, 2026, an increase of $242 million (25%) from the prior quarter.
• Cash and cash equivalents increased to $69.3 million at period end from $31.9 million at December 31, 2025.
• Long-term debt increased to $540.3 million from $442.9 million at the end of 2025.
• Free cash flow for the quarter was $(40.8) million, compared to $60.6 million in the prior year period.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $65.8 million, compared to $69.1 million provided in the prior year period.

Guidance and Future Outlook:

• Fourth quarter 2026 revenue guidance is set at a midpoint of $435 million, with a range of $420 million to $450 million.
• Fourth quarter 2026 Non-GAAP adjusted EPS guidance is a range of $(0.75) to $(0.55).
• Management expects market conditions and financials to improve sequentially after the fourth quarter.
• The company anticipates conditions required for a broader recovery are solidly in place based on customer order activity.

Business Segments and Product Lines:

• Transportation Solutions: Generated net sales of $407.9 million, an increase of 21.9% year-over-year. Operating loss was $7.5 million (1.8% margin).
  • New trailer shipments totaled 9,563 units, up from 6,675 units in the prior year quarter.
  • New truck body shipments totaled 1,685 units, down from 3,067 units in the prior year quarter.
• Parts & Services: Generated net sales of $69.4 million, an increase of 13.8% year-over-year. Operating income was $5.8 million (8.3% margin).
  • Parts & Services generated positive revenue growth year-over-year.
• Management aggressively pulled forward capacity addition actions into Q3 to increase dry van output, moving actions previously scheduled for Q1 and Q2 of 2027.

Market and Competitive Landscape:

• The company reported strong shipments in the core Dry Van market.
• Backlog growth of 25% quarter-over-quarter outperformed traditional seasonal trends.
• Management cited explicit and material evidence of demonstrated customer demand.

Risks and Challenges:

• The business operates in a highly cyclical industry with uncertain economic conditions.
• Risks include potential customer demand not meeting expectations, backlog not reflecting future sales, increased competition, and reliance on certain customers and partnerships.
• Challenges involve potential customer pick-up delays, raw material shortages and costs (including tariffs), supplier constraints, labor costs and availability, and the ability to execute on manufacturing improvements and cost containment.

Management Commentary and Tone:

• Brent Yeagy, President and CEO, described the results as "another step forward" in a transition year.
• Management expressed confidence that conditions for a broader recovery are solidly in place due to scale in customer order activity.
• The tone indicates a strategic shift to align capacity additions with current demand rather than waiting for future quarters.

Other Key Points:

• The company recognized a $7.5 million gain on the sale of a manufacturing facility during the quarter.
• Facility idling costs of $0.5 million were recorded.
• Dividends declared per share for the quarter were $0.08.
• Proceeds from the issuance of Convertible Notes were $150 million during the nine-month period.
• Borrowings under revolving credit facilities totaled $201.9 million, with payments of $246.9 million in the nine-month period.
• No stock repurchases occurred in the current nine-month period, compared to $33.1 million in the prior year period.
• An acquisition net of cash acquired cost $2.9 million in the nine-month period.
• The company reported a $81.2 million Missouri legal matter expense in the prior year quarter, which was not present in the current quarter.