929566AH0 Filings — Wabash National Corporation - FilingSpy
929566AH0
Wabash National Corporation
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A maker of semi-trailers and truck bodies, Wabash National builds dry and refrigerated van trailers, platform and tank trailers, and truck bodies using its own DuraPlate composite panels, plus aftermarket parts and digital services. Three former Monon Trailer executives founded the company in 1985 in Lafayette, Indiana, after their offer to buy their old employer was refused. The name comes from the nearby Wabash River, whose Miami-tribe name means "water flowing over white stones."
Gross margin turned negative at -3.5% as dry van and truck body volumes collapsed, driving a $52.4M operating loss.
Wabash National's fell below zero for the second straight quarter. dropped 20.4% to $303.2 million and gross margin was -3.5% as dry van and truck body shipments collapsed, while the company drew $115 million on its credit line and rose to $498 million. The manufacturing business is burning cash, and the company is now relying on a July 2026 notes offering to fund operations.
Key takeaways
was -3.5%, down from 5.0% a year ago and -1.9% in Q4 2025, as lower dry van and truck body shipments slashed in the Transportation Solutions .
Transportation Solutions sales fell 27.9% to $250.2 million, with new trailer shipments down 14.5% and truck body shipments down 49.1%.
Parts & Services sales rose 4.1% to $54.1 million, but fell 53.3% to $4.9 million due to higher overhead from a facility startup and lower Components sales.
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales fell 9.1% to $417M; gross profit dropped 63% to $15M on weaker truck body/trailer mix and P&S expansion costs.
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Consolidated decreased 9.1% to $417.2M, driven by an 11.4% drop in Transportation Solutions (TS) sales, partially offset by 6.1% growth in Parts & Services (P&S).
General and administrative expenses rose 110.5% to $32.1 million, largely because the prior-year period included a $304.7 million credit from reducing a product-liability reserve.
Liquidity fell 47% to $165.1 million, driven by lower availability and a cash balance of $43.4 million, while rose 19.3% to $498.0 million.
Total of $837 million rose 19% from year-end 2025 but fell 32% , reflecting softened trailer and truck body demand.
What changed
The Q1 2026 watch item on whether could turn positive in Q2 was answered: it did not. Gross margin remained negative at -3.5%, though this was an improvement from Q1's -3.5% figure, indicating the decline has at least stopped accelerating.
The Parts & Services , previously flagged as a potential counterweight, saw its fall 53.3% despite 4.1% sales growth, as facility startup costs and overhead overwhelmed the increase — the margin recovery that was hoped for did not materialize.
Liquidity pressure intensified: the $37.1 million free cash outflow in Q1 was followed by another $33.7 million outflow in Q2, and borrowings reached $115 million, confirming the earlier concern that the cash drain was not a one-quarter event.
Total rose 19% from year-end 2025 to $837 million, a potential early sign of stabilization after the prior quarter's watch item asked whether the $829 million level represented a trough.
What to watch
Whether the July 2026 $150 million notes offering and the accelerated 2027 dry van order cycle can stabilize liquidity and reverse the drain in Q3 2026.
Whether can turn positive in Q3 2026 as the Little Falls facility idling takes full effect and the 2027 order cycle begins converting to .
The outcome of the final injury determination in the trade investigation into unfairly traded van trailer imports from China, Canada, and Mexico, expected in Q3 2026, and its impact on domestic trailer pricing and volumes.
Whether the Parts & Services can translate its 6.1% Q2 sales growth into improvement once facility startup costs are absorbed, or whether overhead expansion continues to outpace .
TS plunged 79.1% to $6.0M (1.7% margin) as lower truck body and tank trailer shipments outweighed higher dry van and platform trailer volumes.
P&S fell 27.0% to $9.3M (14.7% margin) as higher overhead, lease, and start-up costs from network expansion outpaced a 6.1% sales increase.
Total compressed to 3.7% from 9.0% a year ago, while general and administrative expenses declined 12.5% on lower professional fees and employee-related costs.
Liquidity stood at $192.8M as of June 30, 2026, down 38% , with $115.0M drawn on the ; total rose 36% from year-end to $956M.
The company accelerated the 2027 dry van order cycle, contributing to a 45% increase in 12-month , and expects to fund operations via cash flow, , and a July 2026 $150M notes offering.
Quantitative and Qualitative Disclosures About Market Risk
Commodity, interest-rate, and FX exposures are disclosed with sensitivity figures; commodity risk is the most material.
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Raw-material commodity exposure (aluminum, steel, lumber, nickel, copper, polyethylene) is managed via supplier fixed-price contracts and .
As of June 30, 2026, raw-material purchase commitments rose to $61.7M from $21.5M at year-end 2025, with a hypothetical 10% price move impacting by ~$6.2M.
Floating-rate debt of $115.0M under the Agreement drives interest-rate risk; a 100-basis-point shift would change annual by ~$1.2M.
Senior Notes carry a fixed 4.50% rate and are the only other debt on the balance sheet, insulating that portion from rate moves.
Mexican-peso exchange-rate exposure is deemed immaterial; a 10% move would not significantly affect results, and the company does not use derivatives for speculation.
See Item 3 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2025. See also Note 14, “Commitments and Contingencies”, to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report.
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See Item 3 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2025. See also Note 14, “Commitments and Contingencies”, to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report.
Cyclical demand, unfair imports, and supply chain constraints remain the dominant risks, with new emphasis on trade cases and AI.
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Unfairly traded van trailer imports from China, Canada, and Mexico are under active U.S. trade investigation, with final injury determination expected in Q3 2026.
Customer concentration is material, with the top five customers accounting for approximately 35% of 2025 , though no single customer exceeded 10%.
Supply chain disruptions and reliance on a limited number of suppliers for key components like specialty steel and aluminum continue to threaten production and margins.
The company highlights new risks around the use of artificial intelligence, including potential reputational harm, liability, and rapid regulatory evolution.
Execution of the long-term strategic plan, including scaling the Trailers as a Service (TaaS) initiative and wholly owning Linq Venture Holdings LLC, carries significant operational and financial risk.
Inflation, labor shortages, and potential chassis supply volatility from major OEMs like GM and Ford could further pressure costs and production.