• Consolidated Revenue: $417 million for Q4 2024.
• Gross Margin: 10.3% of sales in Q4 2024.
• Operating Margin: 0.9% in Q4 2024.
• Adjusted EBITDA: $21.1 million or 5.1% of sales in Q4 2024.
• Net Loss: $1 million or negative $0.02 per diluted share in Q4 2024.
• Transportation Solutions Revenue: $370 million in Q4 2024.
• Parts and Services Revenue: $48.6 million in Q4 2024.
• Full Year Operating Cash Generation: $117 million for 2024.
• Free Cash Flow: $38 million for 2024.
• Liquidity: $422 million as of December 31, 2024.
• Net Debt Leverage Ratio: 1.7 times at the end of Q4 2024.
• Share Repurchases: Approximately 2.9 million shares repurchased in 2024, reducing share count by about 6%.
• 2025 Revenue Guidance: $1.9 billion to $2.1 billion.
• 2025 EPS Guidance: $0.85 to $1.05.
• 2025 Operating Income Expectation: $80 million at the midpoint, approximately 4% operating margins.
• Q1 2025 Revenue Expectation: $420 million to $450 million.
• Q1 2025 EPS Expectation: Negative $0.20 to negative $0.30.

• Warning! GuruFocus has detected 3 Warning Sign with WNC.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wabash National Corp (NYSE:WNC) demonstrated improved resilience in its business portfolio during the industry down cycle, maintaining a strong balance sheet.
• The company has diversified its portfolio with first-to-final mile solutions, stabilizing performance despite freight market weakness.
• Significant strides were made in growing recurring parts and services revenue streams, including joint ventures with HDI and Turnway Group.
• Wabash National Corp (NYSE:WNC) has expanded its preferred partner network, enhancing aftermarket support and ensuring expert service availability.
• The company is well-positioned to capitalize on near-shoring trends, potentially benefiting from increased North American manufacturing activity.

Negative Points

• The company reported a net loss of $1 million or negative $0.02 per diluted share for the fourth quarter.
• Gross margin was relatively low at 10.3% of sales, with operating margin at 0.9% during the quarter.
• Legal expenses related to a product liability trial are expected to be a headwind for margins in 2025.
• The freight market remains challenging, with slow dry van order season and customers cautious about booking orders.
• The company faces potential impacts from tariffs, although it has taken steps to mitigate these risks.

Q & A Highlights

Q: Can you explain the guidance for 2025, particularly the expected revenue increase but margin decline? A: Patrick Keslin, CFO, explained that the margin decline is due to increased SG&A expenses, including variable compensation and legal expenses related to a recent verdict.

Q: What key performance indicators (KPIs) are you tracking in the freight market, and which are most promising? A: Brent Yeagy, CEO, mentioned that they focus on subsegment freight generators within the carrier landscape. Some subsegments are showing positive movement, which was not the case last year, indicating potential market improvement.

Q: Can you provide more detail on the fourth quarter's weak profit margins, especially in the parts business? A: Patrick Keslin, CFO, noted that there were one-time events affecting Q4 margins in the parts business, which are not expected to repeat in 2025. Overall, volume leverage impacted margins due to lower shipments in transportation solutions.

Q: How is the trailers-as-a-service (TaaS) fleet expected to grow in 2025? A: Michael Pettit, Chief Growth Officer, stated that the TaaS fleet is currently between 500 and 1,000 units and is expected to grow significantly in 2025, driven by customer demand for capacity.

Q: How is Wabash positioned regarding potential tariffs and trailer pools? A: Brent Yeagy, CEO, explained that Wabash has minimized exposure to tariffs through strategic supply chain changes and has capacity to shift production domestically if needed. Trailer pools remain a valid concept, and Wabash is well-positioned to support this trend with its TaaS offering.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.