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    WNC
    Earnings call· Jun 2026(Q2 FY26)

    WABASH NATIONAL Q2 FY26 earnings call WNC

    Jul 29, 2026 Source

    Executive summary

    Wabash National Q2 FY26 — Backlog Growth and Freight Market Recovery Signals

    Wabash National reported Q2 FY26 results showing early signs of freight market recovery, evidenced by strong backlog growth and improved liquidity. While profitability remains challenged by unrecovered material costs, management is proactively addressing pricing and capacity to prepare for an anticipated upcycle. The company is focused on disciplined execution and market share capture as demand improves, with expectations for sequential profitability improvement in the second half of the year.

    Highlights

    5

    • Backlog grew to $956 million at Q2 FY26 close, a 14% increase QoQ, marking the first time in company history for Q2 backlog growth.

    • Consolidated revenue was $417 million, above expectations.

    • Total liquidity increased to $193 million, up 17% vs. prior quarter, strengthened by $150 million in convertible notes.

    • Injury rate improved for the fourth consecutive quarter (13% vs Q1 FY26, 33% vs Q2 FY25) and total injuries down 15% YoY.

    • Parts and Services segment profitability improved, delivering $6 million in operating income.

    Concerns

    4

    • Adjusted non-GAAP operating margin was negative 5.6%, impacted by higher material costs not fully recovered through pricing.

    • Adjusted non-GAAP net income was negative $21.6 million, or negative $0.53 per diluted share, due to material cost vs. price relationship.

    • Q3 FY26 adjusted EPS expected in a loss range of $0.50 to $0.40.

    • Q4 FY26 expected to experience some top-line deterioration versus Q3 due to typical seasonality.

    Guidance & targets

    8
    CategoryTargetConfidence
    Revenue
    $440M to $460M
    high materiality
    High
    Adjusted Earnings Per Share
    loss range of 50 cents to 40 cents per share
    high materiality
    High
    Operating Margin
    approximately negative 4%
    medium materiality
    High
    Top Line
    deterioration versus the third quarter
    medium materiality
    Medium
    Adjusted Earnings Per Share
    continuing to improve sequentially
    high materiality
    Medium
    Positive EBITDA
    positive EBITDA
    high materiality
    High
    Normalized EBITDA
    $150M-$170M
    high materiality
    High
    Revolving Credit Agreement Refinancing
    $300 million committed
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Transportation Solutions
    Supported by improved volume and better leverage of the cost base. Expect sequential improvement as pricing adjusts to offset cost pressures.
    Returned to positive gross margin
    		$355 million——operating loss of $12.1 million
    Parts and Services
    Segment profitability improved versus the prior quarter, reflecting a step up in upfit business profitability. Progress on digital technology and AI tools for parts findability and availability expected to create additional revenue and margin opportunities.
    Profitability improved versus prior quarterBenefit of steady ramping at new upfit sites
    		$63 million——operating income of $6 million

    Operational metrics

    23
    Injury rate
    improved13% vs Q1 FY26, 33% vs Q2 FY25
    Q2 FY26

    successfully improved our injury rate for the fourth consecutive quarter 13 versus q1 of 2026 33 versus q2 of 2025

    Total injuries
    down 15%YoY
    YoY

    total injuries are down 15 percent year over year.

    Spot rates
    40% above last yearYoY
    June

    Spot rates continued to strengthen, rising from roughly 14% above prior year levels at the end of the first quarter to approximately 40% above last year by June, surpassing contract rates.

    Tender rejection rates
    above 16%highest levels since 2018
    Q2 FY26

    Tender rejection rates have moved above 16%, which represents the highest levels since 2018.

    ISM Manufacturing Index
    in expansionary territory
    six consecutive months

    the ISM Manufacturing Index has been in expansionary territory for six consecutive months

    Logistics Managers Index
    reached its highest level since early 2022highest level since early 2022
    Q2 FY26

    the Logistics Managers Index reached its highest level since early 2022.

    Consolidated Revenue
    $417 millionabove expectations
    Q2 FY26

    For the second quarter of 2026, consolidated revenue was $417 million, above the expectations we communicated on our first quarter earnings call.

    New trailers shipped
    8,292
    Q2 FY26

    During the quarter, we shipped 8,292 new trailers

    Truck bodies shipped
    1,380in line with expectations
    Q2 FY26

    and 1,380 truck bodies. Truck body volumes were in line with our expectations, with the second quarter expected to represent the low point for the year.

    Adjusted Non-GAAP Gross Margin
    4.1%return to positive
    Q2 FY26

    An adjusted non-GAAP gross margin was 4.1% of sales, marking a return to positive gross margin.

    Adjusted Non-GAAP Operating Margin
    negative 5.6%
    Q2 FY26

    An adjusted non-GAAP operating margin was negative 5.6%.

    Adjusted Non-GAAP EBITDA
    negative $9 million
    Q2 FY26

    Adjusted non-GAAP EBITDA for the quarter was negative $9 million or negative 2.1% of sales.

    Adjusted Non-GAAP Net Income attributable to common shareholders
    negative $21.6 million
    Q2 FY26

    Adjusted non-GAAP net income attributable to common shareholders was negative $21.6 million

    Adjusted Non-GAAP Diluted EPS
    negative $0.53within guidance range
    Q2 FY26

    or negative $0.53 per diluted share. was within our guidance range

    Total Liquidity
    $193 million17% up versus the prior quarter
    Q2 FY26

    June 30th total liquidity including cash and available borrowings was 193 million, 17 percent up versus the prior quarter.

    Cash Balance
    just over one-third of the 193 million
    Q2 FY26

    Cash makes up just over one-third of the 193 million with the remainder being available borrowings on our existing revolving credit agreement.

    Capital Expenditure
    $2 million
    Q2 FY26

    During the second quarter, we spent approximately $2 million on traditional capital expenditure

    Dividends Returned to Shareholders
    $3.3 million
    Q2 FY26

    and returned $3.3 million to shareholders through our quarterly dividend.

    Material Margin Improvement
    200 to 300 basis pointsvs Q3 FY26
    Q4 FY26

    Going into Q4, we expect that number to incrementally get better, the material margin percent by 200 to 300 basis points.

    Dry Van Pricing
    $39.5k to $41.5kcomparable to 2022 levels
    FY27

    I think when you start looking at 2022 and you think about dry vans in the, I'll say, you know, we'll say spec agnostic right now. In that 39.5 to 41.5 range is something that is appropriate for where the market is in terms of the cost base that we have right now.

    Dry Van Market Share
    about 23%
    FY26

    On the dry van side, we're sitting at about 23% market share as we think about 2026 right now.

    Tank Market Share Growth
    arguably 800%. 100 plus basis point basis points
    last two years

    We actually have grown market share there arguably 800%. 100 plus basis point basis points over the last two years.

    Materials Procured from US
    approximately 95%
    Q2 FY26

    our sourcing strategy with approximately 95% of our materials procured from the US.

    Industry KPIs

    6
    MetricValueDetails
    Capacity expansion10,000 unitsunits
    Tariff cost impact82% to 129%%
    Parts aftermarket businessmid to high teens%
    Incremental margin operating leverage200 to 300 basis pointsbps
    Order backlog order intake by segment$956 millionUSD
    Industry production market size forecasts260,000 unit total trailer rangeunits

    Orderbook & backlog

    1
    Total Backlog$956 millionQ2 FY26 close

    14% increase quarter over quarter

    First time in company's history that we had experienced backlog growth in the second quarter.

    Deals & partnerships

    2
    nullIssuance of convertible senior notes to enhance balance sheet flexibility$150 million

    Wabash announced its intention to issue convertible senior notes and, after the close of the quarter, secured $150 million of additional liquidity, less associated expenses.

    Multiple lendersRefinancing and extension of revolving credit agreementup to $300 million

    As part of our broader capital strategy, we are also continuing to pursue the refinancing of a revolving credit agreement. Multiple lenders have committed to funding and extending the agreement up to $300 million.

    Capital programs

    1
    Lafayette Southland facilitycompleted

    Benefit: added 10,000 units of dry van capacity

    including the Lafayette Southland, which added 10,000 units of dry van capacity

    Risks & headwinds

    3
    Higher material costs not fully recovered through pricingNear term (Q2, Q3 FY26)

    Adjusted non-GAAP operating margin was negative 5.6%, Adjusted non-GAAP net income attributable to common shareholders was negative $21.6 million or negative $0.53 per diluted share

    Mitigation: Pricing will be gained incrementally as 2026 progresses and newly quoted deals layer into existing backlog and become more impactful as we move through 2027.

    Macro disruptors, geopolitical tensions, and broader economic impactsOngoing

    ongoing potential for macro disruptors, geopolitical tensions, and broader economic impacts that could influence overall market recovery.

    Mitigation: continue to monitor market sentiment closely, continue to provide quarterly guidance while this transitionary period converts into a more stable environment.

    Typical seasonality leading to Q4 top-line deteriorationQ4 FY26

    fourth quarter to experience some top line deterioration versus the third quarter

    Mitigation: continuing to improve sequentially in earnings per share as cost recovery through pricing begins to filter into the financials and we benefit from focus cost control actions.

    What to watch in Q3 FY26

    5

    Q3 FY26 Revenue and Adjusted EPS

    Next quarter (Q3 FY26 results)
    CurrentQ2 FY26 Revenue $417M, Adj EPS -$0.53
    TargetRevenue $440M-$460M, Adj EPS -$0.50 to -$0.40

    Why it matters

    To confirm sequential improvement and progress towards profitability as guided by management.

    For the 3rd quarter, we expect revenue in the range of 440M to 460M dollars and adjusted earnings per share in the loss range of 50 cents. The 40 cents per share

    Q&A highlights

    6

    Characterize the drivers of current EPS challenges and the expected improvement from pricing in the existing backlog.

    Management confirmed that current challenges stem from working through lower-priced backlog from Q1/early Q2 and ramp-up inefficiencies. They have strong visibility to substantial pricing increases implemented over the last 9-12 weeks, which will impact late Q3 and primarily Q4/FY27, leading to profitability recovery.

    “So this is a really good one answer too. So, yes, so where you're heading is exactly where we're at. If you think about just where we were in the first quarter, the uncertainties that we had, how backlog was being kind of executed in Q1 and early Q2, we weren't really in a great place from a pricing standpoint.”

    asked by Michael Shlisky · answered by Brent Yeagy

    2 min read6 chapters

    Detailed Narrative

    01

    Freight Market Recovery and Order Book Strategy

    Wabash observed strengthening freight market fundamentals, including rising spot rates (40% above prior year by June) and tender rejection rates (above 16%, highest since 2018). The company opened its 2027 order book earlier than usual in late June to provide customers with better visibility and certainty on delivery windows and pricing, a strategy that has been well-received and is contributing to strong order intake.

    02

    Liquidity and Balance Sheet Flexibility

    Wabash secured $150 million in additional liquidity through a convertible senior notes offering post-quarter end, intended for general corporate purposes and working capital needs to support production ramp-up. This action, along with the nearing completion of a $300 million revolving credit agreement refinancing, enhances the company's financial flexibility to manage market recovery and strategic initiatives.

    03

    Pricing and Cost Recovery

    The company is actively pursuing price recovery to offset inflationary costs absorbed over the past two to three years. While Q2 and Q3 margins are still impacted by the material cost-price relationship, new pricing actions are expected to improve material margins by 200-300 basis points in Q4 FY26 and continue into FY27, aiming to restore historical profitability levels.

    04

    Anti-Dumping and Countervailing Duties

    Significant progress was made in the anti-dumping and countervailing duty case, with affirmative preliminary rulings. Duties for China range from 82% to 129% for CVD and 131% for AD. Mexico faces approximately 2% CVD, with AD duties expected soon. These actions, combined with existing Section 232 tariffs (25% on full customs value), are stackable and aim to level the playing field for domestic manufacturers.

    05

    Segment Performance and Future Outlook

    The Transportation Solutions segment returned to positive gross margin, supported by improved volume, though operating margin remained negative. The Parts and Services segment saw improved profitability, driven by ramping up new upfit sites and ongoing development of digital tools for parts findability and availability, which are expected to create additional revenue and margin opportunities.

    06

    Market Share Recapture

    Wabash aims to recapture market share, targeting 25% initially from its current 23% in dry vans. This will be driven by leveraging known and sustainable capacity to serve a broader range of direct customers and provide larger allocations to dealers, combined with reasonable pricing. The company also noted significant market share growth in the tank market despite overall dismal demand.

    AI-generated summary of the company’s earnings call. Not investment advice.