Wabash National Corporation Q1 FY2026 earnings call

Mike Bennett transitioning out; market environment in first quarter with uncertain freight markets, but early signs of stabilization; priorities of controlling costs, protecting margins, executing long-term strategy; execution focus in Q1 with improving key operating metrics; backlog increased 19% to $837 million; digital enablement as key differentiator; upfit business progress with new sites; workplace safety improvement with lower injury rates.

Transportation Solutions generated $250 million in revenue and reported an operating loss of $34.5 million on a non-GAAP basis. Parts and services delivered $54 million in revenue and negative $2 million of operating income on a non-GAAP basis. Segment profitability was adversely affected during the quarter as startup costs for newly established upfit sites were incurred which have not yet begun generating revenue, resulting in a heavier cost burden as volumes are still ramping.

Second quarter revenue expected in range of $380 million to $400 million, adjusted EPS in range of negative $0.40 per share to negative $0.60 per share; Q1 2026 expected to be low point of year with sequential improvement expected; capital expenditures under close review with modest sequential growth expected in Q2 spending following first quarter deferral actions.

Q: First, on the guidance you put out there for next quarter, are your backlogs now that we are already well past order season and well past even March fully booked for the quarter, or are you still waiting on a few orders here?

A: Yes, good question. We have complete visibility on the backlog that went into our guidance.

Q: I also want to ask about the truck body business. I assume that some of the very largest truck buyers that you make are some of the weaker areas—if I am wrong, correct me there—and what are you looking for, macro-wise, in truck bodies to really feel good that things will, in fact, get better after the next quarter or two here?

A: Yes, so I would say that truck bodies are really being impacted across, I would say, Class 2–3 all the way up to predominantly Class 6. As we sit here today, that is the majority of truck bodies that we are going to produce. I would not say there is a tremendous difference in the classes at this point, and it kind of goes to the second part of your question. We really need to see some of the discretionary-spending-related areas pick up, which is really going to reflect in the overall sentiment of the consumer as we go forward. I think the other parts of it are that the generation and consumption of some of the more consumable discretionary products—we are starting to see some movement in manufacturing—need to continue and hold as we move into 2027. Housing is a substantial part of the equation, especially when you think about some of the largest consumers of truck bodies to support their rental businesses, which is really predicated on the movement of people into those new homes. So the housing market is a market that we are really paying attention to right now.

Q: Maybe can you also update us on your current status and plan for reefers? Do you think you have to hire or get a ramp-up period to get that started again and get that rolling? And if you see improvement in demand generally—dry vans too—do you have the people that you need to ramp that up once that arrives?

A: We will start with the dry van piece. As we approach 2027, we are in a good place in terms of installed capacity sitting here approaching midyear of 2026. With the shifts that we have running and our ability to flex those to meet initial demand, coupled with the efficiencies that we have gained with our South plant, the relative hiring needs that we will have on the early stages of the ramp are somewhat muted for us based on all those actions. Now, as the ramp continues into the later half of 2027, there will be additional hiring that will have to be done to add additional shifts, which would be expected as we meet that demand. Specifically with refrigerated, we are still going down the process of development of a repositioned refrigerated van product. We have done low-level capital purchases in order to address long lead-time areas. We remain committed to working through a deployment schedule for that to be a material addition to Wabash National Corporation as the cycle progresses.