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1. Company Snapshot

1.a. Company Description

Wabash National Corporation designs, manufactures, and distributes engineered solutions for the transportation, logistics, and distribution industries primarily in the United States.The company operates through two segments, Transportation Solutions and Parts & Services.The Transportation Solutions segment provides dry van and platform trailers; refrigerated trailers; converter dollies; van bodies for dry-freight transportation; cutaway van bodies for commercial applications; service bodies; insulated van bodies; stake bodies; refrigerated truck bodies; and used trailers, as well as laminated hardwood oak flooring products.


This segment also offers stainless steel and aluminum tank trailers for the dairy, food and beverage, oil, gas, and chemical end markets; dry bulk trailers; and fiberglass reinforced poly tank trailers.The Parts & Services segment provides aftermarket parts and services; aluminum and steel flatbed bodies, shelving for package delivery, partitions, roof racks, hitches, liftgates, and thermal solutions; and door repair and replacement, collision repair, and basic maintenance services.This segment also offers stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech end markets; and composite products, including truck bodies, overhead doors, and other industrial application products.


The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand.It distributes its products directly, as well as through its retail operations and independent dealers to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers.The company was founded in 1985 and is headquartered in Lafayette, Indiana.

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1.b. Last Insights on WNC

Negative drivers behind Wabash National Corporation's recent performance include a challenging Q4 2024, with the company's earnings not meeting expectations. The verdict in the Williams et al. v. Wabash case, which resulted in a $450 million punitive damage award, was a significant overhang. However, a Circuit Court later reduced the punitive damages award to $108 million, providing some relief. Additionally, the company's Q4 2024 earnings call transcript highlighted weak demand and pricing pressure in the trailer market.

1.c. Company Highlights

2. Wabash's Q3 2025 Earnings: A Challenging Environment

Wabash reported a revenue of $382 million in Q3 2025, with a gross margin of 4.1% and an adjusted operating margin of negative 6.2%. The adjusted EBITDA was negative $5 million, and adjusted net income was negative $21.2 million, resulting in an actual EPS of -$0.51, which missed estimates of -$0.23909. The company's financial performance was impacted by softer market conditions, with demand across the transportation industry remaining below expectations.

Publication Date: Nov -18

📋 Highlights
  • Q3 Revenue Decline: Consolidated revenue fell to $382M in Q3 2025, below expectations.
  • Parts & Services Growth: Revenue increased 16% YoY, driven by 540 upfit units shipped in Q3.
  • Legal Settlement Impact: A $30M settlement (vs. $450M jury verdict) led to an $81M net adjustment in Q3.
  • Revised Guidance: Full-year revenue now at $1.5B midpoint, with adjusted EPS guidance at -$2.
  • Fourth-Quarter Outlook: Revenue projected between $300M-$340M, with adjusted EPS at -$0.70 to -$0.80.

Segment Performance

The parts and service business delivered both sequential and year-over-year revenue growth in Q3, demonstrating its resilience. Revenue increased 16% year-over-year and 2% sequentially, driven by the upfit business, which shipped over 540 units in Q3 and about 1,500 units year-to-date. Mike Pettit mentioned that the upfit business is expected to continue growing into 2026 and beyond, with another new upfit center opening in Phoenix in the fourth quarter.

Outlook and Guidance

Wabash revised its full-year 2025 guidance to midpoints of $1.5 billion in revenue and approximately negative $2 in adjusted EPS. The company expects the fourth quarter to be the weakest of the year, with revenue in the range of $300 million to $340 million and EPS between negative $0.70 and negative $0.80. The outlook for 2026 is more positive, with analysts estimating revenue growth at 15.5%.

Valuation and Cash Flow

Given the current challenges, Wabash's valuation metrics appear reasonable, with a P/S Ratio of 0.19 and an EV/EBITDA of 1.69. The company's free cash flow yield is 40.07%, indicating a strong ability to generate cash. The net debt to EBITDA ratio is 0.92, suggesting a manageable debt burden. Wabash's focus on cost discipline and cash management is expected to help navigate the near-term headwinds.

Tariffs and Industry Trends

The company expects a minimal impact from tariffs in Q3 and Q4, but anticipates increased price increases from suppliers in 2026. The Section 232 finding aims to level the playing field for domestic OEMs, and Wabash estimates a minimal $1 million impact from tariffs in Q3. The trailer market is expected to stabilize, driven by tailwinds such as data center and infrastructure spending, potentially leading to increased demand in 2026.

3. NewsRoom

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AXQ Capital LP Acquires 7,955 Shares of Wabash National Corporation $WNC

Nov -25

Source: defenseworld.net

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Wabash Announces Quarterly Dividend

Nov -20

Source: globenewswire.com

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Wabash National Corporation (WNC) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Wabash Announces Third Quarter 2025 Results

Oct -30

Source: globenewswire.com

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Wabash Redefines Trailer Accessibility with Trailers as a Service

Oct -09

Source: globenewswire.com

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UPDATE — Wabash Schedules Third Quarter 2025 Earnings Conference Call

Oct -07

Source: globenewswire.com

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UPDATE — Wabash Schedules Third Quarter 2025 Earnings Conference Call

Oct -07

Source: globenewswire.com

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Wabash Opens Midwest Parts and Services Center in Chicagoland

Sep -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.95%)

6. Segments

Transportation Solutions

Expected Growth: 9.33%

Wabash National Corporation's Transportation Solutions segment growth of 9.33% is driven by increasing demand for refrigerated trailers, growth in final mile delivery, and rising adoption of digital freight brokerage platforms. Additionally, the company's focus on innovation, cost savings initiatives, and strategic acquisitions have contributed to the segment's growth.

Parts & Services

Expected Growth: 4.83%

Wabash National Corporation's Parts & Services segment growth of 4.83% is driven by increasing demand for trailer maintenance and repair services, growth in the fleet of trailers in operation, and rising sales of aftermarket parts. Additionally, the company's strategic acquisitions and expansion of its distribution network have contributed to the segment's growth.

7. Detailed Products

Dry Freight Trailers

Wabash National Corporation offers a range of dry freight trailers designed for hauling dry goods, including refrigerated and non-refrigerated cargo.

Refrigerated Trailers

Wabash National's refrigerated trailers are designed for temperature-controlled transportation of perishable goods, such as food, pharmaceuticals, and other temperature-sensitive products.

Flatbed Trailers

Wabash National's flatbed trailers are designed for hauling oversized, heavy, or unusual cargo, including construction equipment, machinery, and building materials.

Tank Trailers

Wabash National's tank trailers are designed for hauling bulk liquids, including petroleum products, chemicals, and food-grade liquids.

Intermodal Containers

Wabash National's intermodal containers are designed for transporting goods by rail, truck, and sea, providing a seamless and efficient logistics solution.

Platform Trailers

Wabash National's platform trailers are designed for hauling oversized, heavy, or unusual cargo, including construction equipment, machinery, and building materials.

Beverage Trailers

Wabash National's beverage trailers are designed for hauling bulk beverages, including beer, soda, and other carbonated drinks.

Wabash Composites

Wabash National's composite products, including truck bodies and components, offer a lightweight and durable solution for the transportation industry.

8. Wabash National Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Wabash National Corporation operates in the trucking industry, where substitutes are limited. However, the rise of digital platforms and logistics companies may pose a moderate threat to the company's business model.

Bargaining Power Of Customers

Wabash National Corporation's customers are primarily large corporations and logistics companies, which have limited bargaining power due to the company's specialized services and long-term contracts.

Bargaining Power Of Suppliers

Wabash National Corporation relies on a few large suppliers for its trucking equipment and maintenance services. While suppliers have some bargaining power, the company's scale and long-term contracts mitigate this risk.

Threat Of New Entrants

The trucking industry has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants would face significant challenges in competing with established players like Wabash National Corporation.

Intensity Of Rivalry

The trucking industry is highly competitive, with many established players competing for market share. Wabash National Corporation faces intense rivalry from companies like J.B. Hunt Transport Services and Schneider National.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.46%
Debt Cost 6.36%
Equity Weight 57.54%
Equity Cost 11.96%
WACC 9.59%
Leverage 73.80%

11. Quality Control: Wabash National Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lindsay

A-Score: 6.0/10

Value: 5.3

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Alamo Group

A-Score: 5.8/10

Value: 5.2

Growth: 7.1

Quality: 6.6

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Wabash

A-Score: 4.9/10

Value: 9.6

Growth: 3.3

Quality: 6.5

Yield: 6.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Hyster-Yale

A-Score: 4.9/10

Value: 7.0

Growth: 6.4

Quality: 3.6

Yield: 7.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Gencor

A-Score: 3.9/10

Value: 5.3

Growth: 7.4

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.32$

Current Price

9.32$

Potential

-0.00%

Expected Cash-Flows