Wabash Announces Second Quarter 2024 Results

Quarterly revenue of $551 million; within prior quarterly outlook range

Operating income of $44 million with operating margin of 7.9%

Quarterly diluted earnings per share of $0.64 exceeds prior quarterly outlook range

Total backlog of $1.3B; Q2 sequential reduction slightly more than usual seasonality

2024 revenue and EPS outlook ranges reduced to $2.0B – $2.2B and $1.50 – $1.60, respectively

Wabash, the innovation leader of connected solutions for the transportation, logistics and distribution industries, reported results for the quarter ended June 30, 2024.

The Company’s net sales for the second quarter of 2024 were $550.6 million, reflecting a 19.8% decrease compared to the same quarter of the previous year. The Company achieved consolidated gross profit of $89.7 million, equivalent to 16.3% of sales. Operating income amounted to $43.8 million, representing 7.9% of sales for the quarter. Second quarter diluted earnings per share was $0.64.

As of June 30, 2024, total Company backlog stood at approximately $1.3 billion, a decrease of 28% compared to the first quarter of 2024 as new order activity slowed. While backlog has sequentially declined during the second quarter in each of the last five years, the reduction in 2024 was slightly more than prior years due to continued freight market weakness. Backlog expected to be shipped within the following 12-months amounted to approximately $1.0 billion as of June 30, 2024.

“While the demand environment has incrementally weakened during the first half of 2024, our team has executed well, as shown by second quarter EPS generation that exceeded our prior outlook range,” said Brent Yeagy, president and chief executive officer. “We are in the process of demonstrating a new level of stability within our through-the-cycle financial performance thanks to the enhanced diversity of our first-to-final mile portfolio of transportation solutions and our complementary parts and services business. Our EPS outlook midpoint of $1.55 falls squarely in the middle of the financial performance of peak years like 2018 or 2019, reflecting the resilience we have built within our portfolio and the structural improvements we’ve made to our base business.”

For the full-year ending December 31, 2024, the Company reduced its revenue outlook to a range of approximately $2.0 billion to $2.2 billion with a midpoint of $2.1 billion and reduced its EPS guidance to a range of $1.50 to $1.60 with a midpoint of $1.55.

“With greater information on customers’ capital expenditure plans, we feel it’s appropriate to reduce our full year guidance,” explained Yeagy. “As we have continued to refine our financial outlook for the year, it’s important to remember that the overarching theme remains unchanged: Wabash is on track to achieve the best financial performance on record during a correction in our industry. Furthermore, as we look to 2025, we anticipate that there is a wide range of potential market outcomes that will allow Wabash to generate year-on-year EPS growth given the strength we anticipate in TaaS specifically, Parts & Services more broadly, and our truck body business. Wabash has never been better positioned to capitalize on the next period of freight expansion. We are focused on continuing our progress toward achieving outsized strategic growth that is both more resilient and more profitable.”

Business Segment Highlights

During the second quarter, Transportation Solutions generated net sales of $498.7 million, a decrease of 20.9% compared to the same quarter of the previous year. Operating income for the quarter amounted to $56.9 million, representing 11.4% of sales.

Parts & Services’ net sales for the second quarter were $54.9 million, a decrease of 11.5% compared to the prior year quarter. Operating income for the quarter amounted to $12.1 million, or 22.0% of sales.

About Wabash

Wabash (NYSE: WNC) is the visionary leader of connected solutions for the transportation, logistics and distribution industries that is Changing How the World Reaches You^®. Headquartered in Lafayette, Indiana, the company enables customers to thrive by providing insight into tomorrow and delivering pragmatic solutions today to move everything from first to final mile. Wabash designs, manufactures, and services a diverse range of products, including: dry freight and refrigerated trailers, flatbed trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at www.onewabash.com.

Contact:

Dana Stelsel – Director, Communications – dana.stelsel@onewabash.com – (765) 771-5766

Source: Wabash National Corporation