10-Q · May 1, 2026
Wabash National's Q1 2026 results show a significant decline in both revenues and net loss per share compared to the prior year, driven by decreased shipment volumes across segments. The company reported a 20.4% decline…
Earnings analysis · 10-Q
WNC earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Wabash's Q2 revenue of $417.241 million recovered sharply from Q1 and beat consensus, but remained 9.1% below the prior-year quarter as a 56.7% truck-body shipment decline weighed on Transportation Solutions. Gross…
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Wabash's Q2 revenue of $417.241 million recovered sharply from Q1 and beat consensus, but remained 9.1% below the prior-year quarter as a 56.7% truck-body shipment decline weighed on Transportation Solutions. Gross margin fell to 3.7% from 9.0%, producing a $25.295 million operating loss and $(0.56) GAAP EPS, while Parts & Services growth did not offset start-up and lease-cost pressure. Backlog improved substantially, but negative $28.5 million first-half operating cash flow, a 38% year-over-year liquidity decline to $192.8 million, and higher debt constrain the near-term setup.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-0.56
What stood out
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Revenue rebounded sequentially and beat consensus
Q2 revenue was $417.241 million, up 37.7% sequentially from $303 million in Q1 2026, and exceeded the supplied $389.000 million consensus estimate by $28.241 million. Revenue nevertheless declined $41.575 million, or 9.1%, from $458.816 million a year earlier.
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Parts & Services delivered sales growth
Parts & Services sales increased $3.643 million, or 6.1%, to $63.387 million. Growth reflected a $2.9 million increase in Process Systems and a $1.3 million increase in Aftermarket Parts, partly offset by a $1.2 million Components decline.
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Backlog increased materially
Trailing 12-month backlog rose to $876 million, up 52% from $576 million at December 31, 2025 and 45% from $602 million at June 30, 2025. Total backlog reached $956 million, 36% above $705 million at year-end.
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Trailer shipments grew despite weak truck bodies
New trailer shipments increased 249 units, or 3.1%, to 8,292, driven by higher dry-van and platform volumes. This partly offset a 1,808-unit, or 56.7%, decline in truck-body shipments to 1,380 units.
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Low capex intensity supported investing cash flow
Capital spending was limited to $5.5 million for property, plant and equipment plus $0.2 million for revenue-generating assets in the first half, equal to 0.8% of $720.470 million of six-month sales. Asset-sale proceeds of $21.9 million helped investing activities provide $7.1 million.
What to watch
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Margin collapse drove a wider quarterly loss
Gross margin compressed 530 basis points year over year to 3.7% from 9.0%, while gross profit fell $26.071 million, or 63.0%, to $15.329 million. The company recorded a $25.295 million operating loss, or a 6.1% operating margin, and GAAP EPS of $(0.56), versus $(0.23) a year earlier.
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Transportation Solutions remains under pressure
Transportation Solutions revenue declined $45.560 million, or 11.4%, to $354.654 million; segment gross profit fell 79.1% to $5.986 million and its gross margin dropped to 1.7% from 7.1%. Truck-body shipments declined 56.7% to 1,380 units, which management attributed to decreased demand.
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Liquidity declined as revolver debt increased
Liquidity was $192.8 million at June 30, down $119.1 million, or 38%, from June 30, 2025 and down $42.5 million, or 18%, from December 31, 2025. Revolving-credit borrowings were $115.0 million, total debt obligations were $515.0 million, and debt-to-equity was approximately 1.8:1.0.
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Operating cash burn and working-capital absorption
First-half operating cash flow was negative $28.5 million, compared with negative $16.1 million a year earlier. Receivables consumed $51.351 million of cash and DSO increased to 48 days from 41 days; inventories consumed another $11.108 million.
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Parts growth is not yet translating to margins
Parts & Services revenue grew 6.1%, but gross profit declined $3.457 million, or 27.0%, to $9.343 million; segment gross margin contracted to 14.7% from 21.4%. Management cited higher lease expense and start-up costs from network expansion that outpaced sales growth.
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New convertible-note dilution and liquidity risks
Risk-factor disclosures add financing risks associated with the $150.0 million of 4.00% Convertible Notes due 2032 issued on July 20, 2026, including potential conversion-related dilution and a potential current-liability reclassification that could reduce reported working capital. As of July 24, total indebtedness was approximately $585.0 million, with approximately $187.0 million of revolver capacity available.
Management's outlook
The 10-Q provides no company-specific numeric revenue or EPS guidance. MD&A cites industry estimates for 2026 U.S. trailer production of 198,000 units from ACT and 195,000 units from FTR, versus 2025 production of approximately 190,000 units; management says it will continue adjusting to softening demand in certain products.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.