Wabash National is facing a slowdown in activity across its business as customers delay purchasing decisions amid the uncertainty around the impact of tariffs, President and CEO Brent Yeagy said during an earnings call Wednesday.
“There's an increased willingness to preserve cash until we have greater clarity,” Yeagy said, referring to Wabash’s customers.
The company’s transportation solutions segment posted a Q1 operating loss of nearly $10 million due to weaker equipment demand. Wabash shipped 6,290 trailers in Q1, down from 8,500 in the year-ago period.
“We’re running our downturn playbook on transportation solutions to take costs out where necessary to align with near term demand conditions,” Yeagy said.
As a result of those headwinds, Wabash has reduced its full-year revenue outlook to $1.8 billion and decreased its earnings estimate to a loss between 85 cents to 35 cents per share. At the beginning of the year, the company anticipated roughly $2 billion in revenues in 2025 and full-year earnings of 85 cents and $1.05 per share.
On the flip side, quarterly revenue grew in its parts and services segment, and Yeagy highlighted the continued expansion of Wabash’s trailers as a service initiative.
In addition to the parts and services growth, Wabash sees some potential upside to tariffs as its manufacturing exposure is limited and about 95% of its materials are sourced domestically, Yeagy continued. He said that while policy may impact customers’ spending in the near term, a push for U.S. manufacturing would be “significant structural tailwind” for freight activity.
“More domestic production means a multiplier on freight moves, more trailers and more demand for exactly the kinds of solutions Wabash offers,” Yeagy added.
