Wabash Q3 Loss Persists as Backlog Reaches $1.3 Billion

Wabash National Corporation (WNC) reported a third-quarter loss despite a 25% increase in revenue, while highlighting a growing backlog and pricing that management expects to support better economics in 2027. Backlog rose 25% to $1.2 billion during the quarter and increased another 10% to $1.3 billion by mid-October.

The transportation equipment manufacturer said pricing embedded in its 2027 backlog is expected to produce a 600-basis-point expansion in Material Margin compared with the second quarter of 2026. Wabash is also pulling forward costs into the third and fourth quarters of 2026 to support a more rapid improvement in 2027 dry van volume.

Revenue rises, but adjusted losses widen

Third-quarter net sales increased to $476.4 million from $381.6 million a year earlier. Wabash shipped 9,563 new trailers, up from 6,675, while new truck body shipments declined to 1,685 from 3,067.

The company recorded a GAAP operating loss of $20.0 million, or 4.2% of sales, compared with operating income of $57.6 million in the prior-year quarter. The year-earlier GAAP result included an $81.2 million adjustment related to the Missouri legal matter, limiting the usefulness of a direct comparison.

On an adjusted basis, Wabash’s operating loss widened to $27.0 million from $23.6 million, with the adjusted operating margin at negative 5.7%. Adjusted EBITDA was negative $10.4 million, compared with negative $5.5 million a year earlier.

The GAAP net loss attributable to common stockholders was $20.7 million, or $0.51 per diluted share, versus net income of $40.0 million, or $0.97 per diluted share, in the third quarter of 2025. Excluding facility-idling costs, a gain on the sale of a facility and related tax effects, the adjusted net loss was $26.0 million, or $0.63 per diluted share. That compared with an adjusted loss of $21.2 million, or $0.51 per share, a year earlier.

Transportation sales increase as Parts & Services margin narrows

Transportation Solutions revenue rose to $407.9 million from $334.5 million, driven by new-trailer sales of $363.0 million. The segment’s adjusted operating margin was negative 3.5%, compared with negative 3.9% in the prior-year period. Its adjusted EBITDA margin, however, declined to negative 1.0% from negative 0.2%.

Parts & Services revenue increased to $69.4 million from $61.0 million. Adjusted operating income declined to $5.6 million from $6.6 million, and the adjusted operating margin narrowed to 8.1% from 10.9%. Adjusted segment EBITDA was $7.6 million, broadly level with the prior year, while the margin fell to 11.0% from 12.7%.

Wabash also noted that the U.S. International Trade Commission made a final affirmative determination in September on antidumping and countervailing-duty rulings involving China.

Cash flow remains negative

Wabash used $37.3 million of cash in operating activities during the quarter, compared with $85.2 million generated a year earlier. Free cash flow was negative $40.8 million, versus positive $60.6 million in the third quarter of 2025. The company allocated $3.5 million to capital expenditures and $3.3 million to dividends during the period.

For the first nine months of 2026, operating cash outflow totaled $65.8 million and free cash flow was negative $75.0 million. Cash and cash equivalents stood at $69.3 million on Sept. 30, up from $31.9 million at the end of 2025, while long-term debt increased to $540.3 million from $442.9 million.

Fourth-quarter outlook

For the fourth quarter of 2026, Wabash expects revenue of $420 million to $450 million, with a midpoint of $435 million. The company projects an operating margin midpoint of negative 6.5% and a loss of $0.55 to $0.75 per share, with a midpoint loss of $0.65.

The outlook also calls for selling, general and administrative expenses of $39 million to $44 million, intangible amortization of $3 million, interest expense of $7 million to $8 million, a 25% tax rate and traditional capital expenditures of $3 million to $6 million.

Wabash cautioned that its outlook is exposed to the cyclical nature of its business, uncertain customer demand, potential differences between backlog and realized sales, customer pickup delays, competition, raw-material costs and tariffs, supplier constraints, labor availability and costs, pricing acceptance, borrowing costs, and execution of manufacturing and cost-containment initiatives.