Continued Weak Demand Propels Wabash to First-Quarter Loss

Wabash's trailers-as-a-servce business is akin to the truck and tractor rental and leasing market as an indicator of demand prospects. (Wabash)

Results at Wabash foundered in the first quarter of 2026 as a result of weak demand, and the trailer manufacturer does not expect a material upturn until 2027.

The company expects to post another loss in the second quarter of 2026, and executives foresee a return to the black when the market upturn gets underway.

Lafayette, Ind.-based Wabash posted a $45.2 million or $1.11 per diluted share, loss in the most recent quarter, compared with a $230.9 million, $5.41 profit, in the year-ago period.

However, earnings in the first three months of 2025 benefited from a $342 million accounting gain in connection with a reduction in the size of a legal verdict related to a 2019 fatal accident.

Revenue in Q1 totaled $303.2 million, a 20.4% decrease from $380.9 million in the year-ago period.

Wabash saw softer demand than previously expected, particularly from its truck body business.

The company delivered 1,527 truck bodies in Q1, down 49.1% compared with 3,000 in the year-ago period. It delivered 1,343 truck bodies in the fourth quarter of 2025.

Image

Keslin 

“The truck body business entered the downcycle later than traditional trailers. Based on current visibility, we now expect this segment to remain soft through the first half of 2026,” Chief Financial Officer Patrick Keslin told analysts on the company’s May 1 earnings call.

Wabash trailer deliveries in the most recent quarter totaled 5,378 units, a decrease of 14.5% compared with 6,290 in Q1 2025. The company delivered 5,901 trailers in the final three months of 2025.

That said, at the end of the quarter, Wabash’s order backlog stood at about $837 million, an increase of $132 million over the total at the end of Q4.

Looking forward, the company expects to post a loss of 50 cents per share in Q2. Its Q2 2026 revenue outlook midpoint is $390 million.

Image

TT Top 100 Logistics Companies

The largest 3PLs in North America continued to face volatile business conditions last year, from compressed margins to tariff-driven supply chain upheaval. Read more

Wabash cut its cloth accordingly on costs earlier in 2026 and in 2025.

In January, Wabash announced plans to idle its Goshen, Ind., and Little Falls, Minn., manufacturing facilities.

The company does not expect to make any production plant hires or shift changes before the second half of 2027, CEO Brent Yeagy said during the earnings call, even as the outlook brightens, particularly for trailers.

Dry van trailer capacity added at the company’s Lafayette South plant in late 2023 would allow Wabash to produce about 10,000 trailers more than in prior upcycles, he added.

Trailer market prospects are advancing, according to Wabash, which offers a unique window into expectations as the only publicly traded U.S.-headquartered trailer manufacturer.

Wabash also operates a trailers-as-a-servce fleet. The TaaS business is akin to the truck and tractor rental and leasing market as an indicator of demand prospects.

“The outlook is increasingly constructive as we move into 2027. Multiple leading indicators continue to trend positively. Customer conversations are becoming more optimistic, and the very positive impact of the recent change in Section 232 tariffs and the forthcoming positive progression of the anti-dumping and countervailing duty process further supports our confidence as we approach the Q3 and Q4 this season for 2027,” Yeagy told analysts.

U.S. trailer orders rose in March compared with February in a move defying seasonal expectations, but analysts are skeptical about whether it is a one-off related to a delayed start to order season.

ACT Research preliminary data decreased 14% year over year to 18,800 units but jumped compared with February’s 13,200 trailers.