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Trailer maker Wabash in Q2 reported record quarterly revenue, net income nearly doubled, and it opened its 2023 order book — making it among the first in the industry to do so.
Earnings for the period ended June 30 reached $22.7 million, or 46 cents per diluted share, compared with $12.2 million, 24 cents, a year earlier.
Revenue was a record $642.8 million compared with $449.4 million in the 2021 period.
Total company backlog at the end of the quarter was $2.3 billion, an increase of $1 billion compared with the prior year. Wabash’s backlog represents a second-quarter record and exceeds the prior Q2 high by 71%, the company reported.
“Demand remains very strong as evidenced by our backlog remaining at $2.3 billion from the first quarter to the second quarter, particularly in light of record shipments during Q2,” Wabash CEO Brent Yeagy said. “Beyond our productive conversations regarding 2023 build slots, I am particularly pleased by customers’ willingness to think beyond next year’s order cycle to engage in planning a shared vision for the longer term.”
Wabash said it shipped 13,670 new trailers in Q2 compared with 11,595 a year earlier and 3,970 truck bodies compared with 4,800 in the 2021 period.
“We have been successful in 2022 in passing along an appropriate level of inflationary costs increase with margins into those backlog so far,” Yeagy said. “We still have additional inflation that we have to factor in to our prices, and we have done that in part and parcel with opening up 2023 backlog. We wouldn’t have opened it up if we didn’t feel we would be successful in executing that [pass-along].”
The transportation solutions unit’s net sales for the second quarter were $596 million, an increase of 48.2% compared with the prior-year quarter, as the company reported operations continued to scale up. Operating income at the unit was $48 million, or 8% of sales during the quarter.
The parts and services unit’s net sales were $50.4 million, an increase of 3.4% compared with the 2021 quarter. Operating income was $8.1 million, or 16.1% of sales during the quarter.
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The parts and services segment’s Q2 financial results include Extract Technology, which Wabash sold in June 2021 to Lausanne, Switzerland-based Dietrich Engineering Consultants. Extract Technology, based in Huddersfield, United Kingdom, is a worldwide supplier of containment and aseptic systems for the pharmaceutical, health care, biotech and chemical markets. At the time of sale, Wabash noted Extract’s solutions and customers did not align with its core markets.
The sale followed its divesting of Beall tank trailers and the last remaining Wabash National Trailer Center retail branch.
Extract Technology joined Wabash in 2012 as part of the Walker Group Holdings acquisition.
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The company’s efforts to narrow its focus to the transportation distribution and logistics industries provided a “charter to change our organization and be more customer centric in practices, from R&D, to product development, to how we interface with customers,” Yeagy said.
That includes increasing the amount of business derived from trailers as a service, a concept embodied in trailer pools and power-only operations, which now accounts for 10% to 15% of its trailer shipments.
Net income for the six-month period was $34.8 million, 70 cents, compared with $15.4 million, 29 cents, a year earlier. Revenue jumped to $1.2 billion compared with $841 million in the 2021 period.
Lafayette, Ind.-based Wabash designs, manufactures, and services 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.