Wabash National Corporation (WNC) Bundle
A Brief History of Wabash National Corporation
Wabash National Corporation, a leading manufacturer of semi-trailers and other transportation equipment, has experienced significant changes in its financial performance and operational strategies as of 2024. The company has been navigating a challenging market environment, particularly in the transportation solutions segment.
Financial Performance Overview
For the third quarter of 2024, Wabash reported net sales of $464.0 million, a decrease of 26.7% from $632.8 million in the same period of 2023. The decline was primarily driven by a substantial reduction in new trailer shipments, which fell by 29.5% to 7,585 units from 10,765 units year-over-year.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Transportation Solutions | $415.5 million | $582.9 million | (28.7%) |
| Parts & Services | $52.3 million | $56.4 million | (7.3%) |
| Total | $464.0 million | $632.8 million | (26.7%) |
Cost of Sales and Gross Profit
The cost of sales for the third quarter of 2024 was $408.0 million, down 20.0% from $509.9 million in Q3 2023. This resulted in a gross profit of $56.0 million, reflecting a significant decrease of 54.4% compared to $122.9 million in the prior year. The gross profit margin fell to 12.1%, down from 19.4%.
| Period | Gross Profit ($ million) | Gross Profit Margin (%) |
|---|---|---|
| Q3 2024 | $56.0 | 12.1% |
| Q3 2023 | $122.9 | 19.4% |
Expenses and Net Income
General and administrative expenses surged to $479.1 million in Q3 2024, a staggering increase of 1236.8% compared to $35.8 million in Q3 2023. This spike was attributed to costs associated with a product liability matter. Consequently, Wabash reported a net loss of $330.2 million for the quarter, in stark contrast to a net income of $55.3 million in the previous year.
| Period | Net Income ($ million) | General & Administrative Expenses ($ million) |
|---|---|---|
| Q3 2024 | $(330.2) | $479.1 |
| Q3 2023 | $55.3 | $35.8 |
Year-to-Date Performance
For the nine months ending September 30, 2024, Wabash reported net sales of $1.53 billion, down 21.2% from $1.94 billion in the same period of 2023. The decline in sales was driven by a 22.7% drop in the transportation solutions segment, with revenues falling from $1.79 billion to $1.38 billion.
| Segment | YTD 2024 Sales ($ million) | YTD 2023 Sales ($ million) | Change (%) |
|---|---|---|---|
| Transportation Solutions | $1,384.6 | $1,791.6 | (22.7%) |
| Parts & Services | $156.5 | $165.6 | (5.5%) |
| Total | $1,529.9 | $1,940.4 | (21.2%) |
Liquidity and Capital Expenditures
As of September 30, 2024, Wabash's liquidity position amounted to $404.9 million, a decrease of 9% year-over-year. The company’s capital expenditures for the first nine months of 2024 totaled $50.8 million, down from $85.1 million in the prior year.
| Metrics | YTD 2024 | YTD 2023 |
|---|---|---|
| Liquidity Position ($ million) | $404.9 | $447.0 |
| Capital Expenditures ($ million) | $50.8 | $85.1 |
A Who Owns Wabash National Corporation (WNC)
Major Shareholders
As of 2024, Wabash National Corporation (WNC) has a diverse range of shareholders, including institutional investors, individual shareholders, and company insiders. The following table highlights the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| BlackRock, Inc. | 12.5% | 5,420,000 |
| The Vanguard Group, Inc. | 10.8% | 4,700,000 |
| Dimensional Fund Advisors LP | 8.3% | 3,600,000 |
| Brent L. Yeagy (CEO) | 0.3% | 145,813 |
| Other Institutional Investors | 30.1% | 13,000,000 |
| Retail Investors | 37.0% | 16,300,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, Wabash National Corporation's stock was trading at approximately $20.47 per share. The market capitalization of the company is around $889 million based on the total number of shares outstanding, which was approximately 43.3 million shares at the end of the third quarter of 2024.
Recent Financial Performance
In the third quarter of 2024, Wabash National reported net sales of $464 million, a decrease of 26.7% compared to $632.8 million in the prior year. The net loss attributable to common stockholders for the same period was $330.2 million, resulting in a basic loss per share of $7.53.
Insider Trading Activity
During the third quarter of 2024, Brent L. Yeagy, the President and CEO, adopted a Rule 10b5-1 trading arrangement allowing for the sale of up to 145,813 shares of his common stock holdings.
Dividends and Stock Repurchase Program
Wabash National declared a dividend of $0.08 per share in the third quarter of 2024. The company has also engaged in a stock repurchase program, with approximately 890,879 shares repurchased in the third quarter.
Current Ownership Structure
The current ownership structure of Wabash National Corporation is characterized by a significant portion of shares held by institutional investors and a robust retail investor base. The company continues to focus on enhancing shareholder value through strategic initiatives and operational efficiency.
Wabash National Corporation (WNC) Mission Statement
Company Overview
Wabash National Corporation (WNC) operates primarily in the transportation solutions and parts & services sectors, focusing on innovative products and services in trailer manufacturing and related markets. Their mission emphasizes sustainability, innovation, and operational excellence.
Mission Statement
The mission of Wabash National Corporation is to provide innovative and sustainable solutions in the transportation industry, enhancing customer value through quality products and services while ensuring operational excellence and a commitment to safety and environmental responsibility.
Financial Overview
As of September 30, 2024, Wabash National Corporation reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $464.0 million | $632.8 million | (26.7%) |
| Cost of Sales | $408.0 million | $509.9 million | (20.0%) |
| Gross Profit | $56.0 million | $122.9 million | (54.4%) |
| Net (Loss) Income | $(329.9 million) | $55.5 million | (693.2%) |
| General and Administrative Expenses | $479.1 million | $35.8 million | 1236.8% |
| Weighted Average Shares Outstanding (Basic) | 43.8 million | 46.9 million | (6.6%) |
Segment Performance
The performance of Wabash National Corporation's segments for the first nine months of 2024 is detailed below:
| Segment | Net Sales (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Transportation Solutions | $1,384.6 | $182.7 | 13.2% |
| Parts & Services | $156.5 | $39.4 | 25.2% |
| Total | $1,529.9 | $222.1 | 14.5% |
Operational Highlights
In the third quarter of 2024, Wabash National Corporation shipped:
- New Trailers: 7,585 units (down 29.5% from Q3 2023)
- New Truck Bodies: 3,630 units (down 12.7% from Q3 2023)
- Total Units Shipped: 11,215 units (down 24.9% from Q3 2023)
Liquidity and Capital Expenditures
As of September 30, 2024, Wabash National Corporation's liquidity position amounted to:
| Liquidity Component | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $81.8 |
| Available Borrowing Capacity | $323.1 |
| Total Liquidity | $404.9 |
Capital expenditures for the first nine months of 2024 were approximately $50.8 million, primarily directed towards property, plant, and equipment.
Future Outlook
Wabash National Corporation aims to leverage its strengths in innovation and operational efficiency to navigate the challenges of the transportation sector, while actively pursuing growth in its Parts and Services segment.
How Wabash National Corporation (WNC) Works
Company Overview
Wabash National Corporation operates primarily in two segments: Transportation Solutions (TS) and Parts & Services (P&S). As of 2024, the company is focused on manufacturing trailers and truck bodies while also providing aftermarket parts and services.
Financial Performance
For the three months ended September 30, 2024, Wabash reported net sales of $464.0 million, a decrease of 26.7% compared to $632.8 million in the same period of 2023. The decline was largely attributed to reduced shipments and lower sales volumes in key product categories.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $464.0 million | $632.8 million | (26.7%) |
| Cost of Sales | $408.0 million | $509.9 million | (20.0%) |
| Gross Profit | $56.0 million | $122.9 million | (54.4%) |
| Gross Profit Margin | 12.1% | 19.4% | (7.3%) |
Segment Performance
The Transportation Solutions segment saw net sales of $415.5 million in Q3 2024, a decrease of 28.7% from $582.9 million in Q3 2023. The Parts & Services segment contributed $52.3 million, down 7.3% from $56.4 million in the prior year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) |
|---|---|---|---|
| Transportation Solutions | $415.5 million | $582.9 million | (28.7%) |
| Parts & Services | $52.3 million | $56.4 million | (7.3%) |
Operational Metrics
Wabash shipped 7,585 new trailers in Q3 2024, down 29.5% from 10,765 in Q3 2023. Truck body shipments totaled 3,630, a decline of 12.7% from 4,160 in the prior year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| New Trailers Shipped | 7,585 | 10,765 | (29.5%) |
| Truck Bodies Shipped | 3,630 | 4,160 | (12.7%) |
Cost Structure
Cost of sales for the first nine months of 2024 was $1,307.8 million, a decrease of 15.6% compared to the prior year. The TS segment accounted for $1,201.9 million of this cost.
| Metric | First 9 Months 2024 | First 9 Months 2023 | Change (%) |
|---|---|---|---|
| Cost of Sales | $1,307.8 million | $1,550.4 million | (15.6%) |
| TS Segment Cost of Sales | $1,201.9 million | $1,446.5 million | (16.9%) |
Net Income and Earnings
Wabash reported a net loss of $329.9 million in Q3 2024 compared to a net income of $55.5 million in Q3 2023. The loss attributable to common stockholders was $330.2 million, translating to a loss per share of $(7.53).
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net (Loss) Income | $(329.9 million) | $55.5 million |
| Net (Loss) Income per Share | $(7.53) | $1.18 |
Liquidity and Debt Management
As of September 30, 2024, Wabash's liquidity position, defined as cash on hand and available borrowing capacity, was approximately $404.9 million, a decrease from $447.0 million a year prior. Total debt obligations stood at $400.0 million.
| Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Liquidity Position | $404.9 million | $447.0 million |
| Total Debt Obligations | $400.0 million | Not disclosed |
Capital Expenditures
Wabash's capital expenditures for property, plant, and equipment amounted to $50.8 million for the first nine months of 2024.
How Wabash National Corporation (WNC) Makes Money
Business Segments
Wabash National Corporation operates primarily through two segments: Transportation Solutions (TS) and Parts & Services (P&S).
Transportation Solutions
The TS segment focuses on the design and manufacturing of transportation-related equipment, including:
- Dry van trailers
- Refrigerated van trailers
- Platform trailers
- Tank trailers
- Truck-mounted tanks
- Truck bodies
For the first nine months of 2024, TS generated net sales of $1,384.6 million, a decrease of 22.7% from $1,791.6 million in the same period of 2023. The decline in new trailer shipments, specifically dry van products, primarily drove this reduction.
Parts & Services
The P&S segment includes:
- Aftermarket parts
- Upfitting solutions
- Process systems
- Components
For the first nine months of 2024, P&S reported net sales of $156.5 million, down 5.5% from $165.6 million in the previous year, attributed to reduced sales in Process Systems and Components.
Financial Performance
Below is the financial summary for Wabash National Corporation's revenue streams and performance metrics for the third quarter and first nine months of 2024 compared to the same periods in 2023:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $464.0 | $632.8 | $1,529.9 | $1,940.4 |
| Cost of Sales (in millions) | $408.0 | $509.9 | $1,307.8 | $1,550.4 |
| Gross Profit (in millions) | $56.0 | $122.9 | $222.1 | $389.9 |
| Gross Profit Margin | 12.1% | 19.4% | 14.5% | 20.1% |
| Net (Loss) Income (in millions) | $(329.9) | $55.5 | $(282.4) | $181.4 |
| Net Income Per Share | $(7.53) | $1.18 | $(6.33) | $3.82 |
Cost Structure
The cost of sales for Wabash National was $408.0 million in Q3 2024, decreasing by 20.0% from Q3 2023. The reduction was primarily due to lower shipment volumes and decreased material costs. For the first nine months of 2024, the cost of sales was $1,307.8 million, a decrease of 15.6% from the previous year.
General and Administrative Expenses
General and administrative expenses surged to $479.1 million in Q3 2024, compared to $35.8 million in Q3 2023, largely due to the impacts of a Product Liability Matter.
Debt and Liquidity
As of September 30, 2024, Wabash National had total debt obligations of $400 million. The liquidity position, defined as cash on hand and available borrowing capacity under the Revolving Credit Agreement, amounted to $404.9 million.
Conclusion on Revenue Strategy
Wabash National Corporation's revenue generation strategy involves leveraging its diverse product offerings in the TS and P&S segments while managing costs and responding to market conditions. The focus on expanding the Parts & Services segment is a key strategic initiative moving forward.
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Article updated on 8 Nov 2024
Resources:
- Wabash National Corporation (WNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Wabash National Corporation (WNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Wabash National Corporation (WNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.