On July 24, 2024, Wabash National Corp (WNC, Financial) released its 8-K filing for the second quarter of 2024. Wabash National Corp operates as the innovation leader of connected solutions for the transportation, logistics, and distribution industries. The company's mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from the first to the final mile. It designs and manufactures a diverse variety of products, including dry freight and refrigerated trailers, platform trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food-grade processing equipment.
Performance Overview
Wabash National Corp (WNC, Financial) reported quarterly revenue of $551 million, which is below the analyst estimate of $594.74 million. This represents a 19.8% decrease compared to the same quarter of the previous year. Despite the revenue shortfall, the company achieved a diluted earnings per share (EPS) of $0.64, surpassing the analyst estimate of $0.56.
Operating income for the quarter was $44 million, with an operating margin of 7.9%. The company's total backlog stood at approximately $1.3 billion as of June 30, 2024, a 28% decrease compared to the first quarter of 2024. This reduction was slightly more than usual seasonality due to continued freight market weakness.
Financial Achievements and Challenges
Wabash National Corp (WNC, Financial) demonstrated resilience in a challenging market environment. The company's gross profit for the second quarter was $89.7 million, equivalent to 16.3% of sales. However, the net sales decline and backlog reduction indicate a weakening demand environment.
While the demand environment has incrementally weakened during the first half of 2024, our team has executed well, as shown by second quarter EPS generation that exceeded our prior outlook range," said Brent Yeagy, president and chief executive officer.
For the full year ending December 31, 2024, Wabash National Corp (WNC, Financial) reduced its revenue outlook to a range of $2.0 billion to $2.2 billion and its EPS guidance to a range of $1.50 to $1.60.
Segment Performance
| Segment | Net Sales (Q2 2024) | Net Sales (Q2 2023) | Operating Income (Q2 2024) | Operating Income (Q2 2023) |
|---|---|---|---|---|
| Transportation Solutions | $498.7 million | $630.7 million | $56.9 million | $115.8 million |
| Parts & Services | $54.9 million | $62.1 million | $12.1 million | $12.9 million |
Transportation Solutions generated net sales of $498.7 million, a decrease of 20.9% compared to the same quarter of the previous year. Parts & Services' net sales for the second quarter were $54.9 million, a decrease of 11.5% compared to the prior year quarter.
Income Statement and Balance Sheet Highlights
Wabash National Corp (WNC, Financial) reported a net income of $29.2 million for the second quarter of 2024, compared to $74.5 million in the same period last year. The company's total assets as of June 30, 2024, were $1.34 billion, with total liabilities amounting to $788.5 million.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $550.6 million | $686.6 million |
| Gross Profit | $89.7 million | $151.0 million |
| Net Income | $29.2 million | $74.5 million |
| Total Assets | $1.34 billion | $1.36 billion |
| Total Liabilities | $788.5 million | $812.7 million |
Cash Flow and Non-GAAP Measures
For the six months ended June 30, 2024, Wabash National Corp (WNC, Financial) reported net cash used in operating activities of $6.4 million, compared to net cash provided by operating activities of $146.3 million in the same period last year. The company also reported free cash flow, a non-GAAP measure, which is useful for investors to understand the company's performance and results of cash generation period to period.
Conclusion
Wabash National Corp (WNC, Financial) has shown resilience in a challenging market environment, with its EPS exceeding analyst estimates despite a decline in revenue. The company's strategic focus on enhancing the diversity of its portfolio and improving its base business has contributed to its stability. However, the reduction in backlog and revenue outlook indicates potential challenges ahead. Investors should monitor the company's performance closely as it navigates through these market conditions.
Explore the complete 8-K earnings release (here) from Wabash National Corp for further details.
