Wabash National Corporation

Welcome everyone to the Wabash second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Jake Page Please go ahead.

Thank you, and good morning, everyone. We appreciate you joining us on this call. With me today are Brent Yagee, President and Chief Executive Officer, Pat Kesslin, Chief Financial Officer, and Mike Pettit, Chief Growth Officer. Before we get started, please note that this call is being recorded. I'd also like to point out that our earnings release, the slide presentation supplementing today's call, and any non-GAAP reconciliations are available at IR

dot one wabash.com please refer to slide two in our earnings deck for the company's safe harbor disclosure addressing forward-looking statements i'll now hand it off to brett thanks jake before we dive into the quarter i want to take a moment to thank our incredible team these continue to be challenging times across the industry and i'm continually inspired by the dedication resilience and heart our employees bring to their work whether it's supporting our customers helping each other, or finding new ways to move the business forward. Their efforts are what keep Wall-Buy strong, and we're truly grateful. As we reflect on the second quarter, the broader market dynamics we observed earlier in the year have largely persisted. Economic conditions remain softer than anticipated at the start of 2025, with customers continuing to report increased hesitation in capital and making. The slowdown is creating a ripple effect across the industry, contributing to more cautious behavior and tempered activity levels. Industry analysts have continued to lower their forecast for the remainder of the year, and for this quarter, we saw additional confirmation as several carriers revised their CapEx plans downward. These trends reflect a transportation market environment that remains under pressure rather than any product-specific or segment-driven softness. While the current climate brings headwinds, it also highlights the strategic foresight behind the way we have reshaped Wabash over the past several years. Our organizational structure was intentionally designed to support agility and resiliency through the economic cycles. In our transportation solutions business, we're proactively managing costs to align what's reduced demand. At the same time, we're maintaining momentum in parts and services, which once again delivered year-over-year revenue growth this quarter. This continued outperformance in parts and services reinforces our confidence in its role as a key driver of long-term stability and growth. By integrating these offerings more deeply with our equipment solutions, we believe we're laying the foundation for a more balanced business that can perform through varying market conditions. Even in a softer environment for equipment demand, our parts and services business continues to deliver growth in Q2. I want to highlight a couple of wins from the quarter that speak to the momentum we're building. First, congratulations to our F-15 for another record quarter. Their efforts continue to drive significant growth, as we are on pace to almost double units year over year. We also made meaningful progress with our trailers as a service and preferred parts network initiatives, both of which continue to gain traction as we expand our offerings. Mike will share more details shortly, but these developments are strong indicators of how parts and services is helping bring greater balance and resilience to the broader Wabash portfolio as we scale. We continue to monitor inflationary pressures across our supply chain. While our 95% domestic sourcing and U.S.-based manufacturing footprint have helped insulate us from some of the volatility others are experiencing, we're not entirely immune to cost increases, particularly in key inputs and services. To date, we've been successful in holding off on price adjustments, and we remain focused on operational efficiency and cost discipline to offset as much pressure as possible. Based on the current trajectory, we expect that pricing for 2026 orders will need to be adjusted to reflect the rising cost environment. As always, we're committed to communicating transparently with customers and providing as much lead time as possible. We're continuing to deliver the value and reliability they come to expect from Wabash. Now to briefly touch on the ongoing legal matter stemming from a 2019 motor vehicle accident. In April, we filed a notice of appeal and posted the necessary appeal bond as we continue to pursue all available legal options to achieve a more reasonable outcome. We want to reiterate that we stand firmly behind the safety and integrity of our product and remain confident in our ultimate legal position. Turning to the broader market environment, demand remains muted across the trailer industry. Entry forecasters have continued to revise their outlook downward, and recent updates now suggest that 2025 shipment volumes will fall well below basic replacement demand. This prolonged softness is reflected in our own backlog, which declined to approximately $1 billion at the end of Q2. While that's not unexpected given the current landscape, it's clear that customers continue to take a latency approach to capital spending. For now, we've undertaken a reassessment of 2025 and now expect midpoints of $1.6 billion in revenue and negative $1.15 of adjusted EPS. Even with the revised guidance, we still expect to be near free cash flow break-even for 2025, excluding our capital investments and trailers of the service. While our order book for 2026 is not yet open, we're actively engaged in conversations with customers and preparing quotes for next year's demand. Based on those early discussions and current industry forecasts, we're cautiously optimistic that 2026 will reflect a return to growth. Of course, that outlook assumes relative stability in the broader environment. If we avoid further deterioration in business and consumer sentiment, we believe 2026 has potential to align with current growth expectations. As always, we'll continue to monitor market signals closely and stay in close alignment with our customers as planning progresses. I'll turn the call over to Mike for his comments.