Wabash National Corporation

Hello everyone. Thank you for joining us and welcome to the Wabash second quarter 2026 earnings release call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to John Cummings, Senior Director of Financial Planning and Analysis and Investor Relations. John, please go ahead.

Thank you and good afternoon everyone. We appreciate you joining us on this call. With me today are Brent Yeagy, President and Chief Executive Officer, and Pat Keslin, Chief Financial 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.onewabash.com. Please refer to slide two in our earnings deck for the company's safe harbor disclosure addressing forward-looking statements.

I'll hand it off now to Brent. Thanks, John. Good afternoon, everyone, and thank you for joining us today. I would like to start by discussing something that is fundamental to how we operate at Wabash, safety. As we close out the second quarter, we are proud to have successfully improved our injury rate for the fourth consecutive quarter. 13% versus Q1 of 2026, 33% versus Q2 of 2025, and total injuries are down 50% year-over-year. As we look ahead to increasing dry band production, we're increasing focus on our onboarding process to elevate workplace safety and manufacturing quality. Our long-term target is an injury rate less than one, and every day we're moving closer to that attainment. The second quarter continues to strengthen our conviction that the freight market recovery is taking shape. We're seeing a healthier combination of supply-side forces, safety-focused federal-led enforcement and improving carrier economics. These factors are beginning to translate into better market fundamentals. Spot rates, contract rates, and tender rejection rates are moving in a direction that supports improved carrier profitability, and that matters because carrier profitability is what ultimately frees up capital to support increased replacement demand expenditure. We fully opened up our order book for 2027 production in late June. That time is earlier than traditional order cycles, but it reflects what customers want, which is earlier visibility in delivery windows and pricing. Our role is to help customers plan with greater confidence, and in a recovering market, those who plan early should be rewarded with better availability and greater certainty. Against that backdrop, we have continued to take proactive steps to position Wabash for the next stage of the cycle. We are controlling what we can control, aligning cost to demand, protecting liquidity, and continuing to invest in areas that differentiate Wabash with our customers. We also recently announced a convertible node offering designed to enhance balance sheet flexibility as we prepare to rank production for dry vans. That action is consistent with our approach to managing through the cycle, preserve resiliency in the near term, maintain the ability to move decisively, and make sure we are prepared to support customers as they increase activity. Earlier this month, Wabash announced its intention to issue convertible senior notes and, after the close of the quarter, secured $150 million of additional liquidity, less associated expenses. Those funds strengthen our balance sheet flexibility and are intended to be used for general corporate purposes, including repaying amounts outstanding under existing credit agreements. Just as importantly, they provide working capital as we prepare for the next phase of the market cycle. We view flexibility around networking capital as a strategic advantage. When demand begins to accelerate, companies that can respond quickly, efficiently, and with discipline are best positioned to serve customers and capture profitable growth and share. This added liquidity gives WealthEdge greater ability to manage that ramp without compromising our broader priorities across cost control, operating execution, and long-term value creation. As part of our broader capital strategy, we are also continuing to pursue the refinancing of a revolving credit agreement. Multiple lenders have committed to funding and expanding the agreement up to $300 billion. We expect to provide an additional update on this topic soon. Turning to the market, leading indicators continue to build from what we saw earlier in the first quarter. Spot rates continue to strengthen, rising from roughly 14% above prior year levels at the end of the first quarter to approximately 40% above last year by June, surpassing contract rates. Tender rejection rates have moved above 16%, which represents the highest levels since 2018. ATA for higher truck tonnage continues to run ahead of the prior year, and the ISM Manufacturing Index has been in expansionary territory for six consecutive months and the Logistics Manager's Index reached its highest level since early 2022. We are encouraged by the direction of these data points and we are also encouraged by what we are seeing in our own backlog. Backlog grew to 956 million at the close of Q2 2026, a 14% increase quarter over quarter. While continuing the double digit growth that was experienced in the first quarter, The more important point is the pattern. This was the first time in the company's history that we had experienced backlog growth in the second quarter. That tells us that the customers are beginning to move from deferral to committed demand as they work to stop the three years of fleet aging. Wallbash has positioned well for the return of a replacement demand environment. Our U.S.-centric supply chain, leading manufacturing capabilities, increased dry van capacity, and strengthened liquidity position give us the ability to support customers as the market moves to its next growth phase. Our intent is clear and steadfast. It is to serve customers better, win share, and convert improved volume into stronger financial performance. In conjunction with our intent to grow share to the next stage of the demand cycle, the recovering freight market is also providing the opportunity to recover through price costs that Wabash has absorbed during this abnormally lengthy drop. That recovery will not appear all at once. Pricing will be gained incrementally as 2026 progresses and newly quoted deals layer into existing backlog and become more impactful as we move through 2027. Industry average selling prices for trailers have fallen from prior years while underlying costs have increased. That spread is not sustainable over the long term, and discipline pricing is an important part of restoring appropriate economics across the industry. We will continue to price in a way that reflects cost, capacity, customer value, and the reality of a market that is beginning to recover. There has also been meaningful progress in the anti-dumping and countervailing duty case brought to the International Trade Commission in late 2025. Affirmative preliminary rulings and rates have been established as follows. Countervailing duties for China at a range between approximately 82% for cooperating entities and 129% for non-cooperating entities and for Chinese anti-dumping duties, they are set at approximately 131%. For Mexico, countervailing duties are approximately 2% and anti-dumping duties are expected to be announced shortly. Wabash is a champion of American manufacturing. That commitment is evident in our continued investment in US facilities, including the Lafayette Southland, which added 10,000 units of dry van capacity and our sourcing strategy with approximately 95% of our materials procured from the US. We support actions that provide relief to the domestic industry and help level the playing field because a healthy domestic manufacturing base is important for customers, employees, and the long-term competitiveness of the industry. As a reminder, our foreign competition is also subject to Section 232 tariff duties that were modified in Q2, resulting in a 25% tariff rate being applied to the full customs value of an imported trailer. Section 232 tariffs and anti-dumping tariffs and countervailing duty rates are stackable. Looking forward, the outlook continues to show positive signals, including the atypical second quarter backlog growth to $956 million. At the same time, we continue to monitor market sentiment closely and continue to consider the ongoing potential for macro disruptors, geopolitical tensions, and broader economic impacts that could influence overall market recovery. For that reason, we will continue to provide quarterly guidance while this transitionary period converts into a more stable environment. For the third quarter, we expect revenue in the range of $440 million to $460 million and adjusted earnings per share in the loss range of $0.50 to $0.40 per share. The outlook for the third quarter remains consistent with our prior qualitative guidance and reflects sequential improvement as we move through the year. While we are not providing quantitative guidance beyond Q3 at this stage, we do expect the fourth quarter to experience some top line deterioration versus the third quarter in line with typical seasonality while continuing to improve sequentially in earnings per share as cost recovery through pricing begins to filter into the financials and we benefit from focused cost control actions. Before I turn the call over to Pat, I want to again recognize our employees. Their skill, experience, and commitment to execution are what allow Wabash to manage through a difficult environment while continuing to prepare for the up cycle. We have asked a great deal of our teams and they have continued to respond with discipline, resilience and a focus on continuous improvement. And with that, I will now turn the call over to Pat for his comments.