Wabash swings to big loss in Q3
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Lafayette-based Wabash is reporting a third-quarter net loss of $330 million, compared to net income of $55.3 million during the same period last year. CEO Brent Yeagy primarily attributed the shift to a recent legal verdict against the trailer manufacturer.
In September, the company was ordered to pay $462 million to the families of two men killed in a 2019 crash involving one of the company’s trailers. The victims’ families claimed Wabash was negligent and manufactured a defective product which was then involved in the crash.
Yeagy said in a news release that he disagreed with the outcome of the case.
“We firmly believe the outcome in this case is unsupported by the facts or the law. Additionally, the jury was not permitted to hear key evidence in the case,” he said. “While we wait for the court to enter a final judgement for purposes of appeal, we are evaluating all of the legal options available to us. This situation will inevitably take time to be fully resolved, though we do not expect this verdict to impact our capital allocation priorities and strategy.”
The company is also reporting a 26.7% decrease in net sales, which totaled $464 million for the quarter.
Wabash reduced its revenue outlook for the full year to $1.95 billion. Yeagy said the company is rebalancing demand for its products as customers continue to manage their spending plans.
“That said, as we continue to negotiate orders for 2025, we believe industry volumes for dry van trailers should be reasonably similar to 2024, while we expect to see improvement in parts & services, truck body, and tank trailers,” he said. “We believe Wabash is well-positioned to capitalize on the next period of freight expansion and we are focused on continuing our progress toward achieving outsized strategic growth that is both more resilient and more profitable.”
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