Wabash reports big jump in Q1 profit while tariff concerns remain
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Lafayette-based trailer manufacturer Wabash is reporting first-quarter net income of $231 million, up from $18.2 million during the same period last year.
However, CEO Brent Yeagy said that the tariffs implemented by President Donald Trump are having an impact on the company’s results, particularly as customers have reduced their capital expenditure plans.
The company said net sales for the quarter totaled $381 million, a 26.1% decreased compared to a year prior. Revenue for the quarter was $381 million, which is lower than the prior quarterly outlook range, which Yeagy attributed to “a general weakening in market conditions.”
Yeagy noted that as a result of the lower-than-expected revenue, the company has “reduced direct labor to align cost with market conditions.” Though he did not specify how many, if any, jobs have been cut as a result.
When asked for clarification, a spokesperson for Wabash told Inside INdiana Business that “the company can only confirm that it is rightsizing labor to better align with demand.”
“As a result of the weaker than anticipated first quarter and softer outlook, we have reduced our full year guidance,” Yeagy said in a news release. “As we look further forward, we believe it’s important for the medium term to point out that demand in 2025 is currently projected to undercut replacement levels, resulting in an aging of the fleet which will require catch-up in coming years. Longer term, we believe the administration’s activities to leverage a revitalization of U.S. manufacturing could be meaningfully positive for trucking and specifically trailer demand.”
Also during the quarter, a St. Louis Circuit Court judge reduced the amount of punitive damages that must be paid by Wabash as a result of a verdict issued against the company in September.
Wabash was sued by the families of two men who were killed in a 2019 crash involving a trailer manufactured by the company.
The judge said the original $450 million amount awarded by the jury was “grossly excessive” and not in line with the company’s constitutional rights. He lowered the amount to $108 million.
“While the reduction in this verdict was a positive development in our efforts to bring this matter to a more reasonable conclusion, there is more work to do, highlighted by our recent filing of notice of appeal,” Yeagy said.
You can view the full earnings report by clicking here.