WNC Q2 margin collapses to 3.7% as truck body demand craters; TS segment unprofitable YTD

Filed July 29, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 25, 2025 · ~2 min read

Key Changes

• high

  Gross margin compressed to 3.7% in Q2 FY26 from 9.0% prior year, driven by 56.7% drop in truck body shipments and fixed-cost underabsorption. Transportation Solutions segment posted negative gross profit of $(9.5)M for the first six months, a $46.5M deterioration, indicating the segment is not covering manufacturing costs at current volumes.

  MD&A: Gross Margin & Segment Performance verify on EDGAR →
• high

  Operating cash flow negative $28.5M for the first six months, worsening from negative $16.1M prior year, as operating losses consumed cash. Liquidity fell 38% year-over-year to $192.8M at June 30, with revolver borrowings rising to $115M from $40M, though post-quarter $150M convertible notes issuance will bolster availability.

  MD&A: Cash Flow & Liquidity verify on EDGAR →
• high

  G&A expenses increased $332.1M in the first six months of FY26, reversing the prior year's $338.3M benefit, driven by the Product Liability Matter. The $119.5M judgment disclosure (from a 2019 trailer accident) was removed from Risk Factors, suggesting potential resolution or settlement, though the current-period charge indicates the matter remains active.

  MD&A: G&A Expenses; Risk Factors verify on EDGAR →