Slides
Page 1
February 4, 2026 Fourth Quarter 2025 Earnings Release Changing How the World Reaches You®
Page 2
2 Safe Harbor Statement & Non-GAAP Financial Measures This presentation contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey Wabash National Corporation's (the "Company") current expectations or forecasts of future events. All statements contained in this presentation other than statements of historical fact are forward-looking statements. These forward-looking statements include, among other things, all statements regarding the Company’s outlook for trailer and truck body shipments, backlog, expectations regarding demand levels for trailers, truck bodies, non-trailer equipment and our other diversified product offerings, pricing, profitability and earnings, cash flow and liquidity, opportunity to capture higher margin sales, new product innovations, our growth and diversification strategies, our expectations for improved financial performance during the course of the year and our expectations with regards to capital allocation. These and the Company’s other forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Without limitation, these risks and uncertainties include the Missouri product liability action and the unfavorable jury verdict, the highly cyclical nature of our business, uncertain economic conditions including the possibility that customer demand may not meet our expectations, our backlog may not reflect future sales of our products, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials including the impact of tariffs or other international trade developments, risks in implementing and sustaining improvements in the Company’s manufacturing operations and cost containment, dependence on industry trends and timing, supplier constraints, labor costs and availability, customer acceptance of and reactions to pricing changes, costs of indebtedness, and our ability to execute on our long-term strategic plan. Readers should review and consider the various disclosures made by the Company in this presentation and in the Company’s reports to its stockholders and periodic reports on Forms 10-K and 10-Q. We cannot give assurance that the expectations reflected in our forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward-looking statements. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the financial information included in this presentation contains non-GAAP financial measures including adjusted operating (loss) income, adjusted operating (loss) income margin, adjusted net (loss) income attributable to common stockholders, adjusted diluted (loss) earnings per share, adjusted EBITDA, free cash flow, adjusted segment EBITDA, and adjusted segment EBITDA margin. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net (loss) income, net cash (used in) provided by operating activities and reconciliations to GAAP financial statements should be carefully evaluated. Adjusted operating (loss) income and margin, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating (loss) income and margin excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income and margin to provide investors with a better understanding of the Company’s view of our results as compared to prior periods. Adjusted operating (loss) income margin is calculated by dividing adjusted operating (loss) income by total net sales. A reconciliation of adjusted operating (loss) income to operating (loss) income, the most comparable GAAP financial measure, is included in the tables following this release. Adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share reflect an adjustment for Impairments, the Missouri legal matter and the related tax effects of those adjustments. Management believes providing adjusted measures and excluding certain items facilitates comparisons to the Company’s prior year periods and, when combined with the GAAP presentation of net (loss) income and diluted net (loss) income per share, is beneficial to an investor’s understanding of the Company’s performance. A reconciliation of adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share to net (loss) income attributable to common stockholders and diluted net (loss) earnings per share, the most comparable GAAP financial measures, are included in the appendix to this presentation. Adjusted EBITDA includes noncontrolling interest and excludes loss from unconsolidated entity and is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, the Missouri legal matter, impairment and other, net, and other non-operating income and expense. Management believes providing adjusted EBITDA is useful for investors to understand the Company’s performance and results of operations period to period with the exclusion of the items identified above. Management believes the presentation of adjusted EBITDA, when combined with the GAAP presentations of operating (loss) income and net (loss) income, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of adjusted EBITDA to net (loss) income, the most comparable GAAP financial measure, is included in the appendix to this presentation. Free cash flow is defined as net cash (used in) provided by operating activities minus cash payments for capital expenditures minus expenditures for revenue generating assets. Management believes providing free cash flow is useful for investors to understand the Company’s performance and results of cash generation period to period with the exclusion of the item identified above. Management believes the presentation of free cash flow, when combined with the GAAP presentations of cash provided by operating activities, is beneficial to an investor’s understanding of the Company’s operating performance. A reconciliation of free cash flow to cash (used in) provided by operating activities, the most comparable GAAP financial measure, is included in the appendix to this presentation. Adjusted segment EBITDA, a non-GAAP financial measure, includes noncontrolling interest & excludes loss from unconsolidated entity and is calculated by adding back segment depreciation and amortization expense to segment operating (loss) income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA Margin is calculated by dividing Adjusted segment EBITDA by segment total net sales. A reconciliation of adjusted segment EBITDA to (loss) income from operations, the most comparable GAAP financial measure, is included in the appendix to this presentation. Information reconciling any forward-looking Adjusted operating (loss) income, Adjusted net (loss) income, Adjusted EPS, Adjusted EBITDA, Free cash flow, Adjusted segment EBITDA, and Adjusted segment EBITDA margin to GAAP financial measures is unavailable to us without unreasonable effort. We cannot provide reconciliations of the above noted forward looking non-GAAP measures to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flows, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort.
Page 3
3 Changing How the World Reaches You® 1 2 3 4 5 Market environment showing early signs of stabilization, setting up for demand improvement in 2H 2026 and a stronger 2027. Parts & Services continued to grow revenue in Q4, both sequentially and YoY, as we continue to build resiliency in our revenue streams. Manufacturing footprint actions to align capacity with demand in place that will result in approximately $10M annualized conversion cost savings Q4 GAAP EPS of ($1.23) or Non-GAAP adjusted EPS of ($0.93)1. Non-GAAP EPS excludes the cost impact of idling two manufacturing facilities. Q1 outlook at midpoints of revenue and EPS of $320M and $(1.00), expected to be the bottom for the year. CEO Highlights 1Q4 EPS is adjusted for the costs incurred for idling two manufacturing facilities and related tax effects.
Page 4
4 GAAP Financial Results Non-GAAP Adjusted Financial Results Revenue $321M Operating Loss $(59.9)M $(43.8)M Operating Margin (18.6)% (13.6)% Net Loss Attributable to Common Stockholders $(49.9)M $(37.8)M Diluted EPS Attributable to Common Stockholders $(1.23) $(0.93) New Shipments 5,901 Trailers 1,343 Truck Bodies Q4 2025 Consolidated Financial Performance 1Q4 Operating income and operating margin are adjusted for the costs incurred for idling two manufacturing facilities 2Q4 Net income and EPS are adjusted for the costs incurred for idling two manufacturing facilities and related tax effects.
Page 5
5 Q4 2025 Adjusted Segment Financial Performance Transportation Solutions Parts & Services $263 $370 Q4 2025 Q4 2024 Revenue ($M) (12.1)% 4.8% Q4 2025 Q4 2024 Operating Margin $64 $49 Q4 2025 Q4 2024 Revenue ($M) 7.9% 9.2% Q4 2025 Q4 2024 Operating Margin 1Q4 Operating income and operating margin are adjusted for the costs incurred for idling two manufacturing facilities
Page 6
6 Cash Flow & Capital Allocation Summary ($M) Q4 2025 Q4 2024 Net cash (used by) provided by operating activities $(57.4) $80.9 Cash payments for capital expenditures $(4.5) $(21.3) Expenditures for revenue generating assets $(7.4) $(5.5) Free Cash Flow1 $(69.3) $54.0 1 Free cash flow is defined as net cash (used by) provided by operating activities minus cash payments for capital expenditures minus expenditures for revenue generating assets. A reconciliation of free cash flow to cash (used by) provided by operating activities, the most comparable GAAP measure, is included in the appendix to this presentation. ◦ Operating Cash Flow aided by more efficient working capital levels Cash Flow Q4 Capital Allocation 29% 47% 20% 4% CapEx Exp for Revenue Generating Assets Dividend Share Repurchases $16M $0.7M $4.5M $3.2M Capex Expenditures for Revenue Generating Assets Share Repurchases Dividend $7.4M
Page 7
7 A Meaningful Step Forward in Financial Results $320M (15%) ($1.00) Revenue (midpoint) Operating Margin (midpoint) EPS (midpoint) OTHER KEY METRICS • Revenue Range: $310M - $330M • SG&A: $40M - $45M • Intangible Amortization: $3M • Interest Expense: $6M • Tax Rate: 25% • EPS Range: ($0.95) - ($1.05) • Traditional Capex: $5 - 7M Q1 2026 Financial Outlook Financial Outlook Supported by Existing Backlog and Orders Anticipated During the Year
Page 8
Appendix
Page 9
9 Consolidated Balance Sheets Unaudited - dollars in thousands December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 31,923 $ 115,484 Accounts receivable, net 119,874 143,946 Inventories, net 181,153 258,825 Prepaid expenses and other 86,136 76,233 Total current assets 419,086 594,488 Property, plant, and equipment, net 300,477 339,247 Deferred income taxes 9,047 94,873 Goodwill 191,222 188,441 Intangible assets, net 63,561 74,445 Investment in unconsolidated entities 7,250 7,250 Other assets 180,598 112,785 Total assets $ 1,171,241 $ 1,411,529 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ — $ — Accounts payable 145,799 146,738 Other accrued liabilities 156,556 161,671 Total current liabilities 302,355 308,409 Long-term debt 442,852 397,142 Deferred income taxes — — Other non-current liabilities 57,492 516,152 Total liabilities 802,699 1,221,703 Commitments and contingencies Noncontrolling interest 1,184 996 Total Wabash National Corporation stockholders' equity 367,358 188,830 Total liabilities, noncontrolling interest, and equity $ 1,171,241 $ 1,411,529
Page 10
10 Consolidated Statements of Operations Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Net sales $ 321,453 $ 416,814 $ 1,542,754 $ 1,946,740 Cost of sales 327,653 373,855 1,472,843 1,681,668 Gross (loss) profit (6,200) 42,959 69,911 265,072 General and administrative expenses 31,421 30,991 (286,775) 580,684 Selling expenses 6,136 5,932 24,444 28,035 Amortization of intangible assets 2,817 2,912 11,184 11,973 Impairment and other, net 13,367 (462) 13,553 484 (Loss) income from operations (59,941) 3,586 307,505 (356,104) Other income (expense): Interest expense (5,609) (4,945) (21,316) (19,839) Other, net 1,135 869 3,956 5,434 Other expense, net (4,474) (4,076) (17,360) (14,405) Loss from unconsolidated entity (1,092) (1,511) (6,982) (6,089) (Loss) income before income tax expense (65,507) (2,001) 283,163 (376,598) Income tax (benefit) expense (15,514) (1,308) 71,524 (93,523) Net (loss) income (49,993) (693) 211,639 (283,075) Net (loss) income attributable to noncontrolling interest (115) 337 188 996 Net (loss) income attributable to common stockholders $ (49,878) $ (1,030) $ 211,451 $ (284,071) Net (loss) income attributable to common stockholders per share: Basic $ (1.23) $ (0.02) $ 5.09 $ (6.40) Diluted $ (1.23) $ (0.02) $ 5.07 $ (6.40) Weighted average common shares outstanding (in thousands): Basic 40,666 43,343 41,511 44,359 Diluted 40,666 43,343 41,746 44,359 Dividends declared per share $ 0.08 $ 0.08 $ 0.32 $ 0.32
Page 11
11 Consolidated Statements of Cash Flows Unaudited - dollars in thousands Year Ended December 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ 211,639 $ (283,075) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 47,551 45,012 Amortization of intangibles 11,184 11,973 Net loss (gain) on sale of property, plant and equipment and business divestiture 93 (493) Deferred income taxes 85,826 (111,683) Stock-based compensation 11,476 11,309 Non-cash interest expense 1,008 962 Equity in loss from unconsolidated entity 6,982 6,089 Impairment 13,371 994 Changes in operating assets and liabilities Accounts receivable 24,072 39,044 Inventories 77,672 8,810 Prepaid expenses and other (6,505) 4,020 Accounts payable and accrued liabilities (6,996) (68,687) Other, net (465,707) 452,997 Net cash provided by operating activities 11,666 117,272 Cash flows from investing activities: Cash payments for capital expenditures (24,711) (72,188) Expenditures for revenue generating assets (47,544) (6,948) Proceeds from sale of assets and business divestiture 138 4,448 Acquisitions, net of cash acquired (1,666) — Notes receivable issued to unconsolidated entity (18,900) (20,100) Net cash used in investing activities (92,683) (94,788) Cash flows from financing activities: Net cash used in financing activities (2,544) (86,271) Net decrease in cash, cash equivalents, and restricted cash (83,561) (63,787) Cash, cash equivalents, and restricted cash at beginning of period 115,484 179,271 Cash, cash equivalents, and restricted cash at end of period $ 31,923 $ 115,484
Page 12
12 Q4 QTD Segment Information (Unaudited - dollars in thousands) Wabash National Corporation Three Months Ended December 31, 2025 2024 New Units Shipped Trailers1 5,901 6,770 Truck bodies 1,343 3,010 Used trailers 20 35 1 Trailer shipments for Q4 2025 and 2024 do not include TaaS units transferred of 237 and 0 units, respectively. Three Months Ended December 31, Transportation Solutions Parts & Services Corporate and Eliminations Consolidated 2025 New trailers $ 222,663 $ — $ (5,489) $ 217,174 Used trailers — 1,021 — 1,021 Components, parts and service — 30,500 — 30,500 Equipment and other 40,223 32,936 (401) 72,758 Total net external sales $ 262,886 $ 64,457 $ (5,890) $ 321,453 Gross (loss) profit $ (16,377) $ 10,177 $ — $ (6,200) (Loss) income from operations $ (47,849) $ 5,123 $ (17,215) $ (59,941) Adjusted (loss) income from operations2 $ (31,703) $ 5,123 $ (17,215) $ (43,795) 2024 New trailers $ 278,022 $ — $ (816) $ 277,206 Used trailers — 1,128 — 1,128 Components, parts and service — 26,943 — 26,943 Equipment and other 92,472 20,532 (1,467) 111,537 Total net external sales $ 370,494 $ 48,603 $ (2,283) $ 416,814 Gross profit $ 34,880 $ 8,079 $ — $ 42,959 Income (loss) from operations $ 17,942 $ 4,494 $ (18,850) $ 3,586 Adjusted income (loss) from operations2 $ 17,942 $ 4,494 $ (18,850) $ 3,586 2 Adjusted operating (loss) income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating (loss) income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.
Page 13
13 Q4 YTD Segment Information (Unaudited - dollars in thousands) Wabash National Corporation Twelve Months Ended December 31, 2025 2024 New Units Shipped Trailers1 27,770 32,100 Truck bodies 10,600 14,255 Used trailers 105 80 1 YTD Trailer shipments for 2025 and 2024 do not include TaaS units transferred of 1,262 and 63 units, respectively. Twelve Months Ended December 31, Transportation Solutions Parts & Services Corporate and Eliminations Consolidated 2025 New trailers $ 1,045,677 $ — $ (37,403) $ 1,008,274 Used trailers — 4,570 — 4,570 Components, parts and service — 127,341 — 127,341 Equipment and other 298,700 105,209 (1,340) 402,569 Total net external sales $ 1,344,377 $ 237,120 $ (38,743) $ 1,542,754 Gross profit $ 25,714 $ 44,197 $ — $ 69,911 (Loss) income from operations $ (58,245) $ 27,714 $ 338,036 $ 307,505 Adjusted (loss) income from operations2 $ (42,099) $ 27,714 $ (80,558) $ (94,943) 2024 New trailers $ 1,335,902 $ — $ (3,978) $ 1,331,924 Used trailers 71 4,012 (71) 4,012 Components, parts and service — 128,565 — 128,565 Equipment and other 419,160 72,485 (9,406) 482,239 Total net external sales $ 1,755,133 $ 205,062 $ (13,455) $ 1,946,740 Gross profit $ 217,618 $ 47,454 $ — $ 265,072 Income (loss) from operations $ 148,277 $ 35,417 $ (539,798) $ (356,104) Adjusted income (loss) from operations2 $ 148,277 $ 35,417 $ (89,798) $ 93,896 2 Adjusted operating (loss) income, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating (loss) income excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income to provide investors with a better understanding of the Company’s view of our results as compared to prior periods.
Page 14
14 Reconciliation of Adjusted Segment Operating (Loss) Income1 Unaudited - dollars in thousands Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Transportation Solutions (Loss) income from operations $ (47,849) $ 17,942 $ (58,245) $ 148,277 Impairment of Little Falls, MN assets 16,146 — 16,146 — Adjusted operating (loss) income (31,703) 17,942 (42,099) 148,277 Adjusted operating (loss) income margin (12.1)% 4.8% (3.1)% 8.4% Parts & Services Income from operations 5,123 4,494 27,714 35,417 Adjustments: N/A — — — — Adjusted operating income 5,123 4,494 27,714 35,417 Adjusted operating income margin 7.9% 9.2% 11.7% 17.3% Corporate (Loss) income from operations (17,215) (18,850) 338,036 (539,798) Adjustments: Missouri legal matter — — (418,594) 450,000 Adjusted operating loss (17,215) (18,850) (80,558) (89,798) Consolidated (Loss) income from operations (59,941) 3,586 307,505 (356,104) Adjustments: Impairment of Little Falls, MN assets 16,146 — 16,146 — Missouri legal matter — — (418,594) 450,000 Adjusted operating (loss) income $ (43,795) $ 3,586 $ (94,943) $ 93,896 Adjusted operating (loss) income margin (13.6)% 0.9% (6.2)% 4.8% 1 Adjusted operating (loss) income and margin, a non-GAAP financial measure, excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under U.S. GAAP, but that management would not consider important in evaluating the quality of the Company’s operating results as they are not indicative of the Company’s core operating results or may obscure trends useful in evaluating the Company’s continuing activities. Accordingly, the Company presents adjusted operating (loss) income and margin excluding these special items to help investors evaluate our operating performance and trends in our business consistent with how management evaluates such performance and trends. Further, the Company presents adjusted operating (loss) income and margin to provide investors with a better understanding of the Company’s view of our results as compared to prior periods. Adjusted operating (loss) income margin is calculated by dividing adjusted operating income by total net sales.
Page 15
15 Reconciliation of Adjusted Net (Loss) Income Attributable to Common Stockholders and Adjusted Diluted EPS Unaudited - dollars in thousands Adjusted Net (Loss) Income Attributable to Common Stockholders1: Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Net (loss) income attributable to common stockholders $ (49,878) $ (1,030) $ 211,451 $ (284,071) Adjustments: Impairment of Little Falls, MN assets 16,146 — 16,146 — Missouri legal matter — — (418,594) 450,000 Tax effect of aforementioned items (4,049) — 101,056 (111,213) Adjusted net (loss) income attributable to common stockholders $ (37,781) $ (1,030) $ (89,941) $ 54,716 Adjusted Diluted (Loss) Earnings Per Share1: Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Diluted (loss) earnings per share $ (1.23) $ (0.02) $ 5.07 $ (6.40) Adjustments: Impairment of Little Falls, MN assets 0.39 — 0.39 — Missouri legal matter — — (10.03) 10.14 Tax effect of aforementioned items (0.09) — 2.42 (2.52) Adjusted diluted (loss) earnings per share $ (0.93) $ (0.02) $ (2.15) $ 1.22 Weighted average diluted shares outstanding (in thousands)2 40,666 43,343 41,746 44,908 1 Adjusted net (loss) income attributable to common stockholders and adjusted diluted (loss) earnings per share reflect adjustments for the Impairment of Little Falls' assets, Missouri legal matter and the related tax effects of those adjustments. 2 Weighted average diluted shares outstanding for the twelve months ended December 31, 2024 differ from the GAAP presentation on the Company's Consolidated Statement of Operations due to the Company being in a loss position on an unadjusted basis.
Page 16
16 Reconciliation of Operating EBITDA and Free Cash Flow Unaudited - dollars in thousands Adjusted EBITDA1 : Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Net (loss) income $ (49,993) $ (693) $ 211,639 $ (283,075) Income tax (benefit) expense (15,514) (1,308) 71,524 (93,523) Interest expense 5,609 4,945 21,316 19,839 Depreciation and amortization 15,023 16,591 58,735 56,985 Stock-based compensation 2,581 1,394 11,476 11,309 Missouri legal matter — — (418,594) 450,000 Impairment of Little Falls, MN assets 16,146 — 16,146 — Impairment and other, net (4) (462) 182 484 Other, net (1,135) (869) (3,956) (5,434) Loss from unconsolidated entity 1,092 1,511 6,982 6,089 Adjusted EBITDA $ (26,195) $ 21,109 $ (24,550) $ 162,674 Free Cash Flow2: Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Net cash (used in) provided by operating activities $ (57,434) $ 80,884 $ 11,666 $ 117,272 Cash payments for capital expenditures (4,504) (21,345) (24,711) (72,188) Expenditures for revenue generating assets (7,355) (5,513) (47,544) (6,948) Free cash flow $ (69,293) $ 54,026 $ (60,589) $ 38,136 1 Adjusted EBITDA includes noncontrolling interest & excludes loss from unconsolidated entity and is defined as earnings before interest, taxes, depreciation, amortization, stock- based compensation, the Missouri legal matter, impairment and other, net, and other non-operating income and expense. 2 Free cash flow is defined as net cash (used in) provided by operating activities minus cash payments for capital expenditures and expenditures for revenue generating assets.
Page 17
17 Reconciliation of Adjusted Segment EBITDA1 and Adjusted Segment EBITDA Margin1 Unaudited - dollars in thousands Transportation Solutions Parts & Services Twelve Months Ended December 31 2025 2024 2025 2024 (Loss) income from operations $ (58,245) $ 148,277 $ 27,714 $ 35,417 Depreciation and amortization 48,652 49,987 5,496 2,681 Impairment of Little Falls, MN assets 16,146 — — — Impairment and other, net 217 (518) (35) 1 Adjusted segment EBITDA $ 6,770 $ 197,746 $ 33,175 $ 38,099 Adjusted segment EBITDA Margin 0.5 % 11.3 % 14.0 % 18.6 % Unaudited - dollars in thousands Transportation Solutions Parts & Services Three Months Ended December 31 2025 2024 2025 2024 (Loss) income from operations $ (47,849) $ 17,942 $ 5,123 $ 4,494 Depreciation and amortization 11,963 14,291 1,935 1,055 Impairment of Little Falls, MN assets 16,146 — — — Impairment and other, net 5 (477) (9) 14 Adjusted segment EBITDA $ (19,735) $ 31,756 $ 7,049 $ 5,563 Adjusted segment EBITDA margin (7.5) % 8.6 % 10.9 % 11.4 % 1 Adjusted segment EBITDA and margin, a non-GAAP financial measure, includes noncontrolling interest & excludes loss from unconsolidated entity and is calculated by adding back segment depreciation and amortization expense to segment operating (loss) income, and excludes certain costs, expenses, other charges, gains or income that are included in the determination of operating (loss) income under GAAP, but that management would not consider important in evaluating the quality of the Company’s segment operating results as they are not indicative of each segment's core operating results or may obscure trends useful in evaluating the segment's continuing activities. Adjusted segment EBITDA margin is calculated by dividing Adjusted segment EBITDA by segment total net sales.