Moody’s has downgraded Wabash National’s corporate credit rating for the third time in a year, as the trailer manufacturer continues to face weak earnings, lower production and pressure on cash flow.
The latest downgrade moves Wabash from B2 to B3. Moody’s had already cut the company’s rating to B1 in May 2025 and then to B2 in November.
S&P Global Ratings also downgraded Wabash’s debt rating last year, first to B+ and later to B. Moody’s current B3 rating places Wabash six levels below investment grade.
Moody’s said Wabash’s credit metrics are expected to remain weak and unsustainable over the next 12 months. The agency pointed to a prolonged slowdown in new trailer production as customers delay fleet investment.
Wabash shipped 5,378 trailers in the first quarter, down from 5,901 in the fourth quarter of 2025. The recent high point was 13,670 trailers in the third quarter of 2022.
The company’s cash position has also weakened. Wabash reported $31.9m in cash and equivalents at the end of 2025, compared with $144.5m a year earlier.
Its Transportation Solutions segment generated $250.1m in net sales in the first quarter of 2026, down from $262.9m in the previous quarter and far below the $611.8m recorded in the third quarter of 2022.
CEO Brent Yeagy acknowledged the difficult market conditions but said early signs of stabilization were emerging. He pointed to improving customer visibility and stronger order backlog as indicators of a possible recovery in 2027.
Wabash reported an $837m backlog during the quarter, up 19% from the fourth quarter of 2026. Yeagy said it was the strongest first-quarter backlog growth in the company’s history.
Moody’s still expects Wabash’s debt-to-EBITDA ratio to remain around 6 by the end of 2027, compared with 1 at the end of 2023. The agency also warned of negative free cash flow and refinancing risk linked to a $350m asset-backed credit facility due in September 2027.
Wabash declined to comment on Moody’s latest rating action.
