Wabash National, a leading trailer manufacturer, has had its debt rating downgraded by Moody’s for the third time in a year. The latest move, announced on May 5, is a downgrade of its corporate family rating to B3 from B2. This marks a significant shift in the company's credit profile.
The downgrade is not an isolated incident, as S&P Global Ratings had previously cut Wabash’s debt rating to B+ in May of last year and B soon after Moody’s made its move to B2 in November. The B3 rating at Moody’s is six notches below the cutoff line between investment grade and non-investment grade debt.
Wabash's struggles are evident in its declining trailer production numbers. Trailer production has been steadily decreasing for many months, with 5,378 units shipped in the first quarter of 2026, down from 5,901 in the fourth quarter of 2025. Its recent high-water mark was 13,670 in the third quarter of 2022.
The company's financial performance is also grim, with cash and cash equivalents on hand at $31.9 million at the end of 2025, down from $144.5 million a year earlier. Net sales in its Transportation Solutions segment, which includes truck manufacturing operations, were $250.1 million in the first quarter of 2026.
The downgrade is a reflection of Wabash's weak credit metrics, with Moody’s stating that the company's earnings have evaporated and cash burn has persisted during a prolonged down cycle in new truck trailer production. The company's customers are deferring investments in their transportation fleets, leading to decreased demand for its products.
Despite this, Wabash executives are cautiously optimistic about the company's prospects. CEO Brent Yeagy acknowledged the poor performance but sought to forecast better days, citing 'early stabilization' of order patterns and asset utilization.
The downgrade reflects the company's struggles with declining trailer production and cash burn during a prolonged down cycle.
