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Wabash Inks Deal With Steel Dynamics to Source Key Steel Components

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Wabash National Corporation (WNC - Free Report) , a leading semi-trailer manufacturer in North America, has entered into a 10-year strategic agreement with Steel Dynamics, Inc. (STLD - Free Report) , a major steel producer and recycler in the region. The partnership ensures a steady supply of key steel components, such as hot-rolled, galvanized and painted steel coils, as well as steel cross members, for Wabash’s range of transportation solutions, including van trailers, tank trailers, platform trailers and truck bodies.

Per Richard Mansilla, vice president of global supply chain at Wabash, this deal strengthens its supply chain by securing high-priority capacity during periods of increased demand, allowing Wabash to meet customer needs without facing the supply constraints affecting other manufacturers. Steel Dynamics, which has been a reliable partner to Wabash for 14 years, has played a crucial role in supporting all product lines as Wabash expanded its equipment offerings.

This agreement is not limited to prioritized supply, it also includes backup capacity from multiple Steel Dynamics facilities to establish a dependable domestic steel supply chain. With this secured supply, Wabash is well-positioned to continue providing uninterrupted service to its customers, especially during times of high demand.

This deal reinforces Wabash’s commitment to long-term demand planning and leveraging strong partnerships with industry leaders like Steel Dynamics. Alongside similar agreements with companies, such as Rockland Flooring, Ryerson, J.B. Hunt and Hydro, Wabash is poised to lead the industry in supply chain reliability and operational excellence.

In the second quarter of 2024, Wabash reported net revenues of $550.6 million, which fell from $686.6 million reported in the corresponding quarter of 2023 due to weaker demand. Consequently, the company reduced its revenue and earnings outlook for 2024. It now expects revenues in the range of $2-$2.2 billion, down from the previous outlook of $2.2-$2.4 billion. Earnings per share are now estimated in the range of $1.50-$1.60, down from the prior estimate of $2-$2.50.

Wabash’s Zacks Rank & Key Picks

WNC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) and Blue Bird Corporation (BLBD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 60 days.

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