WABASH National (WNC) risk factors, FY2024 10-K

Risks Related to Our Business, Strategy and Operations

1. 01We are currently involved in a product liability action and the unfavorable jury verdict could have a material adverse effect on our financial condition, results of operations, cash flows and business
2. 02The highly cyclical nature of our business and the impact of economic conditions on markets, customers and demand for our products may have a material adverse effect on our business, financial condition, cash flows and results of operations
3. 03A change in our customer relationships or in the financial condition of our customers could have a material adverse effect on our business, financial condition, cash flows and results of operations
4. 04Our backlog may not be indicative of the level of our future revenues
5. 05We rely significantly on information technology to support our operations and if we are unable to protect against service interruptions or security breaches, it could have a material adverse effect on our business, financial condition, cash flows and results of operations
6. 06Inflation could materially and adversely affect our business, financial condition, cash flows and results of operations
7. 07We have a limited number of suppliers of raw materials and components; supply chain disruptions, increases in the price of raw materials and components or the inability to obtain raw materials and components could have a material adverse effect on our business, financial condition, cash flows and results of operations
8. 08The inability to attract and retain key personnel or a sufficient workforce could have a material adverse effect on our business, financial condition, cash flows and results of operations
9. 09We may not be able to execute on our long-term strategic plan and growth initiatives, or meet our long-term financial goals, and this may have a material adverse effect on our business, financial condition, cash flows and results of operations
10. 10Volatility in the supply of vehicle chassis and other vehicle components could have a material adverse effect on our truck body product line
11. 11Significant competition in the industries in which we operate may result in our competitors offering new or better products and services or lower prices, which could have a material adverse effect on our business, financial condition, cash flows and results of operations
12. 12Our truck body product lines compete in the highly competitive specialized vehicle industry which may impact our financial results
13. 13Our technology and products may not achieve market acceptance or competing products could gain market share, which could have a material adverse effect on our business, financial condition, cash flows and results of operations
14. 14Disruption of our manufacturing operations could have a material adverse effect on our business, financial condition, cash flows and results of operations
15. 15Our Trailers as a Service (TaaS)SM initiative includes leased and subleased trailers. These trailers and our current and future TaaS initiative trailers have long economic lives and managing our evolving trailer fleet is a critical element to our leasing business
16. 16Our joint venture arrangement to create Linq Venture Holdings LLC and related agreements are subject to risks and we may fail to realize all of the expected enhanced revenue, earnings and cash flows
17. 17We may fail to realize all of the expected enhanced revenue, earnings and cash flow from our agreement to create Wabash Parts LLC, a jointly owned legal entity
18. 18We are subject to extensive governmental laws and regulations, and our costs related to compliance with, or our failure to comply with, existing or future laws and regulations could have a material adverse effect on our business, financial condition, cash flows and results of operations
19. 19Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse effect on our business, financial condition, cash flows and results of operations
20. 20Product liability and other legal claims could have a material adverse effect on our business, financial condition, cash flows and results of operations
21. 21Climate change and related public focus from regulators and various stakeholders could have a material adverse effect on our business, financial condition, cash flows and results of operations
22. 22An impairment in the carrying value of goodwill and other long-lived intangible assets could negatively affect our operating results
23. 23There is no assurance that we will have the ability to continue a regular quarterly dividend
24. 24Each of the factors listed above could negatively affect our ability to pay dividends in accordance with our dividend policy or at all. In addition, the Board may elect to suspend or alter the current dividend policy at any time
25. 25We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
26. 26Our inability to generate sufficient cash flows to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms or at all, would materially and adversely affect our financial position and results of operations and our ability to satisfy our indebtedness
27. 27Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations thereunder
28. 28International operations are subject to increased risks, which could have a material adverse effect on our business, financial condition, cash flows and results of operations
29. 29Failure to meet environmental, social and governance (“ESG”) expectations or standards or to achieve our ESG goals could result in legal and regulatory proceedings against us and materially adversely affect our business, reputation, financial condition, cash flows and results of operations
30. 30Provisions of the Senior Notes could discourage a potential future acquisition of us by a third party
31. 31Our Senior Notes indenture and Credit Agreement contain restrictive covenants that, if breached, could limit our financial and operating flexibility and subject us to other risks

Risks Related to an Investment in Our Common Stock

1. 32Our common stock has experienced, and may continue to experience, trading price and volume volatility