Wabash Announces Long-Term Agreement with J.B. Hunt

Rhea-AI Summary

Wabash (NYSE: WNC) has entered a multi-year supply agreement with J.B. Hunt Transport Inc., enhancing its supply chain strategy. This partnership marks Wabash's intent to build a demand backlog that strategically looks beyond a year, ensuring stability in supply amid changing market conditions. The agreement includes the provision of over 15,000 trailers to J.B. Hunt, which will help optimize their logistics operations. This is complemented by a 10-year aluminum supply agreement, facilitating Wabash’s capacity expansion in 2023.

Positive

• Multi-year agreement with J.B. Hunt to supply over 15,000 trailers, enhancing logistics capacity.
• Strategic shift to create a backlog for long-term demand planning, ensuring stability.
• Complementary 10-year aluminum supply agreement with Hydro to support production.

Negative

• None.

Multi-year supply agreement marks strategic shift in long-term demand planning

LAFAYETTE, Ind., Jan. 10, 2023 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the visionary leader of connected solutions for the transportation, logistics and distribution industries, today announced a multi-year supply agreement with J.B. Hunt Transport Inc., one of the largest supply chain solutions providers in North America.

This marks a strategic shift in how Wabash is intentionally building a backlog with strategic customers who are interested in jointly planning demand for a period that looks beyond the next 12 months.  

“Wabash has undergone substantial change over the last two years to create the right organizational structure to enable this type of strategic progress that positions Wabash to create value at the center of an ecosystem of customers, suppliers and partners,” said Brent Yeagy, president and chief executive officer. “The collaborative nature of multi-year demand planning builds upon our improved pricing construct to generate another important proof point of how we are structurally improving the foundation of our company by smoothing out demand cycles that drive unnecessary variability through the entire supply chain. We’re strategically managing our backlog and enabling our customer’s success from first to final mile, and we’re pleased to start this new path forward with J.B. Hunt.”

“The trailers provided by Wabash over the next few years will help us expand capacity available for services like private fleet outsourcing and drop-and-hook freight,” said Nick Hobbs, chief operating officer and president of contract services at J.B. Hunt. “With an additional 15,000-plus trailers, we can improve the efficiency of our equipment so that assets are in the right place at the right time for available drivers. It's essential to our mission of creating the most efficient transportation network in North America.”  

This long-term order agreement with J.B. Hunt couples with Wabash’s 10-year aluminum supply agreement with Hydro, strategically coordinated to provide certainty that Wabash can meet pent-up demand as its additional dry van capacity comes online in early 2023.

Wabash: Changing How the World Reaches You^®
Wabash (NYSE: WNC) is the visionary leader of connected solutions for the transportation, logistics and distribution industries that is Changing How the World Reaches You^®. Headquartered in Lafayette, Indiana, the company enables customers to thrive by providing insight into tomorrow and delivering pragmatic solutions today to move everything from first to final mile. Wabash designs, manufactures, and services a diverse range of products, including: dry freight and refrigerated trailers, flatbed trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at www.onewabash.com.

Media Contact:
Dana Stelsel
Director, Communications
(765) 771-5766
dana.stelsel@onewabash.com

Investor Relations:
Ryan Reed
Sr. Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@onewabash.com

 

FAQ

What is Wabash's recent supply agreement with J.B. Hunt Transport about?

Wabash has signed a multi-year supply agreement to provide over 15,000 trailers to J.B. Hunt, enhancing logistics capabilities.

How does the new agreement impact Wabash's business strategy?

The agreement signifies Wabash's strategic shift towards long-term demand planning, helping stabilize supply and enhance customer relationships.

When will Wabash's additional dry van capacity come online?

Wabash's additional dry van capacity is set to come online in early 2023.

What is the significance of the aluminum supply agreement for Wabash?

The 10-year aluminum supply agreement with Hydro ensures Wabash can meet increasing demand, supporting its production capabilities.