WABASH NATIONAL CorpWNC
WABASH NATIONAL Corp Leases Disclosure
LEASES
Lessee Activities
The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.
The Company leases certain industrial spaces, office space, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from generally to 5 years. The exercise of lease renewal options is at the Company’s sole discretion, and are included in the lease term only to the extent such renewal options are reasonably certain of being exercised upon lease commencement. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Leased assets obtained in exchange for new operating lease liabilities during the year ended December 31, 2025 and December 31, 2024 were approximately $12.1 million and $13.2 million, respectively. As of December 31, 2025, obligations related to leases that the Company has executed but have not yet commenced were insignificant.
Leased assets and liabilities included within the Consolidated Balance Sheets consist of the following (in thousands):
| Classification | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| Right-of-Use Assets | ||||||||||||||||||||
| Operating | $ | 35,412 | $ | 36,423 | ||||||||||||||||
| Total leased ROU assets | $ | 35,412 | $ | 36,423 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating | $ | 13,319 | $ | 11,782 | ||||||||||||||||
| Noncurrent | ||||||||||||||||||||
| Operating | 23,184 | 24,641 | ||||||||||||||||||
| Total lease liabilities | $ | 36,503 | $ | 36,423 | ||||||||||||||||
Lease costs included in the Consolidated Statements of Operations consist of the following (in thousands):
| Classification | Twelve Months Ended December 31, 2025 | Twelve Months Ended December 31, 2024 | ||||||||||||||||||
| Operating lease cost | Cost of sales, selling expenses, and general and administrative expense | $ | 15,222 | $ | 12,096 | |||||||||||||||
| Net lease cost | $ | 15,222 | $ | 12,096 | ||||||||||||||||
Maturity of the Company’s lease liabilities for leases that have commenced is as follows (in thousands):
| Operating Leases | Total | |||||||||||||
| 2026 | $ | 15,035 | $ | 15,035 | ||||||||||
| 2027 | 10,298 | 10,298 | ||||||||||||
| 2028 | 6,447 | 6,447 | ||||||||||||
| 2029 | 4,896 | 4,896 | ||||||||||||
| 2030 | 3,279 | 3,279 | ||||||||||||
| Thereafter | 602 | 602 | ||||||||||||
| Total lease payments | $ | 40,557 | $ | 40,557 | ||||||||||
| Less: interest | 4,054 | |||||||||||||
| Present value of lease payments | $ | 36,503 | ||||||||||||
As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Remaining lease term and discount rates are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Weighted average remaining lease term (years) | ||||||||||||||
| Operating leases | 3.4 | 3.5 | ||||||||||||
| Weighted average discount rate | ||||||||||||||
| Operating leases | 5.89 | % | 5.38 | % | ||||||||||
Lease costs included in the Consolidated Statements of Cash Flows are as follows (in thousands):
| Twelve Months Ended December 31, 2025 | Twelve Months Ended December 31, 2024 | |||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||
| Operating cash flows from operating leases | $ | 15,222 | $ | 12,130 | ||||||||||
Lessor and Sublessor Activities
The Company leases dry van trailers to customers under full-service lease agreements and operating lease agreements. At the inception of a contract, in accordance with the applicable accounting guidance (ASC 842, Leases) the Company considers whether the arrangement contains a lease and, as applicable, performs the required lease classification tests. The Company, as a lessor, has no material sales-type or direct financing lease arrangements as of December 31, 2025.
The Company’s full-service lease agreements are an integrated service that include lease component amounts related to the use of the trailer, as well as non-lease components for preventative maintenance, certain repairs as defined in the related agreement, and ad valorem taxes. In accordance with the applicable accounting guidance (ASC 842, Leases), the Company has elected to combine lease and non-lease components when reporting revenue for the full-service underlying class of leased assets.
Initial lease terms are generally to five years. Certain of the Company’s leases provide customers with renewal options that provide the ability to extend the lease term for a period of generally to five years. In addition, some leases include options for the customer to purchase the trailers at fair market value, as determined by the Company at or near the end of the lease. The Company’s lease agreements generally do not have residual value guarantees nor permit customers to terminate the lease agreements prior to natural expiration. As stipulated in the lease agreements, the Company may receive reimbursements from customers for certain damage or required repairs to the trailers. We expect to derive an immaterial amount from the underlying assets following the end of the respective lease terms.
During the year ended December 31, 2022, the Company entered into sale-leaseback-sublease transactions. Such contracts were entered into in contemplation of each other and are thus recorded on a net basis. The net revenue from these contracts was insignificant for all periods presented but such revenue is included in the tables below.
Certain of the Company’s leases and subleases are with a related party—such transactions were at market value and entered into at arm’s length.
Lease income is included in Net sales on the Company’s Consolidated Statements of Operations and is recorded in the P&S operating segment. For the twelve months ended December 31, 2025 and 2024, the Company’s lease income consisted of the following components (in thousands):
| Twelve Months Ended December 31, 2025 | Twelve Months Ended December 31, 2024 | |||||||||||||
| Operating lease income | ||||||||||||||
| Fixed lease income | $ | 8,984 | $ | 2,335 | ||||||||||
| Variable lease income | — | — | ||||||||||||
| $ | 8,984 | $ | 2,335 | |||||||||||
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(1) As noted above, net revenue related to subleases was insignificant for all periods presented but such revenue is included in the tables above.
The following table shows the Company’s future contractual receipts from noncancelable operating leases for the years ended December 31 as of December 31, 2025 (in thousands):
Operating Leases(1) | ||||||||
| 2026 | $ | 2,061 | ||||||
| 2027 | 1,949 | |||||||
| 2028 | 1,157 | |||||||
| 2029 | — | |||||||
| 2030 | — | |||||||
| Thereafter | — | |||||||
| Total contractual receipts | $ | 5,167 | ||||||
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(1) The future contractual receipts due under the Company’s full-service operating leases include amounts related to preventative maintenance, certain repairs as defined in the related agreements, and ad valorem taxes. Net revenue related to the Company’s subleases are also included in the table above.
The leased trailers are recorded on the Company’s Consolidated Balance Sheets within Other assets at cost, net of accumulated depreciation. Depreciation is recorded using the straightline method over the estimated useful lives of the trailers, which is generally 12 years. Revenue generating assets, net consists of the following (in thousands):
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Revenue generating assets | $ | 55,890 | $ | 7,457 | ||||||||||
| Less: accumulated depreciation | (3,694) | (746) | ||||||||||||
| Revenue generating assets, net | $ | 52,196 | $ | 6,711 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.