...March 26, 2026 This report does not constitute a rating action. We expect calibration to drive growth, as volumes industry wide remain soft. We expect Wand NewCo 3 Inc.'s (dba Caliber) revenue to grow 3%-5% for 2026 and 6%-8% for 2027 owed to a combination of an increase in more expensive repair related services, such as calibration, and expansion at new locations, after limited revenue growth in 2025. Marginal growth follows low volumes, as growth in miles driven was softer than anticipated and economic uncertainty caused consumers to delay small repairs or forego them all together. We expect this trend to continue over the near few quarters, especially as gas prices increase. However, as a slight offset, vehicles continue to evolve and repairs have become more expensive, both in terms of parts and technology maintenance. End-to-end technology in new vehicles has become much more advanced, requiring repair and calibration following even slight impacts. Sensors throughout the outside of...
