Wabtec Reports Strong Fourth Quarter 2023 Results; Issues 2024 Full-Year Guidance
- None.
- None.
Insights
Revenue Growth and Profitability: The reported 9.5% sales growth and substantial improvements in both GAAP and adjusted earnings per share reflect a robust financial performance. The increase in operating margins suggests effective cost management and operational efficiency. The uptick in gross margins indicates that the company is not only increasing sales but also retaining more from each dollar of sales, which is a positive sign for profitability. The growth in the Freight segment, which saw a 7.7% increase in net sales, is particularly noteworthy as it suggests a healthy demand in this sector.
Dividend and Share Buyback: The announcement of a 17.6% increase in quarterly dividends and a $1.0 billion share buyback authorization reflects a shareholder-friendly capital allocation policy. This could be appealing to income-focused investors and may support the stock price by reducing the number of shares outstanding, potentially increasing earnings per share over time.
Liquidity Position: The company's liquidity position, with $2.12 billion in total available liquidity, provides financial flexibility and suggests the company is well-prepared to navigate economic uncertainties or invest in growth opportunities. The operating cash flow conversion rate of 182% is a strong indicator of the company's ability to turn profits into cash, which is crucial for meeting obligations and funding investments without resorting to additional debt or equity financing.
Market Position and Growth Outlook: Wabtec's positive financial guidance for 2024, projecting sales between $10.05 billion to $10.35 billion and an adjusted EPS range of $6.50 to $6.90, demonstrates management's confidence in the company's growth trajectory. The emphasis on a strong order pipeline and robust international activity indicates a favorable market position. Wabtec's alignment with the rail industry's needs, focusing on safety and efficiency, positions it well to capitalize on the growing trend of sustainable transportation solutions.
Backlog Analysis: The 10.3% year-over-year increase in the 12-month backlog provides visibility into future revenue streams, which is reassuring for investors. However, the slight decrease in the total backlog, excluding foreign currency exchange, could suggest a need to monitor order intake and conversion rates moving forward to ensure sustained growth.
Macro-Economic Factors: The company's performance must be contextualized within the broader economic environment, which includes considerations of global trade dynamics, currency fluctuations and industrial demand. Wabtec's ability to navigate these factors and deliver a strong financial performance is indicative of its strategic planning and market adaptability. The mention of favorable international activity might imply resilience against potential headwinds such as trade tensions or protectionist policies.
Investment in Growth: The strategic acquisitions and investments for future growth highlight a proactive approach to expanding market share and product offerings. This could have long-term benefits by diversifying revenue streams and enhancing competitive positioning. However, it will be important to monitor how these investments translate into financial performance, ensuring that they contribute positively to earnings and do not dilute shareholder value.
-
GAAP Earnings Per Share of
$1.20 39.5% ; Adjusted Earnings Per Share of$1.54 18.5% Behind Sales Growth of9.5% -
GAAP Operating Margin at
12.2% ; Adjusted Operating Margin Up 1.7 pts to17.0% -
Fourth Quarter Operating Cash Flow of
$686 Million 15.7% to$1.20 Billion -
Announced
$1.0 Billion 17.6% Increase in Quarterly Dividend -
Issues 2024 Financial Guidance of Adjusted EPS Between
$6.50 $6.90 13.2% at the Mid-Point
“The Wabtec team delivered a strong finish to 2023 as evidenced by higher sales, margin expansion, increased earnings and improved cash flow,” said Rafael Santana, Wabtec’s President and CEO. “Strong demand for our products in
“We remain committed to our capital deployment strategy to maximize shareholder returns. We invested for future growth, executed on two strategic acquisitions and returned over
“Looking ahead, with robust international activity and a strong order pipeline, Wabtec is well-positioned to drive profitable growth in 2024 and beyond. Our differentiated portfolio is aligned to solving our customers’ most pressing needs and making rail the safest and most efficient way to move people and goods across land. Wabtec’s products and technologies will enable us to capitalize on these trends and drive profitable growth and increase long-term shareholder value.”
2023 Fourth Quarter Consolidated Results
Wabtec Corporation Consolidated Financial Results |
|||
$ in millions except earnings per share and percentages; margin change in percentage points (pts) |
Fourth Quarter |
||
2023 |
2022 |
Change |
|
Net Sales |
|
|
9.5 % |
|
|
|
|
GAAP Gross Margin |
30.3 % |
28.3 % |
2.0 pts |
Adjusted Gross Margin |
30.8 % |
29.6 % |
1.2 pts |
GAAP Operating Margin |
12.2 % |
10.7 % |
1.5 pts |
Adjusted Operating Margin |
17.0 % |
15.3 % |
1.7 pts |
|
|
|
|
GAAP Diluted EPS |
|
|
39.5 % |
Adjusted Diluted EPS |
|
|
18.5 % |
|
|
|
|
Cash Flow from Operations |
|
|
|
Operating Cash Flow Conversion |
182 % |
147 % |
|
-
Sales increased
9.5% compared to the year-ago quarter driven by increased sales across the Freight and Transit segments. -
GAAP gross margin was higher than prior year at
30.3% and adjusted gross margin was higher than the prior year at30.8% . Both GAAP and adjusted gross margin benefited from higher sales, improved price/mix and productivity. -
GAAP operating margin was higher than the prior year at
12.2% and adjusted operating margin was higher than the prior year at17.0% . Both GAAP and adjusted operating margins benefited from higher gross margin and lower SG&A and Engineering expenses as a percentage of sales. - GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales and margin expansion, partially offset by increased interest expense. GAAP EPS also benefited from a gain resulting from a change of ownership interest of an assembly joint venture.
2023 Fourth Quarter Freight Segment Results
Wabtec Corporation Freight Segment Financial Results |
|||
Net sales $ in millions; margin change in percentage points (pts) |
Fourth Quarter |
||
2023 |
2022 |
Change |
|
Net Sales |
|
|
7.7 % |
GAAP Gross Margin |
31.0 % |
28.9 % |
2.1 pts |
Adjusted Gross Margin |
31.3 % |
29.4 % |
1.9 pts |
GAAP Operating Margin |
13.7 % |
12.5 % |
1.2 pts |
Adjusted Operating Margin |
19.3 % |
17.0 % |
2.3 pts |
-
Freight segment sales for the fourth quarter were up
7.7% , driven by double-digit growth in Services and Components. - GAAP operating margin and adjusted operating margin benefited from strong gross margin gains and lower SG&A and Engineering expenses as a percent of sales.
2023 Fourth Quarter Transit Segment Results
Wabtec Corporation Transit Segment Financial Results |
|||
Net sales $ in millions; margin change in percentage points (pts) |
Fourth Quarter |
||
2023 |
2022 |
Change |
|
Net Sales |
|
|
14.3 % |
GAAP Gross Margin |
28.4 % |
26.7 % |
1.7 pts |
Adjusted Gross Margin |
29.4 % |
30.3 % |
(0.9 pts) |
GAAP Operating Margin |
11.9 % |
9.9 % |
2.0 pts |
Adjusted Operating Margin |
14.9 % |
14.8 % |
0.1 pts |
-
Transit segment sales for the fourth quarter were up
14.3% due to strong OE and aftermarket sales. - GAAP and adjusted operating margins were up as a result of higher sales and savings related to Integration 2.0, partially offset by unfavorable product mix. GAAP operating margin also benefited from lower year-over-year restructuring expense.
Backlog
Wabtec Corporation Consolidated Backlog Comparison |
|||
Backlog $ in millions |
December 31, |
||
|
2023 |
2022 |
Change |
12-Month Backlog |
|
|
10.3 % |
Total Backlog |
|
|
(2.0) % |
The Company’s 12-month and multi-year backlogs continue to provide strong visibility. At the end of the fourth quarter, the 12-month backlog was
Cash Flow and Liquidity Summary
-
During the fourth quarter, the Company generated cash from operations of
$686 million $410 million -
At the end of the quarter, the Company had cash, cash equivalents and restricted cash of
$620 million $4.07 billion $2.12 billion $1.50 billion -
The Company repurchased
$157 million $409 million -
During the fourth quarter, Wabtec acquired the remaining
50% of the Company’s joint venture, Lokomotiv Kurastyru Zauyty (LKZ), for$81 million -
Wabtec’s Board of Directors reauthorized the Company’s stock buyback program to refresh the amount available to
$1.0 billion 17.6% and declared a regular quarterly common dividend of20 cents per share, payable on March 8, 2024 to holders of record on February 23, 2024.
2024 Financial Guidance
-
Wabtec issues 2024 financial guidance with sales expected to be in a range of
$10.05 billion $10.35 billion $6.50 $6.90 - For full year 2024, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.
Forecasted GAAP Earnings Reconciliation
Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. Wabtec is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
Conference Call Information
Wabtec will host a call with analysts and investors at 8:30 a.m., ET, today. To listen via webcast, go to Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-877-344-7529 or 1-412-317-0088 (access code: 4474477).
About Wabtec
Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 150 years and has a vision to achieve a zero-emission rail system in the
Information about non-GAAP Financial Information and Forward-Looking Statements
Wabtec’s earnings release and 2024 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted for restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec’s plans, objectives, expectations and intentions; Wabtec’s expectations about future sales, earnings and cash conversion and statements regarding macro-economic conditions and evolving production and demand conditions; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, inflation, supply chain disruptions, foreign currency exchange, and industry consolidation; (2) changes in the financial condition or operating strategies of Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics, or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability, and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including from the imposition of economic sanctions on
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2022 | |||||||||||||||
| (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||
| Net sales | $ |
2,526 |
|
$ |
2,306 |
|
$ |
9,677 |
|
$ |
8,362 |
|
|||
| Cost of sales |
|
(1,762 |
) |
|
(1,654 |
) |
|
(6,733 |
) |
|
(5,822 |
) |
|||
| Gross profit |
|
764 |
|
|
652 |
|
|
2,944 |
|
|
2,540 |
|
|||
| Gross profit as a % of Net Sales |
|
30.3 |
% |
|
28.3 |
% |
|
30.4 |
% |
|
30.4 |
% |
|||
| Selling, general and administrative expenses |
|
(296 |
) |
|
(272 |
) |
|
(1,139 |
) |
|
(1,029 |
) |
|||
| Engineering expenses |
|
(61 |
) |
|
(60 |
) |
|
(218 |
) |
|
(209 |
) |
|||
| Amortization expense |
|
(99 |
) |
|
(73 |
) |
|
(321 |
) |
|
(291 |
) |
|||
| Total operating expenses |
|
(456 |
) |
|
(405 |
) |
|
(1,678 |
) |
|
(1,529 |
) |
|||
| Operating expenses as a % of Net Sales |
|
18.1 |
% |
|
17.5 |
% |
|
17.3 |
% |
|
18.3 |
% |
|||
| Income from operations |
|
308 |
|
|
247 |
|
|
1,266 |
|
|
1,011 |
|
|||
| Income from operations as a % of Net Sales |
|
12.2 |
% |
|
10.7 |
% |
|
13.1 |
% |
|
12.1 |
% |
|||
| Interest expense, net |
|
(55 |
) |
|
(51 |
) |
|
(218 |
) |
|
(186 |
) |
|||
| Other (expense) income, net |
|
27 |
|
|
14 |
|
|
44 |
|
|
29 |
|
|||
| Income before income taxes |
|
280 |
|
|
210 |
|
|
1,092 |
|
|
854 |
|
|||
| Income tax expense |
|
(63 |
) |
|
(51 |
) |
|
(267 |
) |
|
(213 |
) |
|||
| Effective tax rate |
|
22.6 |
% |
|
24.3 |
% |
|
24.5 |
% |
|
25.0 |
% |
|||
| Net income |
|
217 |
|
|
159 |
|
|
825 |
|
|
641 |
|
|||
| Less: Net income attributable to noncontrolling interest |
|
(2 |
) |
|
(1 |
) |
|
(10 |
) |
|
(8 |
) |
|||
| Net income attributable to Wabtec shareholders | $ |
215 |
|
$ |
158 |
|
$ |
815 |
|
$ |
633 |
|
|||
| Earnings Per Common Share | |||||||||||||||
| Basic | |||||||||||||||
| Net income attributable to Wabtec shareholders | $ |
1.20 |
|
$ |
0.87 |
|
$ |
4.54 |
|
$ |
3.46 |
|
|||
| Diluted | |||||||||||||||
| Net income attributable to Wabtec shareholders | $ |
1.20 |
|
$ |
0.86 |
|
$ |
4.53 |
|
$ |
3.46 |
|
|||
| Basic |
|
178.0 |
|
|
181.0 |
|
|
178.8 |
|
|
182.2 |
|
|||
| Diluted |
|
178.8 |
|
|
181.7 |
|
|
179.5 |
|
|
182.8 |
|
|||
| Segment Information | |||||||||||||||
| Freight Net Sales | $ |
1,798 |
|
$ |
1,669 |
|
$ |
6,962 |
|
$ |
6,012 |
|
|||
| Freight Income from Operations | $ |
246 |
|
$ |
209 |
|
$ |
1,071 |
|
$ |
864 |
|
|||
| Freight Operating Margin |
|
13.7 |
% |
|
12.5 |
% |
|
15.4 |
% |
|
14.4 |
% |
|||
| Transit Net Sales | $ |
728 |
|
$ |
637 |
|
$ |
2,715 |
|
$ |
2,350 |
|
|||
| Transit Income from Operations | $ |
86 |
|
$ |
63 |
|
$ |
289 |
|
$ |
231 |
|
|||
| Transit Operating Margin |
|
11.9 |
% |
|
9.9 |
% |
|
10.7 |
% |
|
9.8 |
% |
|||
| Backlog Information (Note: 12-month is a sub-set of total) | December 31, 2023 |
September 30, 2023 |
December 31, 2022 |
||||||||||||
| Freight Total | $ |
17,831 |
|
$ |
17,614 |
|
$ |
18,641 |
|
||||||
| Transit Total |
|
4,168 |
|
|
3,869 |
|
|
3,800 |
|
||||||
| Wabtec Total | $ |
21,999 |
|
$ |
21,483 |
|
$ |
22,441 |
|
||||||
| Freight 12-Month | $ |
5,450 |
|
$ |
5,282 |
|
$ |
4,901 |
|
||||||
| Transit 12-Month |
|
2,007 |
|
|
1,809 |
|
|
1,859 |
|
||||||
| Wabtec 12-Month | $ |
7,457 |
|
$ |
7,091 |
|
$ |
6,760 |
|
||||||
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (UNAUDITED) | |||||
| December 31, 2023 | December 31, 2022 | ||||
| In millions | |||||
| Cash, cash equivalents and restricted cash | $ |
620 |
$ |
541 |
|
| Receivables, net |
|
1,684 |
|
1,519 |
|
| Inventories, net |
|
2,284 |
|
2,034 |
|
| Other current assets |
|
267 |
|
233 |
|
| Total current assets |
|
4,855 |
|
4,327 |
|
| Property, plant and equipment, net |
|
1,485 |
|
1,429 |
|
| Goodwill |
|
8,780 |
|
8,508 |
|
| Other intangible assets, net |
|
3,205 |
|
3,402 |
|
| Other noncurrent assets |
|
663 |
|
850 |
|
| Total assets | $ |
18,988 |
$ |
18,516 |
|
| Current liabilities | $ |
4,056 |
$ |
3,467 |
|
| Long-term debt |
|
3,288 |
|
3,751 |
|
| Long-term liabilities - other |
|
1,120 |
|
1,151 |
|
| Total liabilities |
|
8,464 |
|
8,369 |
|
| Shareholders' equity |
|
10,487 |
|
10,102 |
|
| Noncontrolling interest |
|
37 |
|
45 |
|
| Total shareholders' equity |
|
10,524 |
|
10,147 |
|
| Total Liabilities and Shareholders' Equity | $ |
18,988 |
$ |
18,516 |
|
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (UNAUDITED) | |||||||
| Twelve Months Ended December 31, | |||||||
2023 |
2022 |
||||||
| In millions | |||||||
| Operating activities | |||||||
| Net income | $ |
825 |
|
$ |
641 |
|
|
| Non-cash expense |
|
473 |
|
|
506 |
|
|
| Receivables |
|
(195 |
) |
|
(52 |
) |
|
| Inventories |
|
(58 |
) |
|
(368 |
) |
|
| Accounts Payable |
|
(58 |
) |
|
306 |
|
|
| Other assets and liabilities |
|
214 |
|
|
5 |
|
|
| Net cash provided by operating activities |
|
1,201 |
|
|
1,038 |
|
|
| Net cash used for investing activities |
|
(492 |
) |
|
(235 |
) |
|
| Net cash used for financing activities |
|
(633 |
) |
|
(708 |
) |
|
| Effect of changes in currency exchange rates |
|
3 |
|
|
(27 |
) |
|
| Increase in cash |
|
79 |
|
|
68 |
|
|
| Cash, cash equivalents and restricted cash, beginning of period |
|
541 |
|
|
473 |
|
|
| Cash, cash equivalents and restricted cash, end of period | $ |
620 |
|
$ |
541 |
|
|
| Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. | ||||||||||||||||||||||||||||||||||||
| Wabtec Corporation | ||||||||||||||||||||||||||||||||||||
| Reconciliation of Reported Results to Adjusted Results | ||||||||||||||||||||||||||||||||||||
| (in millions) | Fourth Quarter 2023 Actual Results | |||||||||||||||||||||||||||||||||||
| Gross | Operating | Income from | Interest & | Noncontrolling | Wabtec | |||||||||||||||||||||||||||||||
| Net Sales | Profit | Expenses | Operations | Other Exp | Tax | Net Income | Interest | Net Income | EPS | |||||||||||||||||||||||||||
| Reported Results | $ |
2,526 |
$ |
764 |
$ |
(456 |
) |
$ |
308 |
$ |
(28 |
) |
$ |
(63 |
) |
$ |
217 |
|
$ |
(2 |
) |
$ |
215 |
|
$ |
1.20 |
|
|||||||||
| Restructuring and Portfolio Optimization costs |
|
- |
|
13 |
|
34 |
|
|
47 |
|
- |
|
|
(9 |
) |
|
38 |
|
|
- |
|
|
38 |
|
$ |
0.21 |
|
|||||||||
| Gain on LKZ Investment |
|
- |
|
- |
|
- |
|
|
- |
|
(35 |
) |
|
- |
|
|
(35 |
) |
|
- |
|
|
(35 |
) |
$ |
(0.19 |
) |
|||||||||
| Non-cash Amortization expense |
|
- |
|
- |
|
76 |
|
|
76 |
|
- |
|
|
(18 |
) |
|
58 |
|
|
- |
|
|
58 |
|
$ |
0.32 |
|
|||||||||
| Adjusted Results | $ |
2,526 |
$ |
777 |
$ |
(346 |
) |
$ |
431 |
$ |
(63 |
) |
$ |
(90 |
) |
$ |
278 |
|
$ |
(2 |
) |
$ |
276 |
|
$ |
1.54 |
|
|||||||||
| Fully Diluted Shares Outstanding |
|
178.8 |
|
|||||||||||||||||||||||||||||||||
| Wabtec Corporation | ||||||||||||||||||||||||||||||||||||
| Reconciliation of Reported Results to Adjusted Results | ||||||||||||||||||||||||||||||||||||
| (in millions) | Fourth Quarter Year-to-Date 2023 Actual Results | |||||||||||||||||||||||||||||||||||
| Gross | Operating | Income from | Interest & | Noncontrolling | Wabtec | |||||||||||||||||||||||||||||||
| Net Sales | Profit | Expenses | Operations | Other Exp | Tax | Net Income | Interest | Net Income | EPS | |||||||||||||||||||||||||||
| Reported Results | $ |
9,677 |
$ |
2,944 |
$ |
(1,678 |
) |
$ |
1,266 |
$ |
(174 |
) |
$ |
(267 |
) |
$ |
825 |
|
$ |
(10 |
) |
$ |
815 |
|
$ |
4.53 |
|
|||||||||
| Restructuring and Portfolio Optimization costs |
|
- |
|
38 |
|
41 |
|
|
79 |
|
- |
|
|
(17 |
) |
|
62 |
|
|
- |
|
|
62 |
|
$ |
0.34 |
|
|||||||||
| Gain on LKZ Investment |
|
- |
|
- |
|
- |
|
|
- |
|
(35 |
) |
|
- |
|
|
(35 |
) |
|
- |
|
|
(35 |
) |
$ |
(0.19 |
) |
|||||||||
| Non-cash Amortization expense |
|
- |
|
- |
|
298 |
|
|
298 |
|
- |
|
|
(74 |
) |
|
224 |
|
|
- |
|
|
224 |
|
$ |
1.24 |
|
|||||||||
| Adjusted Results | $ |
9,677 |
$ |
2,982 |
$ |
(1,339 |
) |
$ |
1,643 |
$ |
(209 |
) |
$ |
(358 |
) |
$ |
1,076 |
|
$ |
(10 |
) |
$ |
1,066 |
|
$ |
5.92 |
|
|||||||||
| Fully Diluted Shares Outstanding |
|
179.5 |
|
|||||||||||||||||||||||||||||||||
| Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. | |||||||||||||||||||||||||||||||||
| Wabtec Corporation | |||||||||||||||||||||||||||||||||
| Reconciliation of Reported Results to Adjusted Results | |||||||||||||||||||||||||||||||||
| (in millions) | Fourth Quarter 2022 Actual Results | ||||||||||||||||||||||||||||||||
| Gross | Operating | Income from | Interest & | Noncontrolling | Wabtec | ||||||||||||||||||||||||||||
| Net Sales | Profit | Expenses | Operations | Other Exp | Tax | Net Income | Interest | Net Income | EPS | ||||||||||||||||||||||||
| Reported Results | $ |
2,306 |
$ |
652 |
$ |
(405 |
) |
$ |
247 |
$ |
(37 |
) |
$ |
(51 |
) |
$ |
159 |
$ |
(1 |
) |
$ |
158 |
$ |
0.86 |
|||||||||
| Restructuring costs |
|
- |
|
31 |
|
1 |
|
|
32 |
|
- |
|
|
(8 |
) |
|
24 |
|
- |
|
|
24 |
$ |
0.14 |
|||||||||
| Non-cash Amortization expense |
|
- |
|
- |
|
73 |
|
|
73 |
|
- |
|
|
(19 |
) |
|
54 |
|
- |
|
|
54 |
$ |
0.30 |
|||||||||
| Adjusted Results | $ |
2,306 |
$ |
683 |
$ |
(331 |
) |
$ |
352 |
$ |
(37 |
) |
$ |
(78 |
) |
$ |
237 |
$ |
(1 |
) |
$ |
236 |
$ |
1.30 |
|||||||||
| Fully Diluted Shares Outstanding |
|
181.7 |
|||||||||||||||||||||||||||||||
| Wabtec Corporation | |||||||||||||||||||||||||||||||||
| Reconciliation of Reported Results to Adjusted Results | |||||||||||||||||||||||||||||||||
| (in millions) | Fourth Quarter Year-to-Date 2022 Actual Results | ||||||||||||||||||||||||||||||||
| Gross | Operating | Income from | Interest & | Noncontrolling | Wabtec | ||||||||||||||||||||||||||||
| Net Sales | Profit | Expenses | Operations | Other Exp | Tax | Net Income | Interest | Net Income | EPS | ||||||||||||||||||||||||
| Reported Results | $ |
8,362 |
$ |
2,540 |
$ |
(1,529 |
) |
$ |
1,011 |
$ |
(157 |
) |
$ |
(213 |
) |
$ |
641 |
$ |
(8 |
) |
$ |
633 |
$ |
3.46 |
|||||||||
| Restructuring costs |
|
- |
|
43 |
|
9 |
|
|
52 |
|
- |
|
|
(13 |
) |
|
39 |
|
- |
|
|
39 |
$ |
0.21 |
|||||||||
| Non-cash Amortization expense |
|
- |
|
- |
|
291 |
|
|
291 |
|
- |
|
|
(73 |
) |
|
218 |
|
- |
|
|
218 |
$ |
1.19 |
|||||||||
| Adjusted Results | $ |
8,362 |
$ |
2,583 |
$ |
(1,229 |
) |
$ |
1,354 |
$ |
(157 |
) |
$ |
(299 |
) |
$ |
898 |
$ |
(8 |
) |
$ |
890 |
$ |
4.86 |
|||||||||
| Fully Diluted Shares Outstanding |
|
182.8 |
|||||||||||||||||||||||||||||||
| Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. | ||||||||||||
| Wabtec Corporation | ||||||||||||
| 2023 Q4 EBITDA Reconciliation | ||||||||||||
| (in millions) | ||||||||||||
| Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring | = | Adjusted | ||
| from Operations | (Expense) | Amortization | Costs | EBITDA | ||||||||
| Consolidated Results |
|
|
|
|
( |
|
||||||
| Wabtec Corporation | ||||||||||||
| 2023 Q4 YTD EBITDA Reconciliation | ||||||||||||
| (in millions) | ||||||||||||
| Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring | = | Adjusted | ||
| from Operations | (Expense) | Amortization | Costs | EBITDA | ||||||||
| Consolidated Results |
|
|
|
|
|
|
||||||
| Wabtec Corporation | ||||||||||||
| 2022 Q4 EBITDA Reconciliation | ||||||||||||
| (in millions) | ||||||||||||
| Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring | = | Adjusted | ||
| from Operations | (Expense) | Amortization | Costs | EBITDA | ||||||||
| Consolidated Results |
|
|
|
|
|
|
||||||
| Wabtec Corporation | ||||||||||||
| 2022 Q4 YTD EBITDA Reconciliation | ||||||||||||
| (in millions) | ||||||||||||
| Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring | = | Adjusted | ||
| from Operations | (Expense) | Amortization | Costs | EBITDA | ||||||||
| Consolidated Results |
|
|
|
|
|
|
||||||
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | |||||
| SALES BY PRODUCT LINE | |||||
| (UNAUDITED) | |||||
| Three Months Ended December 31, | |||||
| In millions | 2023 |
2022 |
|||
| Freight Segment | |||||
| Equipment | $ |
347 |
$ |
430 |
|
| Components |
|
283 |
|
241 |
|
| Digital Intelligence |
|
210 |
|
225 |
|
| Services |
|
958 |
|
773 |
|
| Total Freight Segment | $ |
1,798 |
$ |
1,669 |
|
| Transit Segment | |||||
| Original Equipment Manufacturer | $ |
326 |
$ |
280 |
|
| Aftermarket |
|
402 |
|
357 |
|
| Total Transit Segment | $ |
728 |
$ |
637 |
|
| Twelve Months Ended December 31, | |||||
| In millions | 2023 |
2022 |
|||
| Freight Segment | |||||
| Equipment | $ |
1,770 |
$ |
1,528 |
|
| Components |
|
1,157 |
|
936 |
|
| Digital Intelligence |
|
773 |
|
729 |
|
| Services |
|
3,262 |
|
2,819 |
|
| Total Freight Segment | $ |
6,962 |
$ |
6,012 |
|
| Transit Segment | |||||
| Original Equipment Manufacturer | $ |
1,235 |
$ |
1,095 |
|
| Aftermarket |
|
1,480 |
|
1,255 |
|
| Total Transit Segment | $ |
2,715 |
$ |
2,350 |
|
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | |||||||||||||||||||
| RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||||||||||
| In millions | Gross Profit | Income from Operations |
Gross Profit | Income from Operations |
Gross Profit | Income from Operations |
Gross Profit | Income from Operations | |||||||||||
| Freight Segment Reported Results | $ |
558 |
$ |
246 |
$ |
482 |
$ |
209 |
$ |
2,190 |
$ |
1,071 |
$ |
1,896 |
$ |
864 |
|||
| Freight Segment Reported Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Restructuring and Portfolio Optimization costs |
|
5 |
|
30 |
|
8 |
|
7 |
|
13 |
|
41 |
|
15 |
|
15 |
|||
| Non-cash Amortization expense |
|
- |
|
71 |
|
- |
|
68 |
|
- |
|
277 |
|
- |
|
272 |
|||
| Freight Segment Adjusted Results | $ |
563 |
$ |
347 |
$ |
490 |
$ |
284 |
$ |
2,203 |
$ |
1,389 |
$ |
1,911 |
$ |
1,151 |
|||
| Freight Segment Adjusted Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Transit Segment Reported Results | $ |
206 |
$ |
86 |
$ |
170 |
$ |
63 |
$ |
754 |
$ |
289 |
$ |
644 |
$ |
231 |
|||
| Transit Segment Reported Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Restructuring costs |
|
8 |
|
17 |
|
23 |
|
27 |
|
25 |
|
38 |
|
28 |
|
37 |
|||
| Non-cash Amortization expense |
|
- |
|
5 |
|
- |
|
5 |
|
- |
|
21 |
|
- |
|
19 |
|||
| Transit Segment Adjusted Results | $ |
214 |
$ |
108 |
$ |
193 |
$ |
95 |
$ |
779 |
$ |
348 |
$ |
672 |
$ |
287 |
|||
| Transit Segment Adjusted Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | ||||||||
| RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT | ||||||||
| (UNAUDITED) | ||||||||
| Three Months Ended December 31, | ||||||||
| In millions | Freight | Transit | Consolidated | |||||
| 2022 Net Sales | $ |
1,669 |
$ |
637 |
$ |
2,306 |
||
| Acquisitions |
|
32 |
|
- |
|
32 |
||
| Foreign Exchange |
|
5 |
|
28 |
|
33 |
||
| Organic |
|
92 |
|
63 |
|
155 |
||
| 2023 Net Sales | $ |
1,798 |
$ |
728 |
$ |
2,526 |
||
| Change ($) |
|
129 |
|
91 |
|
220 |
||
| Change (%) |
|
|
|
|
|
|
||
| Twelve Months Ended December 31, | ||||||||
| Freight | Transit | Consolidated | ||||||
| 2022 Net Sales | $ |
6,012 |
$ |
2,350 |
$ |
8,362 |
||
| Acquisitions |
|
109 |
|
- |
|
109 |
||
| Foreign Exchange |
|
(23) |
|
25 |
|
2 |
||
| Organic |
|
864 |
|
340 |
|
1,204 |
||
| 2023 Net Sales | $ |
6,962 |
$ |
2,715 |
$ |
9,677 |
||
| Change ($) |
|
950 |
|
365 |
|
1,315 |
||
| Change (%) |
|
|
|
|
|
|
||
| Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. | ||||||||
| Wabtec Corporation | ||||||||
| 2023 Q4 Cash Conversion Calculation | ||||||||
| (in millions) | ||||||||
Reported Cash |
÷ |
(Net Income |
+ |
Depreciation & Amortization) |
= |
Cash Conversion |
||
from Operations |
||||||||
|
|
|
|
|
|
|
||
| Consolidated Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
| Wabtec Corporation |
|
|
|
|
|
|
|
|
| 2023 Q4 YTD Cash Conversion Calculation | ||||||||
| (in millions) |
|
|
|
|
|
|
|
|
Reported Cash |
|
(Net Income |
+ |
Depreciation & Amortization) |
= |
Cash Conversion |
||
from Operations |
||||||||
|
|
|
|
|
|
|
||
| Consolidated Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
| Wabtec Corporation |
|
|
|
|
|
|
|
|
| 2022 Q4 Cash Conversion Calculation | ||||||||
| (in millions) |
|
|
|
|
|
|
|
|
Reported Cash |
÷ |
(Net Income |
+ |
Depreciation & Amortization) |
= |
Cash Conversion |
||
from Operations |
||||||||
|
|
|
|
|
|
|
||
| Consolidated Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
| Wabtec Corporation |
|
|
|
|
|
|
|
|
| 2022 Q4 YTD Cash Conversion Calculation | ||||||||
| (in millions) |
|
|
|
|
|
|
|
|
Reported Cash |
÷ |
(Net Income |
+ |
Depreciation & Amortization) |
= |
Cash Conversion |
||
from Operations |
||||||||
|
|
|
|
|
|
|
||
| Consolidated Results |
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214535509/en/
Wabtec Investor Contact
Kristine Kubacki, CFA / Kristine.Kubacki@wabtec.com / 412-450-2033
Wabtec Media Contact
Tim Bader / Tim.Bader@wabtec.com / 682-319-7925
Source: Wabtec Corporation
FAQ
What were Wabtec's GAAP and adjusted EPS for Q4 2023?
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What was the total sales for Wabtec in full-year 2023?
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What financial programs did Wabtec announce?
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