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Wabtec Reports Third Quarter 2024 Results; Raised and Tightened Adjusted EPS Guidance

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Wabtec (NYSE: WAB) reported strong Q3 2024 results with sales growth of 4.4% to $2.66 billion. The company achieved GAAP earnings per diluted share of $1.63, up 22.6%, and adjusted earnings per diluted share of $2.00, up 17.6% year-over-year. Operating performance improved with GAAP operating margin at 16.3% and adjusted operating margin up 1.8 points to 19.7%. The company generated $542 million in operating cash flow and returned $634 million to shareholders through share repurchases and dividends. Based on strong performance, Wabtec raised its 2024 adjusted EPS guidance to $7.45-$7.65, representing a 27.5% increase from 2023 at the midpoint.

Wabtec (NYSE: WAB) ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita delle vendite del 4,4% che raggiunge i 2,66 miliardi di dollari. L'azienda ha ottenuto utili per azione GAAP diluiti di $1,63, in aumento del 22,6%, e utili per azione rettificati diluiti di $2,00, in crescita del 17,6% rispetto all'anno precedente. Le prestazioni operative sono migliorate, con un margine operativo GAAP del 16,3% e un margine operativo rettificato aumentato di 1,8 punti, raggiungendo il 19,7%. L'azienda ha generato 542 milioni di dollari di flussi di cassa operativo e ha restituito 634 milioni di dollari agli azionisti attraverso riacquisti di azioni e dividendi. Sulla base di queste solide prestazioni, Wabtec ha alzato la sua previsione di utili per azione rettificati per il 2024 a un intervallo di $7,45-$7,65, rappresentando un aumento del 27,5% rispetto al 2023 al punto medio.

Wabtec (NYSE: WAB) reportó resultados sólidos en el tercer trimestre de 2024, con un crecimiento de ventas del 4.4% hasta alcanzar $2.66 mil millones. La compañía logró ganancias GAAP por acción diluida de $1.63, un aumento del 22.6%, y ganancias ajustadas por acción diluida de $2.00, un incremento del 17.6% interanual. El rendimiento operativo mejoró, con un margen operativo GAAP del 16.3% y un margen operativo ajustado que subió 1.8 puntos hasta el 19.7%. La compañía generó $542 millones en flujo de efectivo operativo y devolvió $634 millones a los accionistas a través de recompra de acciones y dividendos. Basándose en este sólido desempeño, Wabtec elevó su guía de EPS ajustados para 2024 a un rango de $7.45-$7.65, lo que representa un aumento del 27.5% con respecto a 2023 en el punto medio.

Wabtec (NYSE: WAB)는 2024년 3분기 실적을 발표하며 매출이 4.4% 증가한 26억 6천만 달러에 도달했다고 보고했습니다. 회사는 희석주당 GAAP 수익이 $1.63로 전년 대비 22.6% 상승했으며, 희석주당 조정 수익이 $2.00로 17.6% 증가했습니다. 운영 성과는 개선되어 GAAP 운영 이익률은 16.3%이고 조정된 운영 이익률은 1.8 포인트 상승하여 19.7%에 도달했습니다. 회사는 5억 4천 2백만 달러의 운영 현금 흐름을 창출했으며, 주식 매입 및 배당금을 통해 주주에게 6억 3천 4백만 달러를 반환했습니다. 강력한 실적을 바탕으로 Wabtec은 2024년 조정 EPS 전망을 $7.45-$7.65로 상향 조정했으며, 이는 2023년 대비 중간 기준으로 27.5% 증가한 것입니다.

Wabtec (NYSE: WAB) a annoncé de solides résultats pour le troisième trimestre 2024, avec une croissance des ventes de 4,4 % atteignant 2,66 milliards de dollars. L'entreprise a réalisé un bénéfice GAAP par action diluée de 1,63 $, en hausse de 22,6 %, et un bénéfice ajusté par action diluée de 2,00 $, en augmentation de 17,6 % par rapport à l'année précédente. La performance opérationnelle s'est améliorée, avec une marge opérationnelle GAAP de 16,3 % et une marge opérationnelle ajustée en hausse de 1,8 point à 19,7 %. L'entreprise a généré 542 millions de dollars de flux de trésorerie opérationnels et a restitué 634 millions de dollars aux actionnaires par le biais de rachats d'actions et de dividendes. Sur la base de cette forte performance, Wabtec a relevé ses prévisions de BPA ajusté pour 2024 à une fourchette de 7,45 $ à 7,65 $, représentant une augmentation de 27,5 % par rapport à 2023 au point médian.

Wabtec (NYSE: WAB) hat starke Ergebnisse für das dritte Quartal 2024 berichtet, mit einem Umsatzwachstum von 4,4% auf 2,66 Milliarden Dollar. Das Unternehmen erzielte GAAP-Erträge pro verwässerter Aktie von $1,63, ein Anstieg von 22,6%, sowie bereinigte Erträge pro verwässerter Aktie von $2,00, was einem Anstieg von 17,6% im Jahresvergleich entspricht. Die operative Leistung verbesserte sich, mit einer GAAP-Betriebsmargin von 16,3% und einer bereinigten Betriebsmargin, die um 1,8 Punkte auf 19,7% stieg. Das Unternehmen generierte 542 Millionen Dollar operativen Cashflow und gab 634 Millionen Dollar an die Aktionäre durch Aktienrückkäufe und Dividenden zurück. Basierend auf der starken Leistung erhob Wabtec seine Prognose für die bereinigten EPS 2024 auf einen Bereich von $7,45-$7,65, was einen Anstieg von 27,5% gegenüber 2023 am Mittelwert darstellt.

Positive
  • Sales growth of 4.4% to $2.66 billion
  • GAAP EPS increased 22.6% to $1.63
  • Adjusted EPS up 17.6% to $2.00
  • Operating margin improved by 1.8 points to 19.7%
  • Strong cash flow from operations at $542 million
  • Total backlog increased 3.5% to $22.23 billion
  • Raised full-year 2024 adjusted EPS guidance to $7.45-$7.65
Negative
  • Transit segment adjusted gross margin slightly declined by 0.1 points

Insights

Wabtec delivered a robust Q3 2024 with significant improvements across key metrics. $2.66 billion in sales represents a 4.4% growth, while adjusted EPS of $2.00 shows a strong 17.6% increase. The standout metrics include improved GAAP operating margin at 16.3% and adjusted operating margin up 1.8 points to 19.7%.

The company's financial health is further demonstrated by $542 million in operating cash flow and substantial shareholder returns of $634 million through buybacks and dividends. The robust backlog of $22.2 billion and raised full-year guidance suggest continued momentum. Both Freight and Transit segments showed growth, with Transit particularly strong at 9.6% sales increase.

The market positioning remains strong with notable growth in Services (16.5%) and Digital (12.7%) segments within Freight operations. The increased 12-month backlog of $7.62 billion indicates robust demand pipeline, particularly in international markets. The company's liquidity position of $1.90 billion provides ample flexibility for future growth initiatives.

The raised guidance for 2024 adjusted EPS to $7.45-$7.65 range signals management's confidence in executing their strategy. The focus on product innovation and cost management, combined with strong international opportunities, positions Wabtec well for sustained growth.

  • GAAP Diluted Earnings Per Share of $1.63, Up 22.6%; Adjusted Diluted Earnings Per Share of $2.00, Up 17.6%
  • GAAP Operating Margin at 16.3%; Adjusted Operating Margin Up 1.8 pts to 19.7%
  • Sales Growth of 4.4% to $2.66 billion
  • Returned $634 million to Shareholders via Share Repurchases and Dividends
  • Raised and tightened 2024 Adjusted Diluted EPS guidance to be in the range of $7.45 to $7.65; up 27.5% from 2023 at the midpoint

PITTSBURGH--(BUSINESS WIRE)-- Wabtec Corporation (NYSE: WAB) today reported third quarter 2024 GAAP earnings per diluted share of $1.63, up 22.6% versus the third quarter of 2023. Adjusted earnings per diluted share were $2.00, up 17.6% versus the same quarter a year ago. Third quarter sales were $2.66 billion and cash from operations was $542 million.

“The Wabtec team delivered another strong quarter, evidenced by continued growth in sales, margin, earnings and operating cash flow,” said Rafael Santana, Wabtec’s President and CEO.

“Demand for products and services has remained strong, and our pipeline of opportunities is robust, especially in our international markets. Our team’s continued focus on product innovation, cost management, and relentless execution for our customers, along with our continued strong results, gives us confidence to raise our full year guidance again this quarter.

“Our continued progress on expanding our backlog reinforces our ability to drive profitable growth ahead, consistent with our long term guidance.”

2024 Third Quarter Consolidated Results

Wabtec Corporation Consolidated Financial Results

$ in millions except earnings per share

and percentages; margin change in percentage

points (pts)

Third Quarter

2024

2023

Change

Net Sales

$2,663

$2,550

4.4 %

 

 

 

 

GAAP Gross Margin

33.0 %

31.0 %

2.0 pts

Adjusted Gross Margin

33.3 %

31.5 %

1.8 pts

GAAP Operating Margin

16.3 %

14.5 %

1.8 pts

Adjusted Operating Margin

19.7 %

17.9 %

1.8 pts

 

 

 

 

GAAP Diluted EPS

$1.63

$1.33

22.6 %

Adjusted Diluted EPS

$2.00

$1.70

17.6 %

 

 

 

 

Cash Flow from Operations

$542

$425

$117

Operating Cash Flow Conversion

129 %

116 %

 

  • Sales increased 4.4% compared to the year-ago quarter driven by higher sales in both the Freight and Transit segments.
  • GAAP operating margin was higher than the prior year at 16.3%, and adjusted operating margin was higher than the prior year at 19.7%. Both GAAP and adjusted operating margins benefited from higher sales and improved gross margins.
  • GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales and operating margin expansion.

2024 Third Quarter Freight Segment Results

Wabtec Corporation Freight Segment Financial Results

Net sales $ in millions; margin change in

percentage points (pts)

Third Quarter

2024

2023

Change

Net Sales

$1,930

$1,881

2.6 %

GAAP Gross Margin

35.0 %

32.4 %

2.6 pts

Adjusted Gross Margin

35.1 %

32.5 %

2.6 pts

GAAP Operating Margin

20.2 %

17.3 %

2.9 pts

Adjusted Operating Margin

24.1 %

21.2 %

2.9 pts

  • Freight segment sales for the third quarter were up driven primarily by Services and Digital which were up 16.5% and 12.7%, respectively.
  • GAAP operating margin and adjusted operating margin benefited from higher sales, improved gross margin and operating expenses which grew at a slower rate than revenue.

2024 Third Quarter Transit Segment Results

Wabtec Corporation Transit Segment Financial Results

Net sales $ in millions; margin change in

percentage points (pts)

Third Quarter

2024

2023

Change

Net Sales

$733

$669

9.6 %

GAAP Gross Margin

28.2 %

27.2 %

1.0 pts

Adjusted Gross Margin

28.8 %

28.9 %

(0.1) pts

GAAP Operating Margin

10.8 %

10.3 %

0.5 pts

Adjusted Operating Margin

12.8 %

12.5 %

0.3 pts

  • Transit segment sales for the third quarter were up 9.6% driven by higher OE sales.
  • GAAP operating margins were up 0.5 percentage points behind lower restructuring and transaction costs.
  • Adjusted operating margins were up behind improved operating expenses as a percent of revenue; partially offset by lower gross margins.

Backlog

Wabtec Corporation Consolidated Backlog Comparison

Backlog $ in millions

September 30,

 

2024

2023

Change

12-Month Backlog

$7,624

$7,091

7.5 %

Total Backlog

$22,234

$21,483

3.5 %

The Company’s multi-year backlog continues to provide strong visibility. At September 30, 2024, the 12-month backlog was $533 million higher than the prior year period. At September 30, 2024, the multi-year backlog was $751 million higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $692 million higher, up 3.2%.

Cash Flow and Liquidity Summary

  • During the third quarter, cash provided by operations was $542 million versus $425 million in the year ago period due primarily to higher net income and increased accounts receivable securitization funding.
  • At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $410 million and total debt of $4.02 billion. At September 30, 2024, the Company’s total available liquidity was $1.90 billion, which includes cash and cash equivalents plus $1.50 billion available under current credit facilities.
  • During the quarter, the Company repurchased $599 million of Wabtec shares and paid $35 million in dividends.

2024 Financial Guidance

  • Wabtec raised and tightened its 2024 adjusted EPS guidance to be in the range of $7.45 to $7.65. Wabtec’s revenue guidance range remains unchanged at $10.25 billion to $10.55 billion.
  • For full year 2024, Wabtec expects 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: 7519289).

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 U.S. and worldwide. Visit Wabtec’s website at www.wabteccorp.com.

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 by 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 Russia resulting from the invasion of Ukraine; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA)
(UNAUDITED)
 
 
Three Months Ended Nine Months Ended
September 30, September 30,

2024

2023

2024

2023

 
Net sales

$

2,663

 

$

2,550

 

$

7,804

 

$

7,151

 

Cost of sales

 

(1,783

)

 

(1,758

)

 

(5,235

)

 

(4,971

)

Gross profit

 

880

 

 

792

 

 

2,569

 

 

2,180

 

Gross profit as a % of Net Sales

 

33.0

%

 

31.0

%

 

32.9

%

 

30.5

%

 
Selling, general and administrative expenses

 

(318

)

 

(295

)

 

(915

)

 

(843

)

Engineering expenses

 

(50

)

 

(53

)

 

(155

)

 

(157

)

Amortization expense

 

(79

)

 

(74

)

 

(224

)

 

(222

)

Total operating expenses

 

(447

)

 

(422

)

 

(1,294

)

 

(1,222

)

Operating expenses as a % of Net Sales

 

16.8

%

 

16.5

%

 

16.6

%

 

17.1

%

 
Income from operations

 

433

 

 

370

 

 

1,275

 

 

958

 

Income from operations as a % of Net Sales

 

16.3

%

 

14.5

%

 

16.3

%

 

13.4

%

 
Interest expense, net

 

(52

)

 

(60

)

 

(148

)

 

(163

)

Other (expense) income, net

 

(3

)

 

10

 

 

(1

)

 

17

 

Income before income taxes

 

378

 

 

320

 

 

1,126

 

 

812

 

 
Income tax expense

 

(92

)

 

(78

)

 

(272

)

 

(204

)

Effective tax rate

 

24.2

%

 

24.5

%

 

24.1

%

 

25.1

%

 
Net income

 

286

 

 

242

 

 

854

 

 

608

 

 
Less: Net income attributable to noncontrolling interest

 

(3

)

 

(2

)

 

(10

)

 

(8

)

 
Net income attributable to Wabtec shareholders

$

283

 

$

240

 

$

844

 

$

600

 

 
Earnings Per Common Share
Basic
Net income attributable to Wabtec shareholders

$

1.63

 

$

1.34

 

$

4.81

 

$

3.34

 

 
Diluted
Net income attributable to Wabtec shareholders

$

1.63

 

$

1.33

 

$

4.80

 

$

3.33

 

 
 
Basic

 

173.4

 

 

178.6

 

 

175.1

 

 

179.1

 

Diluted

 

174.1

 

 

179.2

 

 

175.7

 

 

179.7

 

 
Segment Information
Freight Net Sales

$

1,930

 

$

1,881

 

$

5,674

 

$

5,134

 

Freight Income from Operations

$

390

 

$

325

 

$

1,149

 

$

820

 

Freight Operating Margin

 

20.2

%

 

17.3

%

 

20.2

%

 

16.0

%

 
Transit Net Sales

$

733

 

$

669

 

$

2,130

 

$

2,017

 

Transit Income from Operations

$

79

 

$

70

 

$

235

 

$

208

 

Transit Operating Margin

 

10.8

%

 

10.3

%

 

11.0

%

 

10.3

%

 
Backlog Information (Note: 12-month is a sub-set of total) September 30, 2024 June 30, 2024 September 30, 2023
Freight Total

$

17,756

 

$

17,929

 

$

17,570

 

Transit Total

 

4,478

 

 

4,146

 

 

3,913

 

Wabtec Total

$

22,234

 

$

22,075

 

$

21,483

 

 
Freight 12-Month

$

5,589

 

$

5,504

 

$

5,254

 

Transit 12-Month

 

2,035

 

 

1,830

 

 

1,837

 

Wabtec 12-Month

$

7,624

 

$

7,334

 

$

7,091

 

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
 
September 30, 2024 December 31, 2023
In millions
Cash, cash equivalents and restricted cash

$

410

$

620

Receivables, net

 

1,782

 

1,684

Inventories, net

 

2,380

 

2,284

Other current assets

 

202

 

267

Total current assets

 

4,774

 

4,855

Property, plant and equipment, net

 

1,439

 

1,485

Goodwill

 

8,786

 

8,780

Other intangible assets, net

 

2,996

 

3,205

Other noncurrent assets

 

649

 

663

Total assets

$

18,644

$

18,988

Current liabilities

$

3,681

$

4,056

Long-term debt

 

3,517

 

3,288

Long-term liabilities - other

 

1,155

 

1,120

Total liabilities

 

8,353

 

8,464

Shareholders' equity

 

10,250

 

10,487

Noncontrolling interest

 

41

 

37

Total shareholders' equity

 

10,291

 

10,524

Total Liabilities and Shareholders' Equity

$

18,644

$

18,988

 
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
Nine Months Ended September 30,

2024

2023

In millions
Operating activities
Net income

$

854

 

$

608

 

Non-cash expense

 

387

 

 

372

 

Receivables

 

(92

)

 

(214

)

Inventories

 

(115

)

 

(201

)

Accounts Payable

 

87

 

 

(50

)

Other assets and liabilities

 

(10

)

 

-

 

Net cash provided by operating activities

 

1,111

 

 

515

 

 
Net cash used for investing activities

 

(106

)

 

(336

)

 
Net cash used for financing activities

 

(1,209

)

 

(323

)

 
Effect of changes in currency exchange rates

 

(6

)

 

(5

)

 
Decrease in cash

 

(210

)

 

(149

)

 
Cash, cash equivalents and restricted cash, beginning of period

 

620

 

 

541

 

Cash, cash equivalents and restricted cash, end of period

$

410

 

$

392

 

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 Reporte Results to Adjusted Results
(in millions) Third Quarter 2024 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

$

2,663

$

880

$

(447

)

$

433

$

(55

)

$

(92

)

$

286

$

(3

)

$

283

$

1.63

 
Restructuring and Portfolio Optimization costs

 

-

 

7

 

11

 

 

18

 

-

 

 

(4

)

 

14

 

-

 

 

14

$

0.07

 
Non-cash Amortization expense

 

-

 

-

 

73

 

 

73

 

-

 

 

(19

)

 

54

 

-

 

 

54

$

0.30

 
Adjusted Results

$

2,663

$

887

$

(363

)

$

524

$

(55

)

$

(115

)

$

354

$

(3

)

$

351

$

2.00

 
Fully Diluted Shares Outstanding

 

174.1

 
 
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions) Third Quarter Year-to-Date 2024 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

$

7,804

$

2,569

$

(1,294

)

$

1,275

$

(149

)

$

(272

)

$

854

$

(10

)

$

844

$

4.80

 
Restructuring and Portfolio Optimization costs

 

-

 

19

 

19

 

 

38

 

(4

)

 

(8

)

 

26

 

-

 

 

26

$

0.14

 
Non-cash Amortization expense

 

-

 

-

 

216

 

 

216

 

-

 

 

(53

)

 

163

 

-

 

 

163

$

0.92

 
Adjusted Results

$

7,804

$

2,588

$

(1,059

)

$

1,529

$

(153

)

$

(333

)

$

1,043

$

(10

)

$

1,033

$

5.86

 
Fully Diluted Shares Outstanding

 

175.7

 
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) Third 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

$

2,550

$

792

$

(422

)

$

370

$

(50

)

$

(78

)

$

242

$

(2

)

$

240

$

1.33

 
Restructuring costs

 

-

 

13

 

-

 

 

13

 

-

 

 

(3

)

 

10

 

-

 

 

10

$

0.06

 
Non-cash Amortization expense

 

-

 

-

 

74

 

 

74

 

-

 

 

(19

)

 

55

 

-

 

 

55

$

0.31

 
Adjusted Results

$

2,550

$

805

$

(348

)

$

457

$

(50

)

$

(100

)

$

307

$

(2

)

$

305

$

1.70

 
Fully Diluted Shares Outstanding

 

179.2

 
 
 
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions) Third 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

$

7,151

$

2,180

$

(1,222

)

$

958

$

(146

)

$

(204

)

$

608

$

(8

)

$

600

$

3.33

 
Restructuring costs

 

-

 

25

 

7

 

 

32

 

-

 

 

(8

)

 

24

 

-

 

 

24

$

0.13

 
Non-cash Amortization expense

 

-

 

-

 

222

 

 

222

 

-

 

 

(56

)

 

166

 

-

 

 

166

$

0.92

 
Adjusted Results

$

7,151

$

2,205

$

(993

)

$

1,212

$

(146

)

$

(268

)

$

798

$

(8

)

$

790

$

4.38

 
Fully Diluted Shares Outstanding

 

179.7

 
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 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

 

 
 
 
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
2024 Q3 EBITDA Reconciliation
(in millions)
Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted
from Operations (Expense) Amortization Costs EBITDA
 
Consolidated Results

$433

($3)

$133

$563

$4

$567

 
 
Wabtec Corporation
2024 Q3 YTD EBITDA Reconciliation
(in millions)
Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted
from Operations (Expense) Amortization Costs EBITDA
 
Consolidated Results

$1,275

($1)

$371

$1,645

$17

$1,662

 
 
 
Wabtec Corporation
2023 Q3 EBITDA Reconciliation
(in millions)
Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted
from Operations (Expense) Amortization Costs EBITDA
 
Consolidated Results

$370

$10

$124

$504

$10

$514

 
 
Wabtec Corporation
2023 Q3 YTD EBITDA Reconciliation
(in millions)
Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted
from Operations (Expense) Amortization Costs EBITDA
 
Consolidated Results

$958

$17

$367

$1,342

$24

$1,366

 
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
SALES BY PRODUCT LINE
(UNAUDITED)
 
Three Months Ended September 30,
In millions

2024

2023

Freight Segment
Equipment

$

513

$

620

Components

 

296

 

293

Digital Intelligence

 

204

 

181

Services

 

917

 

787

Total Freight Segment

$

1,930

$

1,881

 
Transit Segment
Original Equipment Manufacturer

$

349

$

308

Aftermarket

 

384

 

361

Total Transit Segment

$

733

$

669

 
 
Nine Months Ended September 30,
In millions

2024

2023

Freight Segment
Equipment

$

1,609

$

1,442

Components

 

911

 

825

Digital Intelligence

 

579

 

563

Services

 

2,575

 

2,304

Total Freight Segment

$

5,674

$

5,134

 
Transit Segment
Original Equipment Manufacturer

$

969

$

931

Aftermarket

 

1,161

 

1,086

Total Transit Segment

$

2,130

$

2,017

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT
(UNAUDITED)
 
Three Months Ended September 30, Nine Months Ended September 30,

2024

2023

2024

2023

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

$

673

$

390

$

609

$

325

$

1,967

$

1,149

$

1,625

$

820

Freight Segment Reported Margin

 

35.0%

 

20.2%

 

32.4%

 

17.3%

 

34.7%

 

20.2%

 

31.7%

 

16.0%

 
Restructuring and Portfolio Optimization costs

 

2

 

10

 

2

 

3

 

10

 

18

 

8

 

11

Non-cash Amortization expense

 

-

 

67

 

-

 

69

 

-

 

201

 

-

 

206

 
Freight Segment Adjusted Results

$

675

$

467

$

611

$

397

$

1,977

$

1,368

$

1,633

$

1,037

Freight Segment Adjusted Margin

 

35.1%

 

24.1%

 

32.5%

 

21.2%

 

34.8%

 

24.1%

 

31.8%

 

20.2%

 
 
Transit Segment Reported Results

$

207

$

79

$

183

$

70

$

602

$

235

$

555

$

208

Transit Segment Reported Margin

 

28.2%

 

10.8%

 

27.2%

 

10.3%

 

28.2%

 

11.0%

 

27.5%

 

10.3%

 
Restructuring costs

 

5

 

8

 

11

 

10

 

9

 

20

 

17

 

21

Non-cash Amortization expense

 

-

 

6

 

-

 

5

 

-

 

15

 

-

 

16

 
Transit Segment Adjusted Results

$

212

$

93

$

194

$

85

$

611

$

270

$

572

$

245

Transit Segment Adjusted Margin

 

28.8%

 

12.8%

 

28.9%

 

12.5%

 

28.7%

 

12.7%

 

28.3%

 

12.1%

 
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT
(UNAUDITED)
 
Three Months Ended September 30,
In millions Freight Transit Consolidated
 
2023 Net Sales

$

1,881

 

$

669

 

$

2,550

 

 
Acquisitions

 

2

 

 

-

 

 

2

 

Foreign Exchange

 

(11

)

 

8

 

 

(3

)

Organic

 

58

 

 

56

 

 

114

 

 
2024 Net Sales

$

1,930

 

$

733

 

$

2,663

 

 
Change ($)

 

49

 

 

64

 

 

113

 

Change (%)

 

2.6%

 

9.6%

 

4.4%

 
 
Nine Months Ended September 30,
Freight Transit Consolidated
 
2023 Net Sales

$

5,134

 

$

2,017

 

$

7,151

 

 
Acquisitions

 

72

 

 

-

 

 

72

 

Foreign Exchange

 

(18

)

 

2

 

 

(16

)

Organic

 

486

 

 

111

 

 

597

 

 
2024 Net Sales

$

5,674

 

$

2,130

 

$

7,804

 

 
Change ($)

 

540

 

 

113

 

 

653

 

Change (%)

 

10.5%

 

5.6%

 

9.1%

 
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
2024 Q3 Cash Conversion Calculation
(in millions)
Reported Cash ÷ (Net Income + Depreciation &
Amortization)
= Cash Conversion
from Operations
 
Consolidated Results

$542

$286

$134

129%

 
 
Wabtec Corporation
2024 Q3 YTD Cash Conversion Calculation
(in millions)
Reported Cash ÷ (Net Income + Depreciation &
Amortization)
= Cash Conversion
from Operations
 
Consolidated Results

$1,111

$854

$375

90%

 
 
 
Wabtec Corporation
2023 Q3 Cash Conversion Calculation
(in millions)
Reported Cash ÷ (Net Income + Depreciation &
Amortization)
= Cash Conversion
from Operations
 
Consolidated Results

$425

$242

$125

116%

 
 
Wabtec Corporation
2023 Q3 YTD Cash Conversion Calculation
(in millions)
Reported Cash ÷ (Net Income + Depreciation &
Amortization)
= Cash Conversion
from Operations

 

Consolidated Results

$515

$608

$371

53%

 

 

Wabtec Investor Contact

Kyra Yates / Kyra.Yates@wabtec.com / 817-349-2735

Wabtec Media Contact

Tim Bader / Tim.Bader@wabtec.com / 682-319-7925

Source: Wabtec Corporation

FAQ

What was Wabtec's (WAB) Q3 2024 revenue?

Wabtec reported Q3 2024 revenue of $2.66 billion, representing a 4.4% increase compared to the same quarter last year.

How much did Wabtec (WAB) return to shareholders in Q3 2024?

Wabtec returned $634 million to shareholders in Q3 2024, consisting of $599 million in share repurchases and $35 million in dividends.

What is Wabtec's (WAB) updated EPS guidance for 2024?

Wabtec raised and tightened its 2024 adjusted EPS guidance to $7.45-$7.65, representing a 27.5% increase from 2023 at the midpoint.

What was Wabtec's (WAB) backlog as of September 30, 2024?

Wabtec's total backlog as of September 30, 2024, was $22.234 billion, up 3.5% from the previous year.

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