- GAAP Earnings Per Share of $1.53, Up 64.5%; Adjusted
Earnings Per Share of $1.89, Up 47.7%
- GAAP Operating Margin at 16.5%; Adjusted Operating Margin Up
3.4 pts to 19.8%
- Sales Growth of 13.8% to $2.50 billion; Freight Segment
Sales Growth of 17.2%
- Returned $211 million to Shareholders via Share Repurchases
and Dividends
- Raises 2024 Financial Guidance of Adjusted EPS to Between
$7.00 to $7.40; Up 21.6% at the Mid-Point from 2023 (Increased from
$6.50 to $6.90)
Wabtec Corporation (NYSE: WAB) today reported first quarter 2024
GAAP earnings per diluted share of $1.53, up 64.5% versus the first
quarter of 2023. Adjusted earnings per diluted share were $1.89, up
47.7% versus the same quarter a year ago. First quarter sales were
$2.50 billion and cash from operations was $334 million.
“The Wabtec team delivered a strong start to 2024, continuing
the momentum experienced in 2023. This was evidenced by higher
sales, margin expansion, and increased earnings in the quarter,”
said Rafael Santana, Wabtec’s President and CEO.
“Looking ahead, we continue to see underlying customer demand
for our products and solutions. Our orders pipeline and 12-month
backlog continue to be strong, which provide visibility for
profitable growth ahead. Our team is focused on product innovation,
disciplined cost management, and relentless execution for our
customers. These factors, coupled with our strong Q1 results, give
us confidence to raise our full-year 2024 guidance.
“Overall, we expect to continue building significant long-term
momentum with growth in new locomotive sales, modernizations,
digital solutions, and in transit systems. Wabtec is
well-positioned to drive profitable growth in 2024 and beyond while
maximizing shareholder value.”
2024 First Quarter Consolidated Results
Wabtec Corporation Consolidated Financial
Results
$ in millions except earnings per share
and percentages; margin change in percentage points (pts)
First Quarter
2024
2023
Change
Net Sales
$2,497
$2,194
13.8 %
GAAP Gross Margin
32.7 %
30.3 %
2.4 pts
Adjusted Gross Margin
32.9 %
30.5 %
2.4 pts
GAAP Operating Margin
16.5 %
12.6 %
3.9 pts
Adjusted Operating Margin
19.8 %
16.4 %
3.4 pts
GAAP Diluted EPS
$1.53
$0.93
64.5 %
Adjusted Diluted EPS
$1.89
$1.28
47.7 %
Cash Flow from Operations
$334
$(25)
$359
Operating Cash Flow Conversion
84 %
(8)%
- Sales increased 13.8% 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 16.5%
and adjusted operating margin was higher than the prior year at
19.8%. Both GAAP and adjusted operating margins benefited from
improved gross margin as well as operating expenses which grew at a
slower rate than revenue.
- GAAP EPS and adjusted EPS increased from the year-ago quarter
primarily due to higher sales, margin expansion and a lower tax
rate.
2024 First Quarter Freight Segment Results
Wabtec Corporation Freight Segment
Financial Results
Net sales $ in millions; margin change in
percentage points (pts)
First Quarter
2024
2023
Change
Net Sales
$1,824
$1,556
17.2 %
GAAP Gross Margin
34.3 %
30.7 %
3.6 pts
Adjusted Gross Margin
34.5 %
30.8 %
3.7 pts
GAAP Operating Margin
20.2 %
14.5 %
5.7 pts
Adjusted Operating Margin
24.1 %
19.0 %
5.1 pts
- Freight segment sales for the first quarter were up across most
product lines, driven primarily by Equipment and Services.
- GAAP operating margin and adjusted operating margin benefited
from higher sales, improved gross margin and focused cost
management.
2024 First Quarter Transit Segment Results
Wabtec Corporation Transit Segment
Financial Results
Net sales $ in millions; margin change in
percentage points (pts)
First Quarter
2024
2023
Change
Net Sales
$673
$638
5.5 %
GAAP Gross Margin
28.2 %
29.4 %
(1.2) pts
Adjusted Gross Margin
28.6 %
29.8 %
(1.2) pts
GAAP Operating Margin
11.0 %
11.0 %
—
Adjusted Operating Margin
12.7 %
12.9 %
(0.2) pts
- Transit segment sales for the first quarter were up 5.5% due to
higher OE and aftermarket sales.
- GAAP and adjusted operating margins were down driven by lower
gross margin, partially offset by operating expenses which grew at
a slower rate than revenue.
Backlog
Wabtec Corporation Consolidated Backlog
Comparison
Backlog $ in millions
March 31,
2024
2023
Change
12-Month Backlog
$7,710
$6,925
11.3 %
Total Backlog
$22,083
$22,334
(1.1)%
The Company’s multi-year backlog continues to provide strong
visibility. At March 31, 2024, the 12-month backlog was $785
million higher than the prior year period. At March 31, 2024,
multi-year backlog was $251 million lower than the prior year
period and excluding foreign currency exchange, multi-year backlog
decreased $310 million, down 1.4%.
Cash Flow and Liquidity Summary
- During the first quarter, cash provided by operations was $334
million versus cash used for operations of $25 million in the year
ago period due primarily to higher net income, improved working
capital and increased accounts receivable securitization
funding.
- At the end of the quarter, the Company had cash, cash
equivalents and restricted cash of $639 million and total debt of
$4.00 billion. At March 31, 2024, the Company’s total available
liquidity was $2.13 billion, which includes cash and cash
equivalents plus $1.50 billion available under current credit
facilities.
- During the quarter, the Company repurchased $175 million of
Wabtec shares and paid $36 million in dividends.
2024 Financial Guidance
- Wabtec updated its 2024 financial guidance with sales expected
to be in a range of $10.25 billion to $10.55 billion and adjusted
earnings per diluted share to be in a range of $7.00 to $7.40.
- 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: 9975952).
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 MONTHS ENDED
MARCH 31, 2024 AND 2023 (AMOUNTS IN MILLIONS EXCEPT PER
SHARE DATA) (UNAUDITED)
Three Months Ended
March 31,
2024
2023
Net sales
$
2,497
$
2,194
Cost of sales
(1,682
)
(1,529
)
Gross profit
815
665
Gross profit as a % of Net Sales
32.7
%
30.3
%
Selling, general and administrative expenses
(281
)
(263
)
Engineering expenses
(48
)
(51
)
Amortization expense
(74
)
(75
)
Total operating expenses
(403
)
(389
)
Operating expenses as a % of Net Sales
16.2
%
17.7
%
Income from operations
412
276
Income from operations as a % of Net Sales
16.5
%
12.6
%
Interest expense, net
(47
)
(48
)
Other (expense) income, net
(2
)
5
Income before income taxes
363
233
Income tax expense
(86
)
(60
)
Effective tax rate
23.6
%
25.5
%
Net income
277
173
Less: Net income attributable to noncontrolling interest
(5
)
(4
)
Net income attributable to Wabtec shareholders
$
272
$
169
Earnings Per Common Share Basic Net income
attributable to Wabtec shareholders
$
1.54
$
0.94
Diluted Net income attributable to Wabtec
shareholders
$
1.53
$
0.93
Basic
176.5
179.9
Diluted
177.2
180.6
Segment Information Freight Net Sales
$
1,824
$
1,556
Freight Income from Operations
$
368
$
226
Freight Operating Margin
20.2
%
14.5
%
Transit Net Sales
$
673
$
638
Transit Income from Operations
$
74
$
70
Transit Operating Margin
11.0
%
11.0
%
Backlog Information (Note:
12-month is a sub-set of total)
March
31, 2024
December
31, 2023
March
31, 2023
Freight Total
$
17,898
17,785
18,319
Transit Total
4,185
4,214
4,015
Wabtec Total
$
22,083
21,999
22,334
Freight 12-Month
$
5,667
5,420
4,948
Transit 12-Month
2,043
2,037
1,977
Wabtec 12-Month
$
7,710
7,457
6,925
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 2024
December 31, 2023
In millions Cash, cash
equivalents and restricted cash
$
639
$
620
Receivables, net
1,541
1,684
Inventories, net
2,356
2,284
Other current assets
263
267
Total current assets
4,799
4,855
Property, plant and equipment, net
1,445
1,485
Goodwill
8,730
8,780
Other intangible assets, net
3,115
3,205
Other noncurrent assets
658
663
Total assets
$
18,747
$
18,988
Current liabilities
$
3,153
$
4,056
Long-term debt
3,997
3,288
Long-term liabilities - other
1,093
1,120
Total liabilities
8,243
8,464
Shareholders' equity
10,462
10,487
Noncontrolling interest
42
37
Total shareholders' equity
10,504
10,524
Total Liabilities and Shareholders' Equity
$
18,747
$
18,988
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended March
31,
2024
2023
In millions Operating
activities Net income
$
277
$
173
Non-cash expense
126
124
Receivables
121
(51
)
Inventories
(85
)
(188
)
Accounts Payable
45
47
Other assets and liabilities
(150
)
(130
)
Net cash provided by (used for) operating activities
334
(25
)
Net cash used for investing activities
(19
)
(32
)
Net cash used for financing activities
(289
)
(72
)
Effect of changes in currency exchange rates
(7
)
5
Increase (decrease) in cash
19
(124
)
Cash, cash equivalents and restricted cash, beginning of
period
620
541
Cash, cash equivalents and restricted cash, end of period
$
639
$
417
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)
First 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
$
2,497
$
815
$
(403
)
$
412
$
(49
)
$
(86
)
$
277
$
(5
)
$
272
$
1.53
Restructuring and Portfolio Optimization costs
-
6
4
10
-
(2
)
8
-
8
$
0.05
Non-cash Amortization expense
-
-
73
73
-
(17
)
56
-
56
$
0.31
Adjusted Results
$
2,497
$
821
$
(326
)
$
495
$
(49
)
$
(105
)
$
341
$
(5
)
$
336
$
1.89
Fully Diluted Shares Outstanding
177.2
Wabtec Corporation Reconciliation of
Reported Results to Adjusted Results (in millions)
First 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
$
2,194
$
665
$
(389
)
$
276
$
(43
)
$
(60
)
$
173
$
(4
)
$
169
$
0.93
Restructuring costs
-
4
5
9
-
(2
)
7
-
7
$
0.04
Non-cash Amortization expense
-
-
75
75
-
(20
)
55
-
55
$
0.31
Adjusted Results
$
2,194
$
669
$
(309
)
$
360
$
(43
)
$
(82
)
$
235
$
(4
)
$
231
$
1.28
Fully Diluted Shares Outstanding
180.6
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 Q1 YTD EBITDA
Reconciliation (in millions)
Reported Income
+
Other Income
+
Depreciation &
=
EBITDA
+
Restructuring
=
Adjusted
from
Operations
(Expense)
Amortization
Costs
EBITDA
Consolidated Results
$412
($2)
$122
$532
$8
$540
Wabtec Corporation
2023 Q1 YTD EBITDA Reconciliation
(in millions)
Reported Income
+
Other Income
+
Depreciation &
=
EBITDA
+
Restructuring
=
Adjusted
from
Operations
(Expense)
Amortization
Costs
EBITDA
Consolidated Results
$276
$5
$121
$402
$6
$408
WESTINGHOUSE AIR BRAKE TECHNOLOGIES
CORPORATION SALES BY PRODUCT LINE (UNAUDITED)
Three Months Ended March
31,
In millions
2024
2023
Freight Segment Equipment
$
526
$
404
Components
293
258
Digital Intelligence
176
187
Services
829
707
Total Freight Segment
$
1,824
$
1,556
Transit Segment Original Equipment Manufacturer
$
310
$
289
Aftermarket
363
349
Total Transit Segment
$
673
$
638
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY
SEGMENT (UNAUDITED)
Three Months Ended March
31,
2024
2023
In millions
Gross
Profit
Income
from Operations
Gross
Profit
Income
from Operations
Freight Segment Reported Results
$
625
$
368
$
478
$
226
Freight Segment Reported Margin
34.3%
20.2%
30.7%
14.5%
Restructuring and Portfolio Optimization costs
3
3
1
2
Non-cash Amortization expense
-
68
-
68
Freight Segment Adjusted Results
$
628
$
439
$
479
$
296
Freight Segment Adjusted Margin
34.5%
24.1%
30.8%
19.0%
Transit Segment Reported Results
$
190
$
74
$
187
$
70
Transit Segment Reported Margin
28.2%
11.0%
29.4%
11.0%
Restructuring costs
3
7
3
5
Non-cash Amortization expense
-
5
-
7
Transit Segment Adjusted Results
$
193
$
86
$
190
$
82
Transit Segment Adjusted Margin
28.6%
12.7%
29.8%
12.9%
WESTINGHOUSE AIR BRAKE TECHNOLOGIES
CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY
SEGMENT (UNAUDITED) Three Months Ended
March 31, Freight
Transit Consolidated 2023 Net Sales
$
1,556
$
638
$
2,194
Acquisitions
36
-
36
Foreign Exchange
1
4
5
Organic
231
31
262
2024 Net Sales
$
1,824
$
673
$
2,497
Change ($)
268
35
303
Change (%)
17.2%
5.5%
13.8%
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 Q1 YTD Cash Conversion
Calculation (in millions)
Reported Cash
÷
(Net
Income
+
Depreciation & Amortization)
=
Cash
Conversion
from
Operations
Consolidated Results
$334
$277
$123
84%
Wabtec Corporation
2023 Q1 YTD Cash Conversion Calculation
(in millions)
Reported Cash
÷
(Net
Income
+
Depreciation & Amortization)
=
Cash
Conversion
from
Operations
Consolidated Results
($25)
$173
$123
(8%)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424937037/en/
Wabtec Investor Contact Kyra Yates /
Kyra.Yates@wabtec.com / 817-349-2735
Wabtec Media Contact Tim Bader / Tim.Bader@wabtec.com /
682-319-7925
Grafico Azioni Wabtec (NYSE:WAB)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Wabtec (NYSE:WAB)
Storico
Da Dic 2023 a Dic 2024
