Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Wabtec Reports Second Quarter 2024 Results Raised and Tightened Adjusted EPS Guidance By: Wabtec Corporation via Business Wire July 24, 2024 at 06:30 AM EDT GAAP Diluted Earnings Per Share of $1.64, Up 54.7%; Adjusted Diluted Earnings Per Share of $1.96, Up 39.0% GAAP Operating Margin at 16.3%; Adjusted Operating Margin Up 2.9 pts to 19.3% Sales Growth of 9.8% to $2.64 billion; Freight Segment Sales Growth of 13.1% Returned $235 million to Shareholders via Share Repurchases and Dividends Raised and tightened 2024 Adjusted Diluted EPS guidance to be in the range of $7.20 to $7.50; up 24.2% from 2023 at the midpoint Wabtec Corporation (NYSE: WAB) today reported second quarter 2024 GAAP earnings per diluted share of $1.64, up 54.7% versus the second quarter of 2023. Adjusted earnings per diluted share were $1.96, up 39.0% versus the same quarter a year ago. Second quarter sales were $2.64 billion and cash from operations was $235 million. “The Wabtec team delivered another strong quarter, evidenced by robust sales and earnings per share growth,” said Rafael Santana, Wabtec’s President and CEO. “With the first half behind us, we are focused on executing against our second half deliverables. Demand on our end markets continues to be strong and we have significant opportunities for further growth given the quality of our products and the productivity and reliability that we provide for our customers. “We just finished our annual strategic planning, and at this point we stand confident in our ability to drive profitable growth ahead, consistent with our long term guidance.” 2024 Second Quarter Consolidated Results Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $2,644 $2,407 9.8 % GAAP Gross Margin 33.0 % 30.1 % 2.9 pts Adjusted Gross Margin 33.3 % 30.4 % 2.9 pts GAAP Operating Margin 16.3 % 12.9 % 3.4 pts Adjusted Operating Margin 19.3 % 16.4 % 2.9 pts GAAP Diluted EPS $1.64 $1.06 54.7 % Adjusted Diluted EPS $1.96 $1.41 39.0 % Cash Flow from Operations $235 $115 $120 Operating Cash Flow Conversion 57 % 36 % Sales increased 9.8% 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 16.3%, and adjusted operating margin was higher than the prior year at 19.3%. 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, margin expansion and a lower tax rate. 2024 Second Quarter Freight Segment Results Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $1,920 $1,697 13.1 % GAAP Gross Margin 34.8 % 31.8 % 3.0 pts Adjusted Gross Margin 35.1 % 32.0 % 3.1 pts GAAP Operating Margin 20.4 % 15.9 % 4.5 pts Adjusted Operating Margin 24.1 % 20.3 % 3.8 pts Freight segment sales for the second quarter were up across our business groups driven primarily by Equipment and Components which were up 36.4% and 17.5%, 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 Second Quarter Transit Segment Results Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $724 $710 2.0 % GAAP Gross Margin 28.3 % 26.0 % 2.3 pts Adjusted Gross Margin 28.6 % 26.5 % 2.1 pts GAAP Operating Margin 11.3 % 9.6 % 1.7 pts Adjusted Operating Margin 12.7 % 11.1 % 1.6 pts Transit segment sales for the second quarter were up 2.0% due to higher aftermarket sales. GAAP and adjusted operating margins were up driven by higher gross margin, partially offset by operating expenses which grew at a higher rate than revenue. Backlog Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions June 30, 2024 2023 Change 12-Month Backlog $7,334 $7,220 1.6 % Total Backlog $22,075 $22,431 (1.6) % The Company’s multi-year backlog continues to provide strong visibility. At June 30, 2024, the 12-month backlog was $114 million higher than the prior year period. At June 30, 2024, multi-year backlog was $356 million lower than the prior year period, and excluding foreign currency exchange, multi-year backlog decreased $140 million, down 0.6%. Cash Flow and Liquidity Summary During the second quarter, cash provided by operations was $235 million versus $115 million in the year ago period due primarily to higher net income and improved working capital, partially offset by a reduction in accounts receivable securitization funding. At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $595 million and total debt of $4.00 billion. At June 30, 2024, the Company’s total available liquidity was $2.09 billion, which includes cash and cash equivalents plus $1.50 billion available under current credit facilities. During the quarter, the Company repurchased $200 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 $7.20 to $7.50. 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: 1950853). 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 SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 2,644 $ 2,407 $ 5,141 $ 4,601 Cost of sales (1,770 ) (1,684 ) (3,452 ) (3,213 ) Gross profit 874 723 1,689 1,388 Gross profit as a % of Net Sales 33.0 % 30.1 % 32.8 % 30.2 % Selling, general and administrative expenses (316 ) (285 ) (597 ) (548 ) Engineering expenses (57 ) (53 ) (105 ) (104 ) Amortization expense (71 ) (73 ) (145 ) (148 ) Total operating expenses (444 ) (411 ) (847 ) (800 ) Operating expenses as a % of Net Sales 16.8 % 17.1 % 16.5 % 17.4 % Income from operations 430 312 842 588 Income from operations as a % of Net Sales 16.3 % 12.9 % 16.4 % 12.8 % Interest expense, net (49 ) (55 ) (96 ) (103 ) Other income, net 4 2 2 7 Income before income taxes 385 259 748 492 Income tax expense (94 ) (66 ) (180 ) (126 ) Effective tax rate 24.5 % 25.5 % 24.1 % 25.5 % Net income 291 193 568 366 Less: Net income attributable to noncontrolling interest (2 ) (2 ) (7 ) (6 ) Net income attributable to Wabtec shareholders $ 289 $ 191 $ 561 $ 360 Earnings Per Common Share Basic Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.18 $ 2.00 Diluted Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.17 $ 2.00 Basic 175.4 178.9 176.0 179.4 Diluted 176.0 179.4 176.6 180.0 Segment Information Freight Net Sales $ 1,920 $ 1,697 $ 3,744 $ 3,253 Freight Income from Operations $ 391 $ 269 $ 759 $ 495 Freight Operating Margin 20.4 % 15.9 % 20.3 % 15.2 % Transit Net Sales $ 724 $ 710 $ 1,397 $ 1,348 Transit Income from Operations $ 82 $ 68 $ 156 $ 138 Transit Operating Margin 11.3 % 9.6 % 11.2 % 10.3 % Backlog Information (Note: 12-month is a sub-set of total) June 30, 2024 March 31, 2024 June 30, 2024 Freight Total $ 17,929 $ 17,898 $ 18,290 Transit Total 4,146 4,185 4,141 Wabtec Total $ 22,075 $ 22,083 $ 22,431 Freight 12-Month $ 5,504 $ 5,667 $ 5,293 Transit 12-Month 1,830 2,043 1,927 Wabtec 12-Month $ 7,334 $ 7,710 $ 7,220 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 In millions Cash, cash equivalents and restricted cash $ 595 $ 620 Receivables, net 1,801 1,684 Inventories, net 2,364 2,284 Other current assets 267 267 Total current assets 5,027 4,855 Property, plant and equipment, net 1,439 1,485 Goodwill 8,706 8,780 Other intangible assets, net 3,031 3,205 Other noncurrent assets 673 663 Total assets $ 18,876 $ 18,988 Current liabilities $ 3,647 $ 4,056 Long-term debt 3,494 3,288 Long-term liabilities - other 1,215 1,120 Total liabilities 8,356 8,464 Shareholders' equity 10,477 10,487 Noncontrolling interest 43 37 Total shareholders' equity 10,520 10,524 Total Liabilities and Shareholders' Equity $ 18,876 $ 18,988 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2024 2023 In millions Operating activities Net income $ 568 $ 366 Non-cash expense 246 245 Receivables (146 ) (150 ) Inventories (120 ) (248 ) Accounts Payable 93 (5 ) Other assets and liabilities (72 ) (118 ) Net cash provided by operating activities 569 90 Net cash used for investing activities (57 ) (293 ) Net cash (used for) provided by financing activities (523 ) 30 Effect of changes in currency exchange rates (14 ) 3 Decrease in cash (25 ) (170 ) Cash, cash equivalents and restricted cash, beginning of period 620 541 Cash, cash equivalents and restricted cash, end of period $ 595 $ 371 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) Second 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 $ 2,644 $ 874 $ (444 ) $ 430 $ (45 ) $ (94 ) $ 291 $ (2 ) $ 289 $ 1.64 Restructuring and Portfolio Optimization costs $ - $ 6 $ 4 $ 10 $ (4 ) $ (2 ) $ 4 $ - $ 4 $ 0.02 Non-cash Amortization expense $ - $ - $ 70 $ 70 $ - $ (17 ) $ 53 $ - $ 53 $ 0.30 Adjusted Results $ 2,644 $ 880 $ (370 ) $ 510 $ (49 ) $ (113 ) $ 348 $ (2 ) $ 346 $ 1.96 Fully Diluted Shares Outstanding 176.0 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 5,141 $ 1,689 $ (847 ) $ 842 $ (94 ) $ (180 ) $ 568 $ (7 ) $ 561 $ 3.17 Restructuring and Portfolio Optimization costs - 12 8 20 (4 ) (4 ) 12 - 12 $ 0.07 Non-cash Amortization expense - - 143 143 - (34 ) 109 - 109 $ 0.61 Adjusted Results $ 5,141 $ 1,701 $ (696 ) $ 1,005 $ (98 ) $ (218 ) $ 689 $ (7 ) $ 682 $ 3.85 Fully Diluted Shares Outstanding 176.6 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) Second 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 $ 2,407 $ 723 $ (411 ) $ 312 $ (53 ) $ (66 ) $ 193 $ (2 ) $ 191 $ 1.06 Restructuring costs - 8 2 10 - (3 ) 7 - 7 $ 0.04 Non-cash Amortization expense - - 73 73 - (17 ) 56 - 56 $ 0.31 Adjusted Results $ 2,407 $ 731 $ (336 ) $ 395 $ (53 ) $ (86 ) $ 256 $ (2 ) $ 254 $ 1.41 Fully Diluted Shares Outstanding 179.4 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 4,601 $ 1,388 $ (800 ) $ 588 $ (96 ) $ (126 ) $ 366 $ (6 ) $ 360 $ 2.00 Restructuring costs - 12 7 19 - (5 ) 14 - 14 $ 0.08 Non-cash Amortization expense - - 148 148 - (37 ) 111 - 111 $ 0.61 Adjusted Results $ 4,601 $ 1,400 $ (645 ) $ 755 $ (96 ) $ (168 ) $ 491 $ (6 ) $ 485 $ 2.69 Fully Diluted Shares Outstanding 180.0 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 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $430 $4 $116 $550 $5 $555 Wabtec Corporation 2024 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $842 $2 $238 $1,082 $13 $1,095 Wabtec Corporation 2023 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $312 $2 $122 $436 $8 $444 Wabtec Corporation 2023 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $588 $7 $243 $838 $14 $852 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 570 $ 418 Components 322 274 Digital Intelligence 199 195 Services 829 810 Total Freight Segment $ 1,920 $ 1,697 Transit Segment Original Equipment Manufacturer $ 310 $ 334 Aftermarket 414 376 Total Transit Segment $ 724 $ 710 Six Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 1,096 $ 822 Components 615 532 Digital Intelligence 375 382 Services 1,658 1,517 Total Freight Segment $ 3,744 $ 3,253 Transit Segment Original Equipment Manufacturer $ 620 $ 623 Aftermarket 777 725 Total Transit Segment $ 1,397 $ 1,348 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended June 30, Six Months Ended June 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 $ 669 $ 391 $ 538 $ 269 $ 1,294 $ 759 $ 1,016 $ 495 Freight Segment Reported Margin 34.8 % 20.4 % 31.8 % 15.9 % 34.6 % 20.3 % 31.2 % 15.2 % Restructuring and Portfolio Optimization costs 5 5 5 6 8 8 6 8 Non-cash Amortization expense - 66 - 69 - 134 - 137 Freight Segment Adjusted Results $ 674 $ 462 $ 543 $ 344 $ 1,302 $ 901 $ 1,022 $ 640 Freight Segment Adjusted Margin 35.1 % 24.1 % 32.0 % 20.3 % 34.8 % 24.1 % 31.4 % 19.7 % Transit Segment Reported Results $ 205 $ 82 $ 185 $ 68 $ 395 $ 156 $ 372 $ 138 Transit Segment Reported Margin 28.3 % 11.3 % 26.0 % 9.6 % 28.3 % 11.2 % 27.6 % 10.3 % Restructuring costs 1 5 3 6 4 12 6 11 Non-cash Amortization expense - 4 - 4 - 9 - 11 Transit Segment Adjusted Results $ 206 $ 91 $ 188 $ 78 $ 399 $ 177 $ 378 $ 160 Transit Segment Adjusted Margin 28.6 % 12.7 % 26.5 % 11.1 % 28.6 % 12.7 % 28.1 % 11.9 % WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended June 30, In millions Freight Transit Consolidated 2023 Net Sales $ 1,697 $ 710 $ 2,407 Acquisitions 34 - 34 Foreign Exchange (8 ) (10 ) (18 ) Organic 197 24 221 2024 Net Sales $ 1,920 $ 724 $ 2,644 Change ($) 223 14 237 Change (%) 13.1 % 2.0 % 9.8 % Six Months Ended June 30, Freight Transit Consolidated 2023 Net Sales $ 3,253 $ 1,348 $ 4,601 Acquisitions 70 - 70 Foreign Exchange (7 ) (6 ) (13 ) Organic 428 55 483 2024 Net Sales $ 3,744 $ 1,397 $ 5,141 Change ($) 491 49 540 Change (%) 15.1 % 3.6 % 11.7 % 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 2024 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $235 $291 $118 57% Wabtec Corporation 2024 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $569 $568 $241 70% Wabtec Corporation 2023 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $115 $193 $123 36% Wabtec Corporation 2023 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $90 $366 $246 15% View source version on businesswire.com: https://www.businesswire.com/news/home/20240724280578/en/Contacts Wabtec Investor Contact Kyra Yates / Kyra.Yates@wabtec.com / 817-349-2735 Wabtec Media Contact Tim Bader / Tim.Bader@wabtec.com / 682-319-7925 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Wabtec Reports Second Quarter 2024 Results Raised and Tightened Adjusted EPS Guidance By: Wabtec Corporation via Business Wire July 24, 2024 at 06:30 AM EDT GAAP Diluted Earnings Per Share of $1.64, Up 54.7%; Adjusted Diluted Earnings Per Share of $1.96, Up 39.0% GAAP Operating Margin at 16.3%; Adjusted Operating Margin Up 2.9 pts to 19.3% Sales Growth of 9.8% to $2.64 billion; Freight Segment Sales Growth of 13.1% Returned $235 million to Shareholders via Share Repurchases and Dividends Raised and tightened 2024 Adjusted Diluted EPS guidance to be in the range of $7.20 to $7.50; up 24.2% from 2023 at the midpoint Wabtec Corporation (NYSE: WAB) today reported second quarter 2024 GAAP earnings per diluted share of $1.64, up 54.7% versus the second quarter of 2023. Adjusted earnings per diluted share were $1.96, up 39.0% versus the same quarter a year ago. Second quarter sales were $2.64 billion and cash from operations was $235 million. “The Wabtec team delivered another strong quarter, evidenced by robust sales and earnings per share growth,” said Rafael Santana, Wabtec’s President and CEO. “With the first half behind us, we are focused on executing against our second half deliverables. Demand on our end markets continues to be strong and we have significant opportunities for further growth given the quality of our products and the productivity and reliability that we provide for our customers. “We just finished our annual strategic planning, and at this point we stand confident in our ability to drive profitable growth ahead, consistent with our long term guidance.” 2024 Second Quarter Consolidated Results Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $2,644 $2,407 9.8 % GAAP Gross Margin 33.0 % 30.1 % 2.9 pts Adjusted Gross Margin 33.3 % 30.4 % 2.9 pts GAAP Operating Margin 16.3 % 12.9 % 3.4 pts Adjusted Operating Margin 19.3 % 16.4 % 2.9 pts GAAP Diluted EPS $1.64 $1.06 54.7 % Adjusted Diluted EPS $1.96 $1.41 39.0 % Cash Flow from Operations $235 $115 $120 Operating Cash Flow Conversion 57 % 36 % Sales increased 9.8% 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 16.3%, and adjusted operating margin was higher than the prior year at 19.3%. 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, margin expansion and a lower tax rate. 2024 Second Quarter Freight Segment Results Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $1,920 $1,697 13.1 % GAAP Gross Margin 34.8 % 31.8 % 3.0 pts Adjusted Gross Margin 35.1 % 32.0 % 3.1 pts GAAP Operating Margin 20.4 % 15.9 % 4.5 pts Adjusted Operating Margin 24.1 % 20.3 % 3.8 pts Freight segment sales for the second quarter were up across our business groups driven primarily by Equipment and Components which were up 36.4% and 17.5%, 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 Second Quarter Transit Segment Results Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $724 $710 2.0 % GAAP Gross Margin 28.3 % 26.0 % 2.3 pts Adjusted Gross Margin 28.6 % 26.5 % 2.1 pts GAAP Operating Margin 11.3 % 9.6 % 1.7 pts Adjusted Operating Margin 12.7 % 11.1 % 1.6 pts Transit segment sales for the second quarter were up 2.0% due to higher aftermarket sales. GAAP and adjusted operating margins were up driven by higher gross margin, partially offset by operating expenses which grew at a higher rate than revenue. Backlog Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions June 30, 2024 2023 Change 12-Month Backlog $7,334 $7,220 1.6 % Total Backlog $22,075 $22,431 (1.6) % The Company’s multi-year backlog continues to provide strong visibility. At June 30, 2024, the 12-month backlog was $114 million higher than the prior year period. At June 30, 2024, multi-year backlog was $356 million lower than the prior year period, and excluding foreign currency exchange, multi-year backlog decreased $140 million, down 0.6%. Cash Flow and Liquidity Summary During the second quarter, cash provided by operations was $235 million versus $115 million in the year ago period due primarily to higher net income and improved working capital, partially offset by a reduction in accounts receivable securitization funding. At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $595 million and total debt of $4.00 billion. At June 30, 2024, the Company’s total available liquidity was $2.09 billion, which includes cash and cash equivalents plus $1.50 billion available under current credit facilities. During the quarter, the Company repurchased $200 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 $7.20 to $7.50. 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: 1950853). 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 SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 2,644 $ 2,407 $ 5,141 $ 4,601 Cost of sales (1,770 ) (1,684 ) (3,452 ) (3,213 ) Gross profit 874 723 1,689 1,388 Gross profit as a % of Net Sales 33.0 % 30.1 % 32.8 % 30.2 % Selling, general and administrative expenses (316 ) (285 ) (597 ) (548 ) Engineering expenses (57 ) (53 ) (105 ) (104 ) Amortization expense (71 ) (73 ) (145 ) (148 ) Total operating expenses (444 ) (411 ) (847 ) (800 ) Operating expenses as a % of Net Sales 16.8 % 17.1 % 16.5 % 17.4 % Income from operations 430 312 842 588 Income from operations as a % of Net Sales 16.3 % 12.9 % 16.4 % 12.8 % Interest expense, net (49 ) (55 ) (96 ) (103 ) Other income, net 4 2 2 7 Income before income taxes 385 259 748 492 Income tax expense (94 ) (66 ) (180 ) (126 ) Effective tax rate 24.5 % 25.5 % 24.1 % 25.5 % Net income 291 193 568 366 Less: Net income attributable to noncontrolling interest (2 ) (2 ) (7 ) (6 ) Net income attributable to Wabtec shareholders $ 289 $ 191 $ 561 $ 360 Earnings Per Common Share Basic Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.18 $ 2.00 Diluted Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.17 $ 2.00 Basic 175.4 178.9 176.0 179.4 Diluted 176.0 179.4 176.6 180.0 Segment Information Freight Net Sales $ 1,920 $ 1,697 $ 3,744 $ 3,253 Freight Income from Operations $ 391 $ 269 $ 759 $ 495 Freight Operating Margin 20.4 % 15.9 % 20.3 % 15.2 % Transit Net Sales $ 724 $ 710 $ 1,397 $ 1,348 Transit Income from Operations $ 82 $ 68 $ 156 $ 138 Transit Operating Margin 11.3 % 9.6 % 11.2 % 10.3 % Backlog Information (Note: 12-month is a sub-set of total) June 30, 2024 March 31, 2024 June 30, 2024 Freight Total $ 17,929 $ 17,898 $ 18,290 Transit Total 4,146 4,185 4,141 Wabtec Total $ 22,075 $ 22,083 $ 22,431 Freight 12-Month $ 5,504 $ 5,667 $ 5,293 Transit 12-Month 1,830 2,043 1,927 Wabtec 12-Month $ 7,334 $ 7,710 $ 7,220 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 In millions Cash, cash equivalents and restricted cash $ 595 $ 620 Receivables, net 1,801 1,684 Inventories, net 2,364 2,284 Other current assets 267 267 Total current assets 5,027 4,855 Property, plant and equipment, net 1,439 1,485 Goodwill 8,706 8,780 Other intangible assets, net 3,031 3,205 Other noncurrent assets 673 663 Total assets $ 18,876 $ 18,988 Current liabilities $ 3,647 $ 4,056 Long-term debt 3,494 3,288 Long-term liabilities - other 1,215 1,120 Total liabilities 8,356 8,464 Shareholders' equity 10,477 10,487 Noncontrolling interest 43 37 Total shareholders' equity 10,520 10,524 Total Liabilities and Shareholders' Equity $ 18,876 $ 18,988 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2024 2023 In millions Operating activities Net income $ 568 $ 366 Non-cash expense 246 245 Receivables (146 ) (150 ) Inventories (120 ) (248 ) Accounts Payable 93 (5 ) Other assets and liabilities (72 ) (118 ) Net cash provided by operating activities 569 90 Net cash used for investing activities (57 ) (293 ) Net cash (used for) provided by financing activities (523 ) 30 Effect of changes in currency exchange rates (14 ) 3 Decrease in cash (25 ) (170 ) Cash, cash equivalents and restricted cash, beginning of period 620 541 Cash, cash equivalents and restricted cash, end of period $ 595 $ 371 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) Second 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 $ 2,644 $ 874 $ (444 ) $ 430 $ (45 ) $ (94 ) $ 291 $ (2 ) $ 289 $ 1.64 Restructuring and Portfolio Optimization costs $ - $ 6 $ 4 $ 10 $ (4 ) $ (2 ) $ 4 $ - $ 4 $ 0.02 Non-cash Amortization expense $ - $ - $ 70 $ 70 $ - $ (17 ) $ 53 $ - $ 53 $ 0.30 Adjusted Results $ 2,644 $ 880 $ (370 ) $ 510 $ (49 ) $ (113 ) $ 348 $ (2 ) $ 346 $ 1.96 Fully Diluted Shares Outstanding 176.0 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 5,141 $ 1,689 $ (847 ) $ 842 $ (94 ) $ (180 ) $ 568 $ (7 ) $ 561 $ 3.17 Restructuring and Portfolio Optimization costs - 12 8 20 (4 ) (4 ) 12 - 12 $ 0.07 Non-cash Amortization expense - - 143 143 - (34 ) 109 - 109 $ 0.61 Adjusted Results $ 5,141 $ 1,701 $ (696 ) $ 1,005 $ (98 ) $ (218 ) $ 689 $ (7 ) $ 682 $ 3.85 Fully Diluted Shares Outstanding 176.6 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) Second 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 $ 2,407 $ 723 $ (411 ) $ 312 $ (53 ) $ (66 ) $ 193 $ (2 ) $ 191 $ 1.06 Restructuring costs - 8 2 10 - (3 ) 7 - 7 $ 0.04 Non-cash Amortization expense - - 73 73 - (17 ) 56 - 56 $ 0.31 Adjusted Results $ 2,407 $ 731 $ (336 ) $ 395 $ (53 ) $ (86 ) $ 256 $ (2 ) $ 254 $ 1.41 Fully Diluted Shares Outstanding 179.4 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 4,601 $ 1,388 $ (800 ) $ 588 $ (96 ) $ (126 ) $ 366 $ (6 ) $ 360 $ 2.00 Restructuring costs - 12 7 19 - (5 ) 14 - 14 $ 0.08 Non-cash Amortization expense - - 148 148 - (37 ) 111 - 111 $ 0.61 Adjusted Results $ 4,601 $ 1,400 $ (645 ) $ 755 $ (96 ) $ (168 ) $ 491 $ (6 ) $ 485 $ 2.69 Fully Diluted Shares Outstanding 180.0 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 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $430 $4 $116 $550 $5 $555 Wabtec Corporation 2024 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $842 $2 $238 $1,082 $13 $1,095 Wabtec Corporation 2023 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $312 $2 $122 $436 $8 $444 Wabtec Corporation 2023 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $588 $7 $243 $838 $14 $852 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 570 $ 418 Components 322 274 Digital Intelligence 199 195 Services 829 810 Total Freight Segment $ 1,920 $ 1,697 Transit Segment Original Equipment Manufacturer $ 310 $ 334 Aftermarket 414 376 Total Transit Segment $ 724 $ 710 Six Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 1,096 $ 822 Components 615 532 Digital Intelligence 375 382 Services 1,658 1,517 Total Freight Segment $ 3,744 $ 3,253 Transit Segment Original Equipment Manufacturer $ 620 $ 623 Aftermarket 777 725 Total Transit Segment $ 1,397 $ 1,348 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended June 30, Six Months Ended June 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 $ 669 $ 391 $ 538 $ 269 $ 1,294 $ 759 $ 1,016 $ 495 Freight Segment Reported Margin 34.8 % 20.4 % 31.8 % 15.9 % 34.6 % 20.3 % 31.2 % 15.2 % Restructuring and Portfolio Optimization costs 5 5 5 6 8 8 6 8 Non-cash Amortization expense - 66 - 69 - 134 - 137 Freight Segment Adjusted Results $ 674 $ 462 $ 543 $ 344 $ 1,302 $ 901 $ 1,022 $ 640 Freight Segment Adjusted Margin 35.1 % 24.1 % 32.0 % 20.3 % 34.8 % 24.1 % 31.4 % 19.7 % Transit Segment Reported Results $ 205 $ 82 $ 185 $ 68 $ 395 $ 156 $ 372 $ 138 Transit Segment Reported Margin 28.3 % 11.3 % 26.0 % 9.6 % 28.3 % 11.2 % 27.6 % 10.3 % Restructuring costs 1 5 3 6 4 12 6 11 Non-cash Amortization expense - 4 - 4 - 9 - 11 Transit Segment Adjusted Results $ 206 $ 91 $ 188 $ 78 $ 399 $ 177 $ 378 $ 160 Transit Segment Adjusted Margin 28.6 % 12.7 % 26.5 % 11.1 % 28.6 % 12.7 % 28.1 % 11.9 % WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended June 30, In millions Freight Transit Consolidated 2023 Net Sales $ 1,697 $ 710 $ 2,407 Acquisitions 34 - 34 Foreign Exchange (8 ) (10 ) (18 ) Organic 197 24 221 2024 Net Sales $ 1,920 $ 724 $ 2,644 Change ($) 223 14 237 Change (%) 13.1 % 2.0 % 9.8 % Six Months Ended June 30, Freight Transit Consolidated 2023 Net Sales $ 3,253 $ 1,348 $ 4,601 Acquisitions 70 - 70 Foreign Exchange (7 ) (6 ) (13 ) Organic 428 55 483 2024 Net Sales $ 3,744 $ 1,397 $ 5,141 Change ($) 491 49 540 Change (%) 15.1 % 3.6 % 11.7 % 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 2024 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $235 $291 $118 57% Wabtec Corporation 2024 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $569 $568 $241 70% Wabtec Corporation 2023 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $115 $193 $123 36% Wabtec Corporation 2023 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $90 $366 $246 15% View source version on businesswire.com: https://www.businesswire.com/news/home/20240724280578/en/Contacts Wabtec Investor Contact Kyra Yates / Kyra.Yates@wabtec.com / 817-349-2735 Wabtec Media Contact Tim Bader / Tim.Bader@wabtec.com / 682-319-7925
GAAP Diluted Earnings Per Share of $1.64, Up 54.7%; Adjusted Diluted Earnings Per Share of $1.96, Up 39.0% GAAP Operating Margin at 16.3%; Adjusted Operating Margin Up 2.9 pts to 19.3% Sales Growth of 9.8% to $2.64 billion; Freight Segment Sales Growth of 13.1% Returned $235 million to Shareholders via Share Repurchases and Dividends Raised and tightened 2024 Adjusted Diluted EPS guidance to be in the range of $7.20 to $7.50; up 24.2% from 2023 at the midpoint
Wabtec Corporation (NYSE: WAB) today reported second quarter 2024 GAAP earnings per diluted share of $1.64, up 54.7% versus the second quarter of 2023. Adjusted earnings per diluted share were $1.96, up 39.0% versus the same quarter a year ago. Second quarter sales were $2.64 billion and cash from operations was $235 million. “The Wabtec team delivered another strong quarter, evidenced by robust sales and earnings per share growth,” said Rafael Santana, Wabtec’s President and CEO. “With the first half behind us, we are focused on executing against our second half deliverables. Demand on our end markets continues to be strong and we have significant opportunities for further growth given the quality of our products and the productivity and reliability that we provide for our customers. “We just finished our annual strategic planning, and at this point we stand confident in our ability to drive profitable growth ahead, consistent with our long term guidance.” 2024 Second Quarter Consolidated Results Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $2,644 $2,407 9.8 % GAAP Gross Margin 33.0 % 30.1 % 2.9 pts Adjusted Gross Margin 33.3 % 30.4 % 2.9 pts GAAP Operating Margin 16.3 % 12.9 % 3.4 pts Adjusted Operating Margin 19.3 % 16.4 % 2.9 pts GAAP Diluted EPS $1.64 $1.06 54.7 % Adjusted Diluted EPS $1.96 $1.41 39.0 % Cash Flow from Operations $235 $115 $120 Operating Cash Flow Conversion 57 % 36 % Sales increased 9.8% 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 16.3%, and adjusted operating margin was higher than the prior year at 19.3%. 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, margin expansion and a lower tax rate. 2024 Second Quarter Freight Segment Results Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $1,920 $1,697 13.1 % GAAP Gross Margin 34.8 % 31.8 % 3.0 pts Adjusted Gross Margin 35.1 % 32.0 % 3.1 pts GAAP Operating Margin 20.4 % 15.9 % 4.5 pts Adjusted Operating Margin 24.1 % 20.3 % 3.8 pts Freight segment sales for the second quarter were up across our business groups driven primarily by Equipment and Components which were up 36.4% and 17.5%, 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 Second Quarter Transit Segment Results Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2024 2023 Change Net Sales $724 $710 2.0 % GAAP Gross Margin 28.3 % 26.0 % 2.3 pts Adjusted Gross Margin 28.6 % 26.5 % 2.1 pts GAAP Operating Margin 11.3 % 9.6 % 1.7 pts Adjusted Operating Margin 12.7 % 11.1 % 1.6 pts Transit segment sales for the second quarter were up 2.0% due to higher aftermarket sales. GAAP and adjusted operating margins were up driven by higher gross margin, partially offset by operating expenses which grew at a higher rate than revenue. Backlog Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions June 30, 2024 2023 Change 12-Month Backlog $7,334 $7,220 1.6 % Total Backlog $22,075 $22,431 (1.6) % The Company’s multi-year backlog continues to provide strong visibility. At June 30, 2024, the 12-month backlog was $114 million higher than the prior year period. At June 30, 2024, multi-year backlog was $356 million lower than the prior year period, and excluding foreign currency exchange, multi-year backlog decreased $140 million, down 0.6%. Cash Flow and Liquidity Summary During the second quarter, cash provided by operations was $235 million versus $115 million in the year ago period due primarily to higher net income and improved working capital, partially offset by a reduction in accounts receivable securitization funding. At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $595 million and total debt of $4.00 billion. At June 30, 2024, the Company’s total available liquidity was $2.09 billion, which includes cash and cash equivalents plus $1.50 billion available under current credit facilities. During the quarter, the Company repurchased $200 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 $7.20 to $7.50. 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: 1950853). 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 SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net sales $ 2,644 $ 2,407 $ 5,141 $ 4,601 Cost of sales (1,770 ) (1,684 ) (3,452 ) (3,213 ) Gross profit 874 723 1,689 1,388 Gross profit as a % of Net Sales 33.0 % 30.1 % 32.8 % 30.2 % Selling, general and administrative expenses (316 ) (285 ) (597 ) (548 ) Engineering expenses (57 ) (53 ) (105 ) (104 ) Amortization expense (71 ) (73 ) (145 ) (148 ) Total operating expenses (444 ) (411 ) (847 ) (800 ) Operating expenses as a % of Net Sales 16.8 % 17.1 % 16.5 % 17.4 % Income from operations 430 312 842 588 Income from operations as a % of Net Sales 16.3 % 12.9 % 16.4 % 12.8 % Interest expense, net (49 ) (55 ) (96 ) (103 ) Other income, net 4 2 2 7 Income before income taxes 385 259 748 492 Income tax expense (94 ) (66 ) (180 ) (126 ) Effective tax rate 24.5 % 25.5 % 24.1 % 25.5 % Net income 291 193 568 366 Less: Net income attributable to noncontrolling interest (2 ) (2 ) (7 ) (6 ) Net income attributable to Wabtec shareholders $ 289 $ 191 $ 561 $ 360 Earnings Per Common Share Basic Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.18 $ 2.00 Diluted Net income attributable to Wabtec shareholders $ 1.64 $ 1.06 $ 3.17 $ 2.00 Basic 175.4 178.9 176.0 179.4 Diluted 176.0 179.4 176.6 180.0 Segment Information Freight Net Sales $ 1,920 $ 1,697 $ 3,744 $ 3,253 Freight Income from Operations $ 391 $ 269 $ 759 $ 495 Freight Operating Margin 20.4 % 15.9 % 20.3 % 15.2 % Transit Net Sales $ 724 $ 710 $ 1,397 $ 1,348 Transit Income from Operations $ 82 $ 68 $ 156 $ 138 Transit Operating Margin 11.3 % 9.6 % 11.2 % 10.3 % Backlog Information (Note: 12-month is a sub-set of total) June 30, 2024 March 31, 2024 June 30, 2024 Freight Total $ 17,929 $ 17,898 $ 18,290 Transit Total 4,146 4,185 4,141 Wabtec Total $ 22,075 $ 22,083 $ 22,431 Freight 12-Month $ 5,504 $ 5,667 $ 5,293 Transit 12-Month 1,830 2,043 1,927 Wabtec 12-Month $ 7,334 $ 7,710 $ 7,220 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 In millions Cash, cash equivalents and restricted cash $ 595 $ 620 Receivables, net 1,801 1,684 Inventories, net 2,364 2,284 Other current assets 267 267 Total current assets 5,027 4,855 Property, plant and equipment, net 1,439 1,485 Goodwill 8,706 8,780 Other intangible assets, net 3,031 3,205 Other noncurrent assets 673 663 Total assets $ 18,876 $ 18,988 Current liabilities $ 3,647 $ 4,056 Long-term debt 3,494 3,288 Long-term liabilities - other 1,215 1,120 Total liabilities 8,356 8,464 Shareholders' equity 10,477 10,487 Noncontrolling interest 43 37 Total shareholders' equity 10,520 10,524 Total Liabilities and Shareholders' Equity $ 18,876 $ 18,988 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2024 2023 In millions Operating activities Net income $ 568 $ 366 Non-cash expense 246 245 Receivables (146 ) (150 ) Inventories (120 ) (248 ) Accounts Payable 93 (5 ) Other assets and liabilities (72 ) (118 ) Net cash provided by operating activities 569 90 Net cash used for investing activities (57 ) (293 ) Net cash (used for) provided by financing activities (523 ) 30 Effect of changes in currency exchange rates (14 ) 3 Decrease in cash (25 ) (170 ) Cash, cash equivalents and restricted cash, beginning of period 620 541 Cash, cash equivalents and restricted cash, end of period $ 595 $ 371 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) Second 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 $ 2,644 $ 874 $ (444 ) $ 430 $ (45 ) $ (94 ) $ 291 $ (2 ) $ 289 $ 1.64 Restructuring and Portfolio Optimization costs $ - $ 6 $ 4 $ 10 $ (4 ) $ (2 ) $ 4 $ - $ 4 $ 0.02 Non-cash Amortization expense $ - $ - $ 70 $ 70 $ - $ (17 ) $ 53 $ - $ 53 $ 0.30 Adjusted Results $ 2,644 $ 880 $ (370 ) $ 510 $ (49 ) $ (113 ) $ 348 $ (2 ) $ 346 $ 1.96 Fully Diluted Shares Outstanding 176.0 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 5,141 $ 1,689 $ (847 ) $ 842 $ (94 ) $ (180 ) $ 568 $ (7 ) $ 561 $ 3.17 Restructuring and Portfolio Optimization costs - 12 8 20 (4 ) (4 ) 12 - 12 $ 0.07 Non-cash Amortization expense - - 143 143 - (34 ) 109 - 109 $ 0.61 Adjusted Results $ 5,141 $ 1,701 $ (696 ) $ 1,005 $ (98 ) $ (218 ) $ 689 $ (7 ) $ 682 $ 3.85 Fully Diluted Shares Outstanding 176.6 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) Second 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 $ 2,407 $ 723 $ (411 ) $ 312 $ (53 ) $ (66 ) $ 193 $ (2 ) $ 191 $ 1.06 Restructuring costs - 8 2 10 - (3 ) 7 - 7 $ 0.04 Non-cash Amortization expense - - 73 73 - (17 ) 56 - 56 $ 0.31 Adjusted Results $ 2,407 $ 731 $ (336 ) $ 395 $ (53 ) $ (86 ) $ 256 $ (2 ) $ 254 $ 1.41 Fully Diluted Shares Outstanding 179.4 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second 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 $ 4,601 $ 1,388 $ (800 ) $ 588 $ (96 ) $ (126 ) $ 366 $ (6 ) $ 360 $ 2.00 Restructuring costs - 12 7 19 - (5 ) 14 - 14 $ 0.08 Non-cash Amortization expense - - 148 148 - (37 ) 111 - 111 $ 0.61 Adjusted Results $ 4,601 $ 1,400 $ (645 ) $ 755 $ (96 ) $ (168 ) $ 491 $ (6 ) $ 485 $ 2.69 Fully Diluted Shares Outstanding 180.0 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 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $430 $4 $116 $550 $5 $555 Wabtec Corporation 2024 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $842 $2 $238 $1,082 $13 $1,095 Wabtec Corporation 2023 Q2 EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $312 $2 $122 $436 $8 $444 Wabtec Corporation 2023 Q2 YTD EBITDA Reconciliation (in millions) Reported Income + Other Income + Depreciation & = EBITDA + Restructuring = Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $588 $7 $243 $838 $14 $852 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 570 $ 418 Components 322 274 Digital Intelligence 199 195 Services 829 810 Total Freight Segment $ 1,920 $ 1,697 Transit Segment Original Equipment Manufacturer $ 310 $ 334 Aftermarket 414 376 Total Transit Segment $ 724 $ 710 Six Months Ended June 30, In millions 2024 2023 Freight Segment Equipment $ 1,096 $ 822 Components 615 532 Digital Intelligence 375 382 Services 1,658 1,517 Total Freight Segment $ 3,744 $ 3,253 Transit Segment Original Equipment Manufacturer $ 620 $ 623 Aftermarket 777 725 Total Transit Segment $ 1,397 $ 1,348 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended June 30, Six Months Ended June 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 $ 669 $ 391 $ 538 $ 269 $ 1,294 $ 759 $ 1,016 $ 495 Freight Segment Reported Margin 34.8 % 20.4 % 31.8 % 15.9 % 34.6 % 20.3 % 31.2 % 15.2 % Restructuring and Portfolio Optimization costs 5 5 5 6 8 8 6 8 Non-cash Amortization expense - 66 - 69 - 134 - 137 Freight Segment Adjusted Results $ 674 $ 462 $ 543 $ 344 $ 1,302 $ 901 $ 1,022 $ 640 Freight Segment Adjusted Margin 35.1 % 24.1 % 32.0 % 20.3 % 34.8 % 24.1 % 31.4 % 19.7 % Transit Segment Reported Results $ 205 $ 82 $ 185 $ 68 $ 395 $ 156 $ 372 $ 138 Transit Segment Reported Margin 28.3 % 11.3 % 26.0 % 9.6 % 28.3 % 11.2 % 27.6 % 10.3 % Restructuring costs 1 5 3 6 4 12 6 11 Non-cash Amortization expense - 4 - 4 - 9 - 11 Transit Segment Adjusted Results $ 206 $ 91 $ 188 $ 78 $ 399 $ 177 $ 378 $ 160 Transit Segment Adjusted Margin 28.6 % 12.7 % 26.5 % 11.1 % 28.6 % 12.7 % 28.1 % 11.9 % WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended June 30, In millions Freight Transit Consolidated 2023 Net Sales $ 1,697 $ 710 $ 2,407 Acquisitions 34 - 34 Foreign Exchange (8 ) (10 ) (18 ) Organic 197 24 221 2024 Net Sales $ 1,920 $ 724 $ 2,644 Change ($) 223 14 237 Change (%) 13.1 % 2.0 % 9.8 % Six Months Ended June 30, Freight Transit Consolidated 2023 Net Sales $ 3,253 $ 1,348 $ 4,601 Acquisitions 70 - 70 Foreign Exchange (7 ) (6 ) (13 ) Organic 428 55 483 2024 Net Sales $ 3,744 $ 1,397 $ 5,141 Change ($) 491 49 540 Change (%) 15.1 % 3.6 % 11.7 % 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 2024 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $235 $291 $118 57% Wabtec Corporation 2024 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $569 $568 $241 70% Wabtec Corporation 2023 Q2 Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $115 $193 $123 36% Wabtec Corporation 2023 Q2 YTD Cash Conversion Calculation (in millions) Reported Cash ÷ (Net Income + Depreciation & Amortization) = Cash Conversion from Operations Consolidated Results $90 $366 $246 15% View source version on businesswire.com: https://www.businesswire.com/news/home/20240724280578/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