Financial Release

Wabtec Delivers First Quarter 2024 Results; Raises Full-Year Guidance

April 24, 2024 at 6:30 AM EDT
  • 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)

PITTSBURGH--(BUSINESS WIRE)--Apr. 24, 2024-- 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%)

                 
                 

 

Wabtec Investor Contact
Kyra Yates / Kyra.Yates@wabtec.com / 817-349-2735

Wabtec Media Contact
Tim Bader / Tim.Bader@wabtec.com / 682-319-7925

Source: Wabtec Corporation