• 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

PITTSBURGH--(BUSINESS WIRE)--Jul. 24, 2024-- 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

Source: Wabtec Corporation