Core Insights - Westinghouse Air Brake Technologies Corporation (WAB), known as Wabtec, reported Q4 2024 earnings per share (EPS) of $1.68, missing the Zacks Consensus Estimate of $1.73, but showing a 9.1% year-over-year improvement due to higher sales and operating margin expansion [1][3] - Total revenues for the quarter were $2.58 billion, slightly below the Zacks Consensus Estimate of $2.59 billion, with a year-over-year growth of 2.3% driven by the Transit segment [2][3] Financial Performance - The Freight segment net sales reached $1.79 billion, a 0.3% year-over-year increase, but fell short of expectations of $1.84 billion, with an adjusted operating margin of 19.4% [4] - The Transit segment saw net sales grow by 7.1% year over year to $789 million, exceeding estimates of $757 million, with an adjusted operating margin rising to 16.4% from 14.9% in Q4 2023 [5] Operating Metrics - Total operating expenses increased by $7 million year-over-year to $463 million, while the operating ratio improved to 17.9% from 18.1% [6] - Cash, cash equivalents, and restricted cash at the end of Q4 were $715 million, up from $620 million at the end of 2023, while long-term debt rose to $3.48 billion from $3.29 billion [6] Shareholder Returns - During the quarter, Wabtec repurchased shares worth $123 million and approved a 25% increase in the quarterly cash dividend to 25 cents per share [7] 2025 Guidance - Wabtec expects 2025 revenues to be in the range of $10.725 billion to $11.025 billion, below the Zacks Consensus Estimate of $10.83 billion, with adjusted EPS guidance for 2025 set between $8.35 and $8.75, also below the consensus estimate of $8.59 [3][8]

Financial Data and Key Metrics Changes - The company reported a top line growth of 7% and adjusted EPS growth of 28% for the year [7][8] - Q4 sales were $2.58 billion, reflecting a 2.3% increase year-over-year, with adjusted EPS up 9.1% [12][28] - Cash flow from operations for Q4 was $723 million, resulting in a cash conversion rate of 212% [13][41] - The twelve-month backlog stood at $7.7 billion, indicating continued momentum [13][23] Business Line Data and Key Metrics Changes - Services sales decreased by 15.9% in Q4, while equipment sales increased by 41.8% [30][31] - The Transit segment saw a sales increase of 7.1% in Q4, with adjusted operating income up 1.5 percentage points [39][40] - Digital Intelligence sales were down 1.4% due to softness in North America, but international sales partially offset this decline [32][90] Market Data and Key Metrics Changes - North American railcar builds were down to approximately 42,000 cars for 2024, with an industry outlook for 2025 projecting a nearly 17% decline [15] - Internationally, strong activity was noted in markets such as Latin America, Africa, and Asia, with significant investments in infrastructure [16][20] - Ridership levels in the transit sector are increasing, supporting fleet expansion and renewals [17] Company Strategy and Development Direction - The company is focused on driving continuous improvement and delivering value to customers, with a new five-year long-term guidance announced [8][51] - Integration 3.0 and portfolio optimization initiatives are expected to support over 350 basis points of margin improvement over the next five years [10][58] - The company aims for mid-single digit organic revenue growth and double-digit EPS growth over the next five years [53][54] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive profitable growth, citing strong customer demand and a solid backlog [49][50] - The company anticipates cash flow conversion to remain above 90% despite a previous year of 117% [50] - Management highlighted the resilience of the business amid geopolitical issues and inflation, with a focus on cost management and productivity [23][131] Other Important Information - The Board of Directors approved a 25% increase in the quarterly dividend and authorized an additional $1 billion for share repurchases [11][43] - The company has executed against its Integration 2.0 initiative, achieving significant cost savings and operational improvements [44][45] Q&A Session Summary Question: Strategic question on long-term framework and margin improvements - Management confirmed that the new five-year plan aims for over 350 basis points of margin expansion, with a focus on cost management and innovation [64][70] Question: Margin opportunity and incremental upside - Management highlighted a strong pipeline of opportunities and emphasized the importance of cost actions and simplification for margin expansion [78][82] Question: Digital market outlook and North America demand - Management noted that while North America has shown softer demand, international markets are driving growth, particularly in digital technologies [88][90] Question: Margin performance in transit and future expectations - Management indicated that transit margins are expected to remain strong, supported by favorable mix dynamics and ongoing integration efforts [134][140] Question: Services business seasonality and performance - Management discussed variations in services performance and indicated that the core services business remains stable despite fluctuations [141]

Core Insights - Westinghouse Air Brake Technologies (Wabtec) reported Q4 and full-year 2024 earnings that missed revenue and EPS estimates but showed solid margins and cash flows [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $1.68, below the forecast of $1.73, while revenue was $2.58 billion, slightly under the anticipated $2.62 billion [2][4] - Year-over-year sales increased by 2.3%, with operating margin at 12.9%, up from 12.2% in Q4 2023 [4][7] - Cash flow from operations reached $723 million, a 5.4% increase from $686 million in Q4 2023 [4][9] Company Overview and Strategic Focus - Wabtec is a key player in the rail and transportation sectors, focusing on global expansion through strategic acquisitions and innovations in digital intelligence and green technologies [5][6] - The company emphasizes zero-emissions initiatives and automation to maintain its leadership in sustainable transportation solutions [5] Operational Highlights - The Freight segment reported net sales of $1.79 billion, while the Transit segment saw a 7.1% growth, generating $789 million in revenue [7] - The gross margin improved by 0.8 percentage points, reflecting operational efficiencies and effective pricing strategies [7] Innovation and Demand - Wabtec's innovation pipeline generated over $1 billion in new orders for locomotives and modifications, indicating strong demand for environmentally friendly technologies [8] - The backlog increased by 1.2% to $22.3 billion, showcasing sustained demand and a positive outlook [8] Shareholder Returns - The company returned $1.2 billion to shareholders through share repurchases and dividends, with a 25% increase in the quarterly dividend and a $1 billion share repurchase authorization [9] Future Outlook - Wabtec anticipates adjusted EPS for 2025 to be between $8.35 and $8.75, supported by mid-single-digit revenue growth and operational efficiencies [10]

Core Viewpoint - Westinghouse Air Brake Technologies (WAB) reported quarterly earnings of $1.68 per share, missing the Zacks Consensus Estimate of $1.73 per share, but showing an increase from $1.54 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was -2.89%, with a previous quarter's earnings of $2 per share exceeding expectations of $1.87 per share, resulting in a surprise of 6.95% [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Revenue Performance - Wabtec posted revenues of $2.58 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.38%, but showing an increase from $2.53 billion year-over-year [3] - The company has topped consensus revenue estimates three times over the last four quarters [3] Stock Performance - Wabtec shares have increased approximately 9.8% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.97 for the coming quarter and $8.59 for the current fiscal year [5][8] - The estimate revisions trend for Wabtec is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - The Transportation - Equipment and Leasing industry, to which Wabtec belongs, is currently in the top 27% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [9]

1 Forward Looking Statements & Non-GAAP Financial Information 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 ...

In a shareholder-friendly move, Wabtec Corporation’s (WAB) board of directors approved a dividend hike of 25%, thereby raising its quarterly cash dividend to 25 cents per share ($1.00 annualized) from 20 cents ($0.80 annualized). The raised dividend will be paid out on March 7, 2025, to shareholders of record at the close of business on Feb. 21. The move reflects WAB’s intention to utilize free cash to enhance its shareholders’ returns.Notably, Wabtec has been consistently making efforts to reward its share ...

Analysts on Wall Street project that Westinghouse Air Brake Technologies (WAB) will announce quarterly earnings of $1.73 per share in its forthcoming report, representing an increase of 12.3% year over year. Revenues are projected to reach $2.59 billion, increasing 2.6% from the same quarter last year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pro ...

Westinghouse Air Brake Technologies (WAB) , operating as Wabtec Corporation, is scheduled to report fourth-quarter 2024 results on Feb. 12, before market open.See the Zacks Earnings Calendar to stay ahead of market-making news.The Zacks Consensus Estimate for WAB’s soon-to-be-reported quarter’s earnings has been revised downward by 0.6% in the past 60 days to $1.73 per share. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $2.59 billion, which indicates growth of 2.6% from the year-ago lev ...

Wabtec Corporation (WAB) is strengthening its operations with the help of strategic acquisitions. To this end, Wabtec has inked a deal to acquire Evident’s Inspection Technologies division (Inspection Technologies) for $1.78 billion ($1.68 billion after tax benefits), subject to customary adjustments. The deal is anticipated to be completed by the end of the first half of 2025, subject to customary closing conditions and regulatory approvals.Headquartered near Boston, MA, Evident’s Inspection Technologies d ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): January 13, 2025 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware (State or other Jurisdiction of Incorporation) 033-90866 25-1615902 (Commission File No.) (I.R.S. Employer Identification No.) 30 Isabella Street Pittsburgh, Pennsylv ...