Core Insights - Wabtec (WAB) reported Q1 2025 earnings per share of $2.28, exceeding the Zacks Consensus Estimate of $2.01, marking a 20.6% year-over-year improvement due to increased sales and operating margin expansion [1] - Revenues reached $2.61 billion, slightly above the Zacks Consensus Estimate of $2.6 billion, reflecting a 4.5% year-over-year growth driven by the Freight and Transit segments [1] Financial Performance - WAB raised the mid-point of its 2025 EPS guidance by 10 cents, now expecting adjusted EPS in the range of $8.35-$8.95, compared to the previous range of $8.35-$8.75, with the new mid-point of $8.65 exceeding the prior mid-point of $8.55 [2][3] - The Freight unit's net sales were $1.9 billion, a 4.2% increase year over year, driven by a 16.9% rise in services, with an adjusted operating margin improvement to 25.7% [4] - The Transit segment saw net sales grow 5.3% year over year to $709 million, supported by strong aftermarket and original equipment sales, with an adjusted operating margin increase to 14.6% from 12.7% [5] Operating Metrics - Total operating expenses rose by $23 million year over year to $426 million, with the operating ratio deteriorating slightly to 16.3 from 16.2 [6] - Cash, cash equivalents, and restricted cash at the end of Q1 were $698 million, down from $715 million at the end of 2024 [6] - Long-term debt increased to $3.5 billion from $3.48 billion at the end of 2024, with $141 million returned to shareholders through dividends and stock buybacks [7] Guidance and Market Position - Wabtec expects 2025 revenues in the range of $10.725-$11.025 billion, with the Zacks Consensus Estimate at $10.84 billion, below the mid-point of the guided range [8] - Management anticipates operating cash flow conversion to exceed 90% for 2025 [8] - Wabtec currently holds a Zacks Rank 2 (Buy) [11]

Wabtec Financial Results & Company Highlights FIRST QUARTER 2025 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 i ...

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Q1 2025 Earnings Conference Call April 23, 2025 8:30 AM ET Company Participants Kyra Yates - VP, IR Rafael Santana - President & CEO John Olin - CFO Conference Call Participants Rob Wertheimer - Melius Research Adam Roszkowski - Bank of America Jerry Revich - Goldman Sachs Daniel Imbro - Stephens Angel Castillo - Morgan Stanley Saree Boroditsky - Jefferies Bascome Majors - Susquehanna Steve Barger - KeyBanc Oliver Holmes - Redburn Atlantic Ivan Yi - ...

For the quarter ended March 2025, Westinghouse Air Brake Technologies (WAB) reported revenue of $2.61 billion, up 4.5% over the same period last year. EPS came in at $2.28, compared to $1.89 in the year-ago quarter.The reported revenue represents a surprise of +0.50% over the Zacks Consensus Estimate of $2.6 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +13.43%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...

Financial Performance - Wabtec's net sales for Q1 2025 increased by $113 million, or 4.5%, to $2.61 billion compared to Q1 2024, driven by organic sales growth of $133 million [125]. - The Freight Segment's net sales rose by $77 million, or 4.2%, to $1.90 billion in Q1 2025, with organic sales increasing by $88 million primarily from higher service sales [131]. - The Transit Segment's net sales increased by $36 million, or 5.3%, to $709 million in Q1 2025, with organic sales growth of $45 million driven by strong demand for Original Equipment Manufacturing and Aftermarket products [136]. - Wabtec's gross profit for Q1 2025 was $900 million, up from $815 million in Q1 2024, reflecting improved gross margin due to favorable product mix and cost management [125]. - Wabtec's net income attributable to shareholders for Q1 2025 was $322 million, compared to $272 million in Q1 2024, reflecting a year-over-year increase of 18.4% [123]. Expenses and Costs - The company incurred $10 million in transaction costs related to acquisitions during Q1 2025, contributing to a total operating expense increase of $23 million, or 5.7% [127]. - The company experienced a $28 million increase in cost of sales, or 1.7%, to $1.71 billion in Q1 2025, with cost of sales as a percentage of net sales improving to 65.5% from 67.3% [126]. - Transit Segment Cost of sales increased by $11 million, with Cost of sales as a percentage of sales decreasing by 2.1 percentage points [138]. - Transit Segment Operating expenses increased by $9 million, with Operating expenses as a percentage of Net sales at 17.6% for Q1 2025 compared to 17.2% for Q1 2024 [139]. Cash Flow and Investments - Cash provided by operating activities was $191 million in Q1 2025, down from $334 million in Q1 2024, primarily due to $(347) million from changes in receivables [140]. - Cash used for investing activities was $(44) million in Q1 2025, compared to $(19) million in Q1 2024, with $(44) million allocated for property, plant, and equipment [141]. - Cash used for financing activities was $(172) million in Q1 2025, including $(98) million in stock repurchases and $(43) million in dividend payments [143]. - As of March 31, 2025, the company held approximately $698 million in cash, with $294 million in the U.S. and $404 million held outside the U.S. [146]. - The company has approximately $902 million remaining under its stock repurchase plan as of March 31, 2025 [164]. Acquisitions - Wabtec announced definitive agreements to acquire Evident's Inspection Technologies division for approximately $1.78 billion and Dellner Couplers for approximately $960 million, enhancing its capabilities in critical asset inspection and safety-critical train connection systems [118]. - The company announced acquisitions of Inspection Technologies and Dellner Couplers for approximately $1.78 billion and $960 million, respectively [142]. Tax and Financial Ratios - The effective income tax rate for Q1 2025 was 23.2%, a decrease from 23.6% in Q1 2024, driven by higher discrete equity compensation tax deductions [130]. Market Conditions and Risks - Forward-looking statements indicate potential risks including economic conditions, demand fluctuations, and reliance on major customers [166]. - The company reported a decrease in demand for services in the freight and passenger rail industry, impacting overall performance [170]. - Orders have been delayed or canceled, with economic conditions affecting customers' ability to pay for goods and services delivered [170]. - The company faces challenges related to the successful introduction of new products, impacting future growth prospects [170]. - The company is exposed to fluctuations in interest rates and foreign currency exchange rates, which could affect financial performance [171]. - Political instability and changes in governmental funding for transit projects may impact the company's operations and revenue [170]. - The company is navigating risks associated with the development and use of new technology, which could influence competitive positioning [170]. - Supply chain disruptions and sourcing challenges have been noted, potentially affecting production and delivery timelines [170]. - The company is monitoring the impacts of climate change and evolving policies, which may influence operational strategies [170]. - There are ongoing legal proceedings that could have material impacts on the company's financial position and operations [170]. Credit and Financing - The company amended credit agreements to increase the Revolving Credit Facility to $2 billion and combined term loans into a single $475 million term loan [144].

Core Insights - Westinghouse Air Brake Technologies (WAB) reported quarterly earnings of $2.28 per share, exceeding the Zacks Consensus Estimate of $2.01 per share, and up from $1.89 per share a year ago [1] - The company achieved a revenue of $2.61 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.50% and showing an increase from $2.5 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was 13.43%, with the company having surpassed consensus EPS estimates three times in the last four quarters [2] - The previous quarter's earnings were $1.68 per share, which was below the expected $1.73, resulting in a surprise of -2.89% [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.14, with expected revenues of $2.76 billion, and for the current fiscal year, the EPS estimate is $8.27 on revenues of $10.84 billion [8] - The estimate revisions trend for Wabtec is currently favorable, leading to a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [7] Industry Context - Wabtec operates within the Zacks Transportation - Equipment and Leasing industry, which is currently ranked in the bottom 17% of over 250 Zacks industries [9] - The performance of Wabtec's stock may be influenced by the overall outlook of the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Exhibit 99.1 Wabtec Reports First Quarter 2025 Results; Announces Increase in Full-Year EPS Guidance | | 1Q 2025 | | | --- | --- | --- | | SALES | GAAP DILUTED EARNINGS PER SHARE | ADJUSTED DILUTED EARNINGS PER SHARE | | $2.61B | $1.88 | $2.28 | | +4.5% YOY | +22.9% YOY | +20.6% YOY | Q1 2025 HIGHLIGHTS "The Wabtec team has started the year strong, delivering over 20% in earnings per share growth and highlighting the continued business momentum across both the Freight and Transit segments," said Rafael Sant ...

Westinghouse Air Brake Technologies (WAB) , operating as Wabtec Corporation, is benefiting from robust demand driving backlog growth. Moreover, shareholder-friendly initiatives are further boosting the company’s prospects. Due to these tailwinds, WAB shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.Let’s delve deeper.WAB’s Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been ...

Core Viewpoint - Wabtec Corporation (WAB) is expected to report its first-quarter 2025 results on April 23, with earnings estimated at $2.01 per share and revenues projected at $2.60 billion, reflecting a 4% growth year-over-year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for WAB's earnings has been revised upward by 1.01% in the past 60 days [2]. - Revenue estimates for the Freight segment are projected at $1.87 billion, indicating a 2.6% growth from the previous year, while Transit revenues are expected to reach $703.4 million, reflecting a 4.5% increase [4]. - Wabtec has a history of earnings surprises, having exceeded the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 9.2% [3]. Challenges and Risks - The company may face challenges due to rising operating expenses and ongoing supply chain and tariff-related disruptions, which could negatively impact its bottom-line performance in the upcoming earnings report [5]. - Current estimates indicate that Wabtec has an Earnings ESP of -2.19% and a Zacks Rank of 2 (Buy), suggesting that the odds of an earnings beat are not favorable this time [6]. Recent Historical Performance - In the fourth quarter of 2024, Wabtec reported earnings per share of $1.68, which was below the Zacks Consensus Estimate of $1.73, although it represented a 9.1% year-over-year improvement [7]. - The company's revenues for the fourth quarter were $2.58 billion, slightly missing the Zacks Consensus Estimate of $2.59 billion, but showing a 2.3% year-over-year growth driven by higher sales in the Transit segment [9].

Wall Street analysts forecast that Westinghouse Air Brake Technologies (WAB) will report quarterly earnings of $2.01 per share in its upcoming release, pointing to a year-over-year increase of 6.4%. It is anticipated that revenues will amount to $2.6 billion, exhibiting an increase of 4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevalu ...