Westinghouse Air Brake Technologies(WAB) ZACKS·2025-02-12 17:55Core 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]