WAB Q1 Revenues & Earnings Beat Estimates, Stock Up, EPS View Tweaked

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$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]