Wabtec (WAB) Q2 2025 Earnings Call July 24, 2025 08:30 AM ET Company ParticipantsKyra Yates - VP of IRRafael Santana - CEO, President & DirectorJohn Olin - EVP & CFOOliver Jiang - Equity Research AssociateAdam Roszkowski - Equity Research AssociateBrady Lierz - Senior Research AssociateJatin Khanna - VP - Equity ResearchChristian Zyla - Senior Associate Equity ResearchIvan Yi - DirectorConference Call ParticipantsRob Wertheimer - Founding Partner & Machinery & New Mobility Research AnalystBascome Majors - S ...

Wabtec (WAB) Q2 2025 Earnings Call July 24, 2025 08:30 AM ET Speaker0Good day, and welcome to the WebTech Second Quarter twenty twenty five Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Ms.Kyra Yates, Vice President of Investor Relations. Please go ahead, ma'am.Speaker1Thank you, operator. Good morning, everyone, and ...

IRVING, Texas, July 22, 2025 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) will release second-quarter 2025 financial results at 5:30 a.m. CDT Tuesday, Aug. 5. The full text of the release will be available at investors.caterpillar.com/financials/quarterly-results and on PR Newswire. The release will be furnished to the U.S. Securities and Exchange Commission (SEC) via a Current Report on Form 8-K in compliance with applicable SEC rules.Teleconference and webcast access:A real-time, listen-only teleconferenc ...

Core Insights - Caterpillar Inc. will host its 2025 Investor Day on November 4, 2025, in the Dallas area, where CEO Joe Creed and the executive leadership team will discuss strategic priorities and growth opportunities for the next century [1] Company Overview - Caterpillar Inc. reported sales and revenues of $64.8 billion for 2024, making it the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives [3] - The company operates on every continent through three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, while also providing financing and related services through its Financial Products segment [3] - Caterpillar is committed to contributing to a reduced-carbon future and has been helping customers build a more sustainable world for 100 years [3]

Group 1 - Caterpillar Inc. has increased its quarterly dividend by $0.10, representing a 7% increase, bringing the total to $1.51 per share, payable on August 20 to shareholders of record as of July 21 [1] - The company aims to return substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time through dividends and share repurchases [1] - Caterpillar has a strong history of dividend payments, having paid cash dividends every year since its formation and higher annual dividends for 31 consecutive years, making it a member of the S&P 500 Dividend Aristocrats Index [2] Group 2 - In 2024, Caterpillar reported sales and revenues of $64.8 billion, solidifying its position as the world's leading manufacturer of construction and mining equipment, as well as other industrial products [3] - The company operates through three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, and also provides financing and related services through its Financial Products segment [3] - Caterpillar is committed to contributing to a reduced-carbon future and has been helping customers build a more sustainable world for 100 years [3]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Westinghouse Air Brake Technologies (WAB) currently holding a Momentum Style Score of A [2][3] Group 2: Performance Metrics of Westinghouse Air Brake Technologies - WAB has shown a 6.79% increase in shares over the past week, matching the performance of the Zacks Transportation - Equipment and Leasing industry [5] - Over the last quarter, WAB shares have risen by 12.47%, and by 20.41% over the past year, significantly outperforming the S&P 500, which has moved -2.63% and 13.25% respectively [6] - The average 20-day trading volume for WAB is 926,284 shares, indicating a bullish sign with rising stock prices [7] Group 3: Earnings Outlook and Revisions - In the past two months, four earnings estimates for WAB have increased, while none have decreased, raising the consensus estimate from $8.55 to $8.72 [9] - For the next fiscal year, three estimates have moved upwards, with one downward revision noted [9] Group 4: Conclusion on Investment Potential - Given the strong performance metrics and positive earnings outlook, WAB is rated as a 2 (Buy) stock with a Momentum Score of A, making it a promising near-term investment option [11]

Core Insights - Caterpillar Inc. reported a 10% decrease in sales and revenues for the first quarter of 2025, totaling $14.2 billion compared to $15.8 billion in the same period of 2024, primarily due to lower sales volume and unfavorable price realization [2][8][12] - The company's profit per share also declined, with reported figures of $4.20 for Q1 2025 compared to $5.75 in Q1 2024 [3][12] Financial Performance - Sales and revenues for Q1 2025 were $14.249 billion, a decrease of $1.550 billion, or 10%, from $15.799 billion in Q1 2024, driven by lower sales volume of $1.1 billion and unfavorable price realization of $250 million [8][12] - Operating profit margin fell to 18.1% in Q1 2025 from 22.3% in Q1 2024, while adjusted operating profit margin was 18.3% compared to 22.2% [3][12] - The enterprise operating cash flow for Q1 2025 was $1.3 billion, with the company ending the quarter with $3.6 billion in cash [4][12] Segment Analysis - Construction Industries reported total sales of $5.184 billion in Q1 2025, a decrease of $1.240 billion, or 19%, compared to $6.424 billion in Q1 2024, primarily due to lower sales volume and unfavorable price realization [20][23] - Resource Industries saw total sales of $2.884 billion, down 10% from $3.193 billion, attributed to lower sales volume and unfavorable currency impacts [24][25] - Energy & Transportation's total sales were $6.568 billion, a slight decrease of 2% from $6.681 billion, with an increase in segment profit to $1.314 billion [26][29] Geographic Performance - Sales in North America decreased by 24% in the Construction Industries segment, while Latin America and EAME also experienced declines due to unfavorable currency impacts and lower sales volume [11][27] - In Asia/Pacific, sales decreased due to lower sales volume and unfavorable price realization, primarily related to the Japanese yen [11][27] Shareholder Returns - The company deployed $3.7 billion for share repurchases and $0.7 billion for dividends in Q1 2025, totaling over $4 billion returned to shareholders [4][5][12] - The strong balance sheet facilitated these shareholder returns despite the decline in sales and profits [5]

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Westinghouse Air Brake Technologies (WAB) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company specializes in manufacturing parts for locomotives, subways, and buses [3] Group 2: Earnings Growth - Wabtec's historical EPS growth rate is 16.3%, with projected EPS growth of 9.3% this year, surpassing the industry average of 8.5% [5] Group 3: Cash Flow Growth - Wabtec's year-over-year cash flow growth is 15.6%, significantly higher than the industry average of 7.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.9%, compared to the industry average of 6.5% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Wabtec have increased, with the Zacks Consensus Estimate rising by 3.3% over the past month [9] Group 5: Investment Potential - Wabtec has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [11]