Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q1 2025 Earnings Presentation
27 slides from Westinghouse Air Brake Technologies's earnings presentation, Apr 23, 2025
Slide 1: Wabtec Financial Results & Company Highlights First Quarter 2025
1 Wabtec Financial Results & Company Highlights FIRST QUARTER 2025
Slide 2: Forward-looking statements
2 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 historic
Slide 3: Today's Participants
Today’s Participants JOHN OLIN Executive Vice President & Chief Financial Officer RAFAEL SANTANA President & Chief Executive Officer KYRA YATES Vice President, Investor Relations 3
Slide 4: 1Q 2025 Overview
1Q 2025 Overview Up 4.5% YOY$2.61BSales 21.7% Adjusted 18.2% GAAP Operating Margin $1.88 GAAP Earnings Per Share $191M Cash Flow from Operations(1) $8.20B12-Month Backlog ST RO NG EXEC UT ION AN D CO N T INUI NG BU S I N ES S MO MEN T UM Note: Adjusted numbers represent non-GAAP financial measures.
Slide 5: 2025 Market Expectations
2025 Market Expectations 5 NORTH AMERICAN FREIGHT TRAFFIC F R E I G H T +NA Traffic Active Locomotive Fleet + International Freight Volumes -NA Railcar Deliveries Mining Commodities T R A N S I T +Infrastructure Investment /+Global Ridership FAVORABLE / UNFAVORABLE NORTH AMERICAN AVERAGE ACTIVE LOCO
Slide 6: Executing On Our Value Creation Framework
Executing On Our Value Creation Framework VA L U E C R E AT I O N F R A M E W O R K R E C E N T W I N S Signed $300 million service agreement in Kazakhstan $140 million new locomotive order with N. A. Class 1 New locomotive, mining & service orders in APAC region totaling $130 million Won tw
Slide 7: International Revenue Growth
International Revenue Growth(1) INTERNATIONAL MOMENTUM WITH A HIGHER PROFIT MARGIN THAN NORTH AMERICA R E G I O N A L R E V E N U E 2022 2023 2024 Europe/MENA 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 South America SSA CIS APAC/India R E S I L I E N T G R O W T H I N T H E I N T E
Slide 8: 1Q 2025 Financial Summary
2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ(1) 2 0 2 5 ADJ(1) OP INCOME / OP MARGIN $412M 16.5% 18.2% $495M 19.8% $565M 21.7%$474M 8 1Q 2025 Financial Summary SALES EARNINGS PER SHARE (1) Adjusted numbers represent non-GAAP financial measures. See Appendix for additional details and reconciliations I NC R
Slide 9: 1Q 2025 Sales
1Q 2025 Sales ($ in millions) Y O Y1 Q ’ 2 5P R O D U C T L I N E 16.9%$863Services(1) (9.5)%$476Equipment (0.8)%$381Components(1) 2.8%$181Digital Intelligence 4.2%$1,901Freight Segment 5.3%$709Transit Segment 4 . 5 %$ 2 , 6 1 0T O T A L S A L E S 1 Q K E Y D R I V E R S S E R V I C E S Increased sa
Slide 10: 1Q 2025 Consolidated Gross Profit
1Q 2025 Consolidated Gross Profit ($ in millions) $ 8 2 1$ 8 1 52 0 2 4 G R O S S P R O F I T 32.9%32.7%% Gross Profit Margin ↑↑Volume ↑↑Mix/Pricing ↓↓Raw Materials ↓↓Currency ↑↑Manufacturing/Other $ 9 0 3$ 9 0 02 0 2 5 G R O S S P R O F I T 34.6%34.5%% Gross Profit Margin GAAP Adjusted Note: Adjust
Slide 11: 1Q 2025 Consolidated Operating Income
1Q 2025 Consolidated Operating Income O P M A R G I N B E N E F I T E D F R O M I N C R E A S E D G R O S S M A R G I N PA R T I A L LY O F F S E T BY S G & A 11 $495$4122 0 2 4 O P I N C O M E 19.8%16.5%% Operating Margin 8285Gross Profit (14)(26)SG&A 22Engineering -1Amortization $565$4742 0 2 4 O
Slide 12: 1Q 2025 Freight Segment Performance
12 1Q 2025 Freight Segment Performance SALES 4.2% INCREASE (5.6% INCREASE EX-CURRENCY) 2 0 2 4 2 0 2 5 2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ(1) 2 0 2 5 ADJ(1) OP INCOME / OP MARGIN $1.90B(2) $1.82B $368M 20.2% 22.1% $439M 24.1% $488M 25.7%$420M 12-MONTH BACKLOG 7.1% INCREASE YOY (9.1% Excluding Curr
Slide 13: 1Q 2025 Transit Segment Performance
13 1Q 2025 Transit Segment Performance SALES 5.3% INCREASE (7.9% INCREASE EX-CURRENCY) 2 0 2 4 2 0 2 5 2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ 2 0 2 5 ADJ OP INCOME / OP MARGIN $709M(1) $673M $74M 11.0% 12.7% $86M 12.7% $103M 14.6%$90M 12-MONTH BACKLOG 4.1% INCREASE YOY (2.2% Excluding Currency) 6.4%
Slide 14: Focused on Cash Conversion
FOCUSED ON CASH CONVERSION( 1 ) CASH FROM OPS Resilient Business Allows For Execution On Financial Priorities ST RO NG FI N ANC IAL P ERFO RMANC E; I N VE ST ING FO R GROW TH AN D MA XI MIZ I NG S HA REHOLD ER R ET U RNS 14 Note: Adjusted numbers represent non-GAAP financial measures. See Appendix f
Slide 15: 2025 Updated Financial Guidance
15 2025 Updated Financial Guidance (1,2) I N C R E A S E D A N D W I D E N E D A DJ U ST E D E P S R A N G E TO $ 8 . 3 5 - $ 8 . 9 5 (1) See Forward looking statements and non-GAAP financial information (2) Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per d
Slide 16: Key Takeaways
16 Key Takeaways Continued momentum across the portfolio and strong order pipeline and backlog, internationally and in North America Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0 & 3.0 savings Wabtec is well-positioned to drive higher return
Slide 17: Income Statement Appendix A (1 of 2)
Income Statement 17 Appendix A (1 of 2) 2025 2024 Net sales 2,610$ 2,497$ Cost of sales (1,710) (1,682) Gross profit 900 815 Gross profit as a % of Net Sales 34.5% 32.7% Selling, general and administrative expenses (307) (281) Engineering expenses (46) (48) Amortization expense (73) (74) Total opera
Slide 18: Income Statement (cont.) Appendix A (2 of 2)
Income Statement (cont.) 18 Appendix A (2 of 2) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) 2025 2024 Segment Information Freight Net Sales 1,901
Slide 19: Balance Sheet Appendix B
Balance Sheet 19 Appendix B March 31, 2025 December 31, 2024 In millions Cash, cash equivalents and restricted cash 698$ 715$ Receivables, net 1,932 1,702 Inventories, net 2,378 2,314 Other current assets 247 212 Total current assets 5,255 4,943 Property, plant and equipment, net 1,462 1,447 Goodwil
Slide 20: Cash Flow Appendix C
Cash Flow 20 Appendix C 2025 2024 In millions Operating activities Net income 327$ 277$ Non-cash expense 127 126 Receivables (226) 121 Inventories (29) (85) Accounts Payable 13 45 Other assets and liabilities (21) (150) Net cash provided by operating activities 191 334 Net cash used for investing ac
Slide 21: EPS and Non-GAAP Reconciliation Appendix D (1 of 2)
EPS and Non-GAAP Reconciliation 21 Appendix D (1 of 2) Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported R
Slide 22: EPS and Non-GAAP Reconciliation Appendix D (2 of 2)
EPS and Non-GAAP Reconciliation 22 Appendix D (2 of 2) Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period- to-period
Slide 23: EBITDA Reconciliation Appendix E
EBITDA Reconciliation 23 Appendix E Wabtec Corporation 2025 Q1 YTD EBITDA Reconciliation (in millions) Reported Income Other Income Depreciation & Restructuring & Adjusted from Operations (Expense) Amortization Transaction Costs EBITDA Consolidated Results $474 ($2) $119 $591 $17 $608 Wabtec Corpora
Slide 24: Sales by Product Line Appendix F
Sales by Product Line 24 Appendix F In millions 2025 2024 Freight Segment Equipment 476$ 526$ Components 381 384 Digital Intelligence 181 176 Services 863 738 Total Freight Segment 1,901$ 1,824$ Transit Segment Original Equipment Manufacturer 322$ 310$ Aftermarket 387 363 Total Transit Segment 709$
Slide 25: Segment Gross Margin & Operating Margin Reconciliation Appendix G
Segment Gross Margin & Operating Margin Reconciliation 25 Appendix G In mill ions Gross Profit Income from Operations Gross Profit Income from Operations Freight Segment Reported Results 685$ 420$ 625$ 368$ Freight Segment Reported Margin 36.0% 22.1% 34.3% 20.2% Restructuring and Portfolio Optimizat
Slide 26: Segment Sales Reconciliation Appendix H
Segment Sales Reconciliation 26 Appendix H In millions Freight Transit Consolidated 2024 Net Sales 1,824$ 673$ 2,497$ Acquisitions 15 8 23 Foreign Exchange (26) (17) (43) Organic 88 45 133 2025 Net Sales 1,901$ 709$ 2,610$ Change ($) 77 36 113 Change (%) 4.2% 5.3% 4.5% Three Months Ended March 31, W
Slide 27: Cash Conversion Reconciliation Appendix I
Cash Conversion Reconciliation 27 Appendix I Wabtec Corporation 2025 Q1 YTD Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated Results $191 $327 $120 43% Wabtec Corporation 2024 Q1 YTD Cash Conversion Calculation (in millions) Reported Cash from Operations Consolida
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