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
Wabtec Financial Results & Company Highlights FIRST QUARTER 2025 1
Slide 2: Forward Looking Statements & Non-GAAP Financial Information
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 Litigati
Slide 3: Today's Participants
Today’s Participants RAFAEL JOHN KYRA SANTANA OLIN YATES President & Executive Vice President & Vice President, Chief Executive Officer Chief Financial Officer Investor Relations 3
Slide 4: 1Q 2025 Overview
1Q 2025 Overview Increased sales driven by growth in Freight and Sales $2.61B Up 4.5% YOY Transit segments 18.2% Operating margin benefits from sales growth, Operating Margin 21.7% improved gross margin and proactive cost controls GAAP Adjusted Earnings Per Share $1.88 $2.28 GAAP EPS up 22.9% YoY …
Slide 5: 2025 Market Expectations
2025 Market NORTH AMERICAN FREIGHT TRAFFIC NORTH AMERICAN AVERAGE ACTIVE LOCOMOTIVES Expectations 3.0% 2.5% 2.3% 2.1% FAVORABLE / UNFAVORABLE FREIGHT NA Traffic + Active Locomotive Fleet 2Q24 3Q24 4Q24 1Q25 1Q22 1Q23 1Q24 1Q25 International Freight Source: Association of American Railroads Source: W
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 FRAMEWORK RECENT WINS Accelerate innovation of scalable ▪ Signed $300 million service agreement in Kazakhstan technologies ▪ $140 million new locomotive order with N. A. Class 1 Grow and refresh expansive global installed base ▪ New l
Slide 7: International Revenue Growth
International Revenue Growth (1) REGIONAL REVENUE Europe/MENA I N T E R N AT I O N A L R E V E N U E CIS 2024 by Business 2024 by Region 2022 2023 2024 2022 2023 2024 5% 8% Transit 10%3% SSA Europe / MENA APAC/India Equipment 12% APAC / India 13% South America 51% Services 42% CIS Components South A
Slide 8: 1Q 2025 Financial Summary
1Q 2025 Financial Summary SALES OP INCOME / OP MARGIN EARNINGS PER SHARE $565M $2.28 $2.50B $2.61B $495M 21.7% +20.6% $474M $1.88 $1.89 YOY 19.8% $412M 18.2% +22.9% $1.53 YOY 16.5% 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) GAAP GAAP ADJ(1) ADJ(1) 4.5% INCREASE (6.2% I
Slide 9: 1Q 2025 Sales
1Q 2025 Sales ($ in millions) PRODUCT LINE 1Q’25 YOY 1Q KEY DRIVERS Services(1) $863 16.9% SERVICES Increased sales from higher modernization deliveries and overhauls Equipment $476 (9.5)% EQUIPMENT Lower locomotive deliveries as planned Components(1) $381 (0.8)% COMPONENTS Digital Intelligence $181
Slide 10: 1Q 2025 Consolidated Gross Profit
1Q 2025 Consolidated Gross Profit 1Q KEY DRIVERS ($ in millions) GAAP Adjusted VOLUME 2024 GROSS PROFIT $815 $821 Higher Freight & Transit segment sales % Gross Profit Margin 32.7% 32.9% MIX/PRICING Favorable mix of products within groups and modest contract Volume ↑ ↑ escalation Mix/Pricing ↑ ↑ R A
Slide 11: 1Q 2025 Consolidated Operating Income
1Q 2025 Consolidated Operating Income ($ in millions) GAAP Adjusted 2024 OP INCOME $412 $495 % Operating Margin 16.5% 19.8% Gross Profit 85 82 SG&A (26) (14) Engineering 2 2 Amortization 1 - 2024 OP INCOME $474 $565 % Operating Margin 18.2% 21.7% Note: Adjusted numbers represent non-GAAP financial m
Slide 12: 1Q 2025 Freight Segment Performance
1Q 2025 Freight Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $1.82B $1.90B(2) $488M $6.07B $5.67B $420M $439M 25.7% $368M 22.1% 24.1% 20.2% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) 4.2% INCREASE 7.1% INCREASE YOY (5.6% INCREASE EX-CURRENCY) (9.1% Excluding
Slide 13: 1Q 2025 Transit Segment Performance
1Q 2025 Transit Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $709M(1) $103M $2.13B $673M $2.04B $90M $86M 14.6% $74M 12.7% 12.7% 11.0% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ ADJ 5.3% INCREASE 4.1% INCREASE YOY (7.9% INCREASE EX-CURRENCY) (2.2% Excluding Currency) 6
Slide 14: Resilient Business Allows For Execution On Financial Priorities
Resilient Business Allows For Execution On Financial Priorities FOCUSED ON CASH CONVERSION (1 ) CASH FROM OPS DISCIPLINED CAPITAL ALLOCATION Strong balance sheet and financial $98M Share repurchases position … liquidity of $2.54B (3) $191M 1Q 2025 1Q 2024 (4) (4) Cash $334M $191M from Ops Debt lever
Slide 15: 2025 Updated Financial Guidance
2025 Updated Financial Guidance (1,2) PRIOR GUIDANCE UPDATED GUIDANCE REVENUES REVENUES $10.725B to $11.025B $10.725B to $11.025B ADJUSTED DILUTED EPS ADJUSTED DILUTED EPS $8.35 to $8.75 $8.35 to $8.95 C A S H C O N V E R S I O N (3) C A S H C O N V E R S I O N (3) >90% >90% - Excludes Evident Inspe
Slide 16: Key Takeaways
Key Takeaways (1) 5-YEAR OUTLOOK 1 Strong revenue growth, margin expansion, increased Mid Single earnings and improved cash flow Digit ORGANIC SALES CAGR 2 350+ bps Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0 & 3.0 savings ADJUSTED OPERATI
Slide 17: Income Statement
Income Appendix A (1 of 2) Statement 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) Three Months Ended March 31, 2025 2024 Net sales $ 2,610 $ 2,497
Slide 18: Income Statement (cont.)
Appendix A (2 of 2) Income Statement (cont.) 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) Three Months Ended March 31, 2025 2024 Segment Informati
Slide 19: Balance Sheet
Appendix B Balance Sheet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 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 asset
Slide 20: Cash Flow
Appendix C Cash Flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 2025 2024 In millions Operating activities Net income $ 327 $ 277 Non-cash expense 127 126 Receivables (226) 121 Inventories (29) (85) Account
Slide 21: EPS and Non-GAAP Reconciliation
Appendix D (1 of 2) EPS and Non-GAAP Reconciliation 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 comp
Slide 22: EPS and Non-GAAP Reconciliation
Appendix D (2 of 2) EPS and Non-GAAP Reconciliation 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 com
Slide 23: EBITDA Reconciliation
Appendix E EBITDA Reconciliation 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 comparisons. Non-GAAP f
Slide 24: Sales by Product Line
Appendix F Sales by Product Line WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended March 31, In millions 2025 2024 Freight Segment Equipment $ 476 $ 526 Components 381 384 Digital Intelligence 181 176 Services 863 738 Total Freight Segment $ 1,901 $
Slide 25: Segment Gross Margin & Operating Margin Reconciliation
Segment Gross Margin & Appendix G Operating Margin Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended March 31, 2025 2024 Income from Income from In millions Gross Profit Operations Gross P
Slide 26: Segment Sales Reconciliation
Appendix H Segment Sales Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) In millions Three Months Ended March 31, Freight Transit Consolidated 2024 Net Sales $ 1,824 $ 673 $ 2,497 Acquisitions 15 8 23 Foreign Exchange (26
Slide 27: Cash Conversion Reconciliation
Appendix I Cash Conversion Reconciliation 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 comparisons. N
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