Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q2 2025 Earnings Presentation
27 slides from Westinghouse Air Brake Technologies's earnings presentation, Jul 24, 2025
Slide 1: Wabtec Financial Results & Company Highlights
Wabtec Financial Results & Company Highlights S E C O N D Q UA RT E R 2 0 2 5 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 and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
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: 2Q 2025 Overview
2Q 2025 Overview Increased sales driven by Transit; Freight revenue Sales $2.71B Up 2.3% YOY adversely impacted by timing of locomotive shipments Operating Margin 17.4% 21.1% Operating margin benefits from sales growth and improved gross margin GAAP Adjusted Earnings Per Share $1.96 $2.27 GAAP EPS u
Slide 5: 2025 Market Expectations
2025 Market NORTH AMERICAN FREIGHT TRAFFIC NORTH AMERICAN AVERAGE ACTIVE LOCOMOTIVES Expectations 3.0% 2.5% 2.5% 2.3% FAVORABLE / UNFAVORABLE FREIGHT NA Traffic + Active Locomotive Fleet 3Q24 4Q24 1Q25 2Q25 2Q22 2Q23 2Q24 2Q25 International Freight + Source: Association of American Railroads Source:
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 RECENT M&A ACTIVITY FRAMEWORK Accretive Accretive Accretive Accretive Accelerate innovation of scalable Growth Adj. EBITDA Adj. EPS ROIC technologies Profile Margins Grow and refresh expansive global Announced Closed Expected Timing i
Slide 7: 2Q 2025 Financial Summary
2Q 2025 Financial Summary SALES OP INCOME / OP MARGIN EARNINGS PER SHARE $2.71B $572M $2.27 $2.64B $510M 21.1% $1.96 $1.96 +15.8% $472M YOY 19.3% $430M 17.4% $1.64 +19.5% YOY 16.3% 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) GAAP GAAP ADJ(1) ADJ(1) 2.3% INCREASE (1.9% I
Slide 8: 2Q 2025 Sales
2Q 2025 Sales ($ in millions) PRODUCT LINE 2Q’25 YOY 2Q KEY DRIVERS Services(1) $781 6.0% SERVICES Increased sales from increased parts sales and higher modernization deliveries Equipment $546 (4.2)% EQUIPMENT Components(1) $401 (3.1)% Adversely impacted (~$60M) by lower locomotive deliveries than e
Slide 9: 2Q 2025 Consolidated Gross Profit
2Q 2025 Consolidated Gross Profit 2Q KEY DRIVERS ($ in millions) GAAP Adjusted VOLUME 2024 GROSS PROFIT $874 $880 Higher Services & Transit sales % Gross Profit Margin 33.0% 33.3% MIX/PRICING Favorable mix of products within Freight and contract escalation, Volume ↑ ↑ partially offset by unfavorable
Slide 10: 2Q 2025 Consolidated Operating Income
2Q 2025 Consolidated Operating Income ($ in millions) GAAP Adjusted 2024 OP INCOME $430 $510 % Operating Margin 16.3% 19.3% Gross Profit 64 61 SG&A (31) (6) Engineering 7 7 Amortization 2 - 2025 OP INCOME $472 $572 % Operating Margin 17.4% 21.1% Note: Adjusted numbers represent non-GAAP financial me
Slide 11: 2Q 2025 Freight Segment Performance
2Q 2025 Freight Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $1.92B $1.92B(2) $480M $6.02B $462M $415M $5.50B $391M 24.1% 25.0% 21.6% 20.4% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ(1) ADJ(1) 0.1% DECREASE 9.4% INCREASE YOY (0.5% INCREASE EX-CURRENCY) (10.7% Excluding
Slide 12: 2Q 2025 Transit Segment Performance
2Q 2025 Transit Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $787M(1) $2.19B $120M $724M $109M 15.2% $1.83B 13.9% $91M $82M 12.7% 11.3% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ ADJ 8.7% INCREASE 19.5% INCREASE YOY (5.7% INCREASE EX-CURRENCY) (10.5% Excluding Currency
Slide 13: 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 (3) $735M position … liquidity of $4.09B Net Debt $784M Increase in cash for Debt leverage ratio of 1.4x(4) Proceeds 1H 2025
Slide 14: 2025 Updated Financial Guidance
2025 Updated Financial Guidance(1,2) PRIOR GUIDANCE UPDATED GUIDANCE REVENUES REVENUES $10.725B to $11.025B $10.925B to $11.225B ADJUSTED DILUTED EPS ADJUSTED DILUTED EPS $8.35 to $8.95 $8.55 to $9.15 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% - Includes Evident Inspec
Slide 15: Key Expectations
Key Expectations 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 OPERATIN
Slide 16: Income Statement
Income WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION Appendix A (1 of 2) Statement CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 202
Slide 17: Income Statement (cont.)
Appendix A (2 of 2) Income Statement (cont.) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June
Slide 18: Balance Sheet
Appendix B Balance Sheet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2025 December 31, 2024 In millions Cash, cash equivalents and restricted cash $ 1,499 $ 715 Receivables, net 1,999 1,702 Inventories, net 2,571 2,314 Other current asse
Slide 19: Cash Flow
Appendix C Cash Flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2025 2024 In millions Operating activities Net income $ 666 $ 568 Non-cash expense 219 246 Receivables (243) (146) Inventories (180) (120) Accoun
Slide 20: EPS and Non-GAAP Reconciliation
Appendix D (1 of 3) 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 21: EPS and Non-GAAP Reconciliation
Appendix D (2 of 3) 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 (3 of 3) 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 June 30, In millions 2025 2024 Freight Segment Equipment $ 546 $ 570 Components 401 414 Digital Intelligence 191 199 Services 781 737 Total Freight Segment $ 1,919 $
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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income from Income from Income f
Slide 26: Segment Sales Reconciliation
Appendix H Segment Sales Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended June 30, In millions Freight Transit Consolidated 2024 Net Sales $ 1,920 $ 724 $ 2,644 Acquisitions 18 9 27 Foreign Exchange (11)
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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