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: Financial Results & Company Highlights, Second Quarter 2025
~A Wabtec Financi Results & Company Highlights - SS SECOND QUARTER 2025 = _~ = ey ing ——— ig =—S= - gt a ———— e Me _ a mt ne ee aati = *y waa 2 ae = rod
Slide 2: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information This communication contains “forward-looking” statements as that termis defined in Section 27A of the Seourities Act of 1933.and Section 21£ of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Acto
Slide 3: Today's Participants
Today’s Participants RAFAEL JOHN KYRA SANTANA OLIN YATES President & Executive Vice President & Vice'Presidént, Chief Executive Officer Chief Financial Officer Investor Relations
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 . . 17.4% 21.1% Operating margin benefits from sales growth and Operating Margin GAAP Adjusted improved gross margin Earnings Per Share $1.96 $2.27 GAAP E
Slide 5: 2025 Market Expectations
2025 M a rket NORTH AMERICAN NORTH AMERICAN AVERAGE FREIGHT TRAFFIC ACTIVE LOCOMOTIVES Expectations 3.0% 25% 23% 2.5% FAVORABLE / UNFAVORABLE FREIGHT NA Traffic + Active Locomotive Fleet o 3Q24 4Q24 1Q25, 2Q25 2Q22 2Q23 2Q24 2Q25 International Freight ny see danonot om Wabt Volumes - —— NORTH AMERIC
Slide 6: Executing On Our Value Creation Framework
»> » » »> >»> Executing On Our Value Creation Framework VALUE CREATION FRAMEWORK Accelerate innovation of scalable technologies Grow and refresh expansive global installed base Drive fuel efficiencies thru emerging technologies Expand high-margin recurring revenue streams Drive continuous operationa
Slide 7: 2Q 2025 Financial Summary
2Q 2025 Financial Summary $2.64B 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADJ") ADJ GAAP GAAP ADI ADI 2.3% INCREASE (1.9% INCREASE EX-CURRENCY) Wabtec y NCREASED SALES, OPERATING MARGIN AND EPS GROWTH %
Slide 8: 2Q 2025 Sales
2Q 2025 Sales (Sin millions) PRODUCT LINE 2Q’°25 Services") 781 Equipment 546 Components") 401 Digital Intelligence 191 Freight Segment $1,919 Transit Segment 787 TOTAL SALES $2,706 YOY 2Q KEY DRIVERS 6.0% (4.2)% (3.1)% (4.0)% (0.1)% 8.7% 2.3% (1) During the frst quarter of 2025, Management realigne
Slide 9: 2Q 2025 Consolidated Gross Profit
2Q 2025 Consolidated Gross Profit (Sin mittions) 2024 GROSS PROFIT $874 $880 % Gross Profit Margin 33.0% 33.3% Volume 4 4 Mix/Pricing t a Raw Materials Vv v Currency * vt Manufacturing/Other + T 2025 GROSS PROFIT $938 $941 % Gross Profit Margin 34.7% 34.8% Note: Adjusted numbers represent non-GAAP f
Slide 10: 2Q 2025 Consolidated Operating Income
O) 2Q 2025 Consolidated Operating Income ($.in millions) Adjusted 2024 OP INCOME aa $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 measur
Slide 11: 2Q 2025 Freight Segment Performance
2Q 2025 Freight Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG $1.92B $5.50B $391M $415M 20.4% If 21-8% 2024 2025 2024 2025 2024 2025 2024 2025 GAAP GAAP ADI = ADJ 0.1% DECREASE 9.4% INCREASE YOY (0.5% INCREASE EX-CURRENCY) (10.7% Excluding Currency) 4.4% DECREASE MULTI-YEAR BACKLO
Slide 12: 2Q 2025 Transit Segment Performance
2Q 2025 Transit Segment Performance SALES OP INCOME / OP MARGIN 12-MONTH BACKLOG euean $109M $1.83B 2024 2025 2024 2025 2024 2025 8.7% INCREASE GAAP GAAP ADJ ADJ (5.7% INCREASE EX-CURRENCY) Wabtec 2024 2025 19.5% INCREASE YOY (10.5% Excluding Currency) 13.2% INCREASE MULTI-YEAR BACKLOG") YOY (6.5% E
Slide 13: Resilient Business Allows For Execution On Financial Priorities
Resilient Business Allows For Execution On Financial Priorities FOCUSED ON CASH CONVERSION) Strong balance sheet and financial $735M position ... liquidity of $4.09B” ¥ Net Debs Increase 01 Debt leverage ratio of 1.4x Proceeds acquisition on 7/1/25 $569M" $400m” Well positioned to fund the closing o
Slide 14: 2025 Updated Financial Guidance
2025 Updated Financial Guidance PRIOR GUIDANCE UPDATED GUIDANCE REVENUES REVENUES $10.725B to $11.025B $10.925B tw $11.225B ADJUSTED DILUTED EPS ADJUSTED DILUTED EPS $8.35 t0 $8.95 $8.55 1 $9.15 CASH CONVERSION® CASH CONVERSION® >90% >90% - Includes Evident Inspection Technologies acquisition (effec
Slide 15: Key Expectations
Key Expectations Strong revenue growth, margin expansion, increased earnings and improved cash flow Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0 &3.0 savings Continued momentum across the portfolio and strong order pipeline and backlog, int
Slide 16: Income Statement
Wabtec _ Income seria nse enwnsoe cones AppendixA 1 of) ‘CONDENSED CONSOLIDATED STATEMENTS OF INCOME atemen DIsnen init ican Pareaaa ated (UNAUDITED) ‘Three Months Ended ‘Six Months Ended June 30, June 30, 2025 2028 2025 72024 Net sales 8 2708 § 26s § sate $ 5.141 Cost of sales 1.768) 4.70) (3.478)
Slide 17: Income Statement (cont.)
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) Segment Information Freight Net Sales Freight Income from Operations Freight Oper
Slide 18: Balance Sheet
Appendix B Balance Sheet WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 34, 2024 tomilions Cash, cash equivalents and restricted cash $ 1499 § 15 Receivables, net 1,999 4,702 Inventories, net 2,571 2,314 Other current assets 285 212 Total c
Slide 19: Cash Flow
Cash Flow WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Inmilions Operating activities Net income Non-cash expense Receivables Inventories Accounts Payable Other operating activities Net cash provided by operating activities Net cash used
Slide 20: EPS and Non-GAAP Reconciliation (1 of 3)
Appendix D (1 of 3) EPS and Non-GAAP Reconciliation ‘Set forth below isthe calculation of the non-GAAP performance measures included in this press release, We beliave that these measures provide useful supplemental information to assess our operating performance and to evaluate pperiod-to-period com
Slide 21: EPS and Non-GAAP Reconciliation (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 comparisons. Non-GAAP f
Slide 22: EPS and Non-GAAP Reconciliation (3 of 3)
EPS and Non-GAAP Reconciliation Appendix D (3 of 3) Set forth below isthe 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 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
Sales by Product Line WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION tnmilions Freight Segment Equipment ‘Components Digital inteligence Services Total Freight Segment Transit Segment Original Equipment Manufacturer ‘Aftermarket Total Transit Segment to.milions Freight Segment Equipment Components
Slide 25: Segment Gross Margin
. Segment Gross Margin & Appendix sca cpa en raracinasa nr sa a ais - =a —s == = to.miions Gross Profit Qperations Gross Profit Operations Gross Profit Qperations Gross Profit Operations Wabtec 2
Slide 26: Segment Sales Reconciliation
Segment Sales Reconciliation WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended June 30, In.milions Freight Transit Consolidated 2024 Net Sales $ 4,920 $ 724 2,644 Acquisitions 18 9 ar Foreign Exchange (1) 22 " Organic (
Slide 27: Cash Conversion Reconciliation
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. Non-GAAP fin
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