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Wabtec
🇺🇸 NYSE:WAB
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•
Jun 30, 2020

Wabtec Q2 2020 Earnings Report

Wabtec reported strong operational performance amidst COVID-19 challenges, delivering solid cash flow and synergy realization.

Key Takeaways

Wabtec reported Q2 2020 earnings with a GAAP EPS of $0.46 and adjusted EPS of $0.87. Sales were $1.7 billion. The company generated $311 million in cash flow from operations. Wabtec provided full-year sales guidance of $7.3 to $7.6 billion and adjusted EPS guidance of $3.50 to $3.80.

Delivered strong GAAP cash flow from operations of $311 million.

Reported GAAP earnings per share of $0.46 and adjusted EPS of $0.87.

Reported GAAP income from operations of $159 million (9.2% margin) and adjusted income from operations of $262 million (15.1% margin).

Realized over $70 million in net synergies year-to-date and on-track to deliver $150 million net synergies in 2020.

Total Revenue
$1.74B
Previous year: $2.25B
-22.9%
EPS
$0.87
Previous year: $1.06
-17.9%
Gross Profit
$431M
Previous year: $549M
-21.4%
Cash and Equivalents
$588M
Previous year: $461M
+27.4%
Free Cash Flow
$276M
Previous year: $380M
-27.4%
Total Assets
$18.5B
Previous year: $18.9B
-2.5%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec provided 2020 sales guidance to a range of $7.3 billion to $7.6 billion and adjusted earnings per diluted share to between $3.50 to $3.80. The adjusted guidance excludes estimated expenses for restructuring, transaction and amortization expenses. Wabtec expects cash flow conversion to be greater than 90 percent.

Positive Outlook

  • Sales guidance between $7.3 billion and $7.6 billion.
  • Adjusted earnings per diluted share between $3.50 and $3.80.
  • Net synergy benefit of over $150 million in 2020.
  • Cash flow conversion to be greater than 90 percent.
  • Aggressive cost actions and synergies stemming from the Wabtec and GE Transportation merger are on-track.

Challenges Ahead

  • Significant uncertainty remains surrounding the impact of the COVID-19 pandemic.
  • Guidance assumes no material escalations in the severity or duration of the COVID-19 pandemic.
  • Adjusted guidance excludes estimated expenses for restructuring, transaction and amortization expenses.
  • Includes over $130 million of cash outflows related to prior restructuring, transaction and litigation costs.
  • Decrease in sales compared to the year-ago quarter was primarily driven by lower sales in Freight Equipment, Services, Components and Transit sales, along with unfavorable changes in foreign currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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