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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.
Wabtec
Wabtec
Wabtec Revenue by Segment
Revenue by Segment
Freight Revenue
CapyFin.comTransit Revenue
CapyFin.com 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