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Jun 30, 2021

Wabtec Q2 2021 Earnings Report

Wabtec reported strong Q2 results and updated 2021 guidance.

Key Takeaways

Wabtec Corporation reported a strong second quarter in 2021, with earnings per diluted share of $0.66 and adjusted earnings per diluted share of $1.06. Total sales reached $2.0 billion, and cash from operations was robust at $223 million. The company raised its full-year revenue and earnings per share guidance.

GAAP earnings per share was $0.66, while adjusted EPS was $1.06.

Total sales amounted to $2.0 billion.

Cash flow from operations stood strong at $223 million.

The company's 12-month backlog reached its highest level since the second quarter of 2019.

Total Revenue
$2.01B
Previous year: $1.74B
+15.8%
EPS
$1.06
Previous year: $0.87
+21.8%
Total Backlog
$21.5B
Backlog 12-Month
$5.8B
Gross Profit
$580M
Previous year: $431M
+34.5%
Cash and Equivalents
$454M
Previous year: $588M
-22.9%
Free Cash Flow
$195M
Previous year: $276M
-29.4%
Total Assets
$18.5B
Previous year: $18.5B
+0.3%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec updated its 2021 sales guidance to a range of $7.9 billion to $8.2 billion, GAAP earnings per diluted share guidance to between $2.87 to $3.07 and adjusted earnings per diluted share to between $4.15 to $4.35. The adjusted guidance excludes estimated expenses for restructuring, transaction and amortization expenses.

Positive Outlook

  • Sales guidance updated to $7.9B - $8.2B.
  • GAAP EPS guidance updated to $2.87 - $3.07.
  • Adjusted EPS guidance updated to $4.15 - $4.35.
  • Expected run rate savings of $250 million in 2021 from synergies.
  • Expected margin expansion through continued cost actions.

Challenges Ahead

  • Adjusted guidance excludes restructuring expenses.
  • Adjusted guidance excludes transaction expenses.
  • Adjusted guidance excludes amortization expenses.
  • Severe disruption in India stemming from the pandemic.
  • Continued challenges in OE end-markets and inflationary pressures globally

Revenue & Expenses

Visualization of income flow from segment revenue to net income