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Jun 30, 2022

Wabtec Q2 2022 Earnings Report

Wabtec demonstrated profitable growth, margin expansion, and backlog increase.

Key Takeaways

Wabtec reported a strong second quarter with sales growth of 1.8% to $2.05 billion and adjusted earnings per share of $1.23, up 16.0%. The company's total backlog increased to $23.23 billion, driven by strategic multi-year orders.

Total backlog increased by $1.70 billion to $23.23 billion.

GAAP earnings per share were $0.91, up 37.9% year-over-year.

Adjusted earnings per share were $1.23, up 16.0% year-over-year.

Cash from operations was $263 million.

Total Revenue
$2.05B
Previous year: $2.01B
+1.8%
EPS
$1.23
Previous year: $1.06
+16.0%
Total Backlog
$23.2B
Previous year: $21.5B
+8.0%
Backlog 12-Month
$6.57B
Previous year: $5.8B
+13.2%
Gross Profit
$645M
Previous year: $580M
+11.2%
Cash and Equivalents
$501M
Previous year: $454M
+10.5%
Free Cash Flow
$233M
Previous year: $195M
+19.5%
Total Assets
$18.3B
Previous year: $18.5B
-1.0%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec updated its 2022 financial guidance with sales to be in a range of $8.30 billion to $8.60 billion and adjusted earnings per diluted share to be in a range of $4.70 to $5.00. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.

Positive Outlook

  • Sales to be in a range of $8.30 billion to $8.60 billion.
  • Adjusted earnings per diluted share to be in a range of $4.70 to $5.00.
  • Strong cash flow generation.
  • Operating cash flow conversion of greater than 90 percent.
  • Increasing momentum in 2022 and beyond.

Challenges Ahead

  • Rising costs.
  • Continued supply chain challenges.
  • Significant unfavorable foreign currency exchange.
  • Evolving legal, regulatory and tax regimes.
  • Potential disruptions, instability, and volatility in global markets from the imposition of economic sanctions on Russia resulting from the invasion of Ukraine.

Revenue & Expenses

Visualization of income flow from segment revenue to net income