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Wabtec
🇺🇸 NYSE:WAB
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Sep 30, 2022

Wabtec Q3 2022 Earnings Report

Wabtec delivered a strong quarterly performance with growth in sales and earnings.

Key Takeaways

Wabtec reported strong third quarter 2022 results with sales growth of 9.1% to $2.08 billion. GAAP earnings per share were $0.88, up 27.5% versus the third quarter of 2021. Adjusted earnings per share were $1.22, up 7.0% versus the same quarter a year ago. Cash from operations was $204 million.

Sales increased 9.1% compared to the year-ago quarter driven by significantly higher Freight segment sales, partially offset by lower Transit segment sales. On a constant currency basis, consolidated sales were up 14.3%.

GAAP operating margin was up 1.1 percentage points behind lower restructuring and transaction costs. Adjusted operating margin was lower due to a less rich mix of sales from significantly higher locomotive sales in the quarter.

GAAP and adjusted EPS increased from the year-ago quarter primarily due to higher sales and disciplined cost management. GAAP EPS further benefited from lower restructuring and transaction costs.

Total Backlog of $22.61 Billion, Up $ 0.77 Billion and Up $1.52 Billion Year-Over- Year on Constant Currency Basis

Total Revenue
$2.08B
Previous year: $1.91B
+9.1%
EPS
$1.22
Previous year: $1.14
+7.0%
Total Backlog
$22.6B
Previous year: $21.8B
+3.5%
Backlog 12-Month
$6.27B
Previous year: $5.71B
+9.8%
Gross Profit
$648M
Previous year: $602M
+7.6%
Cash and Equivalents
$514M
Previous year: $456M
+12.6%
Free Cash Flow
$172M
Previous year: $221M
-22.1%
Total Assets
$18.3B
Previous year: $18.4B
-0.5%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec updated its 2022 financial guidance with sales expected to be in a range of $8.15 billion to $8.35 billion versus previous guidance of $8.3 billion to $8.6 billion. Adjusted earnings per diluted share is expected to be in a range of $4.75 to $4.95 versus previous guidance of $4.70 to $5.00. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90 percent.

Positive Outlook

  • Sales expected to be in a range of $8.15 billion to $8.35 billion
  • Adjusted earnings per diluted share is expected to be in a range of $4.75 to $4.95
  • Strong cash flow generation
  • Operating cash flow conversion greater than 90 percent
  • Technologically differentiated portfolio of products and solutions

Challenges Ahead

  • Reduction reflects the expected impacts from unfavorable foreign currency exchange in the second half of the year.
  • Significant headwinds from negative foreign currency exchange
  • Supply chain constraints
  • High input costs
  • Costs associated with the cyber incident

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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