Wabtec Q3 2023 Earnings Report
Key Takeaways
Wabtec reported a strong third quarter with sales growth of 22.5% to $2.55 billion and adjusted EPS of $1.70, up 39.3%. The company generated $425 million in operating cash flow, resulting in a cash conversion of 116%.
Sales increased 22.5% compared to the year-ago quarter driven by increased sales across the Freight and Transit segments.
GAAP operating margin was higher than the prior year at 14.5% and adjusted operating margin was higher than the prior year at 17.9%.
GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales and margin expansion, partially offset by increased interest expense.
The Company generated strong operating cash flow of $425 million resulting in a cash conversion of 116% for the third quarter 2023.
Wabtec
Wabtec
Forward Guidance
Wabtec updated its 2023 financial guidance with sales expected to be in a range of $9.50 billion to $9.70 billion and adjusted earnings per diluted share to be in a range of $5.80 to $6.00. For full year 2023, Wabtec expects cash flow generation with operating cash flow conversion of greater than 90 percent.