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Dec 31, 2019

Wabtec Q4 2019 Earnings Report

Wabtec reported strong Q4 and full year results, driven by the GE Transportation acquisition and growth opportunities in services, transit, and international markets.

Key Takeaways

Wabtec reported strong Q4 2019 results with GAAP earnings per share of $0.71 and adjusted EPS of $1.04. Sales for the quarter were $2.4 billion. The company's multi-year backlog remains strong at $22.4 billion.

GAAP earnings per share was $0.71; adjusted EPS was $1.04.

GAAP and adjusted sales were $2.4 Billion.

Operating cash flow was over $1.0 Billion for the full year.

Multi-year backlog was $22.4 billion.

Total Revenue
$2.37B
Previous year: $1.12B
+111.8%
EPS
$1.04
Previous year: $0.97
+7.2%
Cash from Operations
$448M
Total Backlog
$22.4B
Backlog 12-Month
$5.6B
Gross Profit
$675M
Previous year: $287M
+134.8%
Cash and Equivalents
$604M
Previous year: $581M
+4.0%
Free Cash Flow
$375M
Previous year: $248M
+51.5%
Total Assets
$18.9B
Previous year: $8.65B
+118.4%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec issued 2020 GAAP sales guidance of about $8.7 billion, GAAP income from operations guidance of about $1.1 billion and GAAP earnings per diluted share guidance to between $3.20 to $3.50. Wabtec issued guidance for adjusted income from operations of about $1.4 billion and adjusted EBITDA of about $1.6 billion. Wabtec also issued 2020 guidance for adjusted earnings per diluted share to between $4.50 to $4.80.

Positive Outlook

  • GAAP sales guidance of about $8.7 billion
  • GAAP income from operations guidance of about $1.1 billion
  • GAAP earnings per diluted share guidance to between $3.20 to $3.50
  • Adjusted income from operations of about $1.4 billion
  • Adjusted earnings per diluted share guidance to between $4.50 to $4.80

Challenges Ahead

  • Wabtec expects GAAP cash flow from operations to be about $900 million and to include approximately $100 million of cash outflows related to prior year restructuring and litigation costs.
  • Wabtec anticipates 2020 first quarter sales, adjusted net income, adjusted EBITDA and adjusted earnings per diluted share to be lower when compared to the remainder of 2020
  • Expected first quarter seasonality
  • Project scheduling will cause a lower Q1
  • Improvement expected through the rest of the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income