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Dec 31, 2020

Wabtec Q4 2020 Earnings Report

Wabtec demonstrated strong operational performance despite global challenges.

Key Takeaways

Wabtec reported Q4 sales of $2.0 billion and GAAP earnings per diluted share of $0.46. Adjusted earnings per diluted share were $0.98. The company's total backlog was $21.6 billion, with a 12-month backlog of $5.5 billion.

Delivered strong cash flow from operations of $784 million for 2020, including ~$220 million of one-time cash impacts and returned ~$300 million to shareholders.

Fourth Quarter Reported GAAP Earnings Per Share of $0.46; Adjusted EPS of $0.98; Full Year GAAP Earnings Per Share of $2.17; Adjusted EPS of $3.79

Transit Adjusted Margin Ahead of Plan in 2020; Delivered 200 bps of Improvement

Book-to-Bill Strengthening with Key Orders for International Locomotives, Modernizations and Service Agreements

Total Revenue
$2.02B
Previous year: $2.37B
-14.5%
EPS
$0.98
Previous year: $1.04
-5.8%
Cash from Operations
$326M
Previous year: $448M
-27.2%
Total Backlog
$21.6B
Previous year: $22.4B
-3.6%
Backlog 12-Month
$5.5B
Previous year: $5.6B
-1.8%
Gross Profit
$456M
Previous year: $675M
-32.5%
Cash and Equivalents
$599M
Previous year: $604M
-0.9%
Free Cash Flow
$288M
Previous year: $375M
-23.2%
Total Assets
$18.5B
Previous year: $18.9B
-2.3%

Wabtec

Wabtec

Wabtec Revenue by Segment

Forward Guidance

Wabtec issued its 2021 sales guidance to a range of $7.6 billion to $7.9 billion, GAAP earnings per diluted share guidance to between $2.65 to $3.05 and adjusted earnings per diluted share to between $3.90 to $4.30. For full year 2021, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90%.

Positive Outlook

  • Sales guidance to a range of $7.6 billion to $7.9 billion
  • GAAP earnings per diluted share guidance to between $2.65 to $3.05
  • Adjusted earnings per diluted share to between $3.90 to $4.30.
  • Expect to achieve a run rate savings of $250 million in 2021, driving improved margins.
  • Expects strong cash flow generation with operating cash flow conversion of greater than 90%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income