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Dec 31, 2021
Wabtec Q4 2021 Earnings Report
Wabtec reported strong results driven by sales growth and margin expansion.
Key Takeaways
Wabtec reported a 2.4% increase in sales to $2.07 billion. GAAP earnings per share was $1.02, and adjusted earnings per share increased by 20.4% to $1.18. The company issued 2022 financial guidance and announced a share buyback reauthorization of $750 million.
GAAP earnings per share was $1.02; adjusted earnings per share increased 20.4% to $1.18.
Sales grew 2.4% to $2.07 billion; GAAP operating margin was 12.7%; adjusted operating margin increased 210 bps to 16.1%.
Full-year cash flow from operations increased 36.9% to $1.07 billion; full-year operating cash flow conversion was 102%.
The company repurchased 1.05 million shares during the fourth quarter for $100 million and announced a $750 million share buyback reauthorization and a 25% increase in the quarterly dividend.
Wabtec
Wabtec
Forward Guidance
Wabtec initiated its 2022 financial guidance with sales expected 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 $4.65 to $5.05. For full year 2022, Wabtec expects strong cash flow generation with operating cash flow conversion of greater than 90 percent.
Positive Outlook
- Sales expected to be in a range of $8.30 billion to $8.60 billion.
- Adjusted earnings per diluted share to be in a range of $4.65 to $5.05.
- Expects strong cash flow generation.
- Operating cash flow conversion of greater than 90 percent.
- Breadth of product portfolio combined with multi-year backlog provides solid foundation for growth in 2022.
Challenges Ahead
- Unable to predict with reasonable certainty the impact and timing of restructuring-related and other charges.
- Uncertainty regarding acquisition-related expenses.
- Outcome of certain regulatory, legal and tax matters.
- Financial impact of these items is uncertain and dependent on various factors, including timing.
- Mixed market conditions improving throughout the year.