Wabtec Q4 2022 Earnings Report
Key Takeaways
Wabtec reported Q4 2022 results with sales up 11.2% to $2.31 billion and adjusted EPS of $1.30, up 10.2% year-over-year. The company highlighted strong performance in the Freight segment and a multi-year backlog of $22.4 billion.
Sales increased by 11.2% to $2.31 billion, with a 15.7% increase on a constant currency basis.
GAAP EPS was $0.86, a decrease of 15.7% compared to the previous year, while adjusted EPS rose by 10.2% to $1.30.
Cash from operations reached $410 million, driven by favorable working capital changes.
The company's backlog remains strong at $22.4 billion, providing visibility for future performance.
Wabtec
Wabtec
Wabtec Revenue by Segment
Forward Guidance
Wabtec issued 2023 financial guidance with sales expected to be in a range of $8.7 billion to $9.0 billion. Adjusted earnings per diluted share is expected to be in a range of $5.15 to $5.55. For full year 2023, 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 $8.7 billion to $9.0 billion.
- Adjusted earnings per diluted share is expected to be in a range of $5.15 to $5.55.
- Strong cash flow generation expected.
- Operating cash flow conversion greater than 90 percent expected.
- Momentum across the business
Challenges Ahead
- Changes in general economic and/or industry specific conditions, including the impacts of tax and tariff programs, inflation, supply chain disruptions, foreign currency exchange, and industry consolidation
- Changes in the financial condition or operating strategies of Wabtec’s customers
- Unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec
- Inability to retain and hire key personnel
- Evolving legal, regulatory and tax regimes
Revenue & Expenses
Visualization of income flow from segment revenue to net income