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Dec 31, 2022
Wabtec Q4 2022 Earnings Report
Wabtec reported strong results driven by sales growth and disciplined cost management.
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
Revenue by Segment
Freight Revenue
CapyFin.comTransit Revenue
CapyFin.com 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