01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2024 total net sales of $10.39 billiona, up from $9.68 billion in 2023, with the filing stating an increase of $710 million, or 7.3%.
Income from operations rose to $1.61 billionb from $1.27 billion, and net income attributable to Wabtec shareholders was $1.06 billion, or $6.04 diluted earnings per share, versus $4.53 in 2023. Freight Segment sales were $7.47 billion (about 72% of net sales) and Transit Segment sales were $2.92 billion (about 28%). Total backlog was approximately $22.3 billion at December 31, 2024, with about $7.68 billion expected to be delivered in 2025.
Operating cash flow was $1.83 billionc, and the company repurchased $1.10 billion of stock during the year. Balance sheet and capital allocation were central themes. Total debt was $4.0 billion at year-end, against cash, cash equivalents and restricted cash of $715 million.
The company's credit agreements require an Interest Coverage Ratio of at least 3.0 to 1.0 and a Leverage Ratio not to exceed 3.5 to 1.0, and the filing says it was in compliance at December 31, 2024. Dividends were $140 milliond in 2024, and the Board authorized an additional $1.0 billion for share repurchases in December 2024. The filing also reports that Fitch and S&P upgraded the company's credit rating from BBB- to BBB, and that Moody's changed its outlook to positive.
Looking ahead, the company announced Integration 3.0 in February 2025, targeting incremental run-rate synergies of $100 million to $125 million by 2028, with expected charges of $125 million to $155 million. In January 2025 it agreed to acquire Evident's Inspection Technologies division for $1.78 billion, with completion expected by the end of the first half of 2025. The filing notes that the Progress Rail antitrust lawsuit remains at an early stage, with a motion to dismiss pending.
02—Key points
Key Highlights
- Net sales of $10.39 billion in 2024, up $710 million (7.3%) from $9.68 billion in 2023, with organic growth of $662 million.
- Income from operations increased to $1.61 billion from $1.27 billion, and diluted EPS was $6.04 versus $4.53 in 2023.
- Total backlog of approximately $22.3 billion at December 31, 2024, with $7.68 billion expected to be delivered in 2025.
- Operating cash flow of $1.83 billion, compared with $1.20 billion in 2023; the company repurchased $1.10 billion of stock.
- Total debt of $4.0 billion; the company was in compliance with its financial covenants, and Fitch and S&P upgraded its rating to BBB.
- Agreed in January 2025 to acquire Evident's Inspection Technologies division for $1.78 billion, expected to close by the end of the first half of 2025.
- Announced Integration 3.0 in February 2025, targeting $100 million to $125 million in incremental run-rate synergies by 2028.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Westinghouse Air Brake Technologies kept $0.10.
- Revenue$10.39B100.0%
- Cost of revenue−$7.02B67.6%
- Gross profit$3.37B32.4%
- Operating costs−$1.76B16.9%
- Operating income$1.61B15.5%
- Interest, other & tax−$542.0M5.2%
- Net income$1.07B10.3%
Where FY2024 revenue went
$10.39B- Cost of revenue: $7.02B, 68% of revenue
- SG&A: $1.25B, 12% of revenue
- Net income: $1.07B, 10% of revenue
- R&D: $206.0M, 2.0% of revenue
- Other operating costs: $303.0M, 2.9% of revenue
- Interest, other & tax: $542.0M, 5.2% of revenue
Kept 10% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $10.39B$9.68B | +7.3% |
| Cost of Revenue | $7.02B$6.73B | +4.3% |
| Gross Profit | $3.37B$2.94B | +14.3% |
| R&D Expenses | $206.00M$218.00M | −5.5% |
| SG&A Expenses | $1.25B$1.14B | +9.6% |
| Operating Expenses | $1.76B$1.68B | +4.7% |
| Operating Income | $1.61B$1.27B | +27.1% |
| Net Income | $1.07B$825.00M | +29.3% |
| EPS (Basic) | $6.05$4.54 | +33.3% |
| EPS (Diluted) | $6.04$4.53 | +33.3% |
| Shares Outstanding (Basic) | 174.10M178.80M | −2.6% |
| Shares Outstanding (Diluted) | 174.80M179.50M | −2.6% |
05—Questions
Frequently Asked Questions
How did Wabtec perform financially in 2024?
Net sales rose 7.3% to $10.39 billion, and income from operations increased to $1.61 billion from $1.27 billion. Net income attributable to Wabtec shareholders was $1.06 billion, or $6.04 per diluted share, compared with $4.53 in 2023. The filing attributes the gross margin improvement to contract escalation clauses, segment mix, productivity, and Integration 2.0 savings.
How much backlog does Wabtec have and how much will be delivered in 2025?
Total backlog was approximately $22.3 billion at December 31, 2024, up from $22.0 billion a year earlier. The company expects about $7.68 billion of that backlog to be delivered in 2025, and $14.59 billion thereafter. The filing notes that some orders have been delayed, and that customers may cancel or modify contracts.
What acquisitions and restructuring programs is Wabtec pursuing?
In January 2025, Wabtec agreed to acquire Evident's Inspection Technologies division for $1.78 billion, to be financed with cash on hand, its revolving credit facility and an additional term loan. In February 2025 it announced Integration 3.0, with expected charges of $125 million to $155 million and targeted run-rate synergies of $100 million to $125 million by 2028. It also launched a 2025 Portfolio Optimization initiative targeting about $100 million of low-margin revenue.
What is Wabtec's debt and liquidity position?
Total debt was $4.0 billion at December 31, 2024, primarily Senior Notes and borrowings under the 2022 and 2024 Credit Agreements. Cash, cash equivalents and restricted cash were $715 million, of which about $417 million was held in the United States. The company says it was in compliance with its financial covenants, which require an Interest Coverage Ratio of at least 3.0 to 1.0 and a Leverage Ratio of 3.5 or less.
What is the status of the Progress Rail lawsuit?
Progress Rail, a Caterpillar company, sued Wabtec in the U.S. District Court for the District of Delaware in the third quarter of 2023, alleging antitrust and other claims related to the GE Transportation merger. The case is at an early stage, Wabtec's motion to dismiss has been fully briefed, and the court had not yet ruled. Wabtec says it intends to defend the case vigorously.
06—Continue