01—Abstract
Summary
Summary of the 10-Q filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation reported first-quarter 2025 net sales of $2.61 billiona, up $113 million, or 4.5%, from $2.50 billion in the first quarter of 2024.
Organic sales rose $133 millionb, with Services and Transit growth offsetting lower Freight Equipment deliveries. Gross profit increased to $900 million from $815 million, and income from operations rose to $474 million from $412 million. Net income attributable to Wabtec shareholders was $322 million, or $1.88 per diluted share, compared with $272 million, or $1.53 per diluted share, a year earlier.
Cost of sales as a percentage of net sales improved to 65.5% from 67.3%. Cash provided by operating activities fell to $191 millionc from $334 million, mainly because of changes in receivables tied to the Revolving Receivables Program and the timing of customer deposits. The company ended the quarter with $698 million of cash, cash equivalents and restricted cash and total debt of $4.01 billion at book value.
It repurchased $98 milliond of stock and had approximately $902 million remaining under its repurchase authorization. Wabtec also signed definitive agreements to acquire Evident's Inspection Technologies division for approximately $1.78 billion and Dellner Couplers for approximately $960 million, both subject to customary closing conditions and regulatory approvals. On April 23, 2025, the company amended its credit agreements, increasing the revolving credit facility to $2 billion.
02—Key points
Key Highlights
- Net sales of $2.61 billion rose $113 million, or 4.5%, year over year, with organic sales up $133 million.
- Income from operations increased to $474 million from $412 million, and diluted EPS rose to $1.88 from $1.53.
- Freight Segment income from operations was $420 million, and Transit Segment income from operations was $90 million; gross margins were 36.0% and 30.3%, respectively.
- Operating cash flow was $191 million, down from $334 million, while capital expenditures were $44 million.
- Pending acquisitions of Inspection Technologies (approximately $1.78 billion) and Dellner Couplers (approximately $960 million) are expected to be financed with cash on hand and borrowings.
- Share repurchases totaled $98 million in the quarter, with approximately $902 million remaining under the repurchase program.
- Subsequent to quarter end on April 23, 2025, the revolving credit facility was increased to $2 billion and a new $250 million delayed draw term loan was added.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Westinghouse Air Brake Technologies kept $0.13.
- Revenue$2.61B100.0%
- Cost of revenue−$1.71B65.5%
- Gross profit$900.0M34.5%
- Operating costs−$426.0M16.3%
- Operating income$474.0M18.2%
- Interest, other & tax−$147.0M5.6%
- Net income$327.0M12.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 23, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.61B$2.50B | +4.5% |
| Cost of Revenue | $1.71B$1.68B | +1.7% |
| Gross Profit | $900.00M$815.00M | +10.4% |
| R&D Expenses | $46.00M$48.00M | −4.2% |
| SG&A Expenses | $307.00M$281.00M | +9.3% |
| Operating Expenses | $426.00M$403.00M | +5.7% |
| Operating Income | $474.00M$412.00M | +15.0% |
| Net Income | $327.00M$277.00M | +18.1% |
| EPS (Basic) | $1.88$1.54 | +22.1% |
| EPS (Diluted) | $1.88$1.53 | +22.9% |
| Shares Outstanding (Basic) | 170.50M176.50M | −3.4% |
| Shares Outstanding (Diluted) | 171.30M177.20M | −3.3% |
05—Questions
Frequently Asked Questions
How did Wabtec's first-quarter 2025 sales and profit compare with the prior year?
Net sales were $2.61 billion, up $113 million, or 4.5%, from $2.50 billion. Gross profit rose to $900 million from $815 million, and net income attributable to Wabtec shareholders rose to $322 million from $272 million.
What drove the change in sales by segment?
Freight Segment net sales increased to $1.90 billion from $1.82 billion, driven primarily by Services, which grew on higher locomotive modernization and engine overhaul deliveries and higher parts sales, while Equipment sales declined on lower locomotive deliveries. Transit Segment net sales increased to $709 million from $673 million, driven by Original Equipment Manufacturing and Aftermarket demand.
Why did operating cash flow decline?
Cash provided by operating activities was $191 million compared with $334 million a year earlier. The filing attributes the decline mainly to $347 million of receivables-related outflows, driven by changes in the Revolving Receivables Program and customer collection timing, partially offset by a $176 million change in the timing of customer deposits.
What major acquisitions and financing steps is Wabtec pursuing?
Wabtec agreed to acquire Evident's Inspection Technologies division for approximately $1.78 billion and Dellner Couplers for approximately $960 million, both subject to customary closing conditions and regulatory approvals. The company intends to finance these acquisitions with cash on hand and a mix of short- and long-term borrowings. On April 23, 2025, it amended its credit agreements, increasing the revolving credit facility to $2 billion.
What is the company's liquidity and capital return position?
At March 31, 2025, Wabtec held $698 million of cash, cash equivalents and restricted cash, of which about $404 million was held outside the United States. Total long-term debt was $4.01 billion at book value, including the current portion. During the quarter, the company repurchased $98 million of stock and paid $43 million in cash dividends, and about $902 million remained under its stock repurchase authorization.
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