What were Wabtec's fourth quarter 2023 results?

Fourth quarter sales were $2,526 million, up 9.5% year over year. GAAP diluted EPS was $1.20, up 39.5%, and adjusted diluted EPS was $1.54, up 18.5%. GAAP operating margin was 12.2% and adjusted operating margin was 17.0%.

What guidance did Wabtec give for 2024?

Wabtec expects 2024 sales of $10.05 billion to $10.35 billion and adjusted diluted EPS of $6.50 to $6.90. It also expects operating cash flow conversion of greater than 90 percent. The filing states that the company is not providing a quantitative reconciliation of forecasted GAAP EPS to adjusted EPS because the timing and amount of certain charges cannot be predicted without unreasonable effort.

How is Wabtec returning capital to shareholders?

The Board reauthorized the stock buyback program to refresh the available amount to $1.0 billion and increased the quarterly dividend by 17.6%. A regular quarterly dividend of 20 cents per share is payable March 8, 2024 to holders of record on February 23, 2024. The company repurchased $409 million of shares in full-year 2023 and returned over $530 million to shareholders through repurchases and dividends.

What acquisition and portfolio actions did Wabtec take in 2023?

Wabtec acquired L&M for $229 million, net of cash received, and acquired the remaining 50% of the LKZ joint venture for $81 million, net of cash received. The LKZ transaction produced a $35 million GAAP non-cash gain. The company also plans to exit various low-margin product lines, with expected net exit charges of about $85 million, predominantly non-cash asset write-downs, of which $28 million was booked in Q4 2023.

How did backlog and balance sheet metrics look at year-end 2023?

The 12-month backlog was $7,457 million, up 10.3%, and total backlog was $21,999 million, down 2.0%. The filing states that foreign exchange positively impacted multi-year backlog, and that excluding currency the multi-year backlog decreased $645 million, down 2.9%. At year-end, cash was $620 million, total debt was $4.07 billion, and total available liquidity was $2.12 billion.

WAB 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed February 14, 2024. Cited figures are marked; the original filing is the authoritative source.

Westinghouse Air Brake Technologies Corporation (Wabtec, NYSE: WAB) reported fourth quarter 2023 results on February 14, 2024, and issued full-year 2024 guidance.

Fourth quarter sales were $2,526 million^a, up 9.5% year over year, with GAAP earnings per diluted share of $1.20, up 39.5%, and adjusted earnings per diluted share of $1.54, up 18.5%. Full-year 2023 sales were $9,677 million, GAAP diluted EPS was $4.53, and adjusted diluted EPS was $5.92. Fourth quarter cash from operations was $686 million, and full-year cash from operations was $1,201 million, which the filing describes as a record high.

For 2024, the company guided to sales of $10.05 billion to $10.35 billion^b and adjusted diluted EPS of $6.50 to $6.90, with operating cash flow conversion expected to be greater than 90 percent. The filing also states that the Board reauthorized the stock buyback program to refresh the amount available to $1.0 billion and increased the quarterly dividend by 17.6%, with a regular quarterly dividend of 20 cents per share declared. Full-year 2023 share repurchases totaled $409 million, and total shareholder returns through repurchases and dividends exceeded $530 million.

Backlog and balance sheet metrics were also reported. The 12-month backlog rose 10.3% to $7,457 million^c, while total backlog declined 2.0% to $21,999 million.

At year-end, total debt was $4.07 billion^d, cash was $620 million, and total available liquidity was $2.12 billion. The filing notes that GAAP results for the quarter included a $35 million gain from the acquisition of the remaining 50% stake in the LKZ joint venture, and that the company plans to exit various low-margin product lines with expected net exit charges of about $85 million.

02—Key points

Key Highlights

Q4 2023 sales of $2,526 million, up 9.5% year over year, with Freight sales up 7.7% and Transit sales up 14.3%.
Q4 2023 GAAP diluted EPS of $1.20 (up 39.5%) and adjusted diluted EPS of $1.54 (up 18.5%); full-year 2023 adjusted diluted EPS of $5.92 (up 21.8%).
Full-year 2023 cash from operations of $1,201 million, described as a record high, with Q4 cash from operations of $686 million.
2024 guidance calls for sales of $10.05 billion to $10.35 billion and adjusted diluted EPS of $6.50 to $6.90, with operating cash flow conversion above 90 percent.
Board reauthorized the stock buyback to $1.0 billion and increased the quarterly dividend by 17.6%, declaring a regular quarterly dividend of 20 cents per share.
12-month backlog rose 10.3% to $7,457 million, while total backlog decreased 2.0% to $21,999 million.
Year-end liquidity of $2.12 billion, including $1.50 billion available under current credit facilities, and total debt of $4.07 billion.

03—Questions

Frequently Asked Questions

What were Wabtec's fourth quarter 2023 results?
Fourth quarter sales were $2,526 million, up 9.5% year over year. GAAP diluted EPS was $1.20, up 39.5%, and adjusted diluted EPS was $1.54, up 18.5%. GAAP operating margin was 12.2% and adjusted operating margin was 17.0%.
What guidance did Wabtec give for 2024?
Wabtec expects 2024 sales of $10.05 billion to $10.35 billion and adjusted diluted EPS of $6.50 to $6.90. It also expects operating cash flow conversion of greater than 90 percent. The filing states that the company is not providing a quantitative reconciliation of forecasted GAAP EPS to adjusted EPS because the timing and amount of certain charges cannot be predicted without unreasonable effort.
How is Wabtec returning capital to shareholders?
The Board reauthorized the stock buyback program to refresh the available amount to $1.0 billion and increased the quarterly dividend by 17.6%. A regular quarterly dividend of 20 cents per share is payable March 8, 2024 to holders of record on February 23, 2024. The company repurchased $409 million of shares in full-year 2023 and returned over $530 million to shareholders through repurchases and dividends.
What acquisition and portfolio actions did Wabtec take in 2023?
Wabtec acquired L&M for $229 million, net of cash received, and acquired the remaining 50% of the LKZ joint venture for $81 million, net of cash received. The LKZ transaction produced a $35 million GAAP non-cash gain. The company also plans to exit various low-margin product lines, with expected net exit charges of about $85 million, predominantly non-cash asset write-downs, of which $28 million was booked in Q4 2023.
How did backlog and balance sheet metrics look at year-end 2023?
The 12-month backlog was $7,457 million, up 10.3%, and total backlog was $21,999 million, down 2.0%. The filing states that foreign exchange positively impacted multi-year backlog, and that excluding currency the multi-year backlog decreased $645 million, down 2.9%. At year-end, cash was $620 million, total debt was $4.07 billion, and total available liquidity was $2.12 billion.

04—Continue

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