Skip to content
AnalystLens

Westinghouse Air Brake Technologies 8-K Report, Regulation FD Disclosure (Mar 13, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed March 13, 2024
Period End
March 13, 2024
Security
WAB
In the record · 2016–202610-K1110-Q338-K132

WAB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 132 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Material agreement8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 8-K filed March 13, 2024. Cited figures are marked; the original filing is the authoritative source.

Westinghouse Air Brake Technologies Corporation (Wabtec) furnished an investor presentation under Item 7.01 (Regulation FD Disclosure) on March 13, 2024, posting it to its website and attaching it as Exhibit 99.1.

The filing states that the information furnished is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934. The filing itself contains no new financial results or guidance beyond what the presentation reproduces. The attached presentation sets out the company's profile and long-term framework.

For full year 2023, Wabtec reported $9.7Ba in revenues across two segments, Freight (72%) and Transit (28%), with 46% of 2023 sales from recurring revenue. The company cited a 12-month backlog that grew 10.3% in 2023 versus 2022, covering 73% of its 2024 midpoint revenue guidance (provided February 14, 2024). Reported operating margin rose from 9.9% in 2020 to 13.1% in 2023, and adjusted operating margin rose from 15.1% to 17.0% over the same period.

The presentation reports 2023 net leverage of 1.9x and a $1Bb share repurchase authorization reauthorized in Q1 2024. The presentation also restates the company's 5-year outlook established March 9, 2022, including mid-single-digit core organic growth, 250 to 300 basis points of margin expansion over 2022 to 2026, and double-digit EPS growth.

It notes the quarterly dividend increase to $0.20c per share in Q1 2024, and cash conversion of 93% averaged during 2020 to 2023. Investors should note that these long-term targets predate the filing and are presented as management guidance subject to the forward-looking statement caveats.

02—Key points

Key Highlights

  1. Filed under Item 7.01 (Regulation FD Disclosure); the investor presentation was posted to the company website on March 13, 2024 and is furnished as Exhibit 99.1.
  2. 2023 revenues were $9.7B, split across Freight (72%) and Transit (28%), with recurring revenue at 46% of 2023 sales.
  3. 12-month backlog grew 10.3% in 2023 versus 2022, and covered 73% of 2024 midpoint revenue guidance provided February 14, 2024.
  4. Operating margin expanded from 9.9% (2020) to 13.1% (2023) on a reported basis, and from 15.1% to 17.0% on an adjusted basis.
  5. 2023 net leverage ratio was 1.9x, within the company's stated 2.0 to 2.5x target range, with net debt of $3,449 million and adjusted EBITDA of $1,842 million.
  6. Board-level capital allocation priorities include a dividend increase to $0.20 per share in Q1 2024 and reauthorization of a $1B share repurchase program.
  7. The presentation restates the March 2022 5-year outlook, including mid-single-digit core organic growth and 250 to 300 basis points of adjusted margin expansion over 2022 to 2026.

03—Questions

Frequently Asked Questions

  1. Does this 8-K announce new financial results or guidance?

    No. The filing furnishes an investor presentation under Item 7.01. The figures in it, including 2023 results, the 2024 guidance backlog coverage and the 5-year outlook, are restatements or summaries of previously disclosed information.

  2. What is the status of the information in this filing under the Exchange Act?

    The filing states that the information furnished under Item 7.01, including Exhibit 99.1, is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into Securities Act filings unless expressly referenced.

  3. How strong is Wabtec's order visibility for 2024?

    The presentation states that the 12-month backlog grew 10.3% in 2023 versus 2022 and covers 73% of the midpoint of 2024 revenue guidance, which the company provided on February 14, 2024.

  4. What capital return and balance sheet actions did Wabtec describe?

    The company cited a net leverage ratio of 1.9x at the end of 2023, an investment-grade rating objective, a dividend increase to $0.20 per share in Q1 2024 (targeting a 10 to 15% payout of adjusted net income), and a reauthorized $1B share repurchase program.

  5. What long-term targets did the company reiterate?

    The presentation references the 5-year outlook established March 9, 2022, including mid-single-digit core organic growth, 250 to 300 basis points of adjusted margin expansion from 2022 to 2026, double-digit EPS growth, and operating cash flow conversion of 90% or more.

04—Continue

← View all 8-K filings