Skip to content
AnalystLens

Westinghouse Air Brake Technologies 8-K Report, Financial Results (Feb 12, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed February 12, 2025
Period End
February 12, 2025
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 · Feb ’20Feb ’20
  3. Leadership change8-K · Apr ’22Apr ’22
  4. Material agreement8-K · Mar ’24Mar ’24

01—Abstract

Summary

Summary of the 8-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.

Westinghouse Air Brake Technologies Corporation (now Wabtec) reported fourth-quarter 2024 net sales of $2.58 billiona, up 2.3% year over year, with GAAP diluted earnings per share of $1.23, up 2.5%, and adjusted diluted EPS of $1.68, up 9.1%.

For full-year 2024, net sales were $10.39 billionb, up 7.3%, GAAP diluted EPS was $6.04, up 33.3%, and adjusted diluted EPS was $7.56, up 27.7%. Cash from operations was a record $1.83 billion. Total backlog reached $22.27 billion, up 1.2%, and the 12-month backlog was $7.68 billion, up 3.0%.

Freight segment sales for the year rose 7.9% and Transit segment sales rose 6.0%. For 2025, the company guided to sales of $10.725 billion to $11.025 billionc and adjusted diluted EPS of $8.35 to $8.75, which the filing says is up 13.1% at the midpoint. The company also replaced its prior long-term guidance with 5-year guidance through 2029, calling for mid-single digit revenue growth CAGR, more than 350 basis points of adjusted operating margin expansion, double-digit EPS growth CAGR, and greater than 90% average cash conversion.

The company does not present a quantitative reconciliation of forecasted GAAP to adjusted EPS, citing the unreasonable efforts exemption. Capital returns were a central theme. The company returned $1.2 billiond to shareholders through share repurchases and dividends in 2024, repurchasing $1.10 billion of shares for the full year.

The Board raised the quarterly dividend by 25% to $0.25 per share and increased the share repurchase authorization by $1.0 billion in December. At year-end, total debt was $3.98 billion and total available liquidity was $2.21 billion.

02—Key points

Key Highlights

  1. Q4 2024 net sales of $2.58 billion, up 2.3%; Transit segment sales rose 7.1% while Freight segment sales rose 0.3%.
  2. Q4 2024 adjusted diluted EPS of $1.68, up 9.1%; GAAP diluted EPS of $1.23, up 2.5%.
  3. Full-year 2024 net sales of $10.39 billion, up 7.3%, with GAAP diluted EPS of $6.04 (up 33.3%) and adjusted diluted EPS of $7.56 (up 27.7%).
  4. Record full-year cash from operations of $1.83 billion, with cash conversion of 117% for the year and 212% for the fourth quarter.
  5. 2025 guidance calls for sales of $10.725 billion to $11.025 billion and adjusted diluted EPS of $8.35 to $8.75, and operating cash flow conversion of greater than 90%.
  6. New 5-year guidance through 2029 targets mid-single digit revenue growth CAGR, 350+ bps of adjusted operating margin expansion, and double-digit EPS growth CAGR.
  7. Board raised the quarterly dividend by 25% to $0.25 per share and increased the share repurchase authorization by $1.0 billion in December.

03—Questions

Frequently Asked Questions

  1. How did the company perform in the fourth quarter of 2024?

    Net sales were $2.58 billion, up 2.3% year over year. GAAP diluted EPS was $1.23, up 2.5%, and adjusted diluted EPS was $1.68, up 9.1%. GAAP operating margin was 12.9%, up 0.7 points, and adjusted operating margin was 16.9%, down 0.1 points. Cash from operations was $723 million.

  2. What is the company's 2025 earnings and sales guidance?

    The company expects 2025 sales between $10.725 billion and $11.025 billion and adjusted diluted EPS between $8.35 and $8.75, which the filing says is up 13.1% at the midpoint. It also expects operating cash flow conversion of greater than 90%.

  3. How is the company returning capital to shareholders?

    The company returned $1.2 billion to shareholders through share repurchases and dividends in 2024, including $1.10 billion of repurchases for the full year. The Board raised the quarterly dividend by 25% to $0.25 per share, payable March 7, 2025, and increased the share repurchase authorization by $1.0 billion in December.

  4. What is the company's backlog and liquidity position?

    Total backlog was $22.27 billion at December 31, 2024, up 1.2%, and the 12-month backlog was $7.68 billion, up 3.0%. Total debt was $3.98 billion, and total available liquidity was $2.21 billion, including $1.50 billion available under current credit facilities.

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

    The company replaced its prior long-term guidance with 5-year guidance through the end of 2029. It targets mid-single digit revenue growth CAGR, 350+ bps of adjusted operating margin expansion, double-digit EPS growth CAGR, and greater than 90% average cash conversion over the period.

04—Continue

← View all 8-K filings