Westinghouse Air Brake Technologies Corp (doing business as Wabtec Corp)

Latest Results (07.09.2025):

Westinghouse Air Brake Technologies Corp (doing business as Wabtec Corp) reported strong financial results for the third quarter of 2023, demonstrating significant growth in sales, earnings, and operating margins. The company also raised its full-year guidance, reflecting confidence in continued performance and resilience amid economic uncertainties.

Revenue Growth

Wabtec achieved a 22.5% increase in sales, reaching $2.55 billion for the third quarter of 2023. Both the Freight and Transit segments contributed significantly, with Freight sales up by 23.4% and Transit sales by 20.0% compared to the same period last year.

Improved Operating Margins

The company reported a GAAP Operating Margin of 14.5%, a 2.0 percentage point increase from the prior year. Adjusted Operating Margin also rose by 1.5 points to 17.9%, driven by lower selling, general, and administrative expenses as a percentage of sales and better fixed cost absorption.

Earnings Per Share Growth

GAAP Earnings Per Share increased by 51.1% to $1.33, while Adjusted Earnings Per Share rose by 39.3% to $1.70. The growth in EPS was primarily due to higher sales and margin expansion, partially offset by increased interest expenses.

Strong Cash Flow Generation

Operating cash flow reached $425 million, with a cash conversion rate of 116%, up from 72% a year earlier. This improvement was driven by higher earnings and more efficient inventory management.

Positive Full-Year Guidance

Wabtec has raised its full-year 2023 guidance, expecting sales to range between $9.50 billion and $9.70 billion and adjusted earnings per diluted share to be between $5.80 and $6.00. The company anticipates operating cash flow conversion to exceed 90% for the full year, reinforcing its optimistic outlook.