What does Westinghouse Air Brake do and what are its main business segments?

What is the market's earnings forecast for Westinghouse Air Brake next quarter?

What factors drove the changes in Westinghouse Air Brake's revenue and profit?

What is Westinghouse Air Brake's gross profit margin?

Did Westinghouse Air Brake beat or miss consensus estimates last quarter?

What were the key takeaways from Westinghouse Air Brake's earnings call?

What is the revenue and EPS growth rate for Westinghouse Air Brake year over year?

What guidance did Westinghouse Air Brake's management provide for the next earnings period?

- **Revenue Growth**: Q3 sales up 8% YoY to $2.9B, driven by Freight (+32%) and Transit (+8.2%).
- **Backlog Record**: 12-month backlog $8.3B (+8.4%), multiyear backlog $20.9B.
- **Margin Expansion**: Adjusted operating margin 21.0% (+1.3ppt YoY), gross margin 34.7% (+1.7ppt YoY).
- **Tariff Mitigation**: $6M Q3 charges, with 4-pronged strategy to offset costs.
- **Guidance Update**: 2025 EPS raised to $8.85-$9.05, +18% midpoint.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Sales of $2.9 billion (+8% YoY), driven by Freight (+32%) and Transit (+8.2%) segments. Adjusted EPS up 16% to $2.32.
- **Backlog Strength**: 12-month backlog of $8.3 billion (+8.4%), with multiyear backlog at record $20.91 billion.
- **International Growth**: $4.2 billion Kazakhstan locomotive order, $125M mining drive systems deal, and $140M India brake orders.
- **Transit Momentum**: 15.5% operating margin in Transit, targeting mid-teens for full year.
- **2025 Guidance Update**: Adjusted EPS raised to $8.85-$9.05 (+18% midpoint), reflecting strong Q3 and pipeline visibility.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: 34.7% GAAP gross margin (+1.7ppt YoY), driven by contract escalations and Inspection Technologies.
- **Operating Efficiency**: Adjusted operating margin 21.0% (+1.3ppt YoY), despite higher SG&A from acquisitions.
- **Cash Flow**: $367M operating cash flow, with >90% cash conversion expected for full year.
- **Leverage Management**: Net debt at 2.0x, targeting 2.0-2.5x post-Dellner & Frauscher closings.
- **Tariff Impact**: $6M Q3 charges, with ongoing mitigation efforts (tariff sharing, supply chain shifts).

**【Q&A Highlights】**
- **Pipeline Confidence**: 2026 coverage stronger than 2025, with international outpacing North America.
- **Mod vs. New Locomotives**: Expect combined growth in 2026, with services margin targeting 5-7%.
- **Digital Growth**: Inspection Technologies adds 45.6% Digital Intelligence sales, digital penetration expanding internationally.
- **Acquisition Synergies**: Evident, Frauscher, and Dellner expected to be accretive to margins and EPS in 2026.
- **Tariff Outlook**: Peak gross impact in 2026, with net impact mitigated through pricing and cost management.

Westinghouse Air Brake Technologies Corporation (WAB) Q3 2025 Earnings Call Transcript

- **Revenue growth & margin expansion**: Q2 sales $2.7B (+2% YoY), adjusted EPS $2.27 (+15.8% YoY). Operating margin 21.1% (+1.8pts YoY) despite $60M supply chain delay.
- **Strategic acquisitions**: $3.5B invested in 2025 for Inspection Techs, Frauscher, and DeLiner. Acquired businesses to add $850M annualized revenue with 25.5% EBITDA margin.
- **End market strength**: North American rail traffic +2.5%, international locomotive pipeline robust. Transit ridership growth driving 8.7% Q2 segment sales growth.
- **H2 outlook**: +10% organic revenue growth expected, with margin expansion accelerating. 12-month backlog >$8B provides 2025 visibility.

**【CEO Summary Section】**
- **Strong first-half performance**: Achieved double-digit adjusted EPS growth (16%) and margin expansion despite economic volatility. Q2 sales of $2.7B (+2% YoY), 12-month backlog of $8.2B (+11.9%).
- **Acquisition momentum**: Closed Inspection Technologies ($60M annual synergies) and on track to close Frauscher (Q4 2025) and DeLiner (Q1 2026). Acquired businesses to add $850M annualized revenue with 25.5% EBITDA margin.
- **End market strength**: North American rail traffic +2.5%, international locomotive pipeline robust. Transit ridership growth driving infrastructure investment.

**【CFO Financial Commentary】**
- **Q2 financials**: GAAP EPS $1.96 (+19.5% YoY), Adjusted EPS $2.27 (+15.8% YoY). Operating margin 21.1% (+1.8pts YoY) driven by favorable mix and cost control.
- **Challenges**: $60M revenue delay due to supply part issue, impacting Q2 equipment sales (-4.2% YoY). Expect to recover in H2 with +10% organic revenue growth.
- **Cash flow**: $209M Q2 operating cash flow, >90% annual cash conversion target. Leverage ratio 1.4x (2.2x post-Inspection Techs acquisition).

**【Q&A Key Highlights】**
- **M&A strategy**: Committed $3.5B in 2025 for accretive acquisitions. Inspection Techs customers responding positively, with $60M run-rate synergies.
- **Tariffs impact**: <1% EBITDA impact, mitigated via pricing and sourcing. U.S.-sourced materials >80% of domestic sales.
- **Rail industry dynamics**: Potential rail mergers could boost rail share of freight, benefiting Wabtec's locomotive and digital solutions.
- **Transit growth**: 8.7% Q2 sales growth, 15.2% operating margin. Pipeline expansion driven by global infrastructure spending.
- **Backlog visibility**: 12-month backlog >$8B for 2nd consecutive quarter, providing 2025 visibility. Multiyear backlog $17.1B (-4% YoY) due to lumpiness.


Westinghouse Air Brake Technologies Corporation (WAB) Q2 2025 Earnings Call Transcript

- **Strong Q1 Results**: Revenue up 4.5%, EPS +20.6%, with $8.2B backlog reflecting resilience.
- **International Growth Engine**: APAC, Africa, and CIS orders drive 6%+ services growth, offsetting North American softness.
- **Margin Expansion**: 21.7% operating margin (+1.9ppt YoY), supported by cost cuts and mix favorability.
- **Guidance Uptick**: Adjusted EPS raised to $8.35-$8.95, reflecting proactive cost management and tariff mitigation.
- **Risk Management**: $100M+ savings from Integration 3.0 offsetting tariff impacts, with 2025 outlook anchored by international expansion.

**【CEO Business Update】**
- **Q1 2025 Highlights**: Revenue of $2.6B (+4.5% YoY), Adjusted EPS of $2.28 (+20.6%), and 12-month backlog of $8.2B (+6%).
- **Market Dynamics**: North American railcar build outlook remains at 35,000 units (-17% YoY), while international locomotive orders (e.g., Kazakhstan, APAC) drive growth. Transit ridership and infrastructure spending support steady demand.
- **Key Wins**: $140M Class 1 locomotive order, $130M APAC equipment contracts, and $85M transit platform door deals.
- **2025 Guidance**: Adjusted EPS range of $8.35-$8.95 (+14% midpoint), reflecting cautious optimism amid economic uncertainty.

**【CFO Financial Breakdown】**
- **Revenue Growth**: +4.5% YoY, driven by services (+16.9%) and Transit (+5.3%). Equipment sales down 9.5% due to mod production shift.
- **Profitability**: Adjusted operating margin of 21.7% (+1.9ppt YoY), boosted by gross margin (+1.7ppt) and cost control.
- **Cash Flow**: Q1 cash flow of $191M, with >90% annual cash conversion target.
- **Balance Sheet**: Liquidity of $2.54B, net debt leverage of 1.5x, and $98M share buybacks.

**【Q&A Key Themes】**
- **Tariff Impact**: Reciprocal tariffs (e.g., 125% China, 10% others) not included in guidance; focus on USMCA compliance and pricing actions.
- **International Momentum**: Higher-margin international business (APAC, Africa, CIS) outpaces North America, with services growth at 6-7% YoY.
- **Cost Management**: $100M+ savings from Integration 3.0 and portfolio optimization, offsetting tariff headwinds.
- **2025 Outlook**: Caution on North American new locomotive demand, but optimism on international modernization and digital solutions growth.

Westinghouse Air Brake Technologies (WAB)-23 Apr 25-2025 Q1 Earnings call transcript

- **2024 Performance**: 7% revenue growth, 28% EPS growth, 190bps margin expansion. 
- **2025 Outlook**: 5% revenue growth, 13% EPS growth, >90% cash conversion. 
- **Long-Term Vision**: 350+ bps margin expansion via $100-125M annual savings from Integration 3.0. 
- **Digital Surge**: $1B orders in 2024, 85% YoY growth. 
- **North America Locomotives**: High single-digit growth driven by 20+ year fleet age. 
- **Shareholder Returns**: 25% dividend increase, $1B buyback authorization.

**【CEO Summary Section】**
- Wabtec delivered 7% revenue growth in 2024, with operating margin expansion of 190 basis points and adjusted EPS growth of 28%. 
- 2025 guidance includes mid-single digit revenue growth and double-digit EPS growth (13% midpoint at $8.35-$8.75). 
- New five-year plan targets 350+ basis points of margin expansion through 2029, driven by Integration 3.0 ($100-125M run rate savings) and portfolio optimization. 
- International locomotive orders totaled $649M in Q4, with Africa leading ($1B+ Simandou project). Digital Intelligence signed $1B in orders, up 85% YoY. 

**【CFO Financial Commentary】**
- Q4 2024 sales: $2.6B (2.3% YoY), adjusted EPS: $1.68 (9% YoY). 
- GAAP gross margin: 30.9%, up 0.6pts YoY. Operating cash flow: $723M (212% cash conversion). 
- 2025 free cash flow expected >90% of net income. 
- $1B share buyback authorized, 25% dividend increase announced. 

**【Q&A Key Themes】**
- **Margin Expansion**: 350+ bps over five years via cost simplification (2/3) and innovation (1/3). 2025 Integration 3.0 to deliver $97M run rate savings. 
- **Digital Growth**: $1B+ orders in 2024, 85% YoY growth. PTC adoption accelerating internationally. 
- **North America Locomotives**: High single-digit growth in 2025, driven by aging fleet (average age 20+ years). 
- **Backlog Visibility**: 12-month backlog $7.7B (5.5% YoY growth), 72% in firm orders. 
- **Acquisition Impact**: Evidence Inspection ($430M 2024 revenue) to add $0.10+ to 2025 EPS. 

**【Risk & Opportunity】**
- North American railcar builds expected down 17% in 2025, offset by strong international demand. 
- Tariffs and inflation managed through pricing escalators (60%+ revenue with escalators). 
- Transit segment operating margin up 150bps in Q4 to 16.4%, driven by Integration 2.0 savings. 
- 2025 services revenue growth expected to stabilize after Q4 15.9% YoY decline.

Westinghouse Air Brake Technologies Corporation (WAB) Q4 2024 Earnings Call Transcript

Westinghouse Air Brake Technologies (WAB)-23 Oct 24-2024 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-24 Jul 24-2024 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-24 Apr 24-2024 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-14 Feb 24-2023 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-25 Oct 23-2023 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-27 Jul 23-2023 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-26 Apr 23-2023 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-15 Feb 23-2022 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-1 Nov 22-2022 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-5 Aug 22-2022 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-27 Apr 22-2022 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-16 Feb 22-2021 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-27 Oct 21-2021 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-29 Jul 21-2021 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-29 Apr 21-2021 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-18 Feb 21-2020 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-29 Oct 20-2020 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-28 Jul 20-2020 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-4 May 20-2020 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-18 Feb 20-2019 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-31 Oct 19-2019 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-30 Jul 19-2019 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-25 Apr 19-2019 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-25 Feb 19-2018 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-30 Oct 18-2018 Q3 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-24 Jul 18-2018 Q2 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-25 Apr 18-2018 Q1 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-20 Feb 18-2017 Q4 Earnings call transcript

Westinghouse Air Brake Technologies (WAB)-24 Oct 17-2017 Q3 Earnings call transcript

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