Q3 2024 Westinghouse Air Brake Technologies Corp Earnings Call Transcript
Key Points
- Westinghouse Air Brake Technologies Corp (WAB) reported a 4.5% increase in sales, reaching $2.7 billion, driven by growth in both freight and transit segments.
- The company achieved an 18% increase in adjusted EPS compared to the previous year, supported by increased sales and margin expansion.
- Cash flow from operations was strong at $542 million, with a 12-month backlog of $7.6 billion, up 7.5%, indicating continued business momentum.
- International markets showed significant growth, with a robust pipeline of opportunities, particularly in locomotive orders.
- The company secured several strategic contracts, including a $405 million locomotive order with Kazakhstan's national railway and a $300 million parts agreement with a North American Class 1 railroad.
- The North American locomotive fleet remained largely flat compared to the previous year, despite carload growth.
- The industry outlook for North American railcar builds in 2024 was revised down to 41,000 cars from 45,000 cars in the previous year.
- Equipment sales were down 17.3% from last year's third quarter due to the timing of new locomotive deliveries.
- The company expects a significant mix headwind in Q4, which will temper adjusted operating margins.
- Foreign currency exchange posed a slight headwind to revenue, gross profit, and operating margin during the quarter.
Good day and welcome to the Webtech third quarter 2024 earnings conference call. (Operator Instructions). Please note this event is being recorded. I now would like turn the conference over to Kyra Yates, Vice President, Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Wabtec's third quarter 2024 earnings call. With us today are President and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalerz. Today's slide presentation, along with our earnings release and financial discussion, Rogers were posted to our website earlier today and can be accessed on the Investor Relations tab. Some statements we're making are forward-looking and based on our best view of the world in our business today.
For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and presentation. We will also discuss non
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