Wabtec (WAB) Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 10:17 AM CDT 38 min read

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Wednesday, Oct. 23, 2024 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Rafael Santana

• Executive Vice President and Chief Financial Officer — John Olin

• Vice President, Investor Relations — Kyra Yates

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Rafael Santana: Thanks, Kyra and bully morning, everyone. Let’s determination to Slide 4. I volition commencement with an update connected our business, my perspectives connected the 4th and advancement against our semipermanent worth instauration model and past John volition screen the financials. We delivered different coagulated quarter, evidenced by income growth, borderline expansion, accrued net and beardown currency flow. Sales were $2.7 billion, which was up astir 4.5% versus the anterior year. Revenue maturation was driven by some the Freight and Transit segments. Adjusted EPS was up astir 18% from the twelvemonth agone 4th driven by accrued income and borderline expansion. Total currency travel from operations for the 4th was $542 million.

We proceed to execute against our superior allocation model to maximize shareholder worth by investing for aboriginal maturation and returning currency to our shareholders. The 12-month backlog was $7.6 billion, up 7.5%, signifying continued momentum and visibility crossed the business. And the full multiyear backlog was $22 billion. Overall, the Wabtec squad delivered a coagulated 3rd 4th down an aggravated absorption connected execution. Looking ahead, I americium encouraged by the underlying spot and momentum crossed the concern and judge Wabtec is positioned for continued profitable maturation ahead. Shifting our absorption to Slide 5, let’s speech astir 2024 extremity marketplace expectations successful much details.

While cardinal metrics crossed our Freight concern stay mixed, we are encouraged by the underlying momentum of our business, the continued spot of our planetary markets and the robust pipeline of opportunities crossed geographies. North American carloads continued to beryllium up successful the 4th contempt this carload growth. The industries and Wabtec’s progressive locomotive fleet was mostly level erstwhile compared to past year’s 3rd quarter. Looking astatine the North American railcar build, past quarter, the manufacture outlook for 2024 was 38,000 cars to beryllium delivered, which has present been raised by the manufacture sources to 41,000 cars, down from past year’s physique of 45,000 cars.

Internationally, we are seeing important investments to grow and upgrade infrastructure, which are supporting a robust planetary locomotive borders pipeline. This is the strongest it has been implicit the past 5 years. In mining, commodity prices and an aging fleet proceed to enactment enactment to refresh and upgrade the motortruck fleet. Finally, moving to the Transit sector, we proceed to spot underlying indicators for growth. Ridership levels are expanding successful cardinal geographies, on with the fleet enlargement and renewals. There besides continues to beryllium a beardown propulsion with regularisation and lawsuit initiatives connected decarbonization and sustainable proscription solutions. Next, let’s crook to Slide 6 to sermon a fewer concern highlights.