Q4 2024 Westinghouse Air Brake Technologies Corp Earnings Call Transcript
Key Points
- Westinghouse Air Brake Technologies Corp (WAB) reported a strong fourth quarter with sales of $2.6 billion, up over 2%, and adjusted EPS up 9% from the previous year.
- The company achieved a cash conversion rate of 117% for the year and 212% for the fourth quarter, indicating strong cash flow management.
- WAB's 12-month backlog reached $7.7 billion, providing visibility and momentum for future growth.
- The company announced a 25% increase in its dividend and authorized an additional $1 billion for share repurchases, reflecting confidence in future performance.
- WAB's international markets, particularly in regions like Africa, Latin America, and Asia, showed strong growth, with significant orders for locomotives and modernization projects.
- North American railcar builds demand decreased in 2024 and is expected to decline by nearly 17% in 2025, posing a challenge for the domestic market.
- The freight segment sales were largely flat during the quarter, impacted by a shift in locomotive and mod production.
- Digital Intelligence sales were down 1.4% from the previous year, driven by softness in North America.
- The company incurred net pretax charges of $32 million for restructuring related to Integration 2.0 and portfolio optimization initiatives.
- Despite strong international growth, the North American market remains mixed, with flat locomotive fleet activity compared to the previous year.
Good day, and welcome to the Wabtec fourth quarter 2024 earnings conference call. (Operator Instructions). Please note this event is being recorded.
I would now like to turn the conference over to Kyra Yates, Vice President of Investor Relations. Please go ahead.
Thanks, Operator. Good everyone, and welcome to Wabtec's fourth 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 disclosures were posted to our website earlier today and can be accessed on the Investor Relations tab. Some statements we are making are forward-looking and based on our best view of the world and 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
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