Q2 2025 Westinghouse Air Brake Technologies Corp Earnings Call Transcript
Key Points
- Westinghouse Air Brake Technologies Corp (WAB) achieved better-than-expected margin expansion and double-digit adjusted earnings per share growth in the first half of 2025.
- The company reported a 12-month backlog of $8.2 billion, up 11.9%, indicating strong demand and visibility for future growth.
- WAB successfully closed the acquisition of Inspection Technologies, which is expected to deliver immediate shareholder value and strategic fit with existing technologies.
- The Transit segment showed strong performance with sales up 8.7% in the quarter, driven by elevated infrastructure investment and global ridership.
- WAB increased its 2025 sales guidance to approximately $11.1 billion and adjusted EPS to be between $8.55 to $9.15, reflecting confidence in sustained growth.
- Second quarter revenue was adversely impacted by a supply part issue, delaying locomotive shipments and resulting in approximately $60 million of revenue being shifted to the second half of the year.
- Equipment sales were down 4.2% from last year's second quarter due to the supply part issue.
- Digital Intelligence sales were down 4.8% from last year, primarily driven by timing of international projects.
- Operating cash flow generation was $209 million, lower on a year-over-year basis due to higher working capital and inventory levels.
- The multiyear backlog was down 4.0% on a constant currency basis, indicating potential challenges in long-term order commitments.
Good day, and welcome to the Wabtec's second-quarter 2025 earnings conference call. Please note this event is being recorded.
I would now like to turn the conference over to Ms. Kyra Yates, Vice President of Investor Relations. Please go ahead, ma'am.
Thank you, operator. Good morning, everyone, and welcome to Wabtec's second-quarter 2025 earnings call. With us today are President and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalers. 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 discuss non
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