Q3 2025 Westinghouse Air Brake Technologies Corp Earnings Call Transcript
Key Points
- Westinghouse Air Brake Technologies Corp (WAB) reported a strong third quarter with sales reaching $2.9 billion, an 8% increase compared to the previous year.
- The company achieved a 16% increase in adjusted EPS, driven by higher sales and margin expansion.
- WAB's 12-month backlog increased by 8.4% to $8.3 billion, with the multiyear backlog reaching an all-time high, providing enhanced visibility for future growth.
- International demand remains robust, highlighted by a historic $4.2 billion order from Kazakhstan's National Railway, the largest single rail order in history.
- The transit segment showed strong performance with an 8.2% increase in sales, supported by rising passenger growth and ongoing public investment in rail infrastructure.
- Despite North America traffic growth of 1.4%, WAB's active locomotive fleets were slightly down compared to last year's third quarter.
- The North America railcar build forecast was reduced to approximately 28,000 cars, representing a 34% reduction from last year.
- Services revenue declined by 11.6% due to the timing of modernization deliveries, which are expected to be down again in the fourth quarter.
- The company faces challenges from higher material costs due to increased tariffs, impacting cash flow and inventory.
- WAB continues to navigate a volatile and uncertain economic landscape, exercising caution as it moves into the final quarter of the year.
Good day, and welcome to the Webtech third quarter 2025 earnings conference call. (Operator Instructions) Please note, today's 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.
Thank you, operator. Good morning, everyone, and welcome to Wabtec's third quarter 2025 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.
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