Wabtec Corporation “started the year strong, delivering over 20% in earnings per share growth and highlighting the continued business momentum across both the Freight and Transit segments,” President and CEO Rafael Santana reported April 23 during a first-quarter 2025 financial report. He noted the company is “approaching the remainder of the year with caution, but with the discipline and focus to take the necessary actions to deliver against our commitments in an uncertain and volatile economic landscape.”
According to Wabtec, the company is increasing its adjusted diluted earnings per share guidance for 2025 by $0.10 at the mid-point and widening the range to $8.35-$8.95 “driven by economic volatility and uncertainty through the remainder of the year.” Wabtec’s revenue guidance range remains unchanged at $10.725 billion to $11.025 billion.
For the three months ending March 31, 2025, Wabtec reported that its GAAP earnings per diluted share of $1.88 was up 22.9% from the prior-year period; adjusted, it was $2.28, up 20.6% from 2024. GAAP EPS and adjusted EPS increased from first-quarter 2024 “primarily due to higher sales and operating margin expansion,” according to the company.
First-quarter 2025 sales came in at $2.61 billion, up 4.5% from the same quarter in 2024, which Wabtec attributed to higher sales in both the Freight and Transit segments. Among the key drivers, according to Wabtec:
- Services: “Increased sales from higher modernization deliveries and overhauls.”
- Equipment: “Lower locomotive deliveries as planned.”
- Components: “Portfolio optimization and lower North American railcar build,” which Wabtec noted was “partially offset by growth in industrial products.”
- Digital Intelligence: “Higher sales from international, signaling, and next-generation on-board locomotive products, partially offset by lower sales in North America.”
- Transit: “Higher OE sales and aftermarket sales; sales up 7.9% on constant currency basis.”
GAAP operating margin for the three months ending March 31, 2025, was higher than the prior year at 18.2%, and adjusted, it was higher than the prior year at 21.7%, according to Wabtec. The company said both GAAP and adjusted operating margins “benefited from higher sales and improved gross margins.”
At March 31, 2025, the 12-month backlog was $486 million higher than at March 31, 2024, according to Wabtec, and the multi-year backlog was $219 million higher than at March 31, 2024. The company said “excluding foreign currency exchange, the multi-year backlog was $490 million higher, up 2.1%.”
Freight segment sales for first-quarter 2025 were up 4.2% over the same period last year, driven primarily by Services, which was up 16.9%, according to Wabtec. GAAP operating margin and adjusted operating margin, it noted, “benefited from higher sales and improved gross margin.”
Transit segment sales for first-quarter 2025 were up 5.3%, “driven by higher OE and aftermarket sales,” according to Wabtec. Additionally, GAAP adjusted operating margins “were up as a result of higher sales and improved gross margins,” the company noted.
“We are also pleased with the strong momentum of our international business as well as the geographic diversity that it brings to our company,” Rafael Santana said. “International revenue has grown at a high single-digit rate over the past couple years, while delivering a higher level of profitability than our North America region. Underpinning our international growth is consistent expansion of our installed base of locomotives and transit car systems, which in turn has driven higher sales growth of our service, components and digital solutions.”
Wabtec reported that it “is not presenting a quantitative reconciliation of its forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K.” Wabtec said it ”is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters.” The financial impact of these items, it noted, “is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.”
DOWNLOAD THE WABTEC 1Q25 FINANCIAL PRESENTATION BELOW:
The Wabtec website provides more financial report details.
