PITTSBURGH — Wabtec sales and profits increased in the second quarter thanks to growth in its freight and transit divisions, the company announced today.
Wabtec also disclosed that it has received a $600 million, multiyear order for Tier 4 locomotives from a North American railroad. It did not name the railroad, and no Class I system has yet announced a new locomotive order this year. A Wabtec spokesman said the company could not identify the railroad that has placed the order.
“The Wabtec team delivered another strong quarter, evidenced by robust sales and earnings per share growth,” CEO Rafael Santana said.
Sales grew 9.8%, to $2.64 billion, while operating income rose 38%, to $412 million. Earnings per share was up 55%, to $1.64. Adjusted for the impact of one-time items, earnings per share grew 39%.
Wabtec’s Freight segment sales for the second quarter were up 13%, driven primarily by equipment and components which were up 36.4% and 17.5%, respectively. Transit segment sales for the second quarter were up 2% due to higher aftermarket sales.
The company’s second-quarter order backlog was $114 million higher than a year ago. But the multi-year backlog was $356 million lower than a year ago. Excluding the impact of foreign currency exchange, the multi-year backlog decreased $140 million, or 0.6%.
Wabtec raised and tightened its 2024 adjusted earnings per share guidance to be in the range of $7.20 to $7.50. Wabtec’s revenue outlook range remains unchanged at $10.25 billion to $10.55 billion.
The previous earnings per share guidance, issued as part of the company’s first quarter financial results this spring, was $7 to $7.40.
