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.
“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.
