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Westinghouse Air Brake Technologies Corporation (WAB-3.72%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, reporting net sales of $10.39 billion, an increase from $9.68 billion in the previous year. This growth was driven by both the Freight and Transit segments, with significant contributions from acquisitions and organic sales increases.
Net income attributable to Wabtec shareholders was $1.06 billion, up from $815 million in 2023. The increase in net income was supported by higher sales and improved gross margins.
The Freight Segment reported net sales of $7.47 billion, a 7.9% increase from 2023, driven by higher locomotive sales and increased mining sales. The Transit Segment reported net sales of $2.92 billion, a 6.0% increase, supported by higher demand for aftermarket and original equipment manufacturing products.
Operating expenses totaled $1.76 billion, up from $1.68 billion in 2023, primarily due to increased sales volume and higher employee compensation costs.
Interest expense decreased to $201 million from $218 million in the previous year, attributed to lower debt balances. Other income, net, decreased to $2 million from $44 million, primarily due to lower equity income and a prior year gain on equity interest.
The company reported a backlog of $22.3 billion as of December 31, 2024, indicating strong future sales commitments.
During 2024, Wabtec made four strategic acquisitions, expanding its capabilities in both the Freight and Transit segments. The company also announced a definitive agreement to acquire Evident’s Inspection Technologies division for $1.78 billion, expected to close in the first half of 2025.
Wabtec continues to focus on its strategic initiatives, including Integration 2.0 and Portfolio Optimization, aimed at streamlining operations and improving profitability. The company anticipates further synergies and cost savings through these initiatives.
Cash provided by operating activities was $1.83 billion, reflecting strong cash flow generation. The company used $343 million for investing activities and $1.37 billion for financing activities, including stock repurchases and dividend payments.
The company maintains a strong liquidity position, with approximately $715 million in cash and equivalents at year-end, and access to a $1.5 billion revolving credit facility.
Wabtec's management continues to monitor macroeconomic conditions, supply chain disruptions, and labor availability, implementing various mitigating actions to address these challenges.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Westinghouse Air Brake Technologies Corporation annual 10-K report dated February 12, 2025. To report an error, please email earnings@qz.com.