Westinghouse Air Brake Technologies Corp (NYSE:WAB) reported fourth-quarter FY22 net sales growth of 11.2% year-over-year to $2.31 billion, beating the consensus of $2.21 billion.
- Sales growth was driven by higher Freight segment sales, partially offset by lower Transit segment sales, and was +15.7% Y/Y on a constant currency basis.
- Adjusted EPS of $1.30 beat the consensus of $1.28.
- The gross margin declined by 300 bps to 28.9%, and the adjusted gross margin was 29.4%, down by 270 bps.
- The adjusted operating margin was 17%, down by 170 bps due to an unfavorable sales mix and increased technology spending.
- The backlog stood at $22.44 billion (+1.2% Y/Y). Wabtec generated cash from operating activities totaling $410 million versus $314 million a year ago.
- Wabtec had cash and equivalents of $541 million and total debt of $3.75 billion.
- Buyback: The board approved a $750 million share buyback.
- Dividend: The board approved a 13% increase in the quarterly dividend to $0.17 per share. The board also declared a regular quarterly common dividend of $0.17 per share.
- FY23 Guidance: Wabtec expects sales of $8.7 billion – $9.0 billion, versus the consensus of $8.69 billion.
- WAB sees adjusted EPS of $5.15 – $5.55 versus the consensus of $5.42.
Price Action: WAB shares closed lower by 0.51% at $103.45 on Tuesday.
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