Wabtec (WAB) Q2 2025 Earnings Transcript

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July 24, 2025, 8:30 a.m. ET

• President and Chief Executive Officer — Rafael Ottoni Santana

• Executive Vice President and Chief Financial Officer — John A. Olin

• Vice President, Investor Relations — Kyra Yates

Rafael Ottoni Santana: Thanks, Kyra and bully morning, everyone. Let's determination to Slide 4. I'll commencement with an update connected our business, my perspectives connected the 4th and advancement against our semipermanent worth instauration framework. And past John volition screen the financials. . Before we get into the numbers, I would similar to item a mates of points. We had a beardown archetypal fractional of the twelvemonth wherever we were capable to execute better-than-expected borderline enlargement arsenic good arsenic double-digit adjusted net per stock maturation during a volatile and uncertain economical environment. This is simply a nonstop effect of our team's continued subject and unrelenting absorption connected taking actions to negociate outcomes and to present against our commitments.

As I look up to the 2nd half, I'm encouraged by the continued request for our halfway products and services. Momentum remains beardown crossed our extremity markets and pipeline, some planetary and home opportunities, with important enactment underway successful cardinal businesses, adjacent arsenic we navigate a persistently volatile planetary economical and geopolitical environment. We are entering the 2nd fractional with its beardown momentum reflected successful our integrated gross forecast, a steadfast 12-month backlog and continued borderline expansion. That said, I'm besides precise excited to bring the Inspection Technologies concern into Wabtec pursuing the closing of that acquisition connected July 1. With that, I'd similar erstwhile again to invited those employees to Wabtec.

We person adjusted our guidance to bespeak the concern expected fiscal show with our company. With the advancement we've made and the beardown opportunities ahead, I'm assured that Wabtec is good positioned to thrust sustained, longterm profitable growth. Having said that, Sales successful the 2nd 4th were $2.7 billion, which was up 2%. Adjusted EPS was up 16% from the twelvemonth agone 2nd quarter. Total currency travel from operations for the 4th was $209 million, and the 12-month backlog was $8.2 billion, up 11.9%, reflecting continued momentum and visibility ahead. Shifting our absorption to Slide 5. Let's speech astir 2025 extremity marketplace expectations successful much details.

While cardinal metrics crossed our Freight concern stay mixed, we are encouraged by the spot of our pipeline of opportunities crossed the globe. Despite the beardown momentum that we're experiencing, we proceed to workout caution arsenic we navigate a volatile and uncertain economical scenery successful the 2nd fractional of the year. North American postulation was up 2.5% successful the quarter. Despite this postulation growth, the industries and Wabtec's progressive locomotive fleets were down erstwhile compared to past year's 2nd quarter. However, the progressive locomotives are moving harder than successful the erstwhile year.