Wabtec (NYSE: WAB) reported higher quarterly revenue and earnings Wednesday thanks to growth in its freight and transit business segments.
“The Wabtec team has started the year strong, delivering over 20% in earnings per share growth and highlighting the continued business momentum across both the Freight and Transit segments,” CEO Rafael Santana said in a news release.
Operating income increased by 15%, to $474 million, as revenue grew 4.5% for the quarter, to $2.61 billion. Earnings per share increased 23%, to $1.88.
“We are also pleased with the strong momentum of our international business as well as the geographic diversity that it brings to our company. International revenue has grown at a high single-digit rate over the past couple years, while delivering a higher level of profitability than our North America region,” Santana said. “Underpinning our international growth is consistent expansion of our installed base of locomotives and transit car systems, which in turn has driven higher sales growth of our service, components, and digital solutions.”
Freight segment revenue increased 4.2% for the quarter thanks largely to higher deliveries of modernized and overhauled locomotives. Transit segment revenue grew 5.3% due to increased sales of new equipment and parts.
The rail technology company’s 12-month freight segment backlog increased 7.1%, to $6 billion, while the transit segment’s 12-month backlog grew 4.1%, to $2.1 billion.
The company boosted the high end of its financial outlook for the year. Wabtec now expects adjusted earnings per share of between $8.35 and $8.95, compared to prior guidance of $8.35 to $8.75. Wabtec still expects revenue of between $10.72 billion and $11.02 billion.
“We are approaching the remainder of the year with caution but with the discipline and focus to take the necessary actions to deliver against our commitments in an uncertain and volatile economic landscape,” Santana said.
Wabtec has tightened its cost control measures due to economic uncertainty.
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