Wabtec Reports 7.3% Revenue Growth to $10.39 Billion for Fiscal Year 2024

Westinghouse Air Brake Technologies Corporation (Wabtec) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total net sales reaching $10.39 billion, a 7.3% increase from $9.68 billion in 2023. The company's net income also rose to $1.06 billion, compared to $825 million in the previous year, reflecting a 28.9% increase. This growth was driven by strong demand across both the Freight and Transit segments, with organic sales contributing $662 million to the overall increase, bolstered by higher locomotive sales and aftermarket services.

In terms of operational developments, Wabtec's Freight Segment accounted for approximately 72% of total net sales, with significant contributions from aftermarket services, which represented 61% of the segment's sales. The Transit Segment, which includes products for passenger transit vehicles, generated 28% of total sales, benefiting from increased investments in sustainable infrastructure and rising passenger ridership. The company also reported a backlog of approximately $22.3 billion, indicating strong future revenue potential.

Strategically, Wabtec has continued to expand its portfolio through acquisitions, completing four strategic purchases in 2024 for a total of approximately $168 million. Notably, the company acquired the remaining shares of Lokomotiv Kurastyru Zauyty (LKZ) in Kazakhstan, transitioning it from a joint venture to a wholly-owned subsidiary. Additionally, Wabtec announced plans for a significant acquisition of Evident’s Inspection Technologies division for $1.78 billion, expected to enhance its capabilities in automated inspection technologies.

Wabtec's workforce remained stable, with approximately 29,500 employees as of December 31, 2024. The company has also focused on operational efficiency, implementing initiatives such as Integration 2.0, which aims to achieve approximately $100 million in run-rate synergies by 2026. Despite facing challenges such as inflation and supply chain disruptions, Wabtec has managed to maintain a strong credit profile, with credit ratings upgraded by Fitch and S&P Global.

Looking ahead, Wabtec anticipates continued growth driven by urbanization, sustainability initiatives, and technological advancements in the rail industry. The company is committed to enhancing its product offerings and expanding its market presence, particularly in emerging markets. However, it remains vigilant regarding potential economic fluctuations and their impact on customer demand, which could affect future performance.