On this page of StockholderLetter.com we present the latest annual shareholder letter from WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP — ticker symbol WAB. Reading current and past WAB letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2025 Letter Continued (Full PDF)
 •  4/5/2023 WAB Stockholder Letter
 •  4/4/2024 WAB Stockholder Letter
 •  More "Construction" Category Stockholder Letters
 •  WAB Benford's Law Stock Score = 77

WAB Shareholder/Stockholder Letter Transcript:

Revolutionize
the way the
world moves
for future
generations
Annual Report 2024

Forward Looking Statements
This Annual Report contains    forward-looking   
statements as that term is defined in Section
27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange
Act of 1934, as amended by the Private
Securities Litigation Reform Act of 1995. All
statements, other than historical facts, are
forward-looking statements. Forward-looking
statements concern future circumstances and
results and other statements that are not
historical facts and are sometimes identified by
the words    may,       will,       should,       potential,   
   intend,       expect,       endeavor,       seek,   
   anticipate,       estimate,       overestimate,   
   underestimate,       believe,       could,       project,   
   predict,       continue,       target    or other similar
words or expressions. Forward-looking
statements are based upon current plans,
estimates, and expectations that are subject to
risks, uncertainties, and assumptions. Should
one or more of these risks or uncertainties
materialize, or should underlying assumptions
prove incorrect, actual results may vary
Non-GAAP Financial Measures
materially from those indicated or anticipated
by such forward-looking statements. The
inclusion of such statements should not be
regarded as a representation that such plans,
estimates, or expectations will be achieved.
Important factors that could cause actual
results to differ materially from such plans,
estimates, or expectations include, among
others, risk factors as detailed from time to
time in our reports filed with the Securities
and Exchange Commission. We do not
undertake any obligation to update any
forward-looking statements, whether as a
result of new information or development,
future events, or otherwise, except as
required by law. Readers are cautioned not
to place undue reliance on any of these
forward-looking statements. In the enclosed
Annual Report on Form 10-K, see
   Forward-Looking Statements    and    Risk
Factors.   
Earnings Per Share Reconciliation
EPS
Reported Diluted Earnings Per Share
$ 6.04
Restructuring and Portfolio Optomization Costs
$ 0.28
Non-cash Amortization Expense
$ 1.24
Adjusted Diluted Earnings Per Share
$ 7.56
This Annual Report mentions adjusted diluted
earnings per share, which is a non-GAAP financial
performance measure. While we believe this is a
useful supplemental measure for investors, it is not
presented in accordance with GAAP. Investors
should not consider this non-GAAP measure in
isolation or as a substitute for items calculated in
accordance with GAAP. In addition, this
non-GAAP financial measure has inherent material
limitations as a performance measure because it
adds back certain expenses incurred by the
company to GAAP diluted earnings per share,
resulting in those expenses not being taken into
account in the non-GAAP financial measure.
Because not all companies use identical
calculations, our presentation of this non-GAAP
financial measure may not be comparable to other
similarly titled measures of other companies.
Included below is a reconciliation table that
provides details about how the adjusted result
relates to the GAAP result.

LETTER FROM RAFAEL SANTANA, PRESIDENT AND CEO
Dear fellow shareholders,
Reflecting on 2024, I am inspired by the strength
of Wabtec   s business, the mission-readiness of our
teams, and the value we continue to unlock and
create for our customers and shareholders. Against
an ever-evolving macro-economic and geopolitical
backdrop, our ability to navigate complexity, drive
innovation, and execute with discipline has
reinforced Wabtec   s leadership position while
helping us deepen the trust we have built with our
stakeholders.
Delivering Sustainable Growth
The foundation of Wabtec   s success lies in our
value creation framework   one that is rooted in
a resilient installed base, a world-class team,
and groundbreaking technologies that address
the evolving needs of our customers. This year,
our performance demonstrated the stability of that
foundation. We delivered record results, strengthened our long-term outlook, and continued to
enhance the value we return to our shareholders.
2024 Financial Performance: A Record Year
Wabtec delivered another exceptional year, achieving
record sales, expanding margins, and driving strong
cash generation. Our total sales for 2024 reached
$10.39 billion, with a record $1.83 billion in cash from
operations. Our backlog stands at $22.3 billion,
providing continued visibility and confidence in our
momentum. Despite macroeconomic uncertainties,
we have also grown profitably - reflecting the
resilience of our business model and the critical
nature of the value we help unlock for our customers.
Earnings per diluted share reached $6.04 on a GAAP
basis, a 33.3% increase from 2023. On an adjusted
basis, EPS rose 27.7% to $7.56. We also made
significant progress in our Integration 2.0 and
portfolio optimization initiatives. Through disciplined
execution, we exited the year with $87 million in
run-rate savings, at the top-end of expectations,
thus setting the stage for continued efficiency gains
in 2025 and beyond.
Our capital deployment strategy remains focused on
maximizing long-term shareholder value. In 2024, we
returned $1.2 billion to shareholders through share
repurchases and dividends. Reflecting our strong
performance and confidence in Wabtec   s future, our
Board of Directors approved a 25% increase in our
2025 quarterly dividend and expanded our share
repurchase authorization by $1.0 billion.
Positioning for the Future: Our Next
Five-Year Plan
Three years ago, we outlined an ambitious five-year
plan to drive sustainable growth, enhance profitability, and maximize shareholder returns. I   m pleased to
report that we have largely achieved those goals in
just three years. This outperformance to plan positions us to redefine our targets for the future.
3

Our next five-year plan builds upon the same core
principles that have guided our success: disciplined
execution, innovation and customer-centric growth.
We expect to:
    Grow revenue faster than the industry,
targeting mid-single-digit organic growth.
    Expand margins by over 350 basis points
through operational efficiencies and delivering
increased value to our shareholders.
    Achieve double-digit EPS growth while
maintaining a cash conversion rate of over
90% through 2029.
Three key drivers will fuel this growth. First, the
underlying industry is positioned for continued
expansion, with increasing investments in
modernization and technology. Second, we have
significant opportunities with multiple customers
who are utilizing aging fleets and are seeking a
step-change in their operational efficiency. Lastly,
Wabtec   s innovative solutions will continue to
drive lifecycle value for customers, enhancing
performance and returns on investment.
To support these goals, we are launching our
Integration 3.0 and portfolio optimization initiatives.
Integration 3.0 will build on our prior success, further
simplifying and streamlining our global operations to
drive an additional $100 million to $125 million in
run-rate savings by 2028. Meanwhile, the next phase
of portfolio optimization will focus on sharpening our
strategic focus, reducing complexity and enhancing
profitability.
4
Creating Long-Term Value
For more than 155 years, Wabtec has been a
driving force in shaping the future of transportation.
Our legacy of innovation, coupled with an
unwavering commitment to execution, positions
us to deliver superior returns and create lasting
value for our shareholders.
As we enter the next phase of our journey, I am
more confident than ever in our ability to deliver
on our commitments. We have the strategy, the
technology, and   most importantly   the team to
achieve our ambitious goals in 2025 and beyond.
Thank you for your continued trust and partnership.
President and CEO



 4/3/2025 Letter Continued (Full PDF)