Westinghouse Air Brake Technologies Corporation (WAB) Q2 2023 Earnings Call Transcript

Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET

Company Participants

Kristine Kubacki - VP, IR

Rafael Santana - CEO, President & Director

John Olin - EVP & CFO

Conference Call Participants

Justin Long - Stephens Inc.

Robert Wertheimer - Melius Research

Allison Poliniak - Wells Fargo Securities

Jerry Revich - Goldman Sachs Group

Ivan Yi - Wolfe Research

Robert Barger - KeyBanc Capital Markets

Matthew Elkott - TD Cowen

Operator

Good morning, and welcome to Wabtec's Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

I would like to turn the call over to Ms. Kristine Kubacki, Vice President, Investor Relations. Please go ahead, ma'am.

Kristine Kubacki

Thank you, operator. Good morning, everyone, and welcome to Wabtec's Second Quarter 2023 Earnings Call. With us today are President and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalerz.

Today's slide presentation, along with our earnings release and financial disclosures were posted to our website earlier today and can be accessed on Investor Relations tab on wabteccorp.com. Some statements we're making are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties and assumptions related to our forward-looking statements, please see the disclosures in our earnings release and presentation.

We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics.

I will now turn the call over to Rafael.

Rafael Santana

Thanks, Kristine, and good morning, everyone. Let's move to Slide 4. I'll start with an update on our business, my perspectives on the quarter, and progress against our long-term value creation framework, and then John will cover the financials.

We delivered another strong quarter, evidenced by robust sales and earnings per share growth. We achieved these despite continued volatility and economic challenges. Sales were $2.41 billion, which was up 17.5% versus prior year. Revenue was driven by strong performance from both the Freight and Transit segments. Total cash flow from operations was $115 million. Overall, our financial position remained strong. We continued to execute against our capital allocation framework to maximize shareholder value by investing for the future growth, executing on the strategic M&A like our recent acquisition of L&M, and returning cash to shareholders.

The 12-month backlog was $7.2 billion, up 10%, signifying growing momentum and visibility across the business. The total multiyear backlog was $22.4 billion. Overall, the Wabtec team delivered a strong second quarter, marking a good first half of 2023.