Westinghouse Air Brake Technologies (WAB) CEO Rafael Santana on Q3 2022 Results - Earnings Call Transcript

Westinghouse Air Brake Technologies, Corp. (NYSE:WAB) Q3 2022 Earnings Conference Call November 1, 2022 8:30 AM ET

Company Participants

Kristine Kubacki - VP, IR

Rafael Santana - President & CEO

John Olin - CFO

John Mastalerz - VP, Finance

Conference Call Participants

Justin Long - Stephens

Jerry Revich - Goldman Sachs

Matt Elkott - Cowen

Scott Group - Wolf Research

Allison Poliniak - Wells Fargo

Felix Boeschen - Raymond James

Dillon Cumming - Morgan Stanley

Operator

Hello. And welcome, to the Wabtec's Third Quarter 2022 Earnings Conference Call. [Operator Instructions.] Please note, today's event is being recorded.

I now like to turn the conference over to your host today, Kristine Kubacki, Vice President of Investor Relations. Kris Kubacki, please go ahead.

Kristine Kubacki

Thank you, operator. Good morning, everyone and welcome to Wabtec's third quarter 2022 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 the Investor Relations tab on wabteccorp.com.

Some statements we're making are forward-looking and based on our best view of the world and business today. For more detailed risks, uncertainties and assumptions relating 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 third quarter, and progress on our long-term value framework, John will then cover the financials.

We delivered a strong third quarter, which is evidenced by strong sales growth and an increase in adjusted earnings per share. We achieved this despite significant headwinds including the loss of business in Russia, supply chain disruptions and negative FX. Sales were roughly $2 billion which was up 9% versus prior year. Revenue was driven by strong performance across the freight segment but partially offset by unfavorable FX. Strong cash flow from operations was $204 million which ranks year-to-date cash flow to $628 million. Overall, our financial position remains strong. We continue to invest our future growth reduced average and return cash for shareholders. Total multiyear backlog was $22.6 billion up $767 million year-over-year and excluding the headwinds from foreign exchange backlog was up $1.5 billion or up 7% from last year.