Wabtec Hosts 2022 Investor Day, Outlines Strategy for Long-Term Growth and Value Creation
March 09 2022 - 6:30AM
Business Wire
- Five-year financial targets include significant margin
expansion, above market growth, double-digit EPS growth, and strong
cash generation
- Announces next phase of integration with target of $75
million to $90 million benefit
- Disciplined capital allocation to maintain strong financial
position and drive higher return on invested capital
Wabtec Corporation (NYSE: WAB) is hosting its virtual 2022
Investor Day meeting today, beginning at 8 a.m. ET. During the
event, Wabtec leadership will provide updates on the industry and
the company’s five-year outlook, including its long-term growth
strategy, margin expansion drivers, and capital allocation plans.
Wabtec’s Investor Day meeting, along with the corresponding
presentation, can be accessed on the Investor Relations tab at
www.WabtecCorp.com.
“Wabtec is uniquely positioned to drive strong shareholder
returns as a result of our global installed base, strategic
investments in innovative and sustainable technologies,” said
Rafael Santana, Wabtec’s President and CEO. “These competitive
strengths, along with our commitment to margin expansion and robust
cash generation, will drive significant value for our shareholders.
Looking ahead, Wabtec is at the center of some of the industry’s
most critical trends, including zero-emission transportation,
automation, safety, and productivity. We are confident we have the
strategic focus, experienced team, and financial position required
to drive significant value creation for our employees and
shareholders.”
Five-Year Value Creation Framework
- Mid-single digits core organic growth CAGR
- Adjusted operating margin expansion of 250 to 300 basis
points
- Double-digit adjusted EPS growth CAGR
- Strong cash flow generation of greater than 90 percent
conversion driving disciplined capital deployment
Integration 2.0
Wabtec announced today the next phase of its restructuring plans
designed to further consolidate, streamline, and simplify Wabtec’s
operations and systems. Wabtec expects expenses of $135 million to
$165 million over the next three years to drive a targeted benefit
savings of $75 million to $90 million.
About Wabtec Corporation
Wabtec Corporation (NYSE: WAB) is focused on creating
transportation solutions that move and improve the world. The
company is a leading global provider of equipment, systems, digital
solutions and value-added services for the freight and transit rail
industries, as well as the mining, marine and industrial markets.
Wabtec has been a leader in the rail industry for over 150 years
and has a vision to achieve a zero-emission rail system in the U.S.
and worldwide. Visit Wabtec’s website at: www.WabtecCorp.com.
Information about Forward-Looking Statements
This communication 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,
including statements regarding the impact of acquisitions by
Wabtec, including the acquisition of GE Transportation (the “GE
Transportation merger”) and Nordco, statements regarding Wabtec’s
expectations about future sales and earnings, and statements about
the impact of evolving global conditions on Wabtec’s business. All
statements, other than historical facts, including statements
regarding synergies and other expected benefits from acquisitions;
statements regarding Wabtec’s plans, objectives, expectations and
intentions; and statements regarding macro-economic conditions and
evolving production and demand conditions; and any assumptions
underlying any of the foregoing, 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 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, (1)
unexpected costs, charges or expenses resulting from acquisitions,
including the GE Transportation merger; (2) uncertainty of Wabtec’s
expected financial performance; (3) failure to realize the
anticipated benefits of acquisitions, including the GE
Transportation merger, including as a result of integrating
acquired targets into Wabtec; (4) Wabtec’s ability to implement its
business strategy; (5) difficulties and delays in achieving revenue
and cost synergies; (6) inability to retain and hire key personnel;
(7) evolving legal, regulatory and tax regimes; (8) changes in
general economic and/or industry specific conditions, including the
impacts of tax and tariff programs, supply chain disruptions,
industry consolidation and changes in the financial condition or
operating strategies of our customers; (9) changes in the expected
timing of projects; (10) a decrease in freight or passenger rail
traffic; (11) an increase in manufacturing costs; (12) actions by
third parties, including government agencies; (13) the severity and
duration of the evolving COVID-19 pandemic and the resulting impact
on the global economy and, in particular, our customers, suppliers
and end-markets, (14) the imposition of economic sanctions on
Russia resulting from the invasion of Ukraine could lead to
disruption, instability, and volatility in global markets and
negatively impact our operations and financial performance; and
(15) other risk factors as detailed from time to time in Wabtec’s
reports filed with the SEC, including Wabtec’s annual report on
Form 10-K, periodic quarterly reports on Form 10-Q, periodic
current reports on Form 8-K and other documents filed with the SEC.
The foregoing list of important factors is not exclusive. Any
forward-looking statements speak only as of the date of this
communication. Wabtec does 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220309005302/en/
Wabtec Investor Contact Kristine Kubacki, CFA /
Kristine.Kubacki@wabtec.com / 412-450-2033
Wabtec Media Contact Deia Campanelli /
Deia.Campanelli@wabtec.com / 773-297-0482
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