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Wabtec® CORPORATION Wabtec Reports First Quarter 2021 Results ; Updates 2021 Guidance April 29 , 2021 • Delivered Strong Cash Flow from Operations of $ 292 Million • First Quarter Reported GAAP Earnings Per Share of $ 0.59 ; Adjusted EPS of $ 0.89 • Converted Key Long - term Orders , Strengthening Book - to - Bill • Expanded Into Global Maintenance of Way Market with Strategic Acquisition of Nordco • On - track to Deliver $ 250 Million Run - Rate of Synergies From GE Transportation Merger in 2021 PITTSBURGH -- ( BUSINESS WIRE ) -- Apr . 29 , 2021-- Wabtec Corporation ( NYSE : WAB ) today reported first quarter 2021 earnings per diluted share of $ 0.59 and adjusted earnings per diluted share of $ 0.89 , versus earnings per diluted share of $ 0.58 and adjusted earnings per diluted share of $ 0.97 a year ago . Total sales were $ 1.8 billion and cash from operations was strong at $ 292 million . " Wabtec had a strong operational quarter , " said Rafael Santana , Wabtec's president and chief executive officer . “ Our team continued to deliver for our customers , while driving significant cash generation and aggressively reducing costs . This solid execution , balanced with investments in high - return opportunities , like our recent strategic acquisition of Nordco , will continue to create value and drive strong returns for shareholders . " We are seeing continued signs of recovery happening across the global Freight and Transit rail markets . Freight volumes and equipment utilization are gradually improving , demand for freight aftermarket services is increasing , and sustainable investment in global transit remains strong . These directional trends , along with our backlog , strong cash flow and order pipeline position Wabtec to deliver profitable long - term growth . " First Quarter 2021 Financial Summary In the first quarter of 2021 , Wabtec had cash from operations of $ 292 million , sales of $ 1.8 billion and GAAP earnings per diluted share of $ 0.59 . Adjusted earnings per diluted share was $ 0.89 and excluded after - tax expenses of $ 0.06 for restructuring and transaction costs and $ 0.27 for non - cash amortization expense , offset by $ 0.03 for foreign currency gains ( see reconciliation table ) . Backlog improved sequentially driven by orders for modernizations , service agreements and Transit products . At March 31 , 2021 , Wabtec's total multi - year backlog was $ 21.7 billion , which was higher than at December 31 , 2020 as OEM and after - market orders increased in Freight . At March 31 , 2021 the 12 - month backlog was $ 5.7 billion which was $ 185 million higher than December 31 , 2020 . 2021 Financial Guidance • Wabtec updated its 2021 sales guidance to a range of $ 7.7 billion to $ 7.9 billion , GAAP earnings per diluted share guidance to between $ 2.80 to $ 3.05 and adjusted earnings per diluted share to between $ 4.05 to $ 4.30 . The adjusted guidance excludes estimated expenses for restructuring and amortization expenses . • With cost actions and synergies stemming from the Wabtec and GE Transportation merger on - track , we expect to achieve a run rate savings of $ 250 million in 2021 as well as margin expansion through continued cost actions . For full year 2021 , Wabtec expects strong cash flow generation with operating cash flow conversion greater than 90 % . 2021 First Quarter Consolidated Results • Sales were $ 1.8 billion versus $ 1.9 billion in the same period a year ago . The decrease compared to the year - ago quarter was primarily driven by lower sales in Freight Equipment , but partially offset by growth in Freight Services . • Income from operations was $ 192 million ( 10.5 percent of sales ) and adjusted income from operations was $ 277 million ( 15.1 percent of sales ) , which was unfavorably impacted by lower sales in Freight primarily due to lower deliveries of locomotives in North America offset somewhat by realization of synergies and cost actions . Adjusted income from operations excluded pre - tax expenses of $ 85 million , of which $ 70 million is for non - cash amortization expense and $ 16 million is for restructuring and transaction costs ( see reconciliation table ) . • Net interest expense was $ 48 million and the reported and adjusted effective tax rate for the quarter was 27.5 percent including certain discrete tax expenses of about $ 3 million during the quarter . • EBITDA , which Wabtec defines as earnings before interest , taxes , depreciation and amortization was $ 324 million and adjusted EBITDA was $ 340 million . Adjusted EBITDA excluded pre - tax expenses of $ 16 million for transaction and restructuring costs ( see reconciliation table ) . 2021 First Quarter Freight Segment Results • Freight segment sales of $ 1.2 billion decreased by 9 percent from the year - ago quarter . The decrease was due to lower organic sales of $ 115 million . Freight segment sales benefited from growth in Freight Services as result of higher modernizations , lower locomotive parking and higher utilization , as well as higher mining sales . This growth was offset by