Westinghouse Air Brake Technologies (Wabtec) Discloses Guarantor Financials for Senior Notes

Westinghouse Air Brake Technologies Corporation (NYSE: WAB) has released updated summarized financial information for itself and its wholly and unconditionally guaranteeing U.S. subsidiaries in compliance with SEC Rule 13-01, related to its outstanding Senior Notes due 2025, 2026, 2028, and 2034.

Key Entities:
The financials cover Wabtec (the Parent Company) and nine wholly owned U.S. subsidiaries acting as guarantors of the notes. Notably, GE Transportation (a guarantor) has 15,000 non-voting preferred shares held by General Electric.

Combined Financial Highlights:
For the three months ended March 31, 2025:
• Net Sales: $1.53 billion
• Gross Profit: $661 million
• Net Income: $33 million
For the year ended December 31, 2024:
• Net Sales: $5.95 billion
• Gross Profit: $1.80 billion
• Net Loss: $(104) million
As of March 31, 2025:
• Current Assets: $1.45 billion
• Noncurrent Assets: $3.50 billion
• Current Liabilities: $2.35 billion
• Long-term Debt: $2.96 billion
• Other Noncurrent Liabilities: $681 million

Transactions With Non-Guarantor Subsidiaries:
Q1 2025:
• Sales to Non-Guarantor Subsidiaries: $243 million
• Purchases from Non-Guarantor Subsidiaries: $267 million

Year 2024:
• Sales to Non-Guarantors: $875 million
• Purchases from Non-Guarantors: $1.17 billion

Amounts Due to Non-Guarantor Subsidiaries:
• $7.66 billion as of March 31, 2025
• $7.87 billion as of December 31, 2024

This data supports transparency for debt holders and provides insight into the financial relationship between Wabtec and its non-guarantor affiliates.

Westinghouse Air Brake Technologies Corporation Enters Amended Credit Agreement

Pittsburgh, Pennsylvania, — Westinghouse Air Brake Technologies Corporation (WAB), a leading provider of technology-based solutions for the transportation industry, has entered into an amended and restated credit agreement (the “A&R Credit Agreement”) as of April 23, 2025. This new agreement refinances existing credit facilities and introduces new financing options.

Key details of the agreement include:

Refinancing and Credit Expansion:

The A&R Credit Agreement amends and restates the previous delayed draw term loan and revolving credit agreement, originally established in June 2018.

The new agreement provides a $2.0 billion Revolving Credit Facility and a $725.0 million Term Loan Facility.

The Term Loan Facility refinances $250 million from the existing delayed draw term loans and $225 million from the previous term loans.

Incremental Facility Option:

The agreement permits adding incremental commitments, which can increase the revolving or term loan facility by up to $1.0 billion, subject to certain conditions.

Maturity and Interest Rate:

Both the Revolving Credit Facility and Term Loan Facility mature on April 23, 2030, five years from the closing date.

The interest rate for borrowings under the A&R Credit Agreement is determined based on the company’s leverage ratio and public credit rating. Interest rate spreads range between 1.000% to 1.750% for SOFR/RFR-based borrowings and 0.000% to 0.750% for Alternate Base Rate borrowings.

Financial Covenants:

The credit agreement includes customary affirmative and negative covenants, including restrictions on indebtedness, dividends, and certain transactions, subject to compliance with specific financial ratios.

Guarantees and Security:

The agreement is guaranteed by certain subsidiaries of the Company and is unsecured.

Westinghouse's obligations under the new credit agreement are supported by its subsidiaries and are subject to customary covenants and events of default, including a change of control clause.

Wabtec Q1 2025 Financial Results Summary

Wabtec Corporation reported a strong first quarter, with significant growth in earnings and profitability:

- GAAP diluted EPS rose 22.9% year-over-year to $1.88
- Adjusted diluted EPS increased 20.6% to $2.28
- Sales grew 4.5% to $2.61 billion
- GAAP operating margin was 18.2%; adjusted operating margin improved 1.9 percentage points to 21.7%
- Cash from operations was $191 million
- $141 million was returned to shareholders via dividends and share repurchases

- Adjusted full-year EPS mid-point raised by $0.10 to a new range of $8.35 to $8.95 due to performance strength but with a wider range to account for economic uncertainty

CEO Rafael Santana noted robust earnings growth and continued momentum across Freight and Transit segments. He emphasized strong international performance, particularly in higher-margin services and digital solutions. While the company remains cautious about the broader economic outlook, it is committed to disciplined execution.