Latest news with #OperatingMargin
Yahoo
7 hours ago
- Business
- Yahoo
H1 2025 Results: Increase in Operating Margin & Net Cash Flow, Transformation Underway, Guidance Confirmed
NANTERRE (FRANCE)JULY 28, 2025 H1 2025 RESULTS INCREASE IN OPERATING MARGIN & NET CASH FLOWTRANSFORMATION UNDERWAYGUIDANCE CONFIRMED STRICT COST AND CASH DISCIPLINE DRIVING IMPROVEMENT Organic growth of 1.1%, driven by Electronics and Seating. Operating margin up 20bps, supported by strict cost control, well-contained impact of US tariffs and the first benefits of the EU-FORWARD program. Net Cash Flow more than doubled vs H1 2024, driven by recurring elements: EBITDA increased by €127m and Capex and Capitalized R&D reduced by €232m. Net result penalized by non-cash financial assets depreciation related to SYMBIO. In €m H1 2025 H1 2024 Change Sales 13,477 13,534 -0.4% Organic growth (constant scope & currencies)Adj. EBITDAAs % of sales 1,76213.1% 1,63512.1% +7.8% Operating income 722 700 +3.1% As % of sales 5.4% 5.2%Net result, Group share (269) 5 - Net cash flow 418 201 +€217m Net debt/Adj. EBITDA ratio 1.8x 2.0x -20bps ORGANIZATIONAL TRANSFORMATION TO PROMOTE FURTHER ACCOUNTABILITY AND OPERATIONAL EXCELLENCE Design of a new division centric organization with clear lines of P&L responsibility to drive business performance. Launch of Simplify project to streamline organization and reduce indirect and structural costs; €110m cost base reduction target by 2028, backed by c.€150m restructuring costs over 2025–2028. CONFIRMED FULL-YEAR 2025 GUIDANCE Sales, operating margin, net cash flow, and leverage targets reiterated. Martin FISCHER, Chief Executive Officer of FORVIA, declared: "Our three key priorities — delivering performance, driving business transformation and invigorating our culture— shape our decisions and actions. The quality of our first-half results demonstrates the remarkable commitment of our teams and our strong focus on these priorities. This performance, together with the rising outcomes of self-help measures and the continued strict cost and cash control, enables us to confirm our full-year guidance in a challenging and volatile environment. It also further supports our primary objective of debt reduction. In the first half, we launched major initiatives that underpin our strategic shift. We are streamlining our operating model into a division-centric structure that enhances agility, accelerates decision-making and fosters accountability. Meanwhile, the SIMPLIFY project is building a leaner organization, generating additional cost savings. At the same time, we are transforming our business portfolio through a thorough strategic review of each business group and all product lines, while actively pursuing asset disposals. We will present our strategy and mid-term financial goals at our Capital Market Day on February 24, 2026.' H1 2025 FINANCIAL RESULTS (detailed analysis in Appendices) H1 2025 Group consolidated sales and operating income GROUP (in €m) H1 2024 Currency effect Organic growth H1 2025 Reported change Sales13,534 -205 +148 13,477 -57 -1.5% -0.4% Operating income 700 722 +3.1% As a % of sales 5.2% 5.4% +20bps In H1 2025, worldwide auto production rose by 3.1%, to 44.9 million LVs (S&P Mobility July estimate). Strong growth in Asia (+7.8%) more than offset volume decline in EMEA (-3.1%) and Americas (-2.4%). These regional variations represented an unfavorable geographic mix of close to 4 points for FORVIA. H1 2025 organic growth stood at +1.1% of last year's sales: Product sales organic growth at +2.9% were in line with market volume growth, driven by Electronics, Seating and Interiors. Tooling sales were exceptionally high in the first half of 2024. Excluding the unfavorable geographic mix, organic growth represented an outperformance of 2 points, driven by Europe and Asia excluding China. The currency effect represented a negative impact of €205 million on sales (-1.5%), that started to materialize in Q2. H1 2025 consolidated operating income of €722 million, up 20bps at 5.4% of sales. Margin development was supported by improvement in Seating, Electronics and Interiors. Tariffs had no material impact thanks to effective counter measures. The year-on-year increase in operating income to €722 million in H1 2025, mainly reflected: Increased flexibility in production costs and reduction in operating costs (hiring freeze, travel restrictions, marketing expenses cut…), The first benefits of the EU-FORWARD program which contributed to the 100bps margin expansion of EMEA to 4.1% of sales, and synergies with FORVIA HELLA, for a combined amount of €65 million, and despite: Volume effect and operational challenges in the North American Interiors and Lighting businesses, A negative currency impact of €20 million. H1 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in €m H1 2025 H1 2024 Change Sales 13,477 13,534 Operating income before PPA 722 700 Purchase Price Allocation -92 -93Restructuring -248 -222 -26 Other non-recurring operating income and expense -16 -43 +27 Net financial interest -236 -250 +14 Other financial income and expense -72 79 -151 Income before tax of fully consolidated companies 59 171 -112 Income taxes -124 -59 -65 Share of net income of associates -154 -12 -142 Consolidated net income before minority interest -219 100 -319 Minority interest -50 -95 +45 Consolidated net income, Group share -269 5 -274 The consolidated net income, Group share, was a net loss of €269 million in H1 2025, penalized by €136 million non-cash financial asset depreciation related to SYMBIO joint venture, while the €5 million profit generated in H1 2024 included a capital gain on disposal of €134 million. It also reflected: Restructuring expenses The rapid pace of deployment of the EU-FORWARD program explains the high level of restructuring costs. The new operations in H1 2025 accounted for around 2,100 announced job cuts. With a total of 2,900 reductions in 2024, EU-FORWARD has already achieved half of its original target of 10,000 cuts, ahead of schedule. Net financial interest Net financial interest represented a charge of €236 million, an improvement of €14 million vs. H1 2024, notably reflecting impact of lower interest rates on floating-rate debt. Other financial income and expenses H1 2024 financial income included €134 million in capital gains realized by FORVIA HELLA from the sale of its stake in BHTC to AUO Corporation in China. Share of net income of associates: SYMBIO SYMBIO is a French company specializing in hydrogen systems for vehicles, jointly held by FORVIA, Michelin and Stellantis. Mid July 2025, Stellantis announced the termination of its hydrogen fuel cell technology development program, a decision with major implications for SYMBIO, which relies on the carmaker for over 80% of its business serious operational and financial risks for SYMBIO's future, FORVIA booked a non-cash depreciation of the financial assets related to the joint venture, consolidated under equity method, for €136 million. H1 2025 CONSOLIDATED CASH FLOW STATEMENT in €m H1 2025 H1 2024 Change Operating income 722 700 +22 Depreciation and amortization 1,040 935 +105 Adj. EBITDA 1,762 1,635 +127 Capex -274 -419 +145 Capitalized R&D -420 -507 +87 Change in WCR including factoring -24 97 -121 Restructuring -109 -90 -19 Other (operational) -27 -52 +25 Financial expenses -269 -289 +20 Taxes -221 -175 -46 Net cash flow 418 201 +217 Net cash flow increased by 108% to €418 million, with a quality improvement reflecting three recurring elements: The increase of the EBITDA that stood at 13.1% of sales, up 100bps vs. H1 2024, The 35% reduction of Capital expenditure, primarily in Europe, The 17% decrease of Capitalized R&D, essentially driven by the 11% reduction of Gross R&D (-€130 million). Change in working capital and factoring represented an outflow of €24 million, resulting from: a limited cash-out (€92 million) from working capital, with controlled inventories and net outflows from account receivables and payables, a €68 inflow from factoring to anticipate collection of tariffs recovery in the US. Amount of receivables factoring was kept below €1.3 billion at June 30, 2025. The year-on-year increase in tax cash-out mainly reflects the €68 million withholding tax refund received in H1 2024, linked to the extraordinary dividend from FORVIA HELLA received in 2023. After dividends paid to minorities (€56 million), new leases contracted (€72 million, reduced by 42%) and €90 million of other flows (mainly on change in currencies), net financial debt at June 30, 2025 was reduced by 193 million vs December 31, 2024 and stood at €6,430 million. Net debt/Adj. EBITDA ratio stood at 1.8x at June 30, 2025, vs. 2.0x at December 31, 2024. GROUP DEBT MATURITY Improved debt profile through active refinancing since the start of 2025 Since the start of the year and to date, the Group has successfully issued cumulated amount of c. €1.7 billion of new debt instruments, essentially maturing in 2030. New issuances reflected enhanced diversification of sources (Euro bond market, inaugural bond on the USD and c.€220 million of Schuldschein notes issued in July 2025). These proceeds were used to buy back 2026 maturities, now mostly cleared like the 2025 ones, as well as a portion of 2027 maturities. In parallel, the Group extended from June 2027 to June 2028 the maturity of a €650m bank loan. In all, these transactions allowed FORVIA to extend its average debt maturity1, now of 3.3 years compared to 3.1 at end of 2024. Gross debt was reduced by €321 million to €10,802 million at June 30, 2025 and gross cash by €128 million to 4,372 million. OTHER H1 2025 HIGHLIGHTS Business transformation and deleveraging We have been conducting a comprehensive review of the portfolio to prioritize leadership positions per product line over overall size. It includes an analysis across the 6 business groups and 24 product lines of the Group, to identify higher synergies, simplify scopes, and discontinue certain activities. In particular, it was decided to reduce the cash burn of the hydrogen activities while maintaining their long-term strategic importance. Concurrently, disposal processes have progressed, with the number of eligible assets revised upward and sizeable disposal processes on going. Major initiatives to boost agility and performance through a highly efficient organization The automotive industry is navigating a complex and fast-evolving environment, demanding greater agility and responsiveness. To support its profound transformation, the Group initiated two strategic projects to lead change effectively. The organization model is being transformed, with a clear P&L reporting structure defined. The new setup is division-centric, promoting higher levels of accountability and empowerment across teams. Through the SIMPLIFY Project, the Group aims to reinvent its ways of working across SG&A and indirect operations. It conducted a thorough benchmarking exercise to identify areas for improvement, leading to the definition of key structural levers, such as eliminating non-essential tasks, automating transactional activities with GenAI, and optimizing organizational design. The project ambition is to reduce the cost baseline by 110 million euros by 2028, supported by restructuring costs of c.150 million euros over 2025–2028. Order intake In H1 2025, FORVIA recorded order intake of €14 billion, compared to €15 billion in H1 2024, reflecting delayed tenders, notably in North America in the context of new tariffs imposed by the US administration. This order intake continued to demonstrate solid momentum in Electronics and in China: Electronics accounted for 34% of the total order intake Asia represented 36%, including 30% from China H2 2025 OUTLOOK AND 2025 FULL-YEAR GUIDANCE CONFIRMED The Group anticipates the production environment to remain volatile and uncertain. Based on S&P Mobility July estimates, the automotive market production is expected to reach 45 million LVs in H2 2025, slightly above H1 would represent a drop by 2.2% vs. H2 2024, with all main regions being impacted, including China. The geographic mix that was strongly unfavorable in H1 (-4 pts) is expected to level off. To preserve its performance, the Group will maintain rigorous cost control and disciplined cash management. It will also benefit from higher savings related to the EU-FORWARD program. Therefore, taking into account the tariffs enacted to date, the Group confirms its 2025 full-year guidance*: Sales between €26.3bn and €27.5bn, at constant exchange rates** Operating margin between 5.2% and 6.0% of sales Net Cash-flow ≥2024 level (i.e. 655M€) Net debt/Adjusted EBITDA ratio ≤1.8x at December 31, 2025 on a organic basis*** Beyond this organic deleveraging target, the Group is committed to restore a solid balance sheet with the objective of reducing Net debt/Adjusted EBITDA ratio below 1.5x in 2026, supported by disposals. *The guidance assumes no other major disruption materially impacting production or retail sales in any major automotive region during the year** 2024 average exchange rates: EUR/USD = 1.08, EUR/CNY = 7.79***With no net contribution from asset disposals FINANCIAL CALENDAR October 20, 2025 Q3 2024 sales announcement (before market hours) February 24, 2026 FY 2025 results announcement (before market hours) Capital Market Day A webcasted conference call will be held today at 09:00am (CET). If you wish to follow the presentation using the webcast, please access the following link: A replay will be available as soon as possible. You may also follow the presentation via conference call: France +33 1 70 91 87 06 United Kingdom +44 (0) 207 107 06 13 United States 1 (1) 631 570 56 13 PRESS ANALYSTS/INVESTORS Christophe MALBRANQUEGroup Media Relations Director+33 (0) 6 21 96 23 Adeline MICKELERGroup Head of Investor Relations+33 (0) 6 61 30 90 Sébastien LEROYDeputy Head of Investor Relations +33 (0) 6 26 89 33 About FORVIA, whose mission is: 'We pioneer technology for mobility experiences that matter to people'. FORVIA, a global automotive technology supplier, comprises the complementary technology and industrial strengths of Faurecia and HELLA. With around 250 industrial sites and 78 R&D centers, over 150,000 people, including more than 15,000 R&D engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow. Composed of 6 business groups and a strong IP portfolio of over 13,000 patents, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. In 2024, the Group achieved a consolidated revenue of 27 billion euros. FORVIA SE is listed on the Euronext Paris market under the FRVIA mnemonic code and is a component of the CAC SBT 1.5° index. FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen. APPENDICES H1 SALES AND OPERATING MARGIN BY BUSINESS GROUPS Sales In €m H1 2025 H1 2024 Change Organic Change SEATING 4,305 4,197 +2.6% +3.7% ELECTRONICS 2,286 2,091 +9.3% +10.0% INTERIORS 2,497 2,557 -2.3% +0.1% LIGHTING 1,849 1,968 -6.1% -5.5% CLEAN MOBILITY 2,043 2,191 -6.8% -4.2% LIFECYCLE SOLUTIONS 497 530 -6.2% -3.2% GROUP 13,477 13,534 -0.4% +1.1% Organic growth was mostly driven by Electronics and Seating: Sales in Seating benefited from robust dynamic in China, especially with BYD and Chery. Europe recorded mid-single digit growth supported by BMW (frames and complete seats) and Renault (Master and 5 E-Tech), Sales in Electronics rose double-digit with solid growth in all regions. Sales were mostly driven by Japanese OEMs in Asia, by VW and Stellantis in Europe and GM in North America, Interiors: Organic sales were flat, penalized by strong comparable on tooling sales in North America and Europe. Sales in China rose at double-digit, supported by ramp up of programs with BYD, Lighting business was penalized by discontinuation of programs, Clean Mobility were down mid-single digit, notably penalized by the disposal of Hug Engineering. Sales were almost flat in Q2, supported by solid performance in North America (high single digit growth) where activity was lifted by Ford, Lifecycle Solutions activity was penalized by overall low level of its customer investments. Operating income In €m H1 2025 H1 2024 Change SEATING 239 194 +23.0% % of sales 5.5% 4.6% +0.9 pt ELECTRONICS 142 122 +17.0% % of sales 6.2% 5.8% +0.4 pt INTERIORS 48 37 +29.5% % of sales 1.9% 1.4% +0.5 pt LIGHTING 81 99 -17.8% % of sales 4.4% 5.0% -0.6 pt CLEAN MOBILITY 167 187 -10.5% % of sales 8.2% 8.5% -0.3 pts LIFECYCLE SOLUTIONS 45 62 -27.6% % of sales 9.1% 11.7% -2.6 pts GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Group operating margin expansion in H1 2025 was supported by noticeable margin improvement at Seating, Interiors and Electronics: Operating margin expanded by 90 bps at Seating, benefiting from operating leverage in Europe and China, Operating margin improved by 40 bps in Electronics, driven by further catch-up of Clarion activities and on-going improvement of HELLA's activities, Profitability was up 50 bps at Interiors, with more than 100 bps expansion in Europe but with some underperforming plants in North America, Lighting profitability was penalized by missing volumes and operational difficulties in North America but improved in Europe, Clean Mobility maintained a high-quality margin of 8.2% despite sales decline. Operating margin was around 10% excluding hydrogen activities. Lifecycle Solutions profitability suffered from an unfavorable product mix H1 SALES AND OPERATING MARGIN BY REGIONS Sales In €m H1 2025 H1 2024 Change Organic Change Currency change Perf vs. auto prod EMEA 6,570 6,518 +0.8% +1.6% -0.8% +5 pts o/w Europe 6,421 6,353 +1.1% +1.9% -0.8% +6 pts AMERICAS 3,499 3,686 -5.1% -2.4% -2.7% - o/w North America 3,116 3,283 -5.1% -4.0% -1.1% - ASIA 3,408 3,331 +2.3% +4.0% -1.7% -4 pts o/w China 2,563 2,566 -0.1% +1.5% -1.6% -10 pts o/w Rest of Asia 845 764 +10.6% +12.5% -2.0% +10 pts GROUP 13,477 13,534 -0.4% +1.1% -1.5% -2 pts FORVIA recorded outperformance in all regions but China in H1: EMEA: In a market declining by 4% (S&P Mobility July estimate), sales in Europe ex. Russia recorded positive organic growth of 1.9%, showing 6 points of outperformance, driven by Seating, Electronics and Lighting, Americas: in North America, in a market down by 4.1%, product sales (excluding tooling sales that stood at a high level in H1 2024) dropped by only 2%, slightly outperforming the market, notably supported by Electronics and Clean Mobility, Asia: China recorded organic growth of 1.5%, supported by double-digit growth with Chinese OEMs, but underperformed the market. In the Rest of Asia, growth of 12.5% represented an outperformance of 10 points. Operating income In €m H1 2025 H1 2024 Change EMEA 268 202 +32.9% % of sales 4.1% 3.1% +1 pt AMERICAS 122 166 -26.4% % of sales 3.5% 4.5% -1 pt ASIA 331 332 -0.3% of sales 9.7% 10.0% -0.3 pt GROUP 722 700 +3.1% % of sales 5.4% 5.2% +0.2 pt Operating margin evolution were contrasted by region: EMEA: Operating margin was up 100 bps where the execution of EU-FORWARD yielded first significant results, Americas: profitability was penalized by underperformance in North America on missing volumes and operational challenges at Interiors and Lighting, Asia maintained an operating margin close to double digit reflecting strong progress in Rest of Asia and light decline in China. Q2 SALES BY BUSINESS GROUPS AND REGIONS By Business Groups In €m Q2 2025 Q2 2024 Change Organic Change SEATING 2,152 2,221 -3.1% -0.3% ELECTRONICS 1,142 1,081 +5.6% +7.9% INTERIORS 1,280 1,361 -5.9% -1.4% LIGHTING 914 975 -6.2% -4.1% CLEAN MOBILITY 1,041 1,109 -6.1% -1.0% LIFECYCLE SOLUTIONS 246 256 -4.0% +0.6% GROUP 6,775 7,003 -3.3% +0.1% By RegionsQ2 2025 Q2 2024 Change Organic Change Currency change Perf vs. auto prod (bps) EMEA 3,330 3,383 -1.6% -0.3% -1.3% +2 pts o/w Europe 3,252 3,294 -1.3% -0.1% -1.2% +2 pts AMERICAS 1,766 1,904 -7.2% -1.1% -6.2% +1 pt o/w North America 1,561 1,692 -7.8% -2.9% -4.9% - ASIA 1,679 1,716 -2.1% +2.4% -4.5% -4 pts o/w China 1,259 1,320 -4.6% +0.4% -5.0% -9 pts o/w Rest of Asia 420 396 +5.9% +8.9% -3.0% +7 pts GROUP 6,775 7,003 -3.3% +0.1% -3.4% -2 pts DISCLAIMER This presentation contains certain forward-looking statements concerning FORVIA. Such forward-looking statements represent trends or objectives and cannot be construed as constituting forecasts regarding the future FORVIA's results or any other performance indicator. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate," "expect," "anticipate," "project," "plan," "intend," "objective", "believe," "forecast," "foresee," "likely," "may," "should," "goal," "target," "might," "would,", 'will', "could,", "predict," "continue," "convinced," and "confident," the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, financial projections and estimates and their underlying assumptions including, without limitation, assumptions regarding present and future business strategies (including the successful integration of HELLA within the FORVIA Group), expectations and statements regarding FORVIA's operation of its business, and the future operation, direction and success of FORVIA's business. Although FORVIA believes its expectations are based on reasonable assumptions, investors are cautioned that these forward-looking statements are subject to numerous various risks, whether known or unknown, and uncertainties and other factors, all of which may be beyond the control of FORVIA and could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties and other factors, please refer to public filings made with the Autorité des Marchés Financiers ('AMF'), press releases, presentations and, in particular, to those described in the chapter 2."Risk factors & Risk management' of FORVIA's 2024 Universal Registration Document filed by FORVIA with the AMF on March 7, 2025 under number D. 24-0080 (a version of which is available on Subject to regulatory requirements, FORVIA does not undertake to publicly update or revise any of these forward-looking statements whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is not a guarantee of future performance. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice. The historical figures related to HELLA included in this presentation have been provided to FORVIA by HELLA within the context of the acquisition process. These historical figures have not been audited or subject to a limited review by the auditors of FORVIA. FORVIA HELLA remains a listed company. For more information on FORVIA HELLA, more information is available on This presentation does not constitute and should not be construed as an offer to sell or a solicitation of an offer to buy FORVIA securities. DEFINITIONS OF TERMS USED IN THIS DOCUMENT Sales growth FORVIA's year-on-year sales evolution is made of three components: A 'Currency effect', calculated by applying average currency rates for the period to the sales of the prior year, A 'Scope effect' (acquisition/divestment), And 'Growth at constant currencies'. As 'Scope effect', FORVIA presents all acquisitions/divestments, whose sales on an annual basis amount to more than €250 million. Other acquisitions below this threshold are considered as 'bolt-on acquisitions' and are included in 'Growth at constant currencies'. In 2021, there was no effect from 'bolt-on acquisitions'; as a result, 'Growth at constant currencies' is equivalent to sales growth at constant scope and currencies also presented as organic growth. Operating income Operating income is the FORVIA group's principal performance indicator. It corresponds to net income of fully consolidated companies before: Amortization of intangible assets acquired in business combinations. Other non-recurring operating income and expense, corresponding to material, unusual and non-recurring items including reorganization expenses and early retirement costs, the impact of exceptional events such as the discontinuation of a business, the closure or sale of an industrial site, disposals of non-operating buildings, impairment losses recorded for property, plant and equipment or intangible assets, as well as other material and unusual losses. Income on loans, cash investments and marketable securities; Finance costs. Other financial income and expense, which include the impact of discounting the pension benefit obligation and the return on related plan assets, the ineffective portion of interest rate and currency hedges, changes in value of interest rate and currency instruments for which the hedging relationship does not satisfy the criteria set forth in relationship cannot be demonstrated under IFRS 9, and gains and losses on sales of shares in subsidiaries. Taxes. Adjusted EBITDA In compliance with the ESMA (European Securities and Markets Authority) regulation, the term 'Adjusted EBITDA' has been used since January 1, 2022. Net cash flow Net cash flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets, and new or extended leases. Repayment of IFRS 16 debt is not included. Net financial debt Net financial debt is defined as follow: Gross financial debt less cash and cash equivalents and derivatives classified under non-current and current assets. It includes the lease liabilities (IFRS 16 debt). 1 Excluding commercial paper, leases and overdraft Attachment 2025 07 28 FORVIA H1 2025 RESULTS PR_ENError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Moog Inc (MOG.A) Q3 2025 Earnings Call Highlights: Record Sales and Strategic Growth Amid ...
Sales: $971 million, up 7% from last year's third quarter. Commercial Aircraft Sales: $219 million, increased 16% year-over-year. Space and Defense Sales: $288 million, up 11% from the previous year. Military Aircraft Sales: $225 million, up 8% year-over-year. Industrial Sales: $240 million, down 4% due to divestitures. Adjusted Operating Margin: 13.6%, up 130 basis points from the prior year. Commercial Aircraft Operating Margin: 14.9%, up 180 basis points. Industrial Operating Margin: 13.5%, up 180 basis points. Space and Defense Operating Margin: 14.1%, up 140 basis points. Military Aircraft Operating Margin: 11.6%, down 30 basis points. Adjusted Earnings Per Share: $2.37, up 24% from last year's third quarter. Free Cash Flow: $93 million, with over 120% free cash flow conversion. Leverage Ratio: 2.4 times at the end of the third quarter. Updated Sales Guidance: $3.8 billion, an $80 million increase from previous guidance. Projected Operating Margin: 12.8%, down 20 basis points due to tariff pressures. Projected Adjusted Earnings Per Share: $8.25, plus or minus $0.10. Free Cash Flow Conversion Guidance: Moderated to a 30% to 50% range. Warning! GuruFocus has detected 4 Warning Signs with UVE. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Moog Inc (NYSE:MOG.A) delivered record sales and adjusted earnings per share, reflecting strong financial performance. The company achieved a record 12-month backlog, indicating robust demand and future revenue potential. Moog Inc (NYSE:MOG.A) reported strong growth in key areas such as commercial aftermarket, satellite components, missiles, defense components, and new military aircraft programs. The company successfully mitigated some of the tariff impacts through strategic actions, including price adjustments and leveraging trade agreements. Moog Inc (NYSE:MOG.A) acquired COTSWORKS defense components business, enhancing its optoelectronics capabilities and expanding its product portfolio. Negative Points Moog Inc (NYSE:MOG.A) faced significant tariff pressures, particularly on steel and aluminum imports, impacting operating margins. The company had to take $20 million in charges related to product development termination, facility closures, and investment impairments. Free cash flow conversion guidance was lowered due to increased working capital needs, primarily in inventories and receivables. There were disruptions and delays in certain business jet and narrow-body programs, affecting sales in the commercial aircraft segment. The company experienced pressure on operating margins in the military aircraft segment due to increased R&D investments and sales mix. Q & A Highlights Q: What led to the revision of Moog's free cash flow conversion guidance to 30%-50% from the previous 50%? Does this include the tax benefit for the year? A: Jennifer Walter, CFO, explained that the revision is due to increased sales and operating performance, which necessitated more working capital, particularly in physical inventories and billed receivables. The tax benefit from recent legislation will impact FY '26, not FY '25. Q: What is driving the increase in inventory, and is it related to tariffs or supply chain uncertainties? A: Jennifer Walter clarified that the inventory build is not related to tariffs or uncertainties but is to support the higher sales levels. The company is preparing for increased demand and is managing inventory through planning and sourcing activities. Q: How does Moog expect to benefit from the increased defense budget and NATO spending targets? A: Patrick Roche, CEO, stated that Moog is well-positioned to benefit from the increased defense spending due to its alignment with prioritized areas such as missile systems and hypersonics. The company expects strong growth and increased demand, particularly in its missile business. Q: Can Moog mitigate tariff impacts through pricing strategies in new contracts? A: Aaron Astrachan, Director of Investor Relations, noted that Moog has revised its pricing approach over the past few years to ensure value delivery. The company is actively working to pass through cost increases due to tariffs where possible, with some price adjustments expected to take effect in Q4. Q: What is driving the strength in Moog's Industrial business, and is it expected to continue? A: Patrick Roche highlighted that the industrial business is resilient, with stable book-to-bill ratios and growth in industrial automation and medical segments. The medical segment, in particular, is experiencing steady growth and increased market share. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
Halliburton Reports Q2 Revenue Drop
Key Points Revenue reached $5.51 billion, topping analyst estimates by 1.7%. Operating margin dropped to 13% in Q2 2025. Free cash flow fell to $582 million for Q2 2025, compared to $999 million in Q2 2024. These 10 stocks could mint the next wave of millionaires › Halliburton (NYSE:HAL), one of the world's largest oilfield services providers, released its results for the second quarter of fiscal 2025 on July 22, 2025. The main news from the report was a revenue beat, with the company posting $5.51 billion in GAAP revenue for Q2 2025—1.7% above expectations. Adjusted earnings per share (EPS) landed at $0.55, almost exactly matching consensus. However, the quarter highlighted fresh margin pressures and signaled a more cautious outlook for the oilfield services market ahead, underscored by management statements about subdued demand. Overall, the period showed modest operational progress but also underscored ongoing challenges in profitability. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change Adjusted EPS $0.55 $0.55 N/A N/A Revenue $5.51 billion $5.41 billion $5.83 billion (5.5%) Operating Margin 13% 17.7% (4.5 pp) Free Cash Flow $582 million $999 million (41.7%) Net Income $472 million $709 million (33.4%) Source: Halliburton. Note: Analysts' consensus estimates for the quarter provided by FactSet. "pp" = percentage points. Business Overview and Strategic Priorities Halliburton operates in more than 70 countries, providing oilfield services and products to companies that explore, develop, and produce oil and natural gas. Its core offerings fall into two segments: Completions & Production (C&P) and Drilling & Evaluation (D&E). C&P includes services and equipment for well completion, hydraulic fracturing, and artificial lift, while D&E covers drilling, wireline, and reservoir evaluation technologies. The company's performance relies heavily on global demand for oil and gas, which shapes customer spending on drilling and production projects. To remain competitive, Halliburton has focused on digital transformation, international revenue growth, technological advancements, and returning capital to shareholders. Capital efficiency—keeping capital expenditures near 6% of revenue in 2024— and investments in innovation and sustainability are top priorities. Management has also expanded Halliburton Labs, its clean energy incubator, to target the transition toward sustainable energy. Quarterly Highlights: Financial Results and Operating Developments Revenue (GAAP) for Q2 2025 came in above expectations. However, that headline number masked underlying softness, as total revenue dropped 5.5% compared to the second quarter of 2024. Net income (GAAP) was $204 million, compared to $606 million in the first quarter of 2024, a decrease of 66.3%. The results reflected pricing and utilization pressures within the company's major divisions. Completions & Production, a segment known for its pressure pumping and well completion tool offerings, generated $3.17 billion in GAAP revenue in Q2 2025 (down 8% compared to the prior year). Operating income for the segment was $513 million, a decrease of 3% compared to the first quarter of 2025, driven mainly by lower pricing for stimulation services in the U.S. and decreased activity in the Middle East. Notably, margin pressure was attributed to customer pricing trends and a reduction in North American artificial lift activity, which involves equipment used to enhance oil extraction rates from wells. The Drilling & Evaluation segment reported GAAP revenue of $2.34 billion for Q2 2025 (down 3.8% compared to the second quarter of 2024.). The segment's operating income (GAAP) decreased 11% to $312 million, compared to the first quarter of 2025, with operating margin for the segment at 13%. The main factors cited were a global dip in software sales, lower wireline activity—where electrical tools are lowered into wells to gather reservoir information—and higher mobilization costs as new international contracts began. North America revenue totaled $2.26 billion (GAAP), down 9.0% compared to the second quarter of 2024, held flat sequentially by offsetting trends: stronger U.S. land cementing contrasted by softer Gulf of America activity and less artificial lift demand. Within regions, Latin America's GAAP revenue was $977 million, down 11% compared to Q2 2024. Europe/Africa/CIS posted revenue of $820 million, an increase of 8% compared to the second quarter of 2024, lifted by new projects in Norway. The Middle East and Asia region had revenue of $1,454 million, down 2.9% compared to Q2 2024, primarily due to lower activity levels in Kuwait and Saudi Arabia. On the technology front, Halliburton marked several milestones. It launched EarthStar 3DX, a new resistivity service providing 3D geological insights up to 50 feet ahead of the bit in horizontal wells. The company also debuted fully automated surface and subsurface drilling, partnering with Nabors Industries to automate drilling in Oman. In completions, a closed-loop hydraulic fracturing system was rolled out with Chevron U.S.A, adding automation and real-time feedback to enhance well performance. There were no major one-time charges announced in the quarter. Ongoing SAP S4 migration expenses, related to overhauling the company's enterprise software systems, were reported at $32 million. Another notable investment was a $345 million outlay to boost ownership in VoltaGrid, a distributed power solutions company. Total capital expenditures were $354 million, keeping with Halliburton's commitment to capital discipline. Halliburton returned $250 million to shareholders through share repurchases and paid a $0.17 per share quarterly dividend, mirroring the prior period's payout. The company continues to emphasize both buybacks and dividends as core elements of its capital return framework. Looking Ahead: Guidance and Investor Focus Management's outlook has become more cautious, warning of 'softer than previously expected' demand in the global oilfield services sector over the coming months. Management did highlight ongoing risks, including further volatility in oil and gas prices, delay or softness in customer spending, and uncertainties in key international markets such as Mexico and the Middle East. Potential impacts from recent tariffs could affect earnings in future quarters; the longer-term impacts are to be quantified as conditions evolve. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,040%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025
National Post
4 days ago
- Business
- National Post
Wabtec Reports Second Quarter 2025 Results; Raises Adjusted EPS Guidance
Article content GAAP Operating Margin at 17.4%; Adjusted Operating Margin Up 1.8 pts to 21.1% Article content Article content Strong 12-month backlog growth of 11.9%; Sales Growth of 2.3% to $2.71 billion, adversely impacted by timing of locomotive shipments Article content Raises 2025 Adjusted Diluted Earnings Per Share range to $8.55 – $9.15 driven by first half performance, M&A, and focus on prudent cost management Article content PITTSBURGH — Wabtec Corporation (NYSE: WAB) today reported second quarter 2025 GAAP earnings per diluted share of $1.96, up 19.5% versus the second quarter of 2024. Adjusted earnings per diluted share were $2.27, up 15.8% versus the same quarter a year ago. Second quarter sales were $2.71 billion and cash from operations was $209 million. 'The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double digit earnings per share growth,' said Rafael Santana, Wabtec's President and CEO. Article content 'With the first half of the year complete, we remain focused on executing our priorities for the second half. Demand across our end markets and our pipeline of opportunities continues to be strong, with significant activity underway in key businesses. Article content 'Alongside the strength of our core business, I am especially proud of our year to date progress on M&A. We have committed $3.5 billion to investments that are expected to create immediate value for Shareholders, with projected accretive growth profiles, higher adjusted EBITDA margins, increased adjusted EPS in the first year, and improving ROIC over time. Article content 'While the broader economic environment remains uncertain, we are committed to maintaining discipline and taking the necessary actions to achieve our goals.' Article content 2025 Second Quarter Consolidated Results Article content Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Second Quarter 2025 2024 Change Net Sales $ 2,706 $ 2,644 2.3 % GAAP Gross Margin 34.7 % 33.0 % 1.7 pts Adjusted Gross Margin 34.8 % 33.3 % 1.5 pts GAAP Operating Margin 17.4 % 16.3 % 1.1 pts Adjusted Operating Margin 21.1 % 19.3 % 1.8 pts GAAP Diluted EPS $ 1.96 $ 1.64 19.5 % Adjusted Diluted EPS $ 2.27 $ 1.96 15.8 % Cash Flow from Operations $ 209 $ 235 $ (26 ) Operating Cash Flow Conversion 46 % 57 % Article content Sales increased 2.3% compared to the year-ago quarter driven by higher sales in the Transit segment partially offset by lower Equipment sales. Freight revenue was adversely impacted by lower locomotive deliveries than expected due to a supplied part issue. Article content GAAP operating margin was higher than the prior year at 17.4%, and adjusted operating margin was higher than the prior year at 21.1%. Both GAAP and adjusted operating margins benefited from higher sales and improved gross margins. Article content GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales, operating margin expansion and benefits from share repurchases. Article content 2025 Second Quarter Freight Segment Results Article content Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2025 2024 Change Net Sales $ 1,919 $ 1,920 (0.1 )% GAAP Gross Margin 36.3 % 34.8 % 1.5 pts Adjusted Gross Margin 36.4 % 35.1 % 1.3 pts GAAP Operating Margin 21.6 % 20.4 % 1.2 pts Adjusted Operating Margin 25.0 % 24.1 % 0.9 pts Article content Freight segment sales for the second quarter were largely flat compared to the year ago quarter. Services sales were up 6.0% due to higher parts sales and modernization deliveries; however, this was largely offset with the impact of lower locomotive deliveries in the quarter due to a supplied part issue and lower mining sales. These deliveries are expected to shift to the 2nd half of 2025. Article content GAAP operating margin and adjusted operating margin benefited from improved gross margin. Article content 2025 Second Quarter Transit Segment Results Article content Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2025 2024 Change Net Sales $ 787 $ 724 8.7 % GAAP Gross Margin 30.7 % 28.3 % 2.4 pts Adjusted Gross Margin 30.9 % 28.6 % 2.3 pts GAAP Operating Margin 13.9 % 11.3 % 2.6 pts Adjusted Operating Margin 15.2 % 12.7 % 2.5 pts Article content Transit segment sales for the second quarter were up 8.7% driven by higher OE and aftermarket sales. Article content GAAP and adjusted operating margins were up as a result of higher sales and improved gross margins. Article content Backlog Article content Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions June 30, 2025 2024 Change 12-Month Backlog $ 8,210 $ 7,334 11.9 % Total Backlog $ 21,828 $ 22,075 (1.1 )% Article content The Company's multi-year backlog continues to provide strong visibility. At June 30, 2025, the 12-month backlog was $876 million higher than the prior year period. At June 30, 2025, the multi-year backlog was $247 million lower than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $448 million lower, down 2.0%. Article content Cash Flow and Liquidity Summary Article content During the second quarter, cash provided by operations was $209 million versus $235 million in the year ago period partially due to higher working capital, which was affected by higher inventories due to the delay in Q2 locomotive deliveries and timing of customer deposits. Article content At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $1.50 billion and total debt of $4.78 billion. At June 30, 2025, the Company's total available liquidity was $4.09 billion, which includes cash and cash equivalents plus $2.25 billion available under current credit facilities and $350 million borrowings available under our Revolving Receivables Program. Article content During the quarter, the Company paid $44 million in dividends and repurchased $50 million of Wabtec shares. Article content 2025 Financial Guidance Article content Wabtec revenue guidance was increased by $200 million at the mid-point with a range of $10.925 billion to $11.225 billion, largely reflecting the acquisition of Evident Inspection Technologies Division completed on July 1, 2025. Article content Wabtec increased its 2025 adjusted EPS guidance range to $8.55 to $9.15, up $0.20 at the mid-point. Article content For full year 2025, Wabtec expects operating cash flow conversion of greater than 90 percent. Article content Forecasted GAAP Earnings Reconciliation Article content Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share in reliance on the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K. Wabtec is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings. Article content Conference Call Information Article content Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec's website at and click on 'Events & Presentations' in the 'Investor Relations' section. Also, an audio replay of the call will be available by calling 1-877-344-7529 or 1-412-317-0088 (access code: 1965240). Article content About Wabtec Article content Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. 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 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec's website at Article content Information about non-GAAP Financial Information and Forward-Looking Statements Article content Wabtec's earnings release and 2025 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results. Article content This communication contains 'forward-looking' statements as that term is defined in Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec's plans, objectives, expectations and intentions; Wabtec's expectations about future sales, earnings and cash conversion; Wabtec's expectations for evolving global industry, market and macro-economic conditions and their impact on Wabtec's business; synergies and other expected benefits from Wabtec's acquisitions; Wabtec's expectations for 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) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; (2) changes in the financial condition or operating strategies of Wabtec's customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia's invasion of Ukraine; (12) cybersecurity and data protection risks and (13) 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, 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. Article content WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net sales $ 2,706 $ 2,644 $ 5,316 $ 5,141 Cost of sales (1,768 ) (1,770 ) (3,478 ) (3,452 ) Gross profit 938 874 1,838 1,689 Gross profit as a % of Net Sales 34.7 % 33.0 % 34.6 % 32.8 % Selling, general and administrative expenses (347 ) (316 ) (654 ) (597 ) Engineering expenses (50 ) (57 ) (96 ) (105 ) Amortization expense (69 ) (71 ) (142 ) (145 ) Total operating expenses (466 ) (444 ) (892 ) (847 ) Operating expenses as a % of Net Sales 17.2 % 16.8 % 16.8 % 16.5 % Income from operations 472 430 946 842 Income from operations as a % of Net Sales 17.4 % 16.3 % 17.8 % 16.4 % Interest expense, net (46 ) (49 ) (92 ) (96 ) Other income, net 24 4 22 2 Income before income taxes 450 385 876 748 Income tax expense (111 ) (94 ) (210 ) (180 ) Effective tax rate 24.8 % 24.5 % 24.0 % 24.1 % Net income 339 291 666 568 Less: Net income attributable to noncontrolling interest (3 ) (2 ) (8 ) (7 ) Net income attributable to Wabtec shareholders $ 336 $ 289 $ 658 $ 561 Earnings Per Common Share Basic Net income attributable to Wabtec shareholders $ 1.96 $ 1.64 $ 3.84 $ 3.18 Diluted Net income attributable to Wabtec shareholders $ 1.96 $ 1.64 $ 3.84 $ 3.17 Basic 170.6 175.4 170.6 176.0 Diluted 171.2 176.0 171.2 176.6 Segment Information Freight Net Sales $ 1,919 $ 1,920 $ 3,820 $ 3,744 Freight Income from Operations $ 415 $ 391 $ 835 $ 759 Freight Operating Margin 21.6 % 20.4 % 21.9 % 20.3 % Transit Net Sales $ 787 $ 724 $ 1,496 $ 1,397 Transit Income from Operations $ 109 $ 82 $ 199 $ 156 Transit Operating Margin 13.9 % 11.3 % 13.3 % 11.2 % Backlog Information (Note: 12-month is a sub-set of total) June 30, 2025 March 31, 2025 June 30, 2024 Freight Total $ 17,136 $ 17,851 $ 17,929 Transit Total 4,692 4,451 4,146 Wabtec Total $ 21,828 $ 22,302 $ 22,075 Freight 12-Month $ 6,024 $ 6,069 $ 5,504 Transit 12-Month 2,186 2,127 1,830 Wabtec 12-Month $ 8,210 $ 8,196 $ 7,334 Article content WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2025 December 31, 2024 In millions Cash, cash equivalents and restricted cash $ 1,499 $ 715 Receivables, net 1,999 1,702 Inventories, net 2,571 2,314 Other current assets 285 212 Total current assets 6,354 4,943 Property, plant and equipment, net 1,476 1,447 Goodwill 8,936 8,710 Other intangible assets, net 2,889 2,934 Other noncurrent assets 736 668 Total assets $ 20,391 $ 18,702 Current liabilities $ 3,606 $ 3,792 Long-term debt 4,784 3,480 Long-term liabilities – other 1,156 1,297 Total liabilities 9,546 8,569 Shareholders' equity 10,801 10,091 Noncontrolling interest 44 42 Total shareholders' equity 10,845 10,133 Total Liabilities and Shareholders' Equity $ 20,391 $ 18,702 Article content WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2025 2024 In millions Operating activities Net income $ 666 $ 568 Non-cash expense 219 246 Receivables (243 ) (146 ) Inventories (180 ) (120 ) Accounts Payable 74 93 Other operating activities (136 ) (72 ) Net cash provided by operating activities 400 569 Net cash used for investing activities (98 ) (57 ) Net cash provided by (used for) financing activities 454 (523 ) Effect of changes in currency exchange rates 28 (14 ) Increase (decrease) in cash 784 (25 ) Cash, cash equivalents and restricted cash, beginning of period 715 620 Cash, cash equivalents and restricted cash, end of period $ 1,499 $ 595 Article content Article content Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second Quarter 2024 Actual Results Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported Results $ 2,644 $ 874 $ (444) $ 430 $ (45) $ (94) $ 291 $ (2) $ 289 $ 1.64 Restructuring and Portfolio Optimization costs – 6 4 10 (4) (2) 4 – 4 $ 0.02 Non-cash Amortization expense – – 70 70 – (17) 53 – 53 $ 0.30 Adjusted Results $ 2,644 $ 880 $ (370) $ 510 $ (49) $ (113) $ 348 $ (2) $ 346 $ 1.96 Fully Diluted Shares Outstanding 176.0 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Second Quarter Year-to-Date 2024 Actual Results Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported Results $ 5,141 $ 1,689 $ (847) $ 842 $ (94) $ (180) $ 568 $ (7) $ 561 $ 3.17 Restructuring and Portfolio Optimization costs – 12 8 20 (4) (4) 12 – 12 $ 0.07 Non-cash Amortization expense – – 143 143 – (34) 109 – 109 $ 0.61 Adjusted Results $ 5,141 $ 1,701 $ (696) $ 1,005 $ (98) $ (218) $ 689 $ (7) $ 682 $ 3.85 Fully Diluted Shares Outstanding 176.6 Article content Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Fourth Quarter Year-to-Date 2024 Actual Results Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported Results $ 10,387 $ 3,366 $ (1,757) $ 1,609 $ (199) $ (343) $ 1,067 $ (11) $ 1,056 $ 6.04 Restructuring and Portfolio Optimization costs – 37 33 70 (4) (16) 50 – 50 $ 0.28 Non-cash Amortization expense – – 288 288 – (70) 218 – 218 $ 1.24 Adjusted Results $ 10,387 $ 3,403 $ (1,436) $ 1,967 $ (203) $ (429) $ 1,335 $ (11) $ 1,324 $ 7.56 Fully Diluted Shares Outstanding 174.8 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Fourth Quarter Year-to-Date 2023 Actual Results Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported Results $ 9,677 $ 2,944 $ (1,678) $ 1,266 $ (174) $ (267) $ 825 $ (10) $ 815 $ 4.53 Restructuring and Portfolio Optimization costs – 38 41 79 – (17) 62 – 62 $ 0.34 Gain on LKZ Investment – – – – (35) – (35) – (35) $ (0.19) Non-cash Amortization expense – – 298 298 – (74) 224 – 224 $ 1.24 Adjusted Results $ 9,677 $ 2,982 $ (1,339) $ 1,643 $ (209) $ (358) $ 1,076 $ (10) $ 1,066 $ 5.92 Fully Diluted Shares Outstanding 179.5 Article content WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended June 30, In millions 2025 2024 Freight Segment Equipment $ 546 $ 570 Components 401 414 Digital Intelligence 191 199 Services 781 737 Total Freight Segment $ 1,919 $ 1,920 Transit Segment Original Equipment Manufacturer $ 353 $ 310 Aftermarket 434 414 Total Transit Segment $ 787 $ 724 Six Months Ended June 30, In millions 2025 2024 Freight Segment Equipment $ 1,022 $ 1,096 Components 782 798 Digital Intelligence 372 375 Services 1,644 1,475 Total Freight Segment $ 3,820 $ 3,744 Transit Segment Original Equipment Manufacturer $ 675 $ 620 Aftermarket 821 777 Total Transit Segment $ 1,496 $ 1,397 Article content WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES – BY SEGMENT (UNAUDITED) Three Months Ended June 30, In millions Freight Transit Consolidated 2024 Net Sales $ 1,920 $ 724 $ 2,644 Acquisitions 18 9 27 Foreign Exchange (11 ) 22 11 Organic (8 ) 32 24 2025 Net Sales $ 1,919 $ 787 $ 2,706 Change ($) (1 ) 63 62 Change (%) -0.1 % 8.7 % 2.3 % Six Months Ended June 30, Freight Transit Consolidated 2024 Net Sales $ 3,744 $ 1,397 $ 5,141 Acquisitions 33 17 50 Foreign Exchange (37 ) 5 (32 ) Organic 80 77 157 2025 Net Sales $ 3,820 $ 1,496 $ 5,316 Change ($) 76 99 175 Change (%) 2.0 % 7.1 % 3.4 % Article content Article content Article content Article content Article content Contacts Article content Wabtec Investor Contact Article content Article content Kyra Yates / Article content Article content / 817-349-2735 Article content Wabtec Media Contact Article content Article content
Yahoo
19-07-2025
- Business
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Cohen & Steers Inc (CNS) Q2 2025 Earnings Call Highlights: Navigating Market Volatility ...
Earnings Per Share (EPS): $0.73, compared to $0.75 sequentially. Revenue: Increased by 1.1% from the prior quarter to $135 million. Operating Margin: 33.6%, compared to 34.7% in the prior quarter. Ending Assets Under Management (AUM): $88.9 billion, up from $87.6 billion in the prior quarter. Effective Fee Rate: 59 basis points, consistent with the prior quarter. Total Expenses: Increased by 2.9% from the prior quarter. Compensation Ratio: Remained at 40.5%. Effective Tax Rate: 25.3% for the quarter. Liquidity: $323 million at quarter end, compared to $295 million in the prior quarter. Net Flows: Net outflows of $131 million after three consecutive quarters of inflows. Open-End Fund Inflows: $285 million, marking the fourth consecutive quarter of inflows. Unfunded Pipeline: Increased to $776 million from a low of $61 million. Warning! GuruFocus has detected 5 Warning Signs with CNS. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cohen & Steers Inc (NYSE:CNS) reported a slight increase in revenue for Q2 2025, up 1.1% from the prior quarter to $135 million. The company experienced higher average assets under management (AUM) compared to the prior quarter, with ending AUM increasing to $88.9 billion. Cohen & Steers Inc (NYSE:CNS) achieved strong investment performance, with 89% of AUM outperforming benchmarks in Q2 and 94% on a one-year basis. The company launched a new tactical listed and private real estate strategy, which is expected to offer higher returns and improved liquidity. Cohen & Steers Inc (NYSE:CNS) reported positive net inflows into open-end funds for the fourth consecutive quarter, totaling $285 million in Q2. Negative Points Earnings per share decreased slightly to $0.73 from $0.75 sequentially. Operating margin declined to 33.6% from 34.7% in the prior quarter. The company experienced net outflows of $131 million after three consecutive quarters of inflows. Total expenses increased by 2.9% from the prior quarter, driven by higher compensation and benefits costs. Institutional net outflows offset the positive net inflows into open-end funds. Q & A Highlights Q: Can you provide some insights into the Wealth Management channel's appetite for gross sales and which strategies are currently in favor? Also, do you expect any seasonality in the second half of the year? A: The Wealth channel is crucial for us, especially with the growth in the RIA segment. We're making progress in gaining allocations with sophisticated RIAs in real estate, multi-strategy real assets, and infrastructure. Gross sales were about 10% lower in Q2, partly due to seasonality and market volatility. However, we remain optimistic about driving real asset allocations, especially with our active ETFs and non-traded REITs. Q: How are the early days of marketing and selling your active ETFs going? Are they attracting new investors or existing ones? A: We're off to a strong start with active ETFs, attracting both new investors, like RIAs who only allocate to ETFs, and existing ones converting from open-end funds. This motivates us to continue launching new active ETFs in our core strategies to retain and grow assets. Q: What caused the decline in global listed infrastructure flows in Q2, and what are your views on the strategy for Q3? A: The decline was due to large redemptions from institutional investors rebalancing their allocations. Despite this, infrastructure remains a popular asset class, and we're investing in additional vehicles, including active ETFs, to capitalize on this interest. Q: Flows in global real estate were stronger than US real estate in Q2. Is this demand from US or international investors, and has there been a shift away from US real estate? A: There is growing interest in global strategies, partly due to international markets underperforming the US. Our pipeline includes more global allocators, and while there have been some concerns about US policy, it's not a broad trend. Q: Can you discuss geographical demand differences, particularly in the advisory side, and provide an update on the US advisory effort? A: The US remains the largest and most active market, with growing activity in Asia. Europe is slower, and while the Middle East was active a few years ago, it's less so now, though opportunities still exist. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
