Westinghouse Air Brake expands subsidiary guarantors

Published 05/19/2025, 09:12 AM
Westinghouse Air Brake expands subsidiary guarantors

Westinghouse Air Brake Technologies Corporation (NYSE:WAB), a leading manufacturer of railroad equipment with a market capitalization of $35.2 billion, announced today the addition of Wabtec US Rail, Inc. as a new guarantor for its debt securities. This move is part of the company’s anticipated filing of a Post-Effective Amendment to its Registration Statement on Form S-3, which is intended to add Wabtec US Rail, Inc. to the list of subsidiary guarantors. According to InvestingPro data, the company operates with a moderate level of debt, maintaining a healthy debt-to-equity ratio of 0.42.

The company disclosed summarized financial information for the three months ended March 31, 2025, and the fiscal year ended December 31, 2024, reflecting the inclusion of Wabtec US Rail, Inc. as a guarantor. The addition is linked to Wabtec US Rail, Inc.’s guarantee of Westinghouse Air Brake’s obligations under the Amended and Restated Credit Agreement dated April 23, 2025. With an overall Financial Health Score rated as "GOOD" by InvestingPro, which analyzes over 100 financial metrics, the company demonstrates strong financial management practices.

Wabtec US Rail, Inc. has agreed to provide a guarantee for the company’s outstanding US Notes, which include the 3.20% Senior Notes due 2025, 3.45% Senior Notes due 2026, 4.70% Senior Notes due 2028, and 5.611% Senior Notes due 2034. The Additional Guarantee by Wabtec US Rail, Inc. is part of the company’s efforts to ensure compliance with its financial obligations.

The summarized financial information is included in Exhibit 99.1 of the Form 8-K report and can be found on the SEC’s website. This financial information provides investors with a comprehensive view of the financial position of the subsidiary guarantors, which is essential for making informed investment decisions.

Westinghouse Air Brake Technologies Corporation, headquartered in Pittsburgh, Pennsylvania, operates under the laws of the State of Delaware and is well-known in the industry for its manufacturing capabilities, generating annual revenue of $10.5 billion. The company’s common stock is traded on the New York Stock Exchange under the ticker symbol WAB and is currently trading near its 52-week high of $210.88. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

This announcement is based on a press release statement and provides information that is essential for shareholders and potential investors regarding the company’s financial undertakings and the role of its subsidiaries in securing its debt.

In other recent news, Wabtec Corporation reported impressive first-quarter 2025 earnings, with an adjusted earnings per share (EPS) of $2.28, exceeding analyst expectations of $2.03. The company’s revenue for the quarter was $2.61 billion, reflecting a 4.5% increase from the previous year. Wabtec also updated its financial guidance for the fiscal year 2025, with adjusted EPS expectations ranging from $8.35 to $8.95, compared to the consensus estimate of $8.54. This indicates a cautious yet optimistic outlook amidst economic uncertainties. Additionally, Wabtec declared a regular quarterly dividend of 25 cents per share, payable on June 10, 2025, to shareholders of record as of May 27, 2025. The company emphasized its ongoing commitment to sustainability, with a focus on achieving a zero-emission rail system. These recent developments highlight Wabtec’s strong performance and strategic initiatives in the global transportation industry.

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