Latest news with #WabtecCorporation
Globe and Mail
26-05-2025
- Business
- Globe and Mail
UPS vs. WAB: Which Dividend-Paying Transportation Stock to Bet on Now?
United Parcel Service UPS and Westinghouse Air Brake Technologies Corporation WAB, operating as Wabtec Corporation, are two prominent names in the Zacks Transportation sector. Both companies have announced dividend hikes this year despite the prevalent economic uncertainties, reflecting their shareholder-friendly approach. Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario. In February, Wabtec's board of directors approved a dividend hike of 25%, thereby raising its quarterly cash dividend to 25 cents per share ($1.00 annualized) from 20 cents (80 cents annualized). Also, in February, UPS' board of directors approved a dividend hike, thereby raising its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized). Wabtec Dividend Yield (TTM) Wabtec dividend-yield-ttm | Wabtec Quote United Parcel Service Dividend Yield (TTM) United Parcel Service. dividend-yield-ttm | United Parcel Service. Quote Sustainability of UPS' Dividends in Question Unlike WAB No doubt UPS' most recent dividend hike reflects its shareholder-friendly approach, but questions about the sustainability of its dividend arise. United Parcel Service's elevated dividend payout ratio (the percentage of net income paid out as dividends) highlights the concerns associated with its ability to maintain dividend payouts over the long term. We remind investors that in the early 2020s, when UPS' business was flourishing, driven by exponential e-commerce growth during the peak pandemic period, the company made huge dividend payments. Free cash flow has been on a decline since then, touching a high of $9 billion in 2022. Currently, UPS' elevated dividend payout is hurting its operational flexibility, with free cash flow barely covering the dividend. At 2024-end, free cash flow was $6.3 billion, not much above its dividend payments of $5.4 billion. United Parcel Service expects to generate free cash flow of around $5.7 billion in 2025. Dividend payments are expected to be roughly $5.5 billion. On the other hand, WAB's much lower dividend payout ratio implies that concerns associated with its ability to maintain dividend payouts over the long term are absent. While we have considered the dividend-paying abilities of both the transportation stocks, let's delve deeper to compare other relevant metrics to determine whether WAB or UPS is a better investment now. Price Performance of WAB and UPS WAB has navigated the recent tariff-induced stock market volatility well, registering a 5.1% year-to-date gain, while UPS stock has performed miserably in 2025 so far, declining in double digits. YTD Price Comparison UPS' lackluster price performance is mainly due to the revenue weakness as geopolitical uncertainty and high inflation continue to hurt consumer sentiment and growth expectations. The weak demand scenario has led to a decline in the volume of packages shipped. On the other hand, WAB's recent strength is driven by its focus on new technologies to improve safety and reliability, apart from its restructuring actions and cost-cutting initiatives. The improving global rail supply market in the post-COVID scenario is another positive for the company. The Association of the European Rail Industry, UNIFE, expects the global market for railway systems and services to grow at an annual average of around 3% until 2027-29. How Do Zacks Estimates Compare for WAB & UPS? The Zacks Consensus Estimate for WAB's 2025 and 2026 sales implies a year-over-year increase of 4.6% and 4.9%, respectively. The consensus mark for WAB's 2025 EPS highlights a 15.3% year-over-year drop. The 2026 EPS consensus mark indicates an 11.5% year-over-year increase. Moreover, the EPS estimates for 2025 and 2026 have been trending northward over the past 30 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for UPS' 2025 sales estimate implies a 4.1% year-over-year decrease, while the same for 2026 implies a 0.9% year-over-year increase. The consensus mark for UPS' 2025 EPS highlights an 8.3% year-over-year decrease. The same for 2026 implies a 13.8% year-over-year increase. The EPS estimates for 2025 and 2026 have been trending southward over the past 30 days, unlike WAB. WAB Appears to be More Pricey Than UPS WAB is trading at a forward sales multiple of 3.08, above its median of 2X over the last five years. WAB has a Value Score of D. Meanwhile, UPS has a Value Score of C, with its forward sales multiple at 0.92, below its 5-year median of 1.54. Conclusion WAB's expensive valuation (compared to its 5-year median) seems to suggest that investors are to pay a premium for this key player in the transportation sector. Agreed that both stocks focus on paying dividends but WAB's lower dividend payout ratio puts to rest concerns about dividend sustainability, unlike UPS. WAB's better price performance and northward earnings estimate revisions highlight the fact that its focus on new technologies to improve safety and reliability, apart from its cost-cutting actions, is working well. Given its prospects, WAB seems a better pick than UPS now. While WAB carries a Zacks Rank #2 (Buy), UPS is currently #5 Ranked (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Wabtec (WAB): Free Stock Analysis Report
Business Wire
19-05-2025
- Business
- Business Wire
Wabtec Announces Pricing of Senior Notes Offering
PITTSBURGH--(BUSINESS WIRE)--Wabtec Corporation (NYSE: WAB) ('Wabtec') today announced that it has priced a public offering (the 'Offering') of (i) $500 million aggregate principal amount of 4.900% Senior Notes due 2030 (the '2030 Notes') and (ii) $750 million aggregate principal amount of 5.500% Senior Notes due 2035 (the '2035 Notes' and, together with the 2030 Notes, the 'Notes'). The Notes will be guaranteed by each of Wabtec's current and future subsidiaries that guarantee its indebtedness under its credit agreements or any other debt of Wabtec or any other guarantor. The Notes will pay interest semi-annually in arrears. The 2030 Notes will mature on May 29, 2030, and the 2035 Notes will mature on May 29, 2035, unless earlier redeemed or repurchased. Wabtec intends to use the net proceeds from the offering of the Notes for general corporate purposes, including the repayment of its outstanding 3.200% Senior Notes due 2025 (the '2025 Notes') at maturity, which is scheduled to occur on June 15, 2025, and the funding of a portion of the purchase price of its pending acquisition of the Inspection Technologies division of Evident Corporation (the 'Inspection Technologies Acquisition') and related fees and expenses. The sale of the Notes is expected, subject to customary closing conditions, to close on May 29, 2025. BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the Offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Offering is being made under an automatic shelf registration statement on Form S-3 (File No. 333-275386) filed with the Securities and Exchange Commission ('SEC') on November 8, 2023, as amended by the Post-Effective Amendment No. 1 filed with the SEC on May 19, 2025 (as amended, the 'Registration Statement'). The Offering may be made only by means of a prospectus and related prospectus supplement. Before you invest, you should read the Registration Statement, including the prospectus, and prospectus supplement, and other documents Wabtec has filed with the SEC for more complete information about Wabtec and this Offering. You may get these documents for free by visiting EDGAR on the SEC's website at Alternatively, to obtain a copy of the prospectus and the prospectus supplement for this Offering, please contact BNP Paribas Securities Corp. toll-free at 1-800-854-5674, BofA Securities, Inc. toll-free at 1-800-294-1322, HSBC Securities (USA) Inc. toll-free at 1-866-811-8049 or J.P. Morgan Securities LLC collect at 212-834-4533. About Wabtec 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 zero-emission rail system in the U.S. and worldwide. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This press release 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. All statements, other than historical facts, including statements regarding Wabtec's offering of the Notes, the use of proceeds therefrom, Wabtec's planned repayment of the 2025 Notes, completion of the Inspection Technologies Acquisition, 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. Further information on the risk factors that may affect Wabtec's business and financial performance is 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. Wabtec may not close the sale of the Notes and, if the sale of the Notes closes, cannot provide any assurances regarding its final terms. Any forward-looking statements in this press release speak only as of the date of this press release. 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.
Yahoo
19-05-2025
- Business
- Yahoo
Wabtec Announces Pricing of Senior Notes Offering
PITTSBURGH, May 19, 2025--(BUSINESS WIRE)--Wabtec Corporation (NYSE: WAB) ("Wabtec") today announced that it has priced a public offering (the "Offering") of (i) $500 million aggregate principal amount of 4.900% Senior Notes due 2030 (the "2030 Notes") and (ii) $750 million aggregate principal amount of 5.500% Senior Notes due 2035 (the "2035 Notes" and, together with the 2030 Notes, the "Notes"). The Notes will be guaranteed by each of Wabtec's current and future subsidiaries that guarantee its indebtedness under its credit agreements or any other debt of Wabtec or any other guarantor. The Notes will pay interest semi-annually in arrears. The 2030 Notes will mature on May 29, 2030, and the 2035 Notes will mature on May 29, 2035, unless earlier redeemed or repurchased. Wabtec intends to use the net proceeds from the offering of the Notes for general corporate purposes, including the repayment of its outstanding 3.200% Senior Notes due 2025 (the "2025 Notes") at maturity, which is scheduled to occur on June 15, 2025, and the funding of a portion of the purchase price of its pending acquisition of the Inspection Technologies division of Evident Corporation (the "Inspection Technologies Acquisition") and related fees and expenses. The sale of the Notes is expected, subject to customary closing conditions, to close on May 29, 2025. BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the Offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Offering is being made under an automatic shelf registration statement on Form S-3 (File No. 333-275386) filed with the Securities and Exchange Commission ("SEC") on November 8, 2023, as amended by the Post-Effective Amendment No. 1 filed with the SEC on May 19, 2025 (as amended, the "Registration Statement"). The Offering may be made only by means of a prospectus and related prospectus supplement. Before you invest, you should read the Registration Statement, including the prospectus, and prospectus supplement, and other documents Wabtec has filed with the SEC for more complete information about Wabtec and this Offering. You may get these documents for free by visiting EDGAR on the SEC's website at Alternatively, to obtain a copy of the prospectus and the prospectus supplement for this Offering, please contact BNP Paribas Securities Corp. toll-free at 1-800-854-5674, BofA Securities, Inc. toll-free at 1-800-294-1322, HSBC Securities (USA) Inc. toll-free at 1-866-811-8049 or J.P. Morgan Securities LLC collect at 212-834-4533. About Wabtec 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 zero-emission rail system in the U.S. and worldwide. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This press release 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. All statements, other than historical facts, including statements regarding Wabtec's offering of the Notes, the use of proceeds therefrom, Wabtec's planned repayment of the 2025 Notes, completion of the Inspection Technologies Acquisition, 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. Further information on the risk factors that may affect Wabtec's business and financial performance is 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. Wabtec may not close the sale of the Notes and, if the sale of the Notes closes, cannot provide any assurances regarding its final terms. Any forward-looking statements in this press release speak only as of the date of this press release. 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. View source version on Contacts Wabtec Investor Relations Contact Kyra Wabtec Media Contact Tim
