The total order backlog at Wabtec Corp. continues to grow as the Pittsburgh-based train manufacturer and railroad equipment maker prepares to start shipping its first battery-electric locomotives before the end of the year.
Wabtec (NYSE: WAB) announced a total, multi-year backlog of $22.44 billion during its Q4 2022 earnings call on Wednesday, which during the quarter alone grew by $6.7 billion. That latter figure is up 7.8% year-over-year compared to the $6.2 billion backlog added in Q4 2021 and the company's total backlog has seen a 1.2% increase during the same time period.
During the quarter, Wabtec also posted $2.3 billion in sales, up 11.2% year-over-year, and had a GAAP diluted earnings per share of $0.86, down 15.7% year-over-year. Net income reached $159 million during the quarter, down 17% from the $193 million realized a year prior.
The company declined to disclose how much of its backlog is attributable to its FLXdrive locomotives, which have been in development for years as an alternative to locomotives that are powered by diesel fuel. But it did share that it plans to start shipping out its initial batch of these fully electric train engines before the end of the year.
To date, Wabtec has 18 orders placed for its FLXdrive locomotive units across five railroad customers — Roy Hill, CN, Rio Tinto, BHP and Union Pacific. The company also has an order for 150 FLXdrive Shunter locomotives from Kazakhstan's national railway company — Kazakhstan Temir Joly, which will use these locomotives in a railyard to shuttle railcars to different locations.
Australia-based Roy Hill is set to be the first customer to receive FLXdrive units, which are being made at Wabtec's manufacturing plant in Erie. These units are expected to be delivered in early 2024 following their completed build out by the end of the year.
"In about a year from now, we'll begin shipping out the first battery-electric [locomotives]," John Olin, chief financial officer at Wabtec, said during the call. "We couldn't be more thrilled or excited about that."
Added Wabtec CEO Rafael Santana: "When you think of battery-electric, I think we're excited about some of the opportunities there. First deliveries [are] happening next year, and we're continuing to make progress."
