Wabtec (NYSE:WAB) Releases Earnings Results, Beats Estimates By $0.10 EPS

Wabtec (NYSE:WAB) announced its earnings results on Wednesday. The transportation company reported $2.83 EPS for the quarter, topping the consensus estimate of $2.73 by $0.10, FiscalAI reports. The business had revenue of $3.12 billion for the quarter, compared to the consensus estimate of $3.20 billion. Wabtec had a return on equity of 15.10% and a net margin of 10.59%. Wabtec’s revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.32 EPS.

Here are the key takeaways from Wabtec’s conference call:

• Wabtec reported strong third-quarter results, with sales of $3.12 billion, up 8.1%, adjusted EPS of $2.83, up 22%, and operating cash flow of $455 million.
• The company raised its full-year adjusted EPS guidance to $10.85–$11.05, up 22% at the midpoint, while management expects fourth-quarter margin expansion to exceed the third quarter.
• Backlog and new orders remained robust: multi-year backlog exceeded $31 billion, up 22.9%, while Wabtec secured $1 billion in international locomotive and service orders, more than $600 million in North American locomotive and modernization orders, and $159 million in transit brake orders.
• The North American railcar build forecast was reduced to approximately 23,000 units for 2026, down 26% from 2025, creating pressure on component revenue, although management expects the market to stabilize and recover toward 2025 levels in 2027.
• Margin gains were attributed to productivity, Integration 3.0, portfolio optimization, favorable mix, and cost discipline; management said these improvements remain sustainable and expects continued margin expansion, supported by strong acquisition performance and a healthy pipeline.

Wabtec Stock Up 1.9%

Shares of NYSE:WAB opened at $288.77 on Thursday. Wabtec has a one year low of $186.06 and a one year high of $306.64. The company has a 50 day moving average of $287.76 and a 200-day moving average of $276.05. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.12 and a quick ratio of 0.59. The stock has a market cap of $48.78 billion, a price-to-earnings ratio of 38.81, a P/E/G ratio of 1.91 and a beta of 0.92.

Wabtec Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be given a dividend of $0.31 per share. The ex-dividend date is Tuesday, November 17th. This represents a $1.24 annualized dividend and a dividend yield of 0.4%. Wabtec’s payout ratio is currently 16.67%.

Wabtec News Summary

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Adjusted earnings per share rose 22% year over year to $2.83, exceeding the approximately $2.73 consensus estimate. GAAP EPS increased 33.7% to $2.42. Wabtec Tops Q3 Earnings Estimates
• Positive Sentiment: Wabtec raised and tightened its 2026 adjusted EPS outlook to $10.85-$11.05, with the high end above its previous forecast. Management cited margin expansion and its Integration 3.0 program as key drivers. Wabtec Raises 2026 EPS Outlook
• Positive Sentiment: Sales increased 8.1% year over year to $3.12 billion, supported by growth in both the Freight and Transit businesses. Adjusted operating margin improved 1.9 percentage points to 22.9%, indicating strong profitability and cost control. Wabtec Reports 8.1% Sales Growth
• Positive Sentiment: Wabtec’s multi-year backlog exceeded $31 billion, up 22.9% from a year earlier, providing investors with substantial forward revenue visibility. Wabtec Long-Term Investor Takeaways
• Neutral Sentiment: The earnings call highlighted robust demand and growth momentum, but investors will likely monitor whether backlog conversion can accelerate reported sales growth. Wabtec Earnings Call Highlights
• Negative Sentiment: Quarterly revenue of $3.12 billion missed the $3.20 billion analyst estimate. That shortfall overshadowed the earnings beat and prompted reports that WAB shares fell nearly 3% following the release. Wabtec Stock Falls on Revenue Miss

Insider Buying and Selling at Wabtec

In other Wabtec news, insider Sameer Gaur sold 1,000 shares of Wabtec stock in a transaction on Friday, July 24th. The shares were sold at an average price of $300.64, for a total transaction of $300,640.00. Following the completion of the sale, the insider owned 10,985 shares of the company’s stock, valued at approximately $3,302,530.40. The trade was a 8.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael Fetsko sold 3,250 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $293.22, for a total transaction of $952,965.00. Following the sale, the insider owned 37,380 shares of the company’s stock, valued at $10,960,563.60. The trade was a 8.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 17,552 shares of company stock valued at $5,232,911 over the last 90 days. Company insiders own 0.57% of the company’s stock.

Analyst Ratings Changes

Several brokerages have issued reports on WAB. Stephens lifted their price objective on Wabtec from $320.00 to $330.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. Citigroup lowered their target price on Wabtec from $341.00 to $338.00 and set a “buy” rating for the company in a research note on Thursday, October 8th. Susquehanna upped their price target on shares of Wabtec from $305.00 to $340.00 and gave the stock a “positive” rating in a research report on Thursday, July 23rd. Weiss Ratings upgraded shares of Wabtec from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. Finally, Wall Street Zen cut shares of Wabtec from a “buy” rating to a “hold” rating in a research report on Sunday, August 2nd. Ten investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $313.55.

About Wabtec

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec (NYSE: WAB), is a global provider of equipment, systems, digital solutions and services for the freight and passenger rail industries. The company develops technologies intended to improve the safety, efficiency, reliability and sustainability of rail transportation.

Wabtec’s products and services include locomotives, locomotive components and modernization programs, braking systems, train control and signaling equipment, power and propulsion systems, and advanced digital solutions.