Wabtec completes $1.78 billion acquisition of Evident’s inspection unit

PITTSBURGH - Wabtec Corporation (NYSE:WAB), currently trading near its 52-week high of $210.88 with a market capitalization of $35.8 billion, announced Monday it has completed the acquisition of Evident’s Inspection Technologies division for $1.78 billion, expanding its digital intelligence capabilities for rail and industrial sectors. According to InvestingPro analysis, the company maintains a strong financial health score, reflecting its solid position for strategic growth.

The transaction, financed through a combination of cash and debt, is expected to provide high single-digit revenue growth and will be slightly accretive to adjusted earnings per share in the second half of 2025, according to a company press release. This growth projection builds upon Wabtec’s existing revenue growth of 5.21% over the last twelve months, with current annual revenue of $10.5 billion.

The purchase price represents approximately 12 times projected 2025 EBITDA when adjusted for transaction costs, tax benefits, and anticipated cost synergies of $25 million.

Wabtec CEO Rafael Santana said the acquisition strengthens the company’s digital intelligence business with advanced inspection technologies that enhance customer productivity, reliability, and safety.

"It expands and strengthens our Digital Intelligence business, with advanced products and services for the Company’s rail, mining, and industrial sectors, while broadening our reach into other high-growth, high-margin end-markets," Santana stated.

The acquisition effectively doubles Wabtec’s total addressable market from approximately $8 billion to $16 billion, according to the company.

Evident’s Inspection Technologies division, formerly part of the Scientific Solutions Division of Olympus Corporation, specializes in non-destructive testing, remote visual inspection, and analytical instruments for maintenance, manufacturing, and environmental applications.

Nalin Jain, President of Wabtec’s Digital Intelligence Group, noted that Evident’s product portfolio complements Wabtec’s existing digital technologies while adding advanced automated inspection capabilities.

Wabtec plans to incorporate the revenue and earnings impact of this acquisition into its full-year financial guidance during its second-quarter earnings call, scheduled for July 24, 2025. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed metrics in its Pro Research Report, available as part of the platform’s coverage of over 1,400 US equities.

In other recent news, Wabtec Corporation reported first-quarter earnings per share of $2.28, surpassing analyst expectations by $0.25. The company’s revenue for the quarter aligned with forecasts at $2.61 billion, representing a 4.5% increase from the previous year. Wabtec also updated its financial guidance for fiscal year 2025, with adjusted EPS projections ranging from $8.35 to $8.95, compared to a consensus estimate of $8.54. Additionally, Wabtec announced the pricing of its $1.25 billion senior notes offering, with proceeds intended for general corporate purposes, including repaying outstanding notes and financing a pending acquisition. The company has also declared a quarterly dividend of 25 cents per share, payable on June 10, 2025, to shareholders recorded by May 27, 2025. Furthermore, Wabtec has added Wabtec US Rail, Inc. as a new guarantor for its debt securities, enhancing its financial structure. In other developments, Slovakia is nearing a deal with Westinghouse to build a new nuclear reactor, with the project potentially costing up to €10 billion. These updates highlight significant financial and strategic moves by Wabtec and Westinghouse, reflecting ongoing developments in their respective industries.

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