Wabtec beats Q3 expectations with 8.4% sales growth

PITTSBURGH - On Wednesday, Wabtec Corporation (NYSE:WAB) reported third quarter adjusted earnings of $2.32 per share, exceeding analyst estimates of $2.28, as the rail technology company delivered strong growth across both its freight and transit segments. Revenue rose 8.4% to $2.89 billion, slightly above the consensus estimate of $2.88 billion.

Wabtec shares were essentially flat following the announcement, edging up just 0.01% in pre-market trading.

The company’s performance was driven by higher locomotive deliveries in its freight segment and strong sales in both original equipment and aftermarket transit products. Adjusted operating margin expanded by 1.3 percentage points to 21.0%, benefiting from higher sales and improved gross margins.

"The Wabtec team delivered a very strong quarter, evidenced by continued growth in our backlog, sales, margin, and earnings," said Rafael Santana, Wabtec’s President and CEO. "Our team’s commitment to product innovation, disciplined cost management, focused execution and partnership with our customers has been instrumental in driving our ongoing success."

The company’s multi-year backlog reached $25.6 billion, with 12-month backlog growing 8.4% compared to the same period last year. Freight segment sales increased 8.4% to $2.09 billion, with equipment sales jumping 32.0% due to higher locomotive deliveries. Transit segment sales also rose 8.2% to $793 million.

Cash from operations was $367 million for the quarter, compared to $542 million in the year-ago period, partially due to increased tariffs and higher working capital requirements.

Following the strong results, Wabtec raised and tightened its full-year 2025 adjusted earnings guidance to $8.85-$9.05 per share, up $0.10 at the midpoint. The company maintained its revenue forecast of $10.925-$11.225 billion, representing 6.6% growth at the midpoint.

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