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PITTSBURGH - On Thursday, Wabtec Corporation (NYSE:WAB) reported second quarter 2025 adjusted earnings that exceeded analyst expectations, prompting the company to raise its full-year guidance despite revenue coming in slightly below estimates.
The rail equipment manufacturer posted adjusted earnings per share of $2.27 for the quarter, beating the analyst consensus of $2.18. Revenue rose 2.3% YoY to $2.71 billion, though this fell short of the $2.77 billion analysts had expected. The company attributed the revenue miss to timing issues with locomotive deliveries due to a supplied part problem.
Wabtec’s adjusted operating margin improved significantly, expanding by 1.8 percentage points to 21.1% compared to the same period last year. The company’s 12-month backlog grew 11.9% YoY to $8.21 billion, providing strong visibility for future performance.
"The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double digit earnings per share growth," said Rafael Santana, Wabtec’s President and CEO.
The Transit segment was a particular bright spot, with sales increasing 8.7% YoY to $787 million, while Freight segment sales remained essentially flat at $1.92 billion. The company returned $94 million to shareholders through dividends and share repurchases during the quarter.
Based on its strong first-half performance, Wabtec raised its 2025 adjusted EPS guidance to a range of $8.55-$9.15, up from its previous outlook and above the analyst consensus of $8.75. The company also increased its revenue guidance by $200 million at the midpoint to a range of $10.925-$11.225 billion, largely reflecting its recent acquisition of Evident Inspection Technologies Division.
For the full year 2025, Wabtec expects operating cash flow conversion to exceed 90%.
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