Wabtec shares tumble nearly 8% on earnings miss, weak guidance

Published 12/02/2025, 12:44
Wabtec shares tumble nearly 8% on earnings miss, weak guidance

NEW YORK - Wabtec Corporation (NYSE:WAB) shares plunged -7.75% in premarket trading on Wednesday after the rail equipment maker reported fourth quarter earnings and revenue that missed analyst expectations and provided weaker-than-expected guidance for 2025.

The Pittsburgh-based company posted adjusted earnings per share of $1.68 for Q4, falling short of the $1.74 consensus estimate. Revenue came in at $2.58 billion, below analysts’ projections of $2.63 billion.

For the full year 2024, Wabtec reported adjusted EPS of $7.56 on revenue of $10.39 billion. The company’s Q4 revenue was up 2.3% YoY, while full-year revenue increased 7.3%.

Looking ahead, Wabtec forecast 2025 adjusted EPS in the range of $8.35 to $8.75, with the midpoint of $8.55 coming in below the $8.64 Wall Street consensus.

"The Wabtec team delivered a strong 2024 as evidenced by higher orders, sales, margin expansion, increased earnings and robust cash flow," said Rafael Santana, Wabtec’s President and CEO.

The company reported Q4 orders growth of 20% compared to the prior year, including over $1 billion in new locomotive and modernization orders. Wabtec’s 12-month backlog stood at $7.68 billion at the end of Q4, up 3% YoY.

Despite the earnings miss and cautious outlook, Wabtec’s board approved a 25% increase in the quarterly dividend and authorized an additional $1 billion for share repurchases in December.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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