Wabtec Reports Strong Second Quarter 2026 Results, Announces Increase to Full-Year Revenue & Adjusted EPS Guidance

Sales Growth of 17.5% to $3.18 Billion Driven by Both the Freight and Transit Segments GAAP Operating Margin at 18.9%; Adjusted Operating Margin Up 0.8 pts to 21.9% Strong Multi-year Backlog at $30.93 Billion; 12-month Backlog Growth at 11.3% GAAP Earnings Per Share of $2.33, Up 18.9%; Adjusted Earnings Per Share of $2.76, Up 21.6% PITTSBURGH--(BUSINESS WIRE)--#WeAreWabtec--Wabtec Corporation (NYSE: WAB) today reported second quarter 2026 GAAP earnings per diluted share of $2.33, up 18.9% versus the second quarter of 2025. Adjusted earnings per diluted share were $2.76, up 21.6% versus the same quarter a year ago. Second quarter sales were $3.18 billion and cash from operations was $441 million. “Wabtec delivered a strong first half, with solid second quarter execution across our businesses driving robust sales growth, margin expansion and a 22% increase in adjusted EPS growth,” said Rafael Santana, Wabtec’s Chairman and CEO. “The strength of our performance reflects the resilience of our portfolio, the impact of our innovative solutions and the disciplined execution from our teams. During the quarter, we continued to build momentum through strategic commercial awards and the successful integrations of our recent acquisitions, further enhancing our market position and expanding our long-term growth opportunities. “With a strong foundation, a talented global team, and significant opportunities ahead, we are well positioned to deliver profitable growth and continue to compound shareholder value.” 2026 Second Quarter Consolidated Results Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Second Quarter 2026 2025 Change Net Sales $ 3,179 $ 2,706 17.5 % GAAP Gross Margin 36.5 % 34.7 % 1.8 pts Adjusted Gross Margin 36.7 % 34.8 % 1.9 pts GAAP Operating Margin 18.9 % 17.4 % 1.5 pts Adjusted Operating Margin 21.9 % 21.1 % 0.8 pts GAAP Diluted EPS $ 2.33 $ 1.96 18.9 % Adjusted Diluted EPS $ 2.76 $ 2.27 21.6 % Cash Flow from Operations $ 441 $ 209 $ 232 Operating Cash Flow Conversion 82 % 46 % Sales increased 17.5% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Inspection Technologies, Frauscher Sensor Technologies, and Dellner Couplers. GAAP operating margin was higher than the prior year at 18.9%, and adjusted operating margin was higher than the prior year at 21.9%. Both GAAP and adjusted operating margins benefited from robust sales growth and improved gross margins in the quarter. GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales and operating margin expansion. 2026 Second Quarter Freight Segment Results Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2026 2025 Change Net Sales $ 2,243 $ 1,919 16.9 % GAAP Gross Margin 38.1 % 36.3 % 1.8 pts Adjusted Gross Margin 38.1 % 36.4 % 1.7 pts GAAP Operating Margin 22.5 % 21.6 % 0.9 pts Adjusted Operating Margin 25.8 % 25.0 % 0.8 pts Freight segment sales for the second quarter were up 16.9%. Equipment sales were up 35.0% driven by higher locomotive deliveries, while Services sales were down 4.2% due to lower modernization deliveries, as expected. Digital sales were up 88.5% driven by the acquisitions of Inspection Technologies and Frauscher Sensor Technologies. GAAP and adjusted operating margin benefited from gross margin improvements which was partially offset by higher operating expenses as a percentage of revenue. 2026 Second Quarter Transit Segment Results Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Second Quarter 2026 2025 Change Net Sales $ 936 $ 787 18.9 % GAAP Gross Margin 32.8 % 30.7 % 2.1 pts Adjusted Gross Margin 33.3 % 30.9 % 2.4 pts GAAP Operating Margin 15.6 % 13.9 % 1.7 pts Adjusted Operating Margin 17.7 % 15.2 % 2.5 pts Transit segment sales for the second quarter were up 18.9% driven by the acquisition of Dellner Couplers, higher OE and aftermarket sales, and favorable foreign currency exchange. Sales were up 17.7% on a constant currency basis. GAAP and adjusted operating margins were up as a result of improved gross margins. GAAP gross margins were partially offset by higher operating expenses as a percent of revenue. Backlog Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions June 30, 2026 2025 Change 12-Month Backlog $ 9,140 $ 8,210 11.3 % Total Backlog $ 30,932 $ 21,828 41.7 % The Company’s multi-year backlog continues to provide strong visibility. At June 30, 2026, the 12-month backlog was $0.93 billion higher than the prior year period. At June 30, 2026, the multi-year backlog was $9.10 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $9.02 billion higher, up 41.3%. Cash Flow and Liquidity Summary During the second quarter, the Company generated cash from operations of $441 million versus $209 million in the year ago period. The increase in cash was driven by higher net income and favorable working capital. At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $0.67 billion and total debt of $6.57 billion. At June 30, 2026, the Company’s total available liquidity was $2.02 billion, which includes $0.66 billion in cash and cash equivalents plus $1.36 billion available under current credit facilities. During the quarter, the Company repurchased $215 million of Wabtec shares and paid $53 million in dividends. 2026 Financial Guidance Wabtec increased its 2026 revenue guidance range to $12.30 billion to $12.60 billion, raising it $110 million at the midpoint, or up 11.5% versus prior year. Wabtec increased its 2026 adjusted EPS guidance range to $10.60 - $10.90, raising it $0.30 at the midpoint, or up 19.9% versus prior year. Forecasted GAAP Earnings Reconciliation Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share because it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings. Conference Call InformationRead the full story here

Wabtec Reports Strong Second Quarter 2026 Results, Announces Increase to Full-Year Revenue & Adjusted EPS Guidance

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