Wabtec Reports Strong Third Quarter 2026 Results, Raised and Tightened Adjusted EPS Guidance

Sales Growth of 8.1% to $3.12 Billion Driven by Both the Freight and Transit Segments GAAP Operating Margin at 20.0%; Adjusted Operating Margin Up 1.9 pts to 22.9% GAAP Earnings Per Share of $2.42, Up 33.7%; Adjusted Earnings Per Share of $2.83, Up 22.0% Raised and Tightened 2026 Adjusted Earnings Per Share Guidance; up 22% at the midpoint PITTSBURGH--(BUSINESS WIRE)--#WeAreWabtec--Wabtec Corporation (NYSE: WAB) today reported third quarter 2026 GAAP earnings per diluted share of $2.42, up 33.7% versus the third quarter of 2025. Adjusted earnings per diluted share were $2.83, up 22.0% versus the same quarter a year ago. Third quarter sales were $3.12 billion and cash from operations was $455 million. “Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS,” said Rafael Santana, Wabtec’s Chairman and CEO. “The strength of our performance reflects our momentum across the portfolio, disciplined execution by our teams, and the continued success of our strategic actions. These actions enhance our growth profile, expand margins, and increase the earnings power of the company. “Our teams continue to translate healthy customer demand into profitable growth while investing in technologies that will advance the future of transportation. These investments are strengthening our competitive position and reinforcing Wabtec as a leading Industrial Technology Company.” 2026 Third Quarter Consolidated Results Wabtec Corporation Consolidated Financial Results $ in millions except earnings per share and percentages; margin change in percentage points (pts) Third Quarter 2026 2025 Change Net Sales $3,120 $2,886 8.1 % GAAP Gross Margin 37.3 % 34.7 % 2.6 pts Adjusted Gross Margin 37.4 % 35.6 % 1.8 pts GAAP Operating Margin 20.0 % 17.0 % 3.0 pts Adjusted Operating Margin 22.9 % 21.0 % 1.9 pts GAAP Diluted EPS $2.42 $1.81 33.7 % Adjusted Diluted EPS $2.83 $2.32 22.0 % Cash Flow from Operations $455 $367 $88 Operating Cash Flow Conversion 82 % 83 % Sales increased 8.1% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Frauscher Sensor Technologies and Dellner Couplers. GAAP operating margin was higher than the prior year at 20.0%, and adjusted operating margin was higher than the prior year at 22.9%. Both GAAP and adjusted operating margins benefited from 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, operating margin expansion, and non-operational benefits primarily related to currency fluctuations. 2026 Third Quarter Freight Segment Results Wabtec Corporation Freight Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Third Quarter 2026 2025 Change Net Sales $2,237 $2,093 6.9 % GAAP Gross Margin 38.5 % 35.8 % 2.7 pts Adjusted Gross Margin 38.5 % 37.0 % 1.5 pts GAAP Operating Margin 23.0 % 19.8 % 3.2 pts Adjusted Operating Margin 26.4 % 24.5 % 1.9 pts Freight segment sales for the third quarter were up 6.9%. Services sales were up 6.7% driven by core services demand and higher modernization deliveries, while Equipment sales were up 0.3% due to increased mining sales, which were partially offset by lower locomotive deliveries. Digital sales were up 24.2% driven by the acquisition of Frauscher Sensor Technologies and strong core digital demand. Components sales were up 5.3% driven by industrial, maintenance of way, and international demand which offset lower North America rail build and portfolio optimization efforts. GAAP and adjusted operating margin benefited from gross margin improvements and lower operating expenses as a percentage of revenue. 2026 Third Quarter Transit Segment Results Wabtec Corporation Transit Segment Financial Results Net sales $ in millions; margin change in percentage points (pts) Third Quarter 2026 2025 Change Net Sales $883 $793 11.3 % GAAP Gross Margin 34.5 % 31.7 % 2.8 pts Adjusted Gross Margin 34.6 % 31.8 % 2.8 pts GAAP Operating Margin 16.4 % 14.5 % 1.9 pts Adjusted Operating Margin 18.1 % 15.5 % 2.6 pts Transit segment sales for the third quarter were up 11.3% driven by the acquisition of Dellner Couplers, and higher OE and aftermarket sales which was partially offset by unfavorable foreign currency exchange. Sales were up 12.5% on a constant currency basis. GAAP and adjusted operating margins were up as a result of improved gross margins which were partially offset by higher operating expenses as a percentage of revenue. Backlog Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions September 30, 2026 2025 Change 12-Month Backlog $8,992 $8,267 8.8 % Total Backlog $31,435 $25,577 22.9 % The Company’s multi-year backlog continues to provide strong visibility. At September 30, 2026, the 12-month backlog was $0.73 billion higher than the prior year period. At September 30, 2026, the multi-year backlog was $5.86 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $5.46 billion higher, up 21.4%. Cash Flow and Liquidity Summary During the third quarter, the Company generated cash from operations of $455 million versus $367 million in the year ago period. The increase in cash was driven by higher net income. At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $0.49 billion and total debt of $6.38 billion. At September 30, 2026, the Company’s total available liquidity was $2.09 billion, which includes $0.48 billion in cash and cash equivalents plus $1.61 billion available under current credit facilities. During the quarter, the Company repurchased $305 million of Wabtec shares and paid $52 million in dividends. 2026 Financial Guidance Wabtec raised and tightened its 2026 adjusted EPS guidance range to $10.85 - $11.05, raising it $0.20 at the midpoint, or up 22.0% versus prior year. For the full year 2026, Wabtec continues to expect revenues to be between $12.30 billion to $12.60 billion, up 11.5% at the midpoint 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 Third Quarter 2026 Results, Raised and Tightened Adjusted EPS Guidance

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