Wabtec (NYSE:WAB) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Wabtec (NYSE:WAB) issued its quarterly earnings results on Wednesday. The transportation company reported $2.10 EPS for the quarter, topping the consensus estimate of $2.08 by $0.02, FiscalAI reports. The company had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.86 billion. Wabtec had a return on equity of 13.84% and a net margin of 10.94%.The company’s revenue for the quarter was up 14.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.68 EPS. Wabtec updated its FY 2026 guidance to 10.050-10.450 EPS.

Here are the key takeaways from Wabtec’s conference call:

• Wabtec reported strong 2025 results with revenue up ~7.5%, adjusted EPS up ~18.7%, Q4 sales of about $3.0 billion (+15%), and very strong cash generation (Q4 operating cash flow $992 million, full-year cash from operations $1.76 billion).
• The company guided 2026 sales of $12.2–$12.5 billion (≈+10.5% at midpoint) and adjusted EPS of $10.05–$10.45 (≈+14% at midpoint), saying this will mark its sixth consecutive year of mid‑ to high‑teens adjusted EPS growth (guidance includes the Dellner acquisition).
• Acquisitions and integration work are boosting margins and scale: Integration 2.0 delivered $103 million of run‑rate savings (ahead of target), integration 3.0 is accelerated with a new target of $115–$140 million run‑rate savings by 2028, and portfolio optimization exited $72 million of low‑margin revenue with ~$60 million more planned in 2026.
• Near‑term headwinds include rising tariff costs (expected to peak in 1H26 and pressure margins) and weaker North American railcar/new‑unit timing — industry railcar build is expected to decline to ~24,000 cars in 2026 and services/mod revenues were down due to modernization timing.
• Product and market momentum: Wabtec launched the EVO modernization (targeting >20% reliability/tractive effort gains and up to 7% fuel savings), delivered first battery‑electric heavy‑haul locomotives to BHP, and won about $75 million of international digital orders, supporting longer‑term demand.

Wabtec Price Performance

Shares of WAB stock traded up $6.11 during trading hours on Thursday, hitting $260.53. 160,921 shares of the company’s stock were exchanged, compared to its average volume of 758,236. Wabtec has a 52 week low of $151.81 and a 52 week high of $262.40. The stock has a market cap of $44.54 billion, a price-to-earnings ratio of 37.83, a price-to-earnings-growth ratio of 1.68 and a beta of 1.01. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.42 and a quick ratio of 0.75. The stock’s 50-day moving average is $224.73 and its 200-day moving average is $206.45.

Wabtec Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Tuesday, February 17th will be paid a $0.31 dividend. This is an increase from Wabtec’s previous quarterly dividend of $0.25. This represents a $1.24 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, February 17th. Wabtec’s payout ratio is presently 18.02%.

Analysts Set New Price Targets

WAB has been the subject of a number of recent research reports. Citigroup restated a “buy” rating on shares of Wabtec in a research note on Thursday. Morgan Stanley increased their price objective on shares of Wabtec from $257.00 to $264.00 and gave the company an “overweight” rating in a research note on Monday, January 12th. JPMorgan Chase & Co. lifted their target price on shares of Wabtec from $215.00 to $245.00 and gave the company a “neutral” rating in a research report on Wednesday, January 14th. Susquehanna upped their target price on shares of Wabtec from $240.00 to $280.00 and gave the company a “positive” rating in a research note on Monday, January 26th. Finally, KeyCorp raised their price target on shares of Wabtec from $240.00 to $308.00 and gave the stock an “overweight” rating in a research note on Thursday. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Wabtec has a consensus rating of “Moderate Buy” and an average price target of $247.80.

Wabtec News Summary

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Q4 beat and upgraded outlook — Wabtec posted Q4 EPS of $2.10 (beat) and revenue near $2.96–2.97B (beat), with revenue +14.8% YoY, a record ~$27B backlog and FY2026 guidance of $10.05–$10.45 EPS and $12.2–$12.5B revenue, giving investors clearer upside to estimates. Wabtec (NYSE:WAB) Delivers Strong Q4 CY2025 Numbers
• Positive Sentiment: Share repurchase — the board authorized a $1.20 billion buyback (up to ~2.9% of shares), signaling management confidence in valuation and supporting EPS. RTT News – Stock Buybacks
• Positive Sentiment: Acquisition closed — Wabtec completed the Dellner Couplers acquisition (~$960M) to strengthen its passenger-rail product set and global footprint, which should help accelerate revenue and margins in Transit over time. Wabtec Finalizes Acquisition of Dellner Couplers
• Positive Sentiment: Large contract wins and backlog conversion — multiple locomotive deals (including a $670M CSX modernization order and $2.5B in broader train contracts) underpin the record backlog and near-term revenue visibility. CSX signs $670M deal with Wabtec to modernize locomotive fleet
• Neutral Sentiment: Capital allocation & integration watch — the $960M acquisition and $1.2B buyback are positive for growth and returns but warrant monitoring for integration execution, cash use and any near-term leverage impact. Wabtec completes $960M acquisition, adds facilities in 13 countries
• Neutral Sentiment: Shares & sentiment — short interest fell ~13.9% in January (fewer bets against the stock), and a recent dividend/announcement pushed the shares to a 1-year high; both are supportive but not direct operational drivers. Wabtec (NYSE:WAB) Sets New 1-Year High After Dividend Announcement

Insiders Place Their Bets

In other Wabtec news, CEO Rafael Santana sold 1,798 shares of the business’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $212.17, for a total value of $381,481.66. Following the completion of the transaction, the chief executive officer directly owned 125,941 shares of the company’s stock, valued at approximately $26,720,901.97. The trade was a 1.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Rogerio Mendonca sold 2,019 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $214.51, for a total transaction of $433,095.69. Following the transaction, the insider owned 9,516 shares in the company, valued at $2,041,277.16. The trade was a 17.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 13,875 shares of company stock valued at $2,978,789. 1.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WAB. Florida Financial Advisors LLC lifted its holdings in Wabtec by 30.8% in the second quarter. Florida Financial Advisors LLC now owns 3,053 shares of the transportation company’s stock valued at $639,000 after buying an additional 719 shares during the period. ICONIQ Capital LLC bought a new stake in shares of Wabtec during the 2nd quarter valued at $489,000. Curi Capital LLC acquired a new position in shares of Wabtec in the 2nd quarter valued at $228,000. SmartHarvest Portfolios LLC bought a new position in shares of Wabtec in the 4th quarter worth $223,000. Finally, Eisler Capital Management Ltd. bought a new position in shares of Wabtec in the 3rd quarter worth $212,000. Institutional investors own 91.69% of the company’s stock.

Wabtec declared that its board has approved a share repurchase program on Wednesday, February 11th that allows the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization allows the transportation company to buy up to 2.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

About Wabtec

Wabtec Corporation (Westinghouse Air Brake Technologies Corporation) is a global provider of equipment, systems and services for the rail industry. The company supplies products and solutions to freight railroads, transit agencies and other industrial operators, focusing on technologies that improve the performance, safety and efficiency of locomotives and rail networks. Wabtec’s business spans new equipment manufacturing, aftermarket parts and services, and digital and control systems for rail operations.

Product and service offerings include locomotive systems and components, braking and air systems, propulsion and traction equipment, signaling and control technologies, and a range of aftermarket services such as maintenance, remanufacturing, parts distribution and fleet modernization.