Wabtec (NYSE:WAB) Announces Earnings Results, Beats Expectations By $0.16 EPS

Wabtec (NYSE:WAB) issued its quarterly earnings data on Wednesday. The transportation company reported $2.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.60 by $0.16, FiscalAI reports. The firm had revenue of $3.18 billion during the quarter, compared to the consensus estimate of $3.07 billion. Wabtec had a return on equity of 14.52% and a net margin of 10.52%.The business’s revenue for the quarter was up 17.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.27 EPS. Wabtec updated its FY 2026 guidance to 10.600-10.900 EPS.

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

• Wabtec reported a strong second quarter with sales up 17.5%, adjusted EPS up 21.6%, and operating margin expansion despite tariffs, unfavorable mix, and tough comps.
• Management raised full-year 2026 guidance to about $12.5 billion in revenue at the midpoint and $10.60 to $10.90 in adjusted EPS, citing better-than-expected execution and flow-business strength.
• Backlog remains a major strength, with 12-month backlog up 11% and multiyear backlog above $30 billion, up 42%, giving the company strong visibility into future growth.
• The company highlighted several large orders, including a $1 billion Australian award, a $184 million Positive Train Control order with Vale, and new transit and mining wins, underscoring a healthy pipeline.
• Management said second-half growth will likely normalize as it laps acquisitions, but expects margins to improve more meaningfully later in the year, especially in Q4, helped by productivity gains and easing tariff comparisons.

Wabtec Stock Performance

Shares of NYSE:WAB opened at $290.15 on Thursday. The company has a current ratio of 1.02, a quick ratio of 0.54 and a debt-to-equity ratio of 0.42. Wabtec has a 1-year low of $184.26 and a 1-year high of $295.41. The stock has a market capitalization of $49.23 billion, a P/E ratio of 41.04, a P/E/G ratio of 1.88 and a beta of 0.94. The business has a 50-day moving average price of $264.47 and a two-hundred day moving average price of $254.26.

Wabtec Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, August 18th. Wabtec’s payout ratio is currently 17.54%.

Insider Activity at Wabtec

In related news, insider Sameer Gaur sold 1,082 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $263.50, for a total value of $285,107.00. Following the transaction, the insider directly owned 11,985 shares in the company, valued at $3,158,047.50. This represents a 8.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Rafael Santana sold 1,163 shares of the firm’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $262.07, for a total transaction of $304,787.41. Following the completion of the transaction, the chief executive officer directly owned 122,914 shares in the company, valued at approximately $32,212,071.98. The trade was a 0.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 5,734 shares of company stock valued at $1,504,571. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Quarry LP grew its stake in Wabtec by 347.2% in the fourth quarter. Quarry LP now owns 474 shares of the transportation company’s stock valued at $101,000 after acquiring an additional 368 shares during the period. SmartHarvest Portfolios LLC acquired a new stake in shares of Wabtec during the fourth quarter worth about $223,000. Hilltop Holdings Inc. bought a new position in shares of Wabtec during the 3rd quarter valued at about $206,000. Banque Transatlantique SA grew its position in shares of Wabtec by 5,866.7% in the 3rd quarter. Banque Transatlantique SA now owns 895 shares of the transportation company’s stock valued at $176,000 after purchasing an additional 880 shares during the period. Finally, Eisler Capital Management Ltd. acquired a new position in shares of Wabtec in the 3rd quarter valued at approximately $212,000. 91.69% of the stock is currently owned by institutional investors.

Trending Headlines about Wabtec

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Wabtec beat Q2 expectations with adjusted EPS of $2.76 and revenue of $3.18 billion, both above estimates, while sales rose 17.5% year over year and margins improved. Wabtec Shares Rise After 2Q Earnings Beat Estimates
• Positive Sentiment: The company raised its 2026 guidance, now expecting revenue of about $12.3 billion to $12.6 billion and adjusted EPS of $10.60 to $10.90, signaling management is more confident about demand and profitability ahead. Wabtec forecasts 2026 revenue of about $12.5B and adjusted EPS of $10.60-$10.90 as it raises guidance
• Positive Sentiment: Freight and Transit both contributed to the beat, with stronger locomotive deliveries, acquisition-related growth, and backlog gains supporting better visibility into future sales. Wabtec Q2 Earnings & Revenues Beat Estimates, Up Y/Y, EPS View Raised
• Neutral Sentiment: Additional coverage highlighted strong second-half momentum and a record-high share reaction, but these articles mostly echoed the same earnings and guidance story rather than adding new catalysts. Wabtec hits record high on improved 2026 outlook for freight, transit
• Neutral Sentiment: Wabtec interns volunteering to help preserve Erie’s Brig Niagara is positive for corporate reputation, but it is unlikely to materially affect the stock. Wabtec Interns Give Back, Help Preserve Erie’s Brig Niagara

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Citigroup cut their price target on Wabtec from $313.00 to $311.00 and set a “buy” rating for the company in a report on Monday, July 13th. JPMorgan Chase & Co. raised their price objective on shares of Wabtec from $290.00 to $300.00 and gave the company a “neutral” rating in a research report on Monday, July 13th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $290.00 target price (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. Wolfe Research reiterated an “outperform” rating and set a $303.00 target price on shares of Wabtec in a research report on Thursday, April 23rd. Finally, Morgan Stanley reissued an “overweight” rating and issued a $318.00 price target on shares of Wabtec in a report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Wabtec presently has an average rating of “Moderate Buy” and an average target price of $293.36.

Wabtec Company Profile

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.