Wabtec raises 2026 EPS guidance after strong third quarter

Wabtec Corporation reported third quarter 2026 adjusted earnings per diluted share of $2.83, a 22.0% increase from the same period last year, and raised its full-year 2026 adjusted EPS guidance range to $10.85 to $11.05. The Pittsburgh-based company stated that the revised guidance represents a $0.20 increase at the midpoint, or 22.0% higher than the prior year.

Sales for the third quarter reached $3.12 billion, up 8.1% year over year, driven by growth in both the Freight and Transit segments. Cash from operations totaled $455 million during the period, compared with $367 million in the year-ago quarter. Wabtec’s GAAP diluted earnings per share were $2.42, up 33.7% from $1.81 in the third quarter of 2025.

Rafael Santana, Wabtec’s Chairman and CEO, attributed the performance to sales growth, margin expansion, and disciplined execution across the portfolio. He noted that strategic actions have enhanced the company's growth profile and expanded margins, while investments in technology continue to strengthen its competitive position in the industrial technology sector.

In the Freight segment, net sales rose 6.9%. Services sales increased 6.7% on core demand and modernization deliveries, while digital sales surged 24.2% due to the acquisition of Frauscher Sensor Technologies and strong core demand. GAAP operating margin for Freight improved by 3.2 points to 23.0%, supported by gross margin improvements and lower operating expenses as a percentage of revenue.

The Transit segment saw net sales grow 11.3%, aided by the acquisition of Dellner Couplers and higher original equipment and aftermarket sales. On a constant currency basis, Transit sales increased 12.5%. GAAP operating margin in this segment rose by 1.9 points to 16.4%, as improved gross margins partially offset higher operating expenses relative to revenue.

As of September 30, 2026, Wabtec’s total backlog stood up 22.9% from the prior year. The 12-month backlog increased by $0.73 billion, while the multi-year backlog grew by $5.86 billion. Excluding foreign currency exchange effects, the multi-year backlog was up 21.4%.

Wabtec ended the quarter with total debt of $6.38 billion and total available liquidity of $2.09 billion, which includes $0.48 billion in cash and cash equivalents plus $1.61 billion under current credit facilities. During the third quarter, the company repurchased $305 million in shares and paid $52 million in dividends.

For full-year 2026, Wabtec continues to expect revenues between $12.30 billion and $12.60 billion, representing an 11.5% increase at the midpoint versus the prior year.