WAB

Wabtec reported higher third-quarter revenue and earnings and raised its outlook as the company's freight and transit equipment backlogs grew. Operating income increased 27%, to $625 million, as revenue grew 8%, to $3.12 billion, the company said Wednesday. Earnings per share increased 34%, to $2.42. Wabtec (NYSE: WAB) raised its full-year adjusted EPS guidance to a range of $10.85 to $11.05, an increase of 21% to 23.2%, up from the prior outlook of an increase of 18.2% to 21.5%. "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," Chairman and Chief Executive Rafael Santana said in a release. "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." Freight segment revenue increased 6.9% in the quarter, with digital intelligence revenue up 24.2% thanks to Wabtec's acquisition of Frauscher Sensor Technologies and what it said was strong demand. Wabtec received new locomotive and modernization orders worth $633 million from two Class I railroads. It did not name the railroads. Growth in North American freight traffic this year has prompted Class I railroads to reactivate stored locomotives, which has led to increased parts orders, Santana told investors and analysts on the company's earnings call. But Wabtec has yet to see the volume growth translate into orders for new locomotives, he said. The Freight segment's 12-month backlog rose 7.5% from a year earlier, to $6.54 billion. Transit segment revenue increased 11.3%, to $883 million, driven by the acquisition of Dellner Couplers of Sweden and higher original equipment and aftermarket sales. The Transit segment's 12-month backlog increased 12.2%, to $2.45 billion. Why it matters: Wabtec's third-quarter report shows a recovery in railroad equipment use without yet signaling a broad rebound in new-equipment spending. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Read more: Union Pacific posts record third-quarter revenue and profits Norfolk Southern profits rise on higher volume and revenue Commodity markets whip up railfreight gains First look: Union Pacific earnings The post Wabtec earnings rise on higher freight and transit sales appeared first on FreightWaves.

Westinghouse Air Brake Technologies came into this Q3 2026 report with a premium price tag and a reputation as a high quality rail supplier, and the stock is trading about 2% higher around US$289 after the release. That move only tells part of the story. The headline is a sharp earnings beat, with adjusted earnings per share rising to US$2.83 and operating margins widening meaningfully on the back of stronger performance in Freight and Transit. For investors, the expectation was already high with a rich P/E multiple. This quarter's margin expansion is what kept that thesis from cracking, at least for now. Impressed by Westinghouse Air Brake Technologies' margin strength but uneasy about paying a premium P/E for a single rail supplier? Scan a wider field of high quality rail and industrial peers through our list of list of solid balance sheet and fundamentals stocks (25 results). - Revenue (Q3 2026 vs Q3 2025): US$3,120 million vs. US$2,886 million (+8.1%) - Net Income, Excluding Extra Items (Q3 2026 vs Q3 2025): US$409 million vs. US$309 million (+32.4%) - Basic EPS (Earnings Per Share) (Q3 2026 vs Q3 2025): US$2.43 vs. US$1.81 (+34.2%) - Trailing 12 Month Net Income, Excluding Extra Items (Q3 2026 TTM vs Q3 2025 TTM): US$1,365 million vs. US$1,176 million (+16.1%) Ask Charlie what Wabtec's $31B backlog really locks in. The upbeat story hinges on Westinghouse Air Brake Technologies turning backlog, software and acquisitions into structurally higher profitability. "The main thing that has to go right is that Westinghouse Air Brake Technologies continues to grow higher margin services and digital offerings while integrating acquisitions such as Inspection Technologies, Frauscher, and Dellner so that Freight and Transit margins keep improving despite tariffs and input cost pressure." Q3 ticks several boxes. Freight and Transit each delivered higher adjusted operating margins alongside a 24.2% lift in Digital Intelligence revenue and a multiyear backlog above US$31b. Integration 3.0 benefits and portfolio optimization were cited as key drivers, which aligns this print with the margin ambition in the thesis. Bears worry that services softness, tariffs and acquisition complexity will eventually puncture Wabtec's margin story. "Management expects full year 2026 services revenue to be down because of significantly lower modernization deliveries in the first half, particularly in North America. If this weaker modernization cycle persists it could limit Westinghouse Air Brake Technologies' ability to translate its installed base into higher services revenue and earnings growth." Latest numbers push back on that concern for now. Services revenue grew 6.7% in Q3 and overall margins expanded even with tariff headwinds earlier in 2026. Management also flagged easing tariff impact into Q4 and described acquisitions as performing ahead of plan, which reduces near term evidence of the feared margin drag. The price and this Narrative do not agree. → Uncover what this Narrative says Westinghouse Air Brake Technologies is actually worth. Westinghouse Air Brake Technologies just reminded investors how quickly sentiment can change when margins shift. The real opportunity sits in tracking stocks that could be undervalued before that gap closes. - Company 1 - 45% below our estimate - expand large-format LED display projects as smart-city, transportation and youth sports customers migrate to software-driven control platforms. - Company 2 - 47% below our estimate - supply steel reinforcing products as infrastructure programs support new highway construction and engineered mesh for major concrete structures. - Company 3 - 33% below our estimate - grow a super-app model that connects credit, payments, investing and shopping for highly engaged digital customers. That is three of the list. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WAB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Norfolk Southern Corporation NSC reported impressive third-quarter 2026 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 25 cents from non-recurring items) of $3.62 per share surpassed the consensus estimate of $3.48 by 4% and increased 9.7% year over year. Railway operating revenues of $3.53 billion beat the consensus estimate of $3.46 billion by 1.8% and increased 13.6% year over year to a quarterly record. The improvement was driven by higher fuel surcharge revenues, 3% volume growth and improved revenue per unit. Norfolk Southern Corporation price-consensus-eps-surprise-chart | Norfolk Southern Corporation Quote Total railway operating units increased 3% year over year to 1.85 million. Revenue per unit rose 11% to $1,902. Fuel surcharge revenues surged 125% to $468 million. Excluding fuel surcharges, revenues increased 6% year over year to $3.06 billion, while revenue per unit improved 3% to $1,650. Merchandise revenues increased 11% year over year to $2.19 billion, supported by 3% unit growth. Revenue per unit improved 8% to $3,579. Chemicals revenues rose 16% to $658 million, metals and construction revenues increased 15% to $516 million, and agriculture, forest and consumer products revenues grew 10% to $696 million. Automotive revenues declined 1% to $318 million. Intermodal revenues jumped 21% year over year to $919 million, with units increasing 3%. Domestic intermodal units grew 10%, while international units declined 8%. Coal revenues increased 12% to $419 million, supported by 3% unit growth. Export coal tonnage increased 10%, while utility and domestic metallurgical coal tonnage declined 2% and 8%, respectively. Adjusted railway operating expenses increased 17% year over year to $2.31 billion. Fuel expenses surged 77% to $420 million, while adjusted compensation and benefits expenses rose 5% to $753 million. Purchased services and rents expenses increased 5% to $546 million. Adjusted income from railway operations increased 7% to $1.22 billion. However, the adjusted operating ratio (operating expenses as a percentage of revenues) deteriorated 210 basis points year over year to 65.4%. Train speed declined 5% year over year to 20.9 miles per hour, while terminal dwell increased 4% to 23.2 hours. However, train speed improved 5% sequentially, while terminal dwell improved 3%. Workforce productivity increased 5% year over year. Merchandise plan compliance declined to 74% from 80%, while the intermodal service composite fell to 84% from 92%. NSC exited the third quarter with cash and cash equivalents of $1.60 billion compared with $1.53 billion at 2025-end. Long-term debt declined to $15.96 billion from $16.48 billion. Operating cash flow for the first nine months of 2026 declined to $2.72 billion from $3.30 billion a year ago. Property additions totaled $1.41 billion, while dividend payments amounted to $910 million. Norfolk Southern raised its 2026 adjusted operating expense forecast to approximately $9 billion from its original guidance of $8.2-$8.4 billion, reflecting approximately $700 million in incremental fuel costs and higher volumes. Capital expenditures are now expected to be approximately $2.1 billion, remaining below the 2025 level. Management continues to prioritize safety, reliable service and disciplined cost control. Currently, NSC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Alaska Air Group, Inc. ALK reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum. Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%. Wabtec Corporation WAB reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norfolk Southern Corporation (NSC) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Union Pacific Corporation UNP reported impressive third-quarter 2026 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Strong volume growth, core pricing gains and higher fuel surcharge revenues contributed to the results. Quarterly adjusted earnings (excluding 4 cents from acquisition-related expenses) of $3.53 per share beat the Zacks Consensus Estimate of $3.47 by 1.7% and increased 14.6% year over year. Operating revenues of $7.20 billion surpassed the consensus estimate of $7.12 billion by 1.1% and rose 15.3% year over year. Revenue carloads increased 6% year over year. Union Pacific Corporation price-consensus-eps-surprise-chart | Union Pacific Corporation Quote Freight revenues (accounting for approximately 95% of the top line) increased 14.9% year over year to $6.81 billion. Freight revenues excluding fuel surcharge increased 6% year over year to $5.64 billion. Fuel surcharge revenues surged to $1.17 billion from $602 million in the year-ago quarter. Other revenues increased 21.1% year over year to $384 million. Total revenue carloads reached 2.29 million compared with 2.16 million in the prior-year quarter. Average revenue per car increased 8% year over year to $2,971, reflecting improved revenue generation per shipment. Operating income increased 15.5% year over year to $2.94 billion. Total operating expenses increased 15.1% year over year to $4.25 billion, primarily due to higher fuel prices, inflation and volume-related expenses. Fuel expenses surged 68.8% year over year to $1.04 billion. Expenses on purchased services and materials increased 9.2% year over year to $746 million. Compensation and benefits expenses rose 4.1% to $1.26 billion, while depreciation expenses increased 4% to $643 million. Equipment and other rents declined 2.8% to $206 million. The operating ratio (operating expenses as a percentage of revenues) improved 10 basis points year over year to 59.1% on a reported basis. However, the adjusted operating ratio deteriorated 30 basis points year over year to 58.8%. Higher fuel prices negatively impacted the operating ratio by 140 basis points. Bulk freight revenues were $2.12 billion, up 9.6% year over year. Segmental revenue carloads remained nearly flat at 529,000. Grain and grain products revenues increased 11% to $1.09 billion, while coal and renewables revenues rose 12% to $525 million despite a 3% decline in carloads. Industrial freight revenues totaled $2.51 billion, up 14.4% year over year. Segmental revenue carloads increased 6% to 606,000. Metals and minerals revenues climbed 17% to $666 million, while energy and specialized markets revenues increased 18% to $771 million. Freight revenues in the Premium division were $2.19 billion, up 21.4% year over year. Premium revenue carloads increased 9% to 1.16 million. Intermodal revenues rose 27% to $1.52 billion, supported by an 11% increase in intermodal carloads. Automotive revenues grew 11% to $671 million. Freight car velocity improved 1% year over year to 228 daily miles per car. Average terminal dwell time declined 2% to 19.9 hours, reflecting improvements in terminal operations. Workforce productivity increased 5% to 1,219 car miles per employee. Train length increased 2% to 9,969 feet, while locomotive productivity remained flat at 140 gross ton-miles per horsepower-day. The fuel consumption rate improved 2% to 1.034 gallons per thousand gross ton-miles. However, intermodal and manifest service performance indexes declined six and seven percentage points, respectively. Union Pacific exited the third quarter of 2026 with cash and cash equivalents of $2.21 billion compared with $1.27 billion at the end of 2025. Long-term debt stood at $29.04 billion compared with $30.29 billion at 2025-end. During the first nine months of 2026, cash provided by operating activities increased to $8.30 billion from $7.07 billion in the corresponding year-ago period. Free cash flow rose to $2.36 billion from $1.86 billion. The company repaid $1.52 billion of debt during the period. For 2026, Union Pacific continues to expect reported earnings per share (EPS) growth in the high-single digits, consistent with its three-year compound annual growth rate target of high-single-digit to low-double-digit growth through 2027. UNP updated its capital investment plan to $3.5 billion. Currently, UNP carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Alaska Air Group, Inc. ALK reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum. Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%. Wabtec Corporation WAB reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same. Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion. J.B. Hunt Transport Services, Inc. JBHT reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%. Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Wabtec (WAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management attributed strong performance to disciplined execution across the portfolio, translating healthy customer demand into profitable growth while enhancing the company's earnings power. - Backlog growth reached a multi-year high of over $31 billion, providing enhanced visibility and what management described as the strongest order coverage in the company's history. - Operational excellence served as the primary margin driver, fueled by 'Integration 3.0' productivity benefits and portfolio optimization efforts to eliminate low-profit complexities. - International demand remains robust, particularly in Africa, Brazil, and Central Asia, where significant infrastructure investments are driving a strong locomotive and services pipeline. - In North America, while carload traffic grew 3.5%, management noted that buying behavior for new locomotives has not yet shifted, though fleet aging presents a significant renewal opportunity. - The Transit sector is benefiting from favorable ridership trends in Europe and India, supported by high levels of public investment for fleet expansion and renewal programs. - Full-year adjusted EPS guidance was raised to $10.85-$11.05, reflecting third-quarter outperformance and ongoing momentum into the final quarter of 2026. - Fourth-quarter margins are expected to expand significantly more than in Q3 as tariff headwinds begin to dissipate on a year-over-year basis. - Management anticipates organic revenue growth will exceed 5% for the full year, supported by stronger backlog coverage and higher-margin multi-year orders. - The company expects to hit an inflection point in the North American railcar market, with industry forecasts suggesting a return to 2025 delivery levels by 2027. - Future growth is expected to be driven by technology leads in automation and efficiency, helping customers address fleet obsolescence and improve return on investment. - Industry sources reduced 2026 North America railcar delivery forecasts to approximately 23,000 units, representing a 26% reduction from the prior year. - The company incurred $5 million in restructuring charges related to ongoing integration and portfolio optimization initiatives aimed at streamlining operations. - Approximately 30% of revenue remains outside the formal backlog, making certain segments more sensitive to immediate shifts in railcar builds and uncontracted parts demand. - Management highlighted that while tariffs remain a cost factor, the year-over-year impact will provide less of a headwind starting in the fourth quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management stated that margin gains are sustainable and largely cost-driven, with 'Integration 3.0' running ahead of expectations in terms of savings delivery. - Product mix is expected to shift from a first-half headwind to a tailwind in the back half of the year, further supporting margin levels. - While active fleets are increasing, management has not yet seen a broad change in Class I buying behavior for new units, describing current activity as customer-specific. - The 'flow' business (parts and services) is seeing immediate benefits as railroads unpark units to handle increased traffic volumes. - Management confirmed that the technology continues to progress and they are currently awaiting formal FRA approval. - The initiative is viewed as a potential tactical revenue driver once regulatory hurdles are cleared. - Management acknowledged a competitive environment but emphasized their focus on extending technology leads in automation and life cycle costs to maintain market share. - They noted that investments in electronics and efficiency are critical as customers face obsolescence in fleets over 20 years old.

Wabtec Corporation (NYSE:WAB) shares declined 2.94% in pre-market trading on Wednesday after the rail equipment and technology company reported third-quarter 2026 revenue below analysts' expectations, despite exceeding earnings forecasts and raising its full-year adjusted earnings guidance. The company posted adjusted earnings per share of $2.83, exceeding the market consensus of $2.73 by $0.10. Quarterly revenue reached $3.12 billion, below analysts' estimates of $3.2 billion. However, the figure represented an 8.1% increase from the $2.89 billion reported in the corresponding period of 2025. Following the results, Wabtec raised and narrowed its full-year adjusted earnings guidance to a range of $10.85 to $11.05 per share. The midpoint of the revised forecast, at $10.95, stands above the analyst consensus estimate of $10.87 per share. The company also maintained its 2026 revenue guidance of between $12.3 billion and $12.6 billion. The midpoint of $12.45 billion remains below the market consensus of $12.55 billion. The difference between the company's revenue outlook and analysts' expectations was among the factors investors assessed following the earnings announcement. Rafael Santana, Wabtec's Chairman and Chief Executive Officer, commented on the quarterly performance. "Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS," Santana said. Within its operating divisions, Wabtec's Freight segment generated revenue of $2.24 billion, representing a 6.9% increase compared with the third quarter of 2025. The Transit segment reported revenue of $883 million, up 11.3% year on year. Both divisions contributed to the company's overall revenue growth, with the Transit business recording the higher percentage increase during the period. Wabtec also reported an improvement in profitability, with its adjusted operating margin increasing to 22.9% from 21.0% in the prior-year quarter. The expansion of 190 basis points accompanied the company's reported increase in adjusted earnings per share. Cash generated from operating activities totalled $455 million during the third quarter, compared with $367 million in the same period last year. The company continued returning capital to shareholders, repurchasing $305 million of its shares during the quarter and distributing a further $52 million through dividend payments. In total, Wabtec returned $357 million to shareholders through share buybacks and dividends during the reporting period. The quarterly results showed growth in both Freight and Transit revenue, alongside an improvement in operating margins and cash generation. However, the company's revenue fell short of market forecasts, while its maintained full-year sales guidance remained below analysts' consensus expectations. Investors will continue to assess Wabtec's performance during the final quarter of 2026, particularly whether revenue growth across its two operating divisions and improvements in operating profitability support the company's updated earnings outlook. Wabtec stock price

Wabtec Corporation WAB reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Both metrics increased year over year, supported by growth across Freight and Transit businesses and improved profitability. Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion. Freight segment revenues increased 6.9% year over year to $2.24 billion. Services revenues rose 6.7% to $794 million, driven by stronger core demand and increased modernization deliveries. Equipment sales edged up 0.3% to $679 million as higher mining sales were largely offset by lower locomotive deliveries. Digital Intelligence revenues surged 24.2% to $369 million, aided by the Frauscher Sensor Technologies acquisition and robust core digital demand. Components revenues increased 5.3% to $395 million, supported by industrial, maintenance-of-way and international demand. Freight adjusted operating margin expanded 190 basis points to 26.4%, reflecting improved gross margins and operating efficiency. Wabtec price-consensus-eps-surprise-chart | Wabtec Quote Transit segment revenues advanced 11.3% year over year to $883 million. Growth reflected the Dellner Couplers acquisition and higher original equipment and aftermarket sales, partially offset by unfavorable currency movements. On a constant-currency basis, revenues increased 12.5%. Original equipment revenues rose to $408 million from $367 million, while aftermarket revenues increased to $475 million from $426 million. Transit adjusted operating margin expanded 260 basis points to 18.1%, primarily benefiting from improved gross profitability despite higher operating expenses relative to sales. Acquisitions contributed $114 million to third-quarter revenue growth, comprising $49 million from Freight and $65 million from Transit. Organic growth added $137 million, including $102 million from Freight and $35 million from Transit. Portfolio optimization activities reduced revenues by $12 million, while unfavorable foreign exchange movements lowered sales by $5 million. Organic growth exceeded acquisition contributions, highlighting the role of underlying customer demand alongside strategic investments in expanding Wabtec's business. Adjusted gross margin improved 180 basis points year over year to 37.4%, while adjusted operating margin expanded 190 basis points to 22.9%. Adjusted operating income increased to $715 million from $607 million, supported by higher sales, favorable product mix and productivity improvements. GAAP operating income climbed to $625 million from $491 million, with operating margin expanding 300 basis points to 20%. Benefits from cost recovery, manufacturing efficiencies and Integration 3.0 savings helped offset higher raw material costs, tariffs and acquisition-related expenses. Selling, general and administrative expenses increased to $383 million from $375 million. Total backlog reached $31.44 billion as of Sept. 30, 2026, up 22.9% from $25.58 billion a year earlier. Freight backlog increased to $25.77 billion, while Transit backlog reached $5.67 billion, reflecting continued order momentum across both businesses. The 12-month backlog grew $725 million year over year. Freight accounted for $6.54 billion of near-term orders, while Transit represented $2.45 billion. Recent orders included $1 billion in international locomotive and service contracts and $633 million in North American locomotive and modernization orders. Cash from operations increased to $455 million from $367 million in the prior-year quarter, primarily driven by higher net income. Operating cash flow conversion stood at 82% compared with 83% a year earlier. Wabtec ended the quarter with $489 million in cash, cash equivalents and restricted cash. Total available liquidity was $2.09 billion, including $1.61 billion available under existing credit facilities. Total debt stood at $6.38 billion. During the quarter, Wabtec repurchased $305 million of shares and paid $52 million in dividends. Wabtec raised and tightened its full-year 2026 adjusted earnings guidance to $10.85-$11.05 per share from the previous $10.60-$10.90 range. The midpoint increased 20 cents and represents expected year-over-year growth of approximately 22%. The Zacks Consensus Estimate for 2026 earnings is currently pegged at $10.89 per share, below the midpoint of the guided range. The company maintained its 2026 revenue guidance at $12.30-$12.60 billion, implying growth of approximately 11.5% at the midpoint. The outlook assumes continued operating margin expansion, productivity improvements and benefits from Integration 3.0 and portfolio optimization initiatives. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $12.53 billion. Currently, Wabtec carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines DAL reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses. Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile, or TRASM, 15%, while premium and diversified revenue streams continued to expand. Union Pacific UNP is scheduled to report third-quarter 2026 earnings on Oct. 22. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised 2.1% upward over the past 60 days. UNP's earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.8%. Improvement in the freight scenario is expected to aid results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wabtec (WAB) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Union Pacific Corporation (UNP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Westinghouse Air Brake Technologies (WAB) came out with quarterly earnings of $2.83 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.04%. A quarter ago, it was expected that this maker of parts for locomotives, subways and buses would post earnings of $2.63 per share when it actually produced earnings of $2.76, delivering a surprise of +4.94%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Wabtec, which belongs to the Zacks Transportation - Equipment and Leasing industry, posted revenues of $3.12 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 2%. This compares to year-ago revenues of $2.89 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wabtec shares have added about 32.8% since the beginning of the year versus the S&P 500's gain of 12.7%. While Wabtec has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wabtec was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $3.22 billion in revenues for the coming quarter and $10.89 on $12.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Equipment and Leasing is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Localiza Rent A Car SA - Sponsored ADR (LZRFY), is yet to report results for the quarter ended September 2026. This company is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +260%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Localiza Rent A Car SA - Sponsored ADR's revenues are expected to be $2.46 billion, up 24.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wabtec (WAB) : Free Stock Analysis Report Localiza Rent A Car SA - Sponsored ADR (LZRFY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- 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, October 21, 2026--(BUSINESS WIRE)--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 Information Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec's website at www.WabtecCorp.com and click on "Events & Presentations" in the "Investor Relations" section. Also, an audio replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088 (access code: 9897430). About Wabtec Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec's website at www.wabteccorp.com. Information about non-GAAP Financial Information and Forward-Looking Statements Wabtec's earnings release and 2026 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results. This communication contains "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec's plans, objectives, expectations and intentions; Wabtec's expectations about future sales, earnings and cash conversion; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the actual or threatened imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; (2) changes in the financial condition or operating strategies of Wabtec's customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia's invasion of Ukraine and ongoing military conflicts in the Middle East; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec's reports filed with the SEC, including Wabtec's annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | September 30, | | September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | Net sales | $ | 3,120 | | | $ | 2,886 | | | $ | 9,249 | | | $ | 8,202 | Cost of sales | | (1,956 | ) | | | (1,884 | ) | | | (5,863 | ) | | | (5,362 | ) Gross profit | | 1,164 | | | | 1,002 | | | | 3,386 | | | | 2,840 | Gross profit as a % of Net Sales | | 37.3 | % | | | 34.7 | % | | | 36.6 | % | | | 34.6 | % | | | | | | | Selling, general and administrative expenses | | (383 | ) | | | (375 | ) | | | (1,184 | ) | | | (1,029 | ) Engineering expenses | | (67 | ) | | | (59 | ) | | | (193 | ) | | | (155 | ) Amortization expense | | (89 | ) | | | (77 | ) | | | (267 | ) | | | (219 | ) Total operating expenses | | (539 | ) | | | (511 | ) | | | (1,644 | ) | | | (1,403 | ) Operating expenses as a % of Net Sales | | 17.3 | % | | | 17.7 | % | | | 17.8 | % | | | 17.1 | % | | | | | | | Income from operations | | 625 | | | | 491 | | | | 1,742 | | | | 1,437 | Income from operations as a % of Net Sales | | 20.0 | % | | | 17.0 | % | | | 18.8 | % | | | 17.5 | % | | | | | | | Interest expense, net | | (80 | ) | | | (65 | ) | | | (231 | ) | | | (157 | ) Other income (expense), net | | 12 | | | | (1 | ) | | | 33 | | | | 21 | Income before income taxes | | 557 | | | | 425 | | | | 1,544 | | | | 1,301 | | | | | | | | Income tax expense | | (146 | ) | | | (112 | ) | | | (374 | ) | | | (322 | ) Effective tax rate | | 26.3 | % | | | 26.4 | % | | | 24.2 | % | | | 24.8 | % | | | | | | | Net income | | 411 | | | | 313 | | | | 1,170 | | | | 979 | | | | | | | | Less: Net income attributable to noncontrolling interest | | (2 | ) | | | (3 | ) | | | (4 | ) | | | (11 | ) | | | | | | | Net income attributable to Wabtec shareholders | $ | 409 | | | $ | 310 | | | $ | 1,166 | | | $ | 968 | | | | | | | | Earnings Per Common Share | | | | | | | Basic | | | | | | | Net income attributable to Wabtec shareholders | $ | 2.43 | | | $ | 1.81 | | | $ | 6.88 | | | $ | 5.66 | | | | | | | | Diluted | | | | | | | Net income attributable to Wabtec shareholders | $ | 2.42 | | | $ | 1.81 | | | $ | 6.86 | | | $ | 5.64 | | | | | | | | | | | | | | | Basic | | 168.2 | | | | 170.5 | | | | 169.1 | | | | 170.5 | Diluted | | 168.8 | | | | 171.1 | | | | 169.7 | | | | 171.2 | | | | | | | | Segment Information | | | | | | | Freight Net Sales | $ | 2,237 | | | $ | 2,093 | | | $ | 6,595 | | | $ | 5,913 | Freight Income from Operations | $ | 515 | | | $ | 414 | | | $ | 1,469 | | | $ | 1,249 | Freight Operating Margin | | 23.0 | % | | | 19.8 | % | | | 22.3 | % | | | 21.1 | % | | | | | | | Transit Net Sales | $ | 883 | | | $ | 793 | | | $ | 2,654 | | | $ | 2,289 | Transit Income from Operations | $ | 145 | | | $ | 115 | | | $ | 412 | | | $ | 314 | Transit Operating Margin | | 16.4 | % | | | 14.5 | % | | | 15.5 | % | | | 13.7 | % | | | | | | | Backlog Information (Note: 12-month is a sub-set of total) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | Freight Total | $ | 25,765 | | | $ | 25,332 | | | $ | 20,907 | | | Transit Total | | 5,670 | | | | 5,600 | | | | 4,670 | | | Wabtec Total | $ | 31,435 | | | $ | 30,932 | | | $ | 25,577 | | | | | | | | | | Freight 12-Month | $ | 6,544 | | | $ | 6,638 | | | $ | 6,085 | | | Transit 12-Month | | 2,448 | | | | 2,502 | | | | 2,182 | | | Wabtec 12-Month | $ | 8,992 | | | $ | 9,140 | | | $ | 8,267 | | | WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | | | | | | September 30, 2026 | | December 31, 2025 In millions | | | Cash, cash equivalents and restricted cash | $ | 489 | | $ | 789 Receivables, net | | 2,264 | | | 1,897 Inventories, net | | 2,946 | | | 2,745 Other current assets | | 352 | | | 263 Total current assets | | 6,051 | | | 5,694 Property, plant and equipment, net | | 1,672 | | | 1,616 Goodwill | | 10,621 | | | 10,216 Other intangible assets, net | | 4,032 | | | 3,838 Other noncurrent assets | | 765 | | | 705 Total assets | $ | 23,141 | | $ | 22,069 Current liabilities | $ | 5,500 | | $ | 5,150 Long-term debt | | 4,665 | | | 4,291 Long-term liabilities - other | | 1,612 | | | 1,438 Total liabilities | | 11,777 | | | 10,879 Shareholders' equity | | 11,333 | | | 11,142 Noncontrolling interest | | 31 | | | 48 Total shareholders' equity | | 11,364 | | | 11,190 Total Liabilities and Shareholders' Equity | $ | 23,141 | | $ | 22,069 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | | Nine Months Ended September 30, | | 2026 | | | | 2025 | In millions | | | Operating activities | | | Net income | $ | 1,170 | | | $ | 979 | Non-cash expense | | 466 | | | | 357 | Receivables | | (342 | ) | | | (368 | ) Inventories | | (100 | ) | | | (228 | ) Accounts Payable | | 67 | | | | 76 | Other operating activities | | (166 | ) | | | (49 | ) Net cash provided by operating activities | | 1,095 | | | | 767 | | | | Net cash used for investing activities | | (1,243 | ) | | | (1,887 | ) | | | Net cash (used for) provided by financing activities | | (147 | ) | | | 907 | | | | Effect of changes in currency exchange rates | | (5 | ) | | | 26 | | | | Decrease in cash | | (300 | ) | | | (187 | ) | | | Cash, cash equivalents and restricted cash, beginning of period | | 789 | | | | 715 | Cash, cash equivalents and restricted cash, end of period | $ | 489 | | | $ | 528 | Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. Wabtec Corporation | | | | | | | | | | | | | | | | | | | Reconciliation of Reported Results to Adjusted Results | | | | | | | | | | | | | | | | | | (in millions) | Third Quarter 2026 Actual Results | | | Gross | | Operating | | Income from | | Interest & | | | | | | Noncontrolling | | Wabtec | | | Net Sales | | Profit | | Expenses | | Operations | | Other Exp | | Tax | | Net Income | | Interest | | Net Income | | EPS | | | | | | | | | | | | | | | | | | | Reported Results | $ | 3,120 | | $ | 1,164 | | $ | (539 | ) | | $ | 625 | | $ | (68 | ) | | $ | (146 | ) | | $ | 411 | | $ | (2 | ) | | $ | 409 | | $ | 2.42 | | | | | | | | | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | - | | | 2 | | | (1 | ) | | | 1 | | | 4 | | | | (1 | ) | | | 4 | | | - | | | | 4 | | $ | 0.02 | | | | | | | | | | | | | | | | | | | Non-cash Amortization expense | | - | | | - | | | 89 | | | | 89 | | | - | | | | (24 | ) | | | 65 | | | - | | | | 65 | | $ | 0.39 | | | | | | | | | | | | | | | | | | | Adjusted Results | $ | 3,120 | | $ | 1,166 | | $ | (451 | ) | | $ | 715 | | $ | (64 | ) | | $ | (171 | ) | | $ | 480 | | $ | (2 | ) | | $ | 478 | | $ | 2.83 | | | | | | | | | | | | | | | | | | | Fully Diluted Shares Outstanding | | | | | | | | | | | | | | | | | | | | 168.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | | | | | | | | Reconciliation of Reported Results to Adjusted Results | | | | | | | | | | | | | | | | | | (in millions) | Third Quarter Year-to-Date 2026 Actual Results | | | Gross | | Operating | | Income from | | Interest & | | | | | | Noncontrolling | | Wabtec | | | Net Sales | | Profit | | Expenses | | Operations | | Other Exp | | Tax | | Net Income | | Interest | | Net Income | | EPS | | | | | | | | | | | | | | | | | | | Reported Results | $ | 9,249 | | $ | 3,386 | | $ | (1,644 | ) | | $ | 1,742 | | $ | (198 | ) | | $ | (374 | ) | | $ | 1,170 | | $ | (4 | ) | | $ | 1,166 | | $ | 6.86 | | | | | | | | | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | - | | | 5 | | | 1 | | | | 6 | | | 4 | | | | (2 | ) | | | 8 | | | - | | | | 8 | | $ | 0.04 | | | | | | | | | | | | | | | | | | | Inventory Purchase Accounting charge | | - | | | 28 | | | - | | | | 28 | | | - | | | | (7 | ) | | | 21 | | | - | | | | 21 | | $ | 0.13 | | | | | | | | | | | | | | | | | | | Transaction costs | | - | | | - | | | 14 | | | | 14 | | | (2 | ) | | | - | | | | 12 | | | - | | | | 12 | | $ | 0.07 | | | | | | | | | | | | | | | | | | | Non-cash Amortization expense | | - | | | - | | | 267 | | | | 267 | | | - | | | | (65 | ) | | | 202 | | | - | | | | 202 | | $ | 1.19 | | | | | | | | | | | | | | | | | | | Adjusted Results | $ | 9,249 | | $ | 3,419 | | $ | (1,362 | ) | | $ | 2,057 | | $ | (196 | ) | | $ | (448 | ) | | $ | 1,413 | | $ | (4 | ) | | $ | 1,409 | | $ | 8.29 | | | | | | | | | | | | | | | | | | | Fully Diluted Shares Outstanding | | | | | | | | | | | | | | | | | | | | 169.7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | | | | | | | | Reconciliation of Reported Results to Adjusted Results | | | | | | | | | | | | | | | | | | (in millions) | Third Quarter 2025 Actual Results | | | Gross | | Operating | | Income from | | Interest & | | | | | | Noncontrolling | | Wabtec | | | Net Sales | | Profit | | Expenses | | Operations | | Other Exp | | Tax | | Net Income | | Interest | | Net Income | | EPS | | | | | | | | | | | | | | | | | | | Reported Results | $ | 2,886 | | $ | 1,002 | | $ | (511 | ) | | $ | 491 | | $ | (66 | ) | | $ | (112 | ) | | $ | 313 | | $ | (3 | ) | | $ | 310 | | $ | 1.81 | | | | | | | | | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | - | | | 2 | | | 4 | | | | 6 | | | - | | | | (1 | ) | | | 5 | | | - | | | | 5 | | $ | 0.02 | | | | | | | | | | | | | | | | | | | Inventory Purchase Accounting charge | | - | | | 24 | | | - | | | | 24 | | | - | | | | (6 | ) | | | 18 | | | - | | | | 18 | | $ | 0.11 | | | | | | | | | | | | | | | | | | | Transaction costs | | - | | | - | | | 9 | | | | 9 | | | 2 | | | | (3 | ) | | | 8 | | | - | | | | 8 | | $ | 0.05 | | | | | | | | | | | | | | | | | | | Non-cash Amortization expense | | - | | | - | | | 77 | | | | 77 | | | - | | | | (20 | ) | | | 57 | | | - | | | | 57 | | $ | 0.33 | | | | | | | | | | | | | | | | | | | Adjusted Results | $ | 2,886 | | $ | 1,028 | | $ | (421 | ) | | $ | 607 | | $ | (64 | ) | | $ | (142 | ) | | $ | 401 | | $ | (3 | ) | | $ | 398 | | $ | 2.32 | | | | | | | | | | | | | | | | | | | Fully Diluted Shares Outstanding | | | | | | | | | | | | | | | | | | | | 171.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | | | | | | | | Reconciliation of Reported Results to Adjusted Results | | | | | | | | | | | | | | | | | | (in millions) | Third Quarter Year-to-Date 2025 Actual Results | | | Gross | | Operating | | Income from | | Interest & | | | | | | Noncontrolling | | Wabtec | | | Net Sales | | Profit | | Expenses | | Operations | | Other Exp | | Tax | | Net Income | | Interest | | Net Income | | EPS | | | | | | | | | | | | | | | | | | | Reported Results | $ | 8,202 | | $ | 2,840 | | $ | (1,403 | ) | | $ | 1,437 | | $ | (136 | ) | | $ | (322 | ) | | $ | 979 | | $ | (11 | ) | | $ | 968 | | $ | 5.64 | | | | | | | | | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | - | | | 8 | | | 13 | | | | 21 | | | - | | | | (5 | ) | | | 16 | | | - | | | | 16 | | $ | 0.09 | | | | | | | | | | | | | | | | | | | Inventory Purchase Accounting charge | | - | | | 24 | | | - | | | | 24 | | | - | | | | (6 | ) | | | 18 | | | - | | | | 18 | | $ | 0.11 | | | | | | | | | | | | | | | | | | | Transaction costs | | - | | | - | | | 44 | | | | 44 | | | (30 | ) | | | (1 | ) | | | 13 | | | - | | | | 13 | | $ | 0.08 | | | | | | | | | | | | | | | | | | | Non-cash Amortization expense | | - | | | - | | | 218 | | | | 218 | | | - | | | | (54 | ) | | | 164 | | | - | | | | 164 | | $ | 0.96 | | | | | | | | | | | | | | | | | | | Adjusted Results | $ | 8,202 | | $ | 2,872 | | $ | (1,128 | ) | | $ | 1,744 | | $ | (166 | ) | | $ | (388 | ) | | $ | 1,190 | | $ | (11 | ) | | $ | 1,179 | | $ | 6.88 | | | | | | | | | | | | | | | | | | | Fully Diluted Shares Outstanding | | | | | | | | | | | | | | | | | | | | 171.2 | | | | | | | | | | | | | | | | | | | Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. Wabtec Corporation | | | | | | | | | | | | 2026 Q3 EBITDA Reconciliation | | | | | | | | | | | | (in millions) | | | | | | | | | | | | | | Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring | = | Adjusted | | from Operations | (Expense) | Amortization | Costs | EBITDA | | | | | | | | | | | | Consolidated Results | | $625 | | $12 | | $140 | | $777 | | $5 | | $782 | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | 2026 Q3 YTD EBITDA Reconciliation | | | | | | | | | | | | (in millions) | | | | | | | | | | | | | | Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring & | = | Adjusted | | from Operations | (Expense) | Amortization | Transaction Costs | EBITDA | | | | | | | | | | | | Consolidated Results | | $1,742 | | $33 | | $419 | | $2,194 | | $50 | | $2,244 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | 2025 Q3 EBITDA Reconciliation | | | | | | | | | | | | (in millions) | | | | | | | | | | | | | | Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring & | = | Adjusted | | from Operations | (Expense) | Amortization | Transaction Costs | EBITDA | | | | | | | | | | | | Consolidated Results | | $491 | | ($1) | | $127 | | $617 | | $41 | | $658 | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | | | | | 2025 Q3 YTD EBITDA Reconciliation | | | | | | | | | | | | (in millions) | | | | | | | | | | | | | | Reported Income | + | Other Income | + | Depreciation & | = | EBITDA | + | Restructuring & | = | Adjusted | | from Operations | (Expense) | Amortization | Transaction Costs | EBITDA | | | | | | | | | | | | Consolidated Results | | $1,437 | | $21 | | $361 | | $1,819 | | $55 | | $1,874 | | | | | | | | | | | | WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) | | Three Months Ended September 30, In millions | | 2026 | | | 2025 Freight Segment | | | Equipment | $ | 679 | | $ | 677 Components | | 395 | | | 375 Digital Intelligence | | 369 | | | 297 Services | | 794 | | | 744 Total Freight Segment | $ | 2,237 | | $ | 2,093 | | | Transit Segment | | | Original Equipment Manufacturer | $ | 408 | | $ | 367 Aftermarket | | 475 | | | 426 Total Transit Segment | $ | 883 | | $ | 793 | | | | | | | Nine Months Ended September 30, In millions | | 2026 | | | 2025 Freight Segment | | | Equipment | $ | 2,142 | | $ | 1,699 Components | | 1,150 | | | 1,157 Digital Intelligence | | 1,047 | | | 669 Services | | 2,256 | | | 2,388 Total Freight Segment | $ | 6,595 | | $ | 5,913 | | | Transit Segment | | | Original Equipment Manufacturer | $ | 1,200 | | $ | 1,042 Aftermarket | | 1,454 | | | 1,247 Total Transit Segment | $ | 2,654 | | $ | 2,289 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | | 2025 | | | 2026 | | | 2025 | In millions | Gross Profit | Income from Operations | | Gross Profit | Income from Operations | | Gross Profit | Income from Operations | | Gross Profit | Income from Operations | | | | | | | | | | | Freight Segment Reported Results | $ | 861 | | $ | 515 | | | $ | 750 | | $ | 414 | | | $ | 2,503 | | $ | 1,469 | | | $ | 2,132 | | $ | 1,249 | Freight Segment Reported Margin | | 38.5 | % | | 23.0 | % | | | 35.8 | % | | 19.8 | % | | | 37.9 | % | | 22.3 | % | | | 36.1 | % | | 21.1 | % | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | - | | | 1 | | | | 1 | | | 2 | | | | 2 | | | 2 | | | | 5 | | | 6 | Inventory Purchase Accounting charge | | - | | | - | | | | 24 | | | 24 | | | | 20 | | | 20 | | | | 24 | | | 24 | Transaction costs | | - | | | - | | | | - | | | 1 | | | | - | | | 2 | | | | - | | | 2 | Non-cash Amortization expense | | - | | | 75 | | | | - | | | 72 | | | | - | | | 227 | | | | - | | | 200 | | | | | | | | | | | | Freight Segment Adjusted Results | $ | 861 | | $ | 591 | | | $ | 775 | | $ | 513 | | | $ | 2,525 | | $ | 1,720 | | | $ | 2,161 | | $ | 1,481 | Freight Segment Adjusted Margin | | 38.5 | % | | 26.4 | % | | | 37.0 | % | | 24.5 | % | | | 38.3 | % | | 26.1 | % | | | 36.5 | % | | 25.0 | % | | | | | | | | | | | | | | | | | | | | | | Transit Segment Reported Results | $ | 303 | | $ | 145 | | | $ | 252 | | $ | 115 | | | $ | 883 | | $ | 412 | | | $ | 708 | | $ | 314 | Transit Segment Reported Margin | | 34.5 | % | | 16.4 | % | | | 31.7 | % | | 14.5 | % | | | 33.3 | % | | 15.5 | % | | | 30.9 | % | | 13.7 | % | | | | | | | | | | | Restructuring and Portfolio Optimization costs | | 2 | | | 1 | | | | 1 | | | 3 | | | | 3 | | | 4 | | | | 3 | | | 14 | Inventory Purchase Accounting charge | | - | | | - | | | | - | | | - | | | | 8 | | | 8 | | | | - | | | - | Non-cash Amortization expense | | - | | | 14 | | | | - | | | 5 | | | | - | | | 40 | | | | - | | | 18 | | | | | | | | | | | | Transit Segment Adjusted Results | $ | 305 | | $ | 160 | | | $ | 253 | | $ | 123 | | | $ | 894 | | $ | 464 | | | $ | 711 | | $ | 346 | Transit Segment Adjusted Margin | | 34.6 | % | | 18.1 | % | | | 31.8 | % | | 15.5 | % | | | 33.7 | % | | 17.5 | % | | | 31.0 | % | | 15.1 | % | | | | | | | | | | | WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) | | | | Three Months Ended September 30, In millions | Freight | | Transit | | Consolidated | | | | | 2025 Net Sales | $ | 2,093 | | | $ | 793 | | | $ | 2,886 | | | | | | Acquisitions | | 49 | | | | 65 | | | | 114 | Portfolio Optimization (Divestitures/Exits) | | (11 | ) | | | (1 | ) | | | (12 | ) Foreign Exchange | | 4 | | | | (9 | ) | | | (5 | ) Organic | | 102 | | | | 35 | | | | 137 | | | | | | 2026 Net Sales | $ | 2,237 | | | $ | 883 | | | $ | 3,120 | | | | | | Change ($) | | 144 | | | | 90 | | | | 234 | Change (%) | | 6.9 | % | | | 11.3 | % | | | 8.1 | % | | | | | | | | | | | Nine Months Ended September 30, | Freight | | Transit | | Consolidated | | | | | 2025 Net Sales | $ | 5,913 | | | $ | 2,289 | | | $ | 8,202 | | | | | | Acquisitions | | 396 | | | | 175 | | | | 571 | Portfolio Optimization (Divestitures/Exits) | | (32 | ) | | | (5 | ) | | | (37 | ) Foreign Exchange | | 38 | | | | 49 | | | | 87 | Organic | | 280 | | | | 146 | | | | 426 | | | | | | 2026 Net Sales | $ | 6,595 | | | $ | 2,654 | | | $ | 9,249 | | | | | | Change ($) | | 682 | | | | 365 | | | | 1,047 | Change (%) | | 11.5 | % | | | 15.9 | % | | | 12.8 | % | | | | | Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP. Wabtec Corporation | | | | | | | | 2026 Q3 Cash Conversion Calculation | | | | | | | | (in millions) | | | | | | | | | | Reported Cash | ÷ | (Net Income | + | Depreciation & Amortization) | = | Cash Conversion | | from Operations | | | | | | | | Consolidated Results | | $455 | | $411 | | $142 | | 82% | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | 2026 Q3 YTD Cash Conversion Calculation | | | | | | | | (in millions) | | | | | | | | | | Reported Cash | ÷ | (Net Income | + | Depreciation & Amortization) | = | Cash Conversion | | from Operations | | | | | | | | Consolidated Results | | $1,095 | | $1,170 | | $424 | | 69% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | 2025 Q3 Cash Conversion Calculation | | | | | | | | (in millions) | | | | | | | | | | Reported Cash | ÷ | (Net Income | + | Depreciation & Amortization) | = | Cash Conversion | | from Operations | | | | | | | | Consolidated Results | | $367 | | $313 | | $128 | | 83% | | | | | | | | | | | | | | | | Wabtec Corporation | | | | | | | | 2025 Q3 YTD Cash Conversion Calculation | | | | | | | | (in millions) | | | | | | | | | | Reported Cash | ÷ | (Net Income | + | Depreciation & Amortization) | = | Cash Conversion | | from Operations | | | | | | | | Consolidated Results | | $767 | | $979 | | $365 | | 57% | | | | | | | | View source version on businesswire.com: https://www.businesswire.com/news/home/20261021103994/en/ Contacts Wabtec Investor Contact Kyra Yates / [email protected] / 817-349-2735 Wabtec Media Contact Tim Bader / [email protected] / 682-319-7925

- Interested in Wabtec? Here are five stocks we like better. - Wabtec delivered strong third-quarter results: Sales rose 8.1% to $3.12 billion, adjusted EPS increased 22% to $2.83, and adjusted operating margin expanded to 22.9%. - Backlog and orders continued to build, with the multi-year backlog surpassing $31 billion, up 22.9% year over year. The company secured $1 billion in international locomotive and service orders, plus more than $600 million in North American locomotive and modernization orders. - Wabtec raised its full-year adjusted EPS outlook to $10.85–$11.05, while maintaining its revenue forecast. Management cited execution, productivity gains and favorable mix, although weaker North American railcar production remains a headwind. - This Corner of the Market Is Outperforming the Benchmark—And It's Not AI Wabtec (NYSE:WAB) reported third-quarter 2026 sales growth of 8.1% and raised its full-year adjusted earnings outlook, citing stronger-than-expected margin performance, backlog growth and continued demand across freight and transit markets. Sales totaled $3.12 billion in the quarter, up 8.1% from a year earlier, or 8.3% excluding currency effects. GAAP operating income rose 27.3% to $625 million, while adjusted operating margin increased 1.9 percentage points to 22.9%. Adjusted earnings per diluted share rose 22% to $2.83, and GAAP earnings per diluted share increased 33.7% to $2.42. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - Vertiv Stock Surges on Strategic CFO Hire and AI Momentum Chairman and CEO Rafael Santana said the results reflected "strength across the portfolio," disciplined execution and strategic actions intended to improve the company's growth profile and earnings power. Total cash flow from operations was $455 million during the quarter. Wabtec's 12-month backlog increased 8.8% from the prior year, while its multi-year backlog exceeded $31 billion, up 22.9%. Santana said the company's order coverage is at its strongest level to date, particularly for long-lead-time products such as new locomotives. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - 3 transportation stocks gearing up for a new rally During the quarter, Wabtec secured $1 billion in locomotive and service orders internationally, including awards in Africa and Brazil. In North America, the company converted more than $600 million of pipeline opportunities into locomotive and modernization orders from two Class I railroad customers. Its transit business also received $159 million in brake-equipment orders. "These wins further expand our global installed base, strengthen our long-term customer partnerships, and create opportunities for attractive recurring revenues over time," Santana said. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? The Freight segment's 12-month backlog was $6.54 billion, up 7.5% year over year, while its multi-year backlog rose 23.2% to $25.77 billion. Transit's 12-month backlog reached $2.45 billion, up 12.2%, and its multi-year backlog increased 21.4%. CFO John Olin said third-quarter margin expansion exceeded management's expectations, supported by favorable product mix, productivity gains from its Integration 3.0 initiative, portfolio optimization efforts and lower operating expenses as a percentage of revenue. GAAP gross margin rose 2.6 percentage points to 37.3%, while adjusted gross margin increased 1.8 percentage points. Olin said higher manufacturing costs, including net tariff effects, partly offset the operational benefits. The company recorded $5 million in net pretax restructuring charges, mainly tied to integration and portfolio optimization initiatives. Freight sales rose 6.9%, with adjusted operating income climbing 15.2% to $591 million. The segment's adjusted operating margin improved 1.9 percentage points to 26.4%. Transit sales increased 11.3% to $883 million, or 12.5% on a currency-adjusted basis, aided by the Dellner acquisition and growth in products and services. Transit adjusted operating margin increased 2.6 percentage points to 18.1%. Across product lines, services revenue grew 6.7%, component sales increased 5.3%, and Digital Intelligence sales rose 24.2%, helped by the Frauscher Sensor Technologies acquisition and core digital demand. Equipment sales were slightly higher than a year ago, as increased mining sales were largely offset by lower locomotive deliveries that shifted into the fourth quarter. Wabtec said North American rail carload traffic increased 3.5% in the quarter, contributing to a larger active locomotive fleet compared with the prior-year period. Santana said the company has seen more parts demand associated with locomotives returning to service and sustaining higher utilization levels. However, North American railcar-build expectations have weakened. Industry sources now project roughly 23,000 railcars will be delivered in 2026, down from the approximately 25,000 forecast cited last quarter and representing a 26% decline from the prior year's build level. Olin noted that about 30% of Wabtec's revenue is not represented in its backlog, including railcar-related business and certain parts sales. The decline in railcar production has pressured the original-equipment portion of the component business, though aftermarket, maintenance-of-way and industrial demand helped offset that impact. International freight demand remained a source of opportunity, according to Santana, who cited activity in Central Asia, Africa and Asia. He also said transit conditions remained favorable in markets including Europe and India, where public investment and fleet renewal programs have supported customer backlogs. Wabtec raised its full-year adjusted EPS guidance to a range of $10.85 to $11.05, representing 22% growth at the midpoint. The company left its revenue outlook unchanged. Olin said certain locomotive deliveries shifted from the third quarter into the fourth quarter because of timing and customer-acceptance factors, rather than operational issues or changes in end-market demand. He said the units had already shipped and that the timing shift would not affect full-year revenue guidance. The company ended the quarter with more than $2 billion of liquidity and a net debt leverage ratio of 2.1 times. During the quarter, Wabtec repurchased $305 million of shares and paid $52 million in dividends. Looking ahead, Santana said Wabtec sees potential growth from fleet renewal, modernization, automation and technology upgrades, though he noted that broader North American fleet-renewal activity is not included in the company's guidance. He also said the company expects Federal Railroad Administration approval for its Zero-to-Zero initiative, without providing a timetable. Westinghouse Air Brake Technologies Corporation, doing business as Wabtec (NYSE: WAB), is a global provider of equipment, systems, digital solutions and services for the freight and passenger rail industries. The company develops technologies intended to improve the safety, efficiency, reliability and sustainability of rail transportation. Wabtec's products and services include locomotives, locomotive components and modernization programs, braking systems, train control and signaling equipment, power and propulsion systems, and advanced digital solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Wabtec Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Rail equipment company Westinghouse Air Brake Technologies (NYSE:WAB) missed Wall Street's revenue expectations in Q3 2026, but sales rose 8.1% year on year to $3.12 billion. The company's full-year revenue guidance of $12.45 billion at the midpoint came in 0.8% below analysts' estimates. Its non-GAAP profit of $2.83 per share was 3.5% above analysts' consensus estimates. Is now the time to buy Wabtec? Find out in our full research report. - Revenue: $3.12 billion vs analyst estimates of $3.20 billion (8.1% year-on-year growth, 2.6% miss) - Adjusted EPS: $2.83 vs analyst estimates of $2.73 (3.5% beat) - Adjusted EBITDA: $782 million vs analyst estimates of $763.4 million (25.1% margin, 2.4% beat) - The company reconfirmed its revenue guidance for the full year of $12.45 billion at the midpoint - Management raised its full-year Adjusted EPS guidance to $10.95 at the midpoint, a 1.9% increase - Operating Margin: 20%, up from 17% in the same quarter last year - Backlog: $31.44 billion at quarter end, up 22.9% year on year - Market Capitalization: $47.87 billion "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. Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Wabtec grew its sales at a solid 9.5% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Wabtec's annualized revenue growth of 8.7% over the last two years aligns with its five-year trend, suggesting its demand was stable. This quarter, Wabtec's revenue grew by 8.1% year on year to $3.12 billion, missing Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months, similar to its two-year rate. This projection is above the sector average and implies its newer products and services will help sustain its recent top-line performance. WHILE YOU'RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You've probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Wabtec has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 15.1%. This result isn't too surprising as its gross margin gives it a favorable starting point. Analyzing the trend in its profitability, Wabtec's operating margin rose by 4.5 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Wabtec generated an operating margin profit margin of 20%, up 3 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Wabtec's EPS grew at 20.6% compounded annual growth rate over the last five years, higher than its 9.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Wabtec's earnings to better understand the drivers of its performance. As we mentioned earlier, Wabtec's operating margin expanded by 4.5 percentage points over the last five years. On top of that, its share count shrank by 10.2%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Wabtec, its two-year annual EPS growth of 18.6% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q3, Wabtec reported adjusted EPS of $2.83, up from $2.32 in the same quarter last year. This print beat analysts' estimates by 3.5%. Over the next 12 months, Wall Street expects Wabtec's full-year EPS to grow 15.2% from $10.40 to $11.98. It was encouraging to see Wabtec beat analysts' EBITDA expectations this quarter. We were also glad its full-year EPS guidance slightly exceeded Wall Street's estimates. On the other hand, its revenue missed and its full-year revenue guidance fell slightly short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded up 1.2% to $287 immediately after reporting. Big picture, is Wabtec a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.