Wabtec (NYSE:WAB) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Wabtec (NYSE:WAB) announced its quarterly earnings data on Wednesday. The transportation company reported $2.10 earnings per share for the quarter, beating analysts’ consensus estimates of $2.08 by $0.02, FiscalAI reports. The company had revenue of $2.87 billion for the quarter, compared to analysts’ expectations of $2.86 billion. Wabtec had a return on equity of 13.84% and a net margin of 10.94%.Wabtec’s revenue for the quarter was up 14.8% compared to the same quarter last year. During the same period last year, the firm posted $1.68 EPS. Wabtec updated its FY 2026 guidance to 10.050-10.450 EPS.

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

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

Wabtec Trading Up 1.3%

Shares of Wabtec stock traded up $3.14 during trading on Wednesday, reaching $249.59. 412,733 shares of the stock were exchanged, compared to its average volume of 720,102. The company has a quick ratio of 0.75, a current ratio of 1.42 and a debt-to-equity ratio of 0.45. The firm has a market cap of $42.67 billion, a price-to-earnings ratio of 36.46, a price-to-earnings-growth ratio of 1.67 and a beta of 1.01. Wabtec has a 1 year low of $151.81 and a 1 year high of $260.59. The stock’s fifty day moving average is $223.92 and its 200 day moving average is $206.12.

Wabtec Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Tuesday, February 17th will be issued a dividend of $0.31 per share. This is an increase from Wabtec’s previous quarterly dividend of $0.25. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Tuesday, February 17th. Wabtec’s dividend payout ratio (DPR) is currently 14.53%.

Analysts Set New Price Targets

Several research firms have commented on WAB. Citigroup lifted their price target on shares of Wabtec from $245.00 to $258.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Wells Fargo & Company increased their target price on shares of Wabtec from $221.00 to $224.00 and gave the company an “equal weight” rating in a report on Wednesday, December 17th. JPMorgan Chase & Co. boosted their price target on shares of Wabtec from $215.00 to $245.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Weiss Ratings restated a “buy (b)” rating on shares of Wabtec in a research report on Wednesday, January 21st. Finally, Morgan Stanley raised their price objective on Wabtec from $257.00 to $264.00 and gave the company an “overweight” rating in a research note on Monday, January 12th. Eight equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $241.00.

More Wabtec News

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Q4 results beat expectations — Wabtec reported $2.10 EPS vs. consensus ~ $2.07–2.08 and revenue of $2.87B (slightly above estimates), with revenue up 14.8% year/year. Wabtec Q4 Press Release
• Positive Sentiment: Raised FY2026 guidance — Wabtec set EPS guidance of $10.05–$10.45 and revenue guidance of $12.2B–$12.5B, with the revenue range well above consensus, signaling stronger-than-expected demand. Guidance in Press Release
• Positive Sentiment: Large commercial wins — Multiple reports cite big orders and contracts (including a ~$670M CSX locomotive modernization order and broader ~$2.5B train-related deals) that support near-term revenue visibility. CSX $670M Deal
• Positive Sentiment: Shareholder returns increased — Wabtec announced a 24% quarterly dividend hike and signaled higher shareholder returns, which tends to attract income‑oriented investors. Dividend Hike Article
• Positive Sentiment: Backlog, cash and fundamentals — Company reported a record multi‑year backlog (~$27B), strong cash from operations and multi‑year EPS growth, supporting longer‑term revenue and margin outlook. Financial Post Coverage
• Positive Sentiment: Falling short interest — Short interest fell ~13.9% in January, reducing a bearish pressure point on the stock and potentially amplifying upside.
• Neutral Sentiment: Market reaction context — The company’s FY guidance is above consensus for revenue and slightly above EPS midpoint, but some sell‑side models still show lower near‑term estimates (analyst aggregates differ), leaving room for analyst revisions and debate.
• Negative Sentiment: Valuation and liquidity metrics — Wabtec trades at a relatively high P/E (~36.7) and has a quick ratio below 1 (0.75), which could worry value or liquidity‑focused investors despite strong operational momentum.

Insiders Place Their Bets

In other Wabtec news, insider Rogerio Mendonca sold 2,019 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $214.51, for a total transaction of $433,095.69. Following the completion of the transaction, the insider owned 9,516 shares of the company’s stock, valued at $2,041,277.16. This represents a 17.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Rafael Santana sold 1,798 shares of Wabtec stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $212.17, for a total value of $381,481.66. Following the completion of the sale, the chief executive officer owned 125,941 shares in the company, valued at approximately $26,720,901.97. This represents a 1.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 13,875 shares of company stock worth $2,978,789. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WAB. Vise Technologies Inc. raised its holdings in Wabtec by 19.2% in the 4th quarter. Vise Technologies Inc. now owns 2,367 shares of the transportation company’s stock worth $505,000 after purchasing an additional 381 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Wabtec by 5.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,399 shares of the transportation company’s stock valued at $299,000 after buying an additional 70 shares during the period. CIBC Bancorp USA Inc. bought a new position in Wabtec in the third quarter worth about $4,730,000. Coldstream Capital Management Inc. raised its stake in Wabtec by 15.7% in the third quarter. Coldstream Capital Management Inc. now owns 2,342 shares of the transportation company’s stock worth $470,000 after buying an additional 318 shares in the last quarter. Finally, Aureus Asset Management LLC lifted its holdings in Wabtec by 12.9% in the third quarter. Aureus Asset Management LLC now owns 167,419 shares of the transportation company’s stock worth $33,562,000 after buying an additional 19,094 shares during the period. 91.69% of the stock is owned by hedge funds and other institutional investors.

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.