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

Wabtec (NYSE:WAB) announced its earnings results on Wednesday. The transportation company reported $2.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.08 by $0.02, FiscalAI reports. Wabtec had a net margin of 10.94% and a return on equity of 13.84%. The firm had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the prior year, the firm posted $1.68 EPS. Wabtec’s revenue was up 14.8% compared to the same quarter last year. 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 2.7%

WAB traded up $6.54 during trading on Wednesday, reaching $252.99. The company had a trading volume of 578,665 shares, compared to its average volume of 731,886. The firm’s 50-day simple moving average is $223.92 and its 200 day simple moving average is $206.12. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.75 and a current ratio of 1.42. The company has a market cap of $43.25 billion, a price-to-earnings ratio of 36.81, a PEG ratio of 1.67 and a beta of 1.01. Wabtec has a 12-month low of $151.81 and a 12-month high of $260.59.

Wabtec Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Tuesday, February 17th will be given a $0.31 dividend. This is a positive change from Wabtec’s previous quarterly dividend of $0.25. The ex-dividend date is Tuesday, February 17th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.5%. Wabtec’s dividend payout ratio is 14.53%.

Analyst Ratings Changes

Several brokerages recently commented on WAB. Weiss Ratings reissued a “buy (b)” rating on shares of Wabtec in a report on Wednesday, January 21st. Morgan Stanley lifted their price target on Wabtec from $257.00 to $264.00 and gave the company an “overweight” rating in a research report on Monday, January 12th. Bank of America upped their price objective on Wabtec from $228.00 to $233.00 and gave the company a “buy” rating in a report on Thursday, November 13th. Wolfe Research raised Wabtec from a “peer perform” rating to an “outperform” rating and set a $245.00 target price for the company in a research note on Thursday, January 8th. Finally, Citigroup lifted their target price on Wabtec from $245.00 to $258.00 and gave the stock a “buy” rating in a report on Friday, January 9th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Wabtec currently has a consensus rating of “Moderate Buy” and a consensus price target of $241.00.

Insider Activity

In other Wabtec news, insider Michael Fetsko sold 5,058 shares of the firm’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $215.72, for a total value of $1,091,111.76. Following the completion of the transaction, the insider directly owned 36,882 shares in the company, valued at $7,956,185.04. This trade represents a 12.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Rafael Santana sold 1,798 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $212.17, for a total transaction of $381,481.66. Following the sale, the chief executive officer owned 125,941 shares in the company, valued at $26,720,901.97. This represents a 1.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 13,875 shares of company stock valued at $2,978,789 over the last ninety days. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Wabtec

Hedge funds and other institutional investors have recently modified their holdings of the business. Quadrant Capital Group LLC grew its holdings in shares of Wabtec by 1.3% during the third quarter. Quadrant Capital Group LLC now owns 4,082 shares of the transportation company’s stock valued at $818,000 after buying an additional 54 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Wabtec by 5.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,399 shares of the transportation company’s stock valued at $299,000 after purchasing an additional 70 shares during the period. Larson Financial Group LLC lifted its position in shares of Wabtec by 23.6% in the third quarter. Larson Financial Group LLC now owns 377 shares of the transportation company’s stock worth $76,000 after purchasing an additional 72 shares in the last quarter. IHT Wealth Management LLC boosted its holdings in shares of Wabtec by 1.7% during the second quarter. IHT Wealth Management LLC now owns 4,571 shares of the transportation company’s stock worth $957,000 after purchasing an additional 78 shares during the period. Finally, Bank of Nova Scotia grew its position in Wabtec by 0.5% during the second quarter. Bank of Nova Scotia now owns 17,890 shares of the transportation company’s stock valued at $3,745,000 after purchasing an additional 97 shares in the last quarter. Institutional investors and hedge funds own 91.69% of the company’s stock.

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.

About Wabtec

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

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