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

Wabtec (NYSE:WAB) released its quarterly earnings results on Wednesday. The transportation company reported $2.10 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.02, FiscalAI reports. The company had revenue of $2.87 billion for the quarter, compared to analyst estimates of $2.86 billion. Wabtec had a return on equity of 13.84% and a net margin of 10.94%.The firm’s revenue was up 14.8% on a year-over-year basis. During the same period in the previous year, the company posted $1.68 earnings per share. 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 Stock Up 1.3%

Shares of NYSE:WAB traded up $3.14 during trading on Wednesday, reaching $249.59. 412,733 shares of the stock traded hands, compared to its average volume of 720,102. The stock has a market cap of $42.67 billion, a P/E ratio of 36.46, a price-to-earnings-growth ratio of 1.67 and a beta of 1.01. 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 stock has a 50-day moving average of $223.92 and a two-hundred day moving average of $206.12. Wabtec has a 52-week low of $151.81 and a 52-week high of $260.59.

Wabtec Increases Dividend

The company also recently declared 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. The ex-dividend date is Tuesday, February 17th. This is a positive change 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%. Wabtec’s dividend payout ratio is currently 14.53%.

Insider Activity

In related news, insider Michael Fetsko sold 5,058 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $215.72, for a total value of $1,091,111.76. Following the transaction, the insider directly owned 36,882 shares of the company’s stock, valued at approximately $7,956,185.04. This represents a 12.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Rafael Santana sold 1,798 shares of the stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $212.17, for a total value of $381,481.66. Following 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. Insiders have sold 13,875 shares of company stock valued at $2,978,789 in the last quarter. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Wabtec

Several large investors have recently bought and sold shares of the business. Guggenheim Capital LLC raised its position in Wabtec by 7.4% in the 2nd quarter. Guggenheim Capital LLC now owns 4,938 shares of the transportation company’s stock worth $1,034,000 after buying an additional 342 shares during the last quarter. Bank of Nova Scotia grew its stake in shares of Wabtec by 0.5% in the second quarter. Bank of Nova Scotia now owns 17,890 shares of the transportation company’s stock worth $3,745,000 after acquiring an additional 97 shares during the period. Nebula Research & Development LLC grew its stake in shares of Wabtec by 208.7% in the second quarter. Nebula Research & Development LLC now owns 5,386 shares of the transportation company’s stock worth $1,128,000 after acquiring an additional 3,641 shares during the period. Treasurer of the State of North Carolina raised its holdings in shares of Wabtec by 11.6% during the second quarter. Treasurer of the State of North Carolina now owns 92,097 shares of the transportation company’s stock valued at $19,281,000 after purchasing an additional 9,545 shares during the last quarter. Finally, Ieq Capital LLC lifted its position in Wabtec by 19.2% during the second quarter. Ieq Capital LLC now owns 30,352 shares of the transportation company’s stock valued at $6,354,000 after purchasing an additional 4,889 shares during the period. 91.69% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

WAB has been the subject of several recent research reports. Weiss Ratings restated a “buy (b)” rating on shares of Wabtec in a report on Wednesday, January 21st. Bank of America lifted their price target on shares of Wabtec from $228.00 to $233.00 and gave the company a “buy” rating in a research report on Thursday, November 13th. Wells Fargo & Company upped their price objective on shares of Wabtec from $221.00 to $224.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 17th. Wolfe Research raised shares of 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, JPMorgan Chase & Co. lifted their target price on shares of Wabtec from $215.00 to $245.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $241.00.

Key Headlines Impacting Wabtec

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.