Wabtec Tightens 2026 Adjusted Earnings Outlook

The Tip Desk · October 21, 2026 · 2 min read

The rail-technology company lifted 2026 adjusted EPS guidance to $10.85–$11.05 after third-quarter sales of $3.12 billion and a 22.0% rise in adjusted earnings.

Wabtec Corporation (WAB) raised and tightened its 2026 adjusted earnings-per-share outlook to $10.85–$11.05 after a third quarter in which sales growth cooled but operating margins widened and adjusted earnings still climbed.

The company said the new range is up $0.20 at the midpoint, or 22.0% versus the prior year. Full-year 2026 revenue guidance remains $12.30 billion to $12.60 billion.

Third-quarter sales were $3.12 billion, up 8.1% from a year earlier. That pace slowed from 17.5% growth to $3.18 billion in the second quarter. GAAP diluted earnings were $2.42 a share, up 33.7%. Adjusted diluted earnings were $2.83 a share, up 22.0%.

GAAP operating margin was 20.0%, and adjusted operating margin was 22.9%. The company said both benefited from sales growth and improved gross margins. Cash from operations was $455 million.

Freight, the larger of the two reportable segments, generated $2.237 billion in sales, up 6.9%. Freight GAAP operating margin was 23.0% and adjusted operating margin was 26.4%.

Inside Freight, the mix shifted. Services sales were up 6.7%, which the company attributed to core services demand and higher modernization deliveries. Equipment sales were up 0.3% on increased mining sales, partially offset by lower locomotive deliveries. Digital Intelligence sales were $369 million, up 24.2%, which the company tied to the Frauscher Sensor Technologies acquisition and core digital demand. Components sales were up 5.3%.

Transit sales were $883 million, up 11.3%, which the company said reflected the Dellner Couplers acquisition and higher original-equipment and aftermarket sales, partially offset by unfavorable foreign exchange. On a constant-currency basis Transit sales were up 12.5%. Transit GAAP operating margin was 16.4% and adjusted operating margin was 18.1%.

Chairman and CEO Rafael Santana said the quarter showed sales growth, margin expansion and a 22% increase in adjusted EPS, and that teams were converting customer demand into profitable growth while investing in transportation technologies.

At September 30, 2026, 12-month backlog was $8.992 billion, up 8.8% from a year earlier. Total backlog was $31.435 billion. The multi-year backlog was $5.86 billion higher than a year earlier, or $5.46 billion higher excluding foreign exchange.

The company ended the quarter with $0.49 billion of cash, cash equivalents and restricted cash and $6.38 billion of total debt. Available liquidity was $2.09 billion. It repurchased $305 million of shares and paid $52 million in dividends.