Wabtec (NYSE:WAB) Posts Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Wabtec (NYSE:WAB) announced its quarterly earnings data on Wednesday. The transportation company reported $2.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.60 by $0.16, FiscalAI reports. The business had revenue of $3.18 billion during the quarter, compared to the consensus estimate of $3.07 billion. Wabtec had a net margin of 10.59% and a return on equity of 15.10%. The firm’s quarterly revenue was up 17.5% compared to the same quarter last year. During the same quarter last year, the firm earned $2.27 earnings per share. Wabtec updated its FY 2026 guidance to 10.600-10.900 EPS.

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

• Wabtec reported a strong second quarter with sales up 17.5%, adjusted EPS up 21.6%, and operating margin expansion despite tariffs, unfavorable mix, and tough comps.
• Management raised full-year 2026 guidance to about $12.5 billion in revenue at the midpoint and $10.60 to $10.90 in adjusted EPS, citing better-than-expected execution and flow-business strength.
• Backlog remains a major strength, with 12-month backlog up 11% and multiyear backlog above $30 billion, up 42%, giving the company strong visibility into future growth.
• The company highlighted several large orders, including a $1 billion Australian award, a $184 million Positive Train Control order with Vale, and new transit and mining wins, underscoring a healthy pipeline.
• Management said second-half growth will likely normalize as it laps acquisitions, but expects margins to improve more meaningfully later in the year, especially in Q4, helped by productivity gains and easing tariff comparisons.

Wabtec Stock Performance

Shares of Wabtec stock opened at $300.61 on Friday. The company has a market capitalization of $51.01 billion, a PE ratio of 40.20, a P/E/G ratio of 2.07 and a beta of 0.94. Wabtec has a one year low of $184.26 and a one year high of $300.15. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.54 and a current ratio of 1.12. The company has a 50-day simple moving average of $265.04 and a two-hundred day simple moving average of $254.83.

Wabtec Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be issued a $0.31 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.4%. Wabtec’s dividend payout ratio (DPR) is currently 17.54%.

More Wabtec News

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Wabtec beat Q2 expectations, with revenue rising 17.5% year over year to $3.18 billion and adjusted EPS increasing to $2.76, above consensus. The company also raised FY2026 guidance to $12.30 billion-$12.60 billion in revenue and $10.60-$10.90 in adjusted EPS, which likely supported buying. Article Title
• Positive Sentiment: Several Wall Street firms raised price targets after the earnings report, including Stephens, KeyCorp, Susquehanna, JPMorgan, and Wells Fargo, signaling improved sentiment toward WAB’s outlook. Article Title
• Positive Sentiment: Technical momentum also improved as Wabtec crossed above key moving averages and hit a new 52-week high, which can attract traders following trend signals. Article Title
• Neutral Sentiment: Wabtec announced a $1 billion deal with an Australian company during earnings coverage, but the immediate financial impact was not fully detailed in the reports. Article Title

Insider Buying and Selling at Wabtec

In other news, CEO Rafael Santana sold 1,163 shares of the firm’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $262.07, for a total value of $304,787.41. Following the completion of the transaction, the chief executive officer directly owned 122,914 shares in the company, valued at $32,212,071.98. This trade represents a 0.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sameer Gaur sold 1,082 shares of Wabtec stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $263.50, for a total value of $285,107.00. Following the transaction, the insider owned 11,985 shares of the company’s stock, valued at approximately $3,158,047.50. This represents a 8.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 5,734 shares of company stock valued at $1,504,571 over the last quarter. Insiders own 0.57% of the company’s stock.

Institutional Trading of Wabtec

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP lifted its position in shares of Wabtec by 347.2% during the 4th quarter. Quarry LP now owns 474 shares of the transportation company’s stock valued at $101,000 after buying an additional 368 shares in the last quarter. SmartHarvest Portfolios LLC purchased a new stake in Wabtec in the 4th quarter worth $223,000. Hilltop Holdings Inc. purchased a new stake in Wabtec in the 3rd quarter worth $206,000. Banque Transatlantique SA lifted its holdings in Wabtec by 5,866.7% in the 3rd quarter. Banque Transatlantique SA now owns 895 shares of the transportation company’s stock valued at $176,000 after purchasing an additional 880 shares in the last quarter. Finally, Eisler Capital Management Ltd. acquired a new stake in Wabtec during the 3rd quarter worth $212,000. Institutional investors and hedge funds own 91.69% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. KeyCorp lifted their target price on Wabtec from $308.00 to $340.00 and gave the stock an “overweight” rating in a research report on Thursday. Morgan Stanley lifted their price objective on shares of Wabtec from $318.00 to $355.00 and gave the company an “overweight” rating in a report on Thursday. Stephens boosted their price target on Wabtec from $320.00 to $330.00 and gave the company an “overweight” rating in a report on Thursday. Jefferies Financial Group reissued a “buy” rating and issued a $290.00 price objective (down from $300.00) on shares of Wabtec in a research note on Tuesday, March 31st. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $303.00 target price on shares of Wabtec in a research report on Thursday, April 23rd. Ten analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Wabtec presently has a consensus rating of “Moderate Buy” and an average price target of $310.64.

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.