Wabtec Raises 2026 Adjusted EPS Outlook To $10.85-$11.05 As Backlog Reaches $31.4 Billion
The rail equipment maker left its 2026 revenue forecast unchanged at $12.30 billion to $12.60 billion.
Wabtec raised and tightened its 2026 adjusted earnings guidance to $10.85 to $11.05 per share, from $10.60 to $10.90, in third-quarter results furnished in an 8-K on Wednesday. Third-quarter sales rose 8.1% to $3.12 billion.
What the results show
Adjusted earnings per share rose 22.0% to $2.83, from $2.32 a year earlier. Earnings per share under standard accounting (GAAP) rose 33.7% to $2.42, from $1.81.
Adjusted operating margin widened 1.9 percentage points to 22.9%. The company said sales growth and better gross margins lifted both its standard and adjusted margins. Freight's adjusted operating margin was 26.4% and Transit's was 18.1%.
Freight sales rose 6.9% to $2.24 billion and Transit sales rose 11.3% to $883 million. Transit sales were up 12.5% on a constant-currency basis. Cash from operations was $455 million, versus $367 million a year earlier.
Chairman and CEO Rafael Santana said: "Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS."
What changes: guidance, backlog and the caveats
The company raised the midpoint of its adjusted EPS range by $0.20. Its revenue forecast stayed at $12.30 billion to $12.60 billion. The guidance assumes tariffs in effect as of October 21, 2026, and excludes IEEPA tariff refunds in the fourth quarter, according to the earnings presentation.
Total backlog stood at $31.4 billion at September 30, 2026, up 22.9% from a year earlier. The 12-month portion was $8.99 billion, up 8.8%.
Part of the sales gain came from acquisitions, including Frauscher Sensor Technologies in Freight and Dellner Couplers in Transit. The company also said the earnings-per-share increase reflected non-operational benefits, primarily currency fluctuations, alongside higher sales and margin expansion.
The company repurchased $305 million of shares and paid $52 million in dividends during the quarter. Total debt was $6.38 billion at quarter-end.
What to watch
Wabtec held a call with analysts and investors at 8:30 a.m. ET on Wednesday to go through the results.
The fourth-quarter tariff-refund exclusion is the one stated assumption that could move the guided range if it changes.
Sources
- 8-K Filing — WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP (WAB) — SEC EDGAR
- Exhibit a3q26pressreleaseword.htm — WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP 8-K exhibit — SEC EDGAR
- Exhibit wab3q26earningspresentat.htm — WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP 8-K exhibit — SEC EDGAR
- Wabtec Reports Strong Third Quarter 2026 Results, Raised and Tightened Adjusted EPS Guidance | Financial Post — financialpost.com
