Latest Quarterly Results
For the quarter ended Dec. 31, 2025, Wabtec reported consolidated sales of $2.97 billion, representing a 14.8% increase year-over-year, with improvements across its core business lines. GAAP operating income for the quarter was $356 million. GAAP earnings per diluted share were $1.18, down 4.1% from the prior year period. Adjusted earnings per diluted share for the quarter were $2.10, up 25.0% from the year-ago quarter. Cash from operations in the period was $992 million.
Quarterly Segment Highlights
Freight Segment: Sales in the freight business were up 18.3%, with equipment sales up 33.5%, digital sales up 74.4% and components sales up 11.1%. Services sales declined 5.0% due primarily to the timing of modernization deliveries.
Transit Segment: Transit segment revenues increased 6.7% in the quarter, supported by both original equipment and aftermarket demand.
Full-Year Results Context
For the full year 2025, Wabtec reported total sales of $11.17 billion and full-year GAAP earnings per diluted share of $6.83, up 13.1% from 2024. Adjusted earnings per diluted share for 2025 were $8.97, up 18.7% from the prior year. Cash from operations for the full year was $1.76 billion. Multi-year backlog at year-end was approximately $27 billion, up 23% from a year earlier.
Business & Operations Update
Wabtec provides locomotives, equipment, systems, digital solutions and services for freight rail and passenger transit markets, as well as products for mining, marine and industrial customers. Operations are organized principally into Freight and Transit business units.
During the fourth quarter, cash generation improved relative to the prior year, supported by working capital changes. At Dec. 31, 2025, Wabtec held approximately $0.79 billion in cash and cash equivalents, with total debt of about $5.54 billion and total available liquidity of $3.21 billion. The board increased the quarterly dividend by 24% and raised share repurchase authorization to $1.2 billion.
M&A or Strategic Moves
On February 10, 2026, Wabtec closed the acquisition of Dellner Couplers, a supplier of train connection systems. In December 2025, the company completed the €675 million acquisition of Frauscher Sensor Technology Group, a provider of train detection and axle counting systems. Earlier in February 2026, the company signed a $1.2 billion agreement with Union Pacific for locomotive modernizations and a approximately $670 million deal with CSX for similar services.
Equity Analyst Commentary
Institutional research published around Wabtec’s results noted the company’s fourth-quarter revenue and adjusted EPS performance exceeded some consensus estimates and highlighted the growth in backlog as a signal of continued sales momentum.
Guidance & Outlook
Wabtec issued 2026 financial guidance expecting sales in a range of $12.19 billion to $12.49 billion and adjusted earnings per diluted share between $10.05 and $10.45, including the impact of the Dellner Couplers acquisition. Investors will watch future backlog conversion, sales trends in core segments and operating cash flow as the company executes its plans.
Performance Summary
Shares of Westinghouse Air Brake Technologies rose on the day of the earnings announcement. The company reported higher quarterly sales, expanded adjusted EPS and full-year revenue growth. Freight segment equipment and digital businesses expanded, while transit segment sales also grew. Wabtec provided financial guidance for 2026 and noted backlog growth and capital return initiatives.