Wabtec Q3 adj EPS beats estimates, raises outlook

Overview

• U.S. rail equipment maker's Q3 sales rose 8.1% but missed analyst expectations

• Adjusted EPS for Q3 rose 22% and beat analyst expectations

• Company raised and tightened 2026 adjusted EPS guidance

Outlook

• Wabtec raises and tightens 2026 adjusted EPS guidance to $10.85-$11.05

• Company maintains 2026 revenue outlook of $12.3 bln to $12.6 bln

• Wabtec says multi-year backlog provides strong visibility for future sales

Result Drivers

• SEGMENT GROWTH AND ACQUISITIONS - Co said Q3 sales growth was driven by higher sales in both Freight and Transit segments, including contributions from acquisitions

• MARGIN EXPANSION - Co said operating margins improved due to sales growth and higher gross margins

• CURRENCY IMPACT - Co said EPS growth was partly due to non-operational benefits related to currency fluctuations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Westinghouse Air Brake Technologies Corp is $338.00, about 19.3% above its October 20 closing price of $283.43

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Oct 20 - Aerospace and military contractors raise 2026 profit forecasts

• Oct 20 - 3M tops Q3 adjusted EPS estimates, raises guidance

• Oct 20 - General Motors' Q3 revenue, adj EPS beat on North America performance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)