Wabtec Q3 adj EPS beats estimates, raises outlook

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$3.12 bln

$3.20 bln (9 Analysts)

Q3 Adjusted EPS

Beat

$2.83

$2.74 (11 Analysts)

Q3 EPS

$2.42

Q3 Adjusted Gross Margin

37.40%


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.