Wabtec Reports Strong Third Quarter 2026 Results, Raised and Tightened Adjusted EPS Guidance
PITTSBURGH--( BUSINESS WIRE)--Wabtec Corporation (NYSE: WAB) today reported third quarter 2026 GAAP earnings per diluted share of $2.42, up 33.7% versus the third quarter of 2025. Adjusted earnings per diluted share were $2.83, up 22.0% versus the same quarter a year ago. Third quarter sales were $3.12 billion and cash from operations was $455 million.
“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS,” said Rafael Santana, Wabtec’s Chairman and CEO.
“The strength of our performance reflects our momentum across the portfolio, disciplined execution by our teams, and the continued success of our strategic actions. These actions enhance our growth profile, expand margins, and increase the earnings power of the company.
“Our teams continue to translate healthy customer demand into profitable growth while investing in technologies that will advance the future of transportation. These investments are strengthening our competitive position and reinforcing Wabtec as a leading Industrial Technology Company.”
2026 Third Quarter Consolidated Results
Wabtec Corporation Consolidated Financial Results
$ in millions except earnings per share and percentages; margin change in percentage points (pts)
Third Quarter
2026
2025
Change
Net Sales
$3,120
$2,886
8.1 %
GAAP Gross Margin
37.3 %
34.7 %
2.6 pts
Adjusted Gross Margin
37.4 %
35.6 %
1.8 pts
GAAP Operating Margin
20.0 %
17.0 %
3.0 pts
Adjusted Operating Margin
22.9 %
21.0 %
1.9 pts
GAAP Diluted EPS
$2.42
$1.81
33.7 %
Adjusted Diluted EPS
$2.83
$2.32
22.0 %
Cash Flow from Operations
$455
$367
$88
Operating Cash Flow Conversion
82 %
83 %
2026 Third Quarter Freight Segment Results
Wabtec Corporation Freight Segment Financial Results
Net sales $ in millions; margin change in percentage points (pts)
Third Quarter
2026
2025
Change
Net Sales
$2,237
$2,093
6.9 %
GAAP Gross Margin
38.5 %
35.8 %
2.7 pts
Adjusted Gross Margin
38.5 %
37.0 %
1.5 pts
GAAP Operating Margin
23.0 %
19.8 %
3.2 pts
Adjusted Operating Margin
26.4 %
24.5 %
1.9 pts
2026 Third Quarter Transit Segment Results
Wabtec Corporation Transit Segment Financial Results
Net sales $ in millions; margin change in percentage points (pts)
Third Quarter
2026
2025
Change
Net Sales
$883
$793
11.3 %
GAAP Gross Margin
34.5 %
31.7 %
2.8 pts
Adjusted Gross Margin
34.6 %
31.8 %
2.8 pts
GAAP Operating Margin
16.4 %
14.5 %
1.9 pts
Adjusted Operating Margin
18.1 %
15.5 %
2.6 pts
Backlog
Wabtec Corporation Consolidated Backlog Comparison
Backlog $ in millions
September 30,
2026
2025
Change
12-Month Backlog
$8,992
$8,267
8.8 %
Total Backlog
$31,435
$25,577
22.9 %
Cash Flow and Liquidity Summary
2026 Financial Guidance
Forecasted GAAP Earnings Reconciliation
Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share because it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
Conference Call Information
Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088 (access code: 9897430).
About Wabtec
Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec’s website at www.wabteccorp.com.
Information about non-GAAP Financial Information and Forward-Looking Statements
Wabtec’s earnings release and 2026 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec’s plans, objectives, expectations and intentions; Wabtec’s expectations about future sales, earnings and cash conversion; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the actual or threatened imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; (2) changes in the financial condition or operating strategies of Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia’s invasion of Ukraine and ongoing military conflicts in the Middle East; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
2026
2025
2026
2025
$
3,120
$
2,886
$
9,249
$
8,202
(1,956
)
(1,884
)
(5,863
)
(5,362
)
1,164
1,002
3,386
2,840
37.3
%
34.7
%
36.6
%
34.6
%
(383
)
(375
)
(1,184
)
(1,029
)
(67
)
(59
)
(193
)
(155
)
(89
)
(77
)
(267
)
(219
)
(539
)
(511
)
(1,644
)
(1,403
)
17.3
%
17.7
%
17.8
%
17.1
%
625
491
1,742
1,437
20.0
%
17.0
%
18.8
%
17.5
%
(80
)
(65
)
(231
)
(157
)
12
(1
)
33
21
557
425
1,544
1,301
(146
)
(112
)
(374
)
(322
)
26.3
%
26.4
%
24.2
%
24.8
%
411
313
1,170
979
(2
)
(3
)
(4
)
(11
)
$
409
$
310
$
1,166
$
968
$
2.43
$
1.81
$
6.88
$
5.66
$
2.42
$
1.81
$
6.86
$
5.64
168.2
170.5
169.1
170.5
168.8
171.1
169.7
171.2
$
2,237
$
2,093
$
6,595
$
5,913
$
515
$
414
$
1,469
$
1,249
23.0
%
19.8
%
22.3
%
21.1
%
$
883
$
793
$
2,654
$
2,289
$
145
$
115
$
412
$
314
16.4
%
14.5
%
15.5
%
13.7
%
$
25,765
$
25,332
$
20,907
5,670
5,600
4,670
$
31,435
$
30,932
$
25,577
$
6,544
$
6,638
$
6,085
2,448
2,502
2,182
$
8,992
$
9,140
$
8,267
$
489
$
789
2,264
1,897
2,946
2,745
352
263
6,051
5,694
1,672
1,616
10,621
10,216
4,032
3,838
765
705
$
23,141
$
22,069
$
5,500
$
5,150
4,665
4,291
1,612
1,438
11,777
10,879
11,333
11,142
31
48
11,364
11,190
$
23,141
$
22,069
2026
2025
$
1,170
$
979
466
357
(342
)
(368
)
(100
)
(228
)
67
76
(166
)
(49
)
1,095
767
(1,243
)
(1,887
)
(147
)
907
(5
)
26
(300
)
(187
)
789
715
$
489
$
528
$
3,120
$
1,164
$
(539
)
$
625
$
(68
)
$
(146
)
$
411
$
(2
)
$
409
$
2.42
-
2
(1
)
1
4
(1
)
4
-
4
$
0.02
-
-
89
89
-
(24
)
65
-
65
$
0.39
$
3,120
$
1,166
$
(451
)
$
715
$
(64
)
$
(171
)
$
480
$
(2
)
$
478
$
2.83
168.8
$
9,249
$
3,386
$
(1,644
)
$
1,742
$
(198
)
$
(374
)
$
1,170
$
(4
)
$
1,166
$
6.86
-
5
1
6
4
(2
)
8
-
8
$
0.04
-
28
-
28
-
(7
)
21
-
21
$
0.13
-
-
14
14
(2
)
-
12
-
12
$
0.07
-
-
267
267
-
(65
)
202
-
202
$
1.19
$
9,249
$
3,419
$
(1,362
)
$
2,057
$
(196
)
$
(448
)
$
1,413
$
(4
)
$
1,409
$
8.29
169.7
$
2,886
$
1,002
$
(511
)
$
491
$
(66
)
$
(112
)
$
313
$
(3
)
$
310
$
1.81
-
2
4
6
-
(1
)
5
-
5
$
0.02
-
24
-
24
-
(6
)
18
-
18
$
0.11
-
-
9
9
2
(3
)
8
-
8
$
0.05
-
-
77
77
-
(20
)
57
-
57
$
0.33
$
2,886
$
1,028
$
(421
)
$
607
$
(64
)
$
(142
)
$
401
$
(3
)
$
398
$
2.32
171.1
$
8,202
$
2,840
$
(1,403
)
$
1,437
$
(136
)
$
(322
)
$
979
$
(11
)
$
968
$
5.64
-
8
13
21
-
(5
)
16
-
16
$
0.09
-
24
-
24
-
(6
)
18
-
18
$
0.11
-
-
44
44
(30
)
(1
)
13
-
13
$
0.08
-
-
218
218
-
(54
)
164
-
164
$
0.96
$
8,202
$
2,872
$
(1,128
)
$
1,744
$
(166
)
$
(388
)
$
1,190
$
(11
)
$
1,179
$
6.88
171.2
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
Reported Income
Other Income
Depreciation &
EBITDA
Restructuring
Adjusted
from Operations
(Expense)
Amortization
Costs
EBITDA
$625
$12
$140
$777
$5
$782
Reported Income
Other Income
Depreciation &
EBITDA
Restructuring &
Adjusted
from Operations
(Expense)
Amortization
Transaction Costs
EBITDA
$1,742
$33
$419
$2,194
$50
$2,244
Reported Income
Other Income
Depreciation &
EBITDA
Restructuring &
Adjusted
from Operations
(Expense)
Amortization
Transaction Costs
EBITDA
$491
($1)
$127
$617
$41
$658
$1,437
$21
$361
$1,819
$55
$1,874
2026
2025
$
679
$
677
395
375
369
297
794
744
$
2,237
$
2,093
$
408
$
367
475
426
$
883
$
793
2026
2025
$
2,142
$
1,699
1,150
1,157
1,047
669
2,256
2,388
$
6,595
$
5,913
$
1,200
$
1,042
1,454
1,247
$
2,654
$
2,289
2026
2025
2026
2025
$
861
$
515
$
750
$
414
$
2,503
$
1,469
$
2,132
$
1,249
38.5
%
23.0
%
35.8
%
19.8
%
37.9
%
22.3
%
36.1
%
21.1
%
-
1
1
2
2
2
5
6
-
-
24
24
20
20
24
24
-
-
-
1
-
2
-
2
-
75
-
72
-
227
-
200
$
861
$
591
$
775
$
513
$
2,525
$
1,720
$
2,161
$
1,481
38.5
%
26.4
%
37.0
%
24.5
%
38.3
%
26.1
%
36.5
%
25.0
%
$
303
$
145
$
252
$
115
$
883
$
412
$
708
$
314
34.5
%
16.4
%
31.7
%
14.5
%
33.3
%
15.5
%
30.9
%
13.7
%
2
1
1
3
3
4
3
14
-
-
-
-
8
8
-
-
-
14
-
5
-
40
-
18
$
305
$
160
$
253
$
123
$
894
$
464
$
711
$
346
34.6
%
18.1
%
31.8
%
15.5
%
33.7
%
17.5
%
31.0
%
15.1
%
$
2,093
$
793
$
2,886
49
65
114
(11
)
(1
)
(12
)
4
(9
)
(5
)
102
35
137
$
2,237
$
883
$
3,120
144
90
234
6.9
%
11.3
%
8.1
%
$
5,913
$
2,289
$
8,202
396
175
571
(32
)
(5
)
(37
)
38
49
87
280
146
426
$
6,595
$
2,654
$
9,249
682
365
1,047
11.5
%
15.9
%
12.8
%
Reported Cash
(Net Income
Depreciation & Amortization)
Cash Conversion
from Operations
$455
$411
$142
82%
Reported Cash
(Net Income
Depreciation & Amortization)
Cash Conversion
from Operations
$1,095
$1,170
$424
69%
Reported Cash
(Net Income
Depreciation & Amortization)
Cash Conversion
from Operations
$367
$313
$128
83%
Reported Cash
(Net Income
Depreciation & Amortization)
Cash Conversion
from Operations
$767
$979
$365
57%