Wabtec forecasts 2025 profit below estimates on soft freight demand

Westinghouse Air Brake Technologies

12/02/2025 12:43

Feb 12 (Reuters) - U.S. rail locomotive maker Wabtec
 WAB.N  forecast 2025 profit largely below analysts' estimates
on Wednesday, as the industry tackles weak demand for new
locomotives due to a slowdown in freight activity.
    The company expects its 2025 adjusted profit per share in
the range of $8.35 to $8.75, compared with analysts' average
expectations of $8.62, according to data compiled by LSEG.
    Higher prices and borrowing costs have weakened consumer
demand for goods, causing a slowdown in freight volume
transported by rail.
     Wabtec's freight segment produces new locomotives, supplies
aftermarket parts and services, and manufactures essential
components for freight cars.
    Uncertainty over tariffs and future freight demand has
prompted railroads to adopt a cautious approach before making
significant investments in new equipment.
    In the fourth quarter, sales in Wabtec's freight unit, its
largest, rose only by 0.3% to $1.79 billion.
    The Pennsylvania-based company reported an adjusted profit
of $1.68 per share for fourth-quarter ended December 31,
compared with analysts' expectations of $1.72 per share.
    Net sales in the quarter rose 2.3% to $2.58 billion, but
missed Wall Street expectations of $2.62 billion.
    
    

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Leroy
Leo)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192; X:
@Shivansh_19_;))