Wabtec Q3 adj EPS beats estimates, raises outlook

Westinghouse Air Brake Technologies

21/10/2026 11:40

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: ID:nBwDpYnLa

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.)