Wabtec Q3 sales beat estimates on higher locomotive deliveries

Westinghouse Air Brake Technologies

22/10/2025 11:41

Overview

Wabtec Q3 sales rise 8.4% to $2.89 bln, beating analyst expectations

Adjusted EPS for Q3 increases 16% to $2.32, surpassing analyst estimates

Company raises and tightens 2025 adjusted EPS guidance

Outlook

Wabtec expects 2025 adjusted EPS guidance to $8.85-$9.05

Company expects 2025 revenue between $10.925 bln and $11.225 bln

Wabtec anticipates operating cash flow conversion over 90% for 2025

Result Drivers

FREIGHT SEGMENT GROWTH - Sales in the Freight segment rose 8.4% due to higher locomotive deliveries and the acquisition of Inspection Technologies, boosting digital sales by 45.6%

TRANSIT SEGMENT GROWTH - Transit segment sales increased 8.2% driven by higher original equipment and aftermarket sales

MARGIN IMPROVEMENT - Operating margins benefited from higher sales and improved gross margins, though offset by higher operating expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Meet
$2.89 bln
$2.89 bln (8 Analysts)
Q3 Adjusted EPS
Beat
$2.32
$2.27 (9 Analysts)
Q3 EPS
$1.81
Q3 Adjusted Gross Margin
35.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "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 $228.00, about 13.2% above its October 21 closing price of $198.00

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw8wzTKya

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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.)