Wabtec stock rises 3%, record backlog and strong earnings drive optimistic outlook

2026-02-17 09:16:20

Pittsburgh - On Wednesday, Wabtec Corporation (NYSE: WAB) reported fourth-quarter adjusted earnings that exceeded analyst expectations, driven by strong freight business performance and a record backlog of $27 billion.

The railway equipment manufacturer’s stock rose 3.06% in pre-market trading following the earnings release.

The company reported fourth-quarter adjusted earnings of $2.10 per share, surpassing the analyst consensus of $2.08, while revenue increased 14.8% year-over-year to $2.97 billion, exceeding the $2.86 billion estimate. Wabtec’s full-year adjusted earnings per share reached $8.97, an 18.7% increase from the previous year.

“The Wabtec team delivered strong results in both the fourth quarter and the full year, reflecting the strength of our business and our ability to execute in a dynamic market,” said Rafael Santana, President and CEO of Wabtec.

The company’s multi-year backlog grew 23.1% year-over-year to $27 billion, providing strong visibility for future growth. Freight business sales increased 18.3% this quarter, equipment sales grew 33.5%, and digital sales surged 74.4%, partly due to recent acquisitions.

Adjusted operating profit margin improved from 16.9% in the same period last year to 17.7%, reflecting higher gross margins. The company generated a robust $992 million in operating cash flow in the fourth quarter, compared to $723 million in the same period last year.

Looking ahead, Wabtec issued guidance for fiscal 2026 with adjusted earnings per share of $10.05 to $10.45, representing a 14% increase over the midpoint of 2025. The company’s board also increased quarterly dividends by 24% and expanded share repurchase authorization to $1.2 billion.

“Our record backlog of $27 billion provides strong visibility and lays the foundation for Wabtec’s continued growth,” Santana added.

Passenger business sales increased 6.7% this quarter, but the adjusted operating profit margin for this segment declined from 16.4% last year to 14.0%, due to manufacturing inefficiencies and increased operating expenses.

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