Wabtec (NYSE:WAB) Announces Quarterly Earnings Results

Key Points

• Wabtec beat earnings expectations: Third-quarter adjusted EPS was $2.83, up 22% year over year and $0.10 above consensus, while GAAP EPS rose 33.7% to $2.42.
• Revenue fell short of forecasts: Quarterly sales increased 8.1% to $3.12 billion but missed the $3.20 billion analyst estimate, contributing to a 1.1% decline in the stock.
• Outlook and profitability improved: Wabtec raised the high end of its 2026 adjusted EPS guidance to $11.05, while adjusted operating margin expanded 1.9 percentage points to 22.9%.

Wabtec (NYSE:WAB - Get Free Report) issued its earnings results on Wednesday. The transportation company reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.73 by $0.10, FiscalAI reports. Wabtec had a return on equity of 15.10% and a net margin of 10.59%. The business had revenue of $3.12 billion during the quarter, compared to analyst estimates of $3.20 billion.

Wabtec Stock Down 1.1%

Shares of Wabtec stock opened at $283.61 on Wednesday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.59 and a current ratio of 1.12. Wabtec has a 52-week low of $186.06 and a 52-week high of $306.64. The stock has a market capitalization of $47.91 billion, a price-to-earnings ratio of 38.12, a P/E/G ratio of 1.94 and a beta of 0.92. The company's 50 day moving average price is $287.91 and its 200-day moving average price is $275.80.

Wabtec Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, November 17th. Wabtec's dividend payout ratio is 16.67%.

Insider Buying and Selling

In other Wabtec news, CEO Rafael Santana sold 1,163 shares of the firm's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $299.04, for a total value of $347,783.52. Following the sale, the chief executive officer owned 120,588 shares of the company's stock, valued at $36,060,635.52. This trade represents a 0.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Fetsko sold 3,250 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $293.22, for a total transaction of $952,965.00. Following the completion of the transaction, the insider owned 37,380 shares in the company, valued at $10,960,563.60. The trade was a 8.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 17,552 shares of company stock valued at $5,232,911 over the last quarter. Company insiders own 0.57% of the company's stock.

Wabtec News Summary

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Wabtec reported third-quarter adjusted EPS of $2.83, up 22% year over year and ahead of the $2.73 analyst consensus. GAAP EPS reached $2.42, a 33.7% increase, while sales grew 8.1% to $3.12 billion. Wabtec Reports Strong Third Quarter 2026 Results
• Positive Sentiment: The company raised and tightened its 2026 adjusted EPS outlook, with the high end increased to $11.05. Management also reported a 1.9-percentage-point improvement in adjusted operating margin to 22.9%, indicating stronger profitability. Wabtec Raises 2026 EPS Guidance
• Neutral Sentiment: Wabtec is discussing potential locomotive fleet modernization, locomotive supplies, and a mining-equipment service center in Uzbekistan. These initiatives could create longer-term international opportunities, but no firm contract or financial contribution was announced. Uzbekistan and Wabtec Discuss Locomotive Fleet Modernisation
• Negative Sentiment: Quarterly revenue of $3.12 billion missed the $3.20 billion consensus estimate. The shortfall, despite the EPS beat, raised concerns about demand or execution and was the primary factor weighing on the shares. Wabtec Stock Falls on Revenue Miss

Wall Street Analysts Forecast Growth

Several research firms have commented on WAB. KeyCorp lifted their price target on shares of Wabtec from $308.00 to $340.00 and gave the stock an "overweight" rating in a research note on Thursday, July 23rd. JPMorgan Chase & Co. boosted their price objective on shares of Wabtec from $315.00 to $320.00 and gave the stock a "neutral" rating in a report on Monday, September 21st. Stephens upped their price objective on shares of Wabtec from $320.00 to $330.00 and gave the company an "overweight" rating in a research note on Thursday, July 23rd. Weiss Ratings raised shares of Wabtec from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. Finally, Morgan Stanley increased their target price on shares of Wabtec from $318.00 to $355.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Wabtec currently has a consensus rating of "Moderate Buy" and a consensus price target of $313.55.

Wabtec Company Profile

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec NYSE: WAB, is a global provider of equipment, systems, digital solutions and services for the freight and passenger rail industries. The company develops technologies intended to improve the safety, efficiency, reliability and sustainability of rail transportation.

Wabtec's products and services include locomotives, locomotive components and modernization programs, braking systems, train control and signaling equipment, power and propulsion systems, and advanced digital solutions.

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