Wabtec (NYSE:WAB) Issues Quarterly Earnings Results

Key Points

• Q1 results: Wabtec reported adjusted EPS of $2.71 (beat by $0.09) while revenue missed at $2.95B versus $3.08B expected, and the company raised FY2026 EPS guidance to $10.25–$10.65.
• Capital returns: Wabtec boosted its quarterly dividend to $0.31 ($1.24 annualized, ~0.5% yield) and authorized a $1.2 billion share buyback program (about 2.9% of shares outstanding).
• Insider activity: CEO Rafael Santana sold 60,852 shares under a Rule 10b5‑1 plan (a ~32% reduction in his stake) and insiders sold 92,364 shares worth roughly $24.5M over the past three months.

Wabtec (NYSE:WAB - Get Free Report) announced its quarterly earnings results on Wednesday. The transportation company reported $2.71 earnings per share for the quarter, topping the consensus estimate of $2.62 by $0.09, FiscalAI reports. The company had revenue of $2.95 billion for the quarter, compared to the consensus estimate of $3.08 billion. Wabtec had a return on equity of 14.12% and a net margin of 10.48%.The firm's revenue for the quarter was up 13.0% compared to the same quarter last year. During the same period last year, the firm earned $2.28 EPS. Wabtec updated its FY 2026 guidance to 10.250-10.650 EPS.

Wabtec Price Performance

Wabtec stock traded up $3.51 during midday trading on Wednesday, reaching $261.14. The company had a trading volume of 156,796 shares, compared to its average volume of 898,473. The company has a market capitalization of $44.44 billion, a P/E ratio of 38.19, a P/E/G ratio of 1.99 and a beta of 0.99. Wabtec has a 12-month low of $179.25 and a 12-month high of $275.84. The firm's fifty day simple moving average is $253.97 and its 200-day simple moving average is $227.77. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.11 and a quick ratio of 0.57.

Wabtec Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Tuesday, February 17th were paid a $0.31 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $1.24 dividend on an annualized basis and a yield of 0.5%. This is a boost from Wabtec's previous quarterly dividend of $0.25. Wabtec's dividend payout ratio is 18.16%.

Insider Transactions at Wabtec

In related news, CEO Rafael Santana sold 60,852 shares of the firm's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $268.89, for a total value of $16,362,494.28. Following the transaction, the chief executive officer directly owned 128,729 shares of the company's stock, valued at approximately $34,613,940.81. This trade represents a 32.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Rogerio Mendonca sold 3,500 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $264.21, for a total transaction of $924,735.00. Following the completion of the transaction, the insider directly owned 10,101 shares in the company, valued at $2,668,785.21. This represents a 25.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 92,364 shares of company stock worth $24,522,522 in the last three months. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Manchester Capital Management LLC lifted its stake in Wabtec by 122.0% in the 4th quarter. Manchester Capital Management LLC now owns 131 shares of the transportation company's stock worth $28,000 after purchasing an additional 72 shares in the last quarter. McMillan Office Inc. purchased a new position in Wabtec in the 4th quarter worth approximately $31,000. DV Equities LLC purchased a new position in Wabtec in the 4th quarter worth approximately $51,000. Johnson Financial Group Inc. purchased a new position in Wabtec in the 3rd quarter worth approximately $62,000. Finally, Larson Financial Group LLC lifted its stake in Wabtec by 23.6% in the 3rd quarter. Larson Financial Group LLC now owns 377 shares of the transportation company's stock worth $76,000 after purchasing an additional 72 shares in the last quarter. 91.69% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Wabtec

Here are the key news stories impacting Wabtec this week:

• Positive Sentiment: Adjusted EPS beat and strong margin expansion — adjusted EPS of $2.71 topped estimates and adjusted operating margin improved, supporting the company’s profit outlook. Zacks: WAB Beats Q1
• Positive Sentiment: FY2026 guidance centered near consensus — management raised its EPS range to 10.25–10.65 (midpoint ≈ 10.45), and set revenue guidance that tracks analyst expectations, which reduces surprise risk on the full year. Press Release
• Positive Sentiment: Backlog and sales growth support multi-year visibility — backlog expanded to $30.8B and the company reported double‑digit sales and adjusted EPS growth, underpinning medium-term revenue visibility. Financial Post: Q1 Results
• Neutral Sentiment: Top-line miss — Q1 sales of $2.95B fell short of some estimates (~$3.08B), indicating uneven demand across segments even as profitability improved. This tempers the upbeat EPS print. Company Release / Slide Deck
• Negative Sentiment: Mixed near-term signal for revenue growth — the quarter’s revenue shortfall and a modest operating cash flow ($199M) could cause near-term profit-taking or caution from investors focused on top-line momentum. MarketBeat: Q1 Summary

Wall Street Analyst Weigh In

Several brokerages have weighed in on WAB. Rothschild & Co Redburn raised Wabtec from a "neutral" rating to a "buy" rating and increased their price target for the stock from $262.00 to $285.00 in a research report on Thursday, March 26th. Morgan Stanley restated an "overweight" rating and set a $315.00 target price on shares of Wabtec in a research report on Tuesday, February 17th. JPMorgan Chase & Co. dropped their target price on Wabtec from $290.00 to $280.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Stephens raised their target price on Wabtec from $230.00 to $290.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Finally, Citigroup raised their target price on Wabtec from $283.00 to $292.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $275.75.

Wabtec declared that its Board of Directors has authorized a share buyback plan on Wednesday, February 11th that authorizes the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization authorizes the transportation company to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

About Wabtec

Wabtec Corporation (Westinghouse Air Brake Technologies Corporation) is a global provider of equipment, systems and services for the rail industry. The company supplies products and solutions to freight railroads, transit agencies and other industrial operators, focusing on technologies that improve the performance, safety and efficiency of locomotives and rail networks. Wabtec's business spans new equipment manufacturing, aftermarket parts and services, and digital and control systems for rail operations.

Product and service offerings include locomotive systems and components, braking and air systems, propulsion and traction equipment, signaling and control technologies, and a range of aftermarket services such as maintenance, remanufacturing, parts distribution and fleet modernization.

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