Westinghouse Air Brake Technologies Corporation · WAB · FY2025 Q2 · Calendar Q3 2025

Wabtec raises guidance as acquisitions support growth, risks remain

The call supports a constructive operating case: management paired stronger margins and raised guidance with a strong backlog, international demand and acquisition-led growth. The case remains conditional on converting shifted revenue, integrating acquisitions and containing tariff and leverage risks.

Reported Before market openNYSEIndustrials $48.57B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.96 Consensus $2.17
EPS surprise -9.7% Reported versus consensus
Reported revenue $2.71B Consensus $2.77B
Revenue surprise -2.3% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -6.4% Event window
SPY move +0.0% Same window
Abnormal move -6.4% Stock minus SPY
Volume 2.5× Versus trailing sessions
Subsequent drift -4.6% Up to 20 sessions
WABSPY benchmark

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Transcript intelligence

What changed

The latest analysis shows raised full-year guidance, stronger-than-expected margin expansion and a $60 million supply-part timing issue that shifted revenue to the second half. Management also emphasized acquisition integration, digital and fuel-efficiency investment, and disciplined capital allocation.

Guidance delta

Management raised full-year guidance to $11.1 billion of sales and $8.55-$9.15 of adjusted EPS.

Key takeaways

  • Revenue modestly outperformed expectations, while margin expansion exceeded forecasts on favorable mix and cost discipline.
  • Management cited strong backlog and demand for locomotives, modernization and digital solutions.
  • Recent acquisitions are expected to add revenue and EBITDA in their first year.
  • A supply-part issue shifted $60 million of revenue into the second half and was described as corrected.
  • Tariffs, geopolitical uncertainty and the North American railcar outlook remain key watchpoints.

Management priorities

  • Integrate Inspection Technologies and prepare for the Frauscher Sensor Technology close.
  • Finalize the DeLiner Couplers acquisition in H1 2026.
  • Invest in engineering for fuel-efficiency and digital initiatives.
  • Balance debt reduction, share repurchases and strategic M&A.

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Earnings History

Estimate Beat Miss Match
WAB EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $1.49 Q1 '24 actual $1.89, beat Q2 '24 estimate $1.88 Q2 '24 actual $1.96, beat Q3 '24 estimate $1.90 Q3 '24 actual $2.00, beat Q2 '25 estimate $2.17 Q2 '25 actual $1.96, miss Q3 '25 estimate $2.28 Q3 '25 actual $2.32, beat Q4 '25 estimate $2.08 Q4 '25 actual $2.10, beat Q1 '26 estimate $2.51 Q1 '26 actual $2.71, beat Q2 '26 estimate $2.60 Q2 '26 actual $2.76, beat Q3 '26 estimate $2.73 Q4 '26 estimate $2.64 Q1 '27 estimate $2.93 Q2 '27 estimate $3.18
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Analyst Consensus ?

ConsensusBuy33 ratings
Bullish2060.6%
Neutral1236.4%
Bearish13.0%

Analyst 52W Price Targets

$287.54Previous close
$103Low
$252.5Average
$355High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 5, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
JP Morgan Neutral NeutralMaintainSep 21, 2026
Citigroup Buy BuyMaintainAug 13, 2026
Wells Fargo Equal Weight Equal WeightMaintainJul 23, 2026
Susquehanna Positive PositiveMaintainJul 23, 2026
Stephens & Co. Overweight OverweightMaintainJul 23, 2026
Morgan Stanley Overweight OverweightMaintainJul 23, 2026
Keybanc Overweight OverweightMaintainJul 23, 2026
Rothschild & Co Buy NeutralUpgradeMar 26, 2026
Wolfe Research Outperform Peer PerformUpgradeJan 8, 2026
B of A Securities Buy BuyMaintainNov 13, 2025
Goldman Sachs Neutral NeutralMaintainApr 24, 2025
TD Cowen Hold HoldMaintainApr 25, 2024
Redburn Atlantic Neutral BuyDowngradeFeb 15, 2024
Jefferies Buy HoldUpgradeJan 11, 2024
Raymond James Outperform OutperformMaintainJul 28, 2023
Atlantic Equities Overweight OverweightMaintainFeb 16, 2023
Cowen & Co. Outperform OutperformMaintainApr 15, 2020
Buckingham Research Neutral NeutralMaintainOct 18, 2019
Buckingham Neutral NeutralMaintainOct 18, 2019
Bank of America Underperform UnderperformMaintainOct 16, 2019
Citi Neutral NeutralMaintainJul 10, 2019
Stifel Nicolaus Buy BuyMaintainJul 25, 2018
Stifel Buy BuyMaintainJul 25, 2018
Mizuho Neutral NeutralMaintainJun 29, 2018
Wellington Shields Hold Gradually AccumulateDowngradeMay 16, 2018
Deutsche Bank Buy HoldUpgradeMay 14, 2018
Seaport Global Buy BuyMaintainJan 4, 2018
Edward Jones Hold BuyDowngradeJul 26, 2017
William Blair Outperform Market PerformUpgradeDec 21, 2016
Longbow Research Neutral BuyDowngradeOct 25, 2016
CLSA Buy BuyMaintainSep 30, 2016
Wunderlich Buy BuyMaintainOct 9, 2014
Credit Suisse Outperform OutperformMaintainSep 5, 2012
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Named analyst price targets

Upside is calculated against the persisted previous close $287.54. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
StephensJustin Long$330$289.98 +14.8%Jul 23, 2026
KeyBancAnalyst unavailable$340$289.98 +18.2%Jul 23, 2026
SusquehannaAnalyst unavailable$340$289.98 +18.2%Jul 23, 2026
Morgan StanleyAnalyst unavailable$355$289.98 +23.5%Jul 23, 2026
Morgan StanleyAnalyst unavailable$318$266.64 +10.6%Apr 27, 2026
Wolfe ResearchAnalyst unavailable$303$268.82 +5.4%Apr 23, 2026
SusquehannaBascome Majors$305$261.47 +6.1%Apr 23, 2026
RBC CapitalAnalyst unavailable$291$261.47 +1.2%Apr 22, 2026
Morgan StanleyAnalyst unavailable$315$258.8 +9.5%Feb 17, 2026
SusquehannaBascome Majors$300$261.15 +4.3%Feb 12, 2026
KeyBancSteve Barger$308$254.42 +7.1%Feb 12, 2026
SusquehannaBascome Majors$280$232.6 -2.6%Jan 26, 2026
Morgan StanleyAngel Castillo$264$224.9 -8.2%Jan 12, 2026
Wolfe ResearchAnalyst unavailable$245$216.62 -14.8%Jan 8, 2026
Wells FargoAnalyst unavailable$221$204.27 -23.1%Nov 13, 2025
SusquehannaBascome Majors$240$195.71 -16.5%Oct 23, 2025
KeyBancSteve Barger$240$205.87 -16.5%Jun 24, 2025
StephensJustin Long$205$187.34 -28.7%Oct 24, 2024
SusquehannaBascome Majors$220$191.15 -23.5%Oct 21, 2024
KeyBancSteve Barger$185$163.38 -35.7%Apr 25, 2024
StephensJustin Long$180$163.38 -37.4%Apr 25, 2024
JefferiesSaree Boroditsky$150$126.99 -47.8%Jan 11, 2024
Raymond JamesRaymond James Raymond James$115$100.19 -60.0%Dec 16, 2022
Morgan StanleyAnalyst unavailable$106$103.86 -63.1%Dec 14, 2022
Raymond JamesFelix Boeschen$103$94.83 -64.2%Aug 18, 2022
Morgan StanleyAnalyst unavailable$87$93.49 -69.7%Aug 8, 2022
StephensAnalyst unavailable$110$94.42 -61.7%Aug 8, 2022
Morgan StanleyAnalyst unavailable$84$83.45 -70.8%Jul 18, 2022
Morgan StanleyAnalyst unavailable$113$91.59 -60.7%May 2, 2022
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Company context

Snapshot as of publication

Westinghouse Air Brake Technologies Corporation (WAB) delivers a comprehensive suite of advanced technological solutions, equipment, and services tailored for the global freight railway and urban mass transit sectors. Its operations are bifurcated into two principal divisions: Freight and Transit. The Freight segment develops, produces, and maintains critical components for both newly manufactured and operational freight carriages and locomotives. This includes constructing brand-new commuter-focused locomotives, undertaking comprehensive rebuilding of freight locomotives, and delivering sophisticated railway electronic systems, positive train control (PTC) technology, signal design expertise, and related engineering provisions. This segment also furnishes essential heat exchange and cooling apparatus. Its clientele encompasses major publicly listed railway operators, equipment leasing firms, original equipment manufacturers (OEMs) of locomotives and freight cars, and various utility companies.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T07:20:43.498203+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T07:20:43.495343+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-05. For educational purposes only; not investment advice.