Westinghouse Air Brake Technologies Stock Earnings Reports

Wabtec (Westinghouse Air Brake Technologies Corp.) reported a strong Q3 2025: revenue of $2.89B (+8% y/y), adjusted EPS of $2.32 (+16% y/y), GAAP operating income of $491M, and adjusted operating margin of 21% (up 1.3 pts). Twelve‑month backlog was $8.3B (+8.4%) and multi‑year backlog reached a record $20.9B (+18.4% constant currency for Freight). Management closed the Inspection Technologies acquisition at the start of Q3, which boosted digital revenue and margins. Major contract wins included a $4.2B Kazakhstan order (largest single rail order in history), a $125M multi‑year mining drive systems deal, and $140M in transit brake orders. The company generated $367M operating cash flow in the quarter, ended with $2.75B liquidity and net leverage ~2.0x, and reiterated disciplined capital allocation and M&A (expect Delner and Frauzer Sensor Technology to close in coming quarters and to be accretive). Management raised full‑year adjusted EPS guidance to $8.85–$9.05 (midpoint up ~18%) while exercising caution around macro volatility. Key near‑term risk: tariff pressure that has increased working capital and will flow into cost of goods over coming quarters; management outlined active mitigation (exemptions, sourcing, price sharing with customers, cost actions). International markets (CIS, Kazakhstan, Brazil, India, Africa) and mining remain bright spots; North American freight demand is mixed but backlog and pipeline provide coverage into 2026. Transit margins are improving via integration and portfolio optimization, targeting continued margin expansion into the mid/high teens over time.