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WAB

Wabtec Reports Impressive Q1 Growth

Wabtec started 2026 with first-quarter sales of $2.95 billion, up 13.0% from $2.61 billion a year earlier.

GAAP diluted earnings per share rose to $2.12 from $1.88, a 12.8% increase. Adjusted diluted EPS climbed to $2.71 from $2.28, up 18.9%.

Operating performance also improved on an adjusted basis. Adjusted operating margin was 21.9%, up 0.2 percentage points from 21.7%. GAAP operating margin, however, fell to 17.5% from 18.2%.

Gross margin widened in both measures. GAAP gross margin increased to 36.0% from 34.5%, while adjusted gross margin rose to 36.9% from 34.6%.

Cash from operations increased to $199 million from $191 million.

Backlog expanded sharply. 12-month backlog reached $9.247 billion, up 12.8% from $8.196 billion a year earlier. Total backlog climbed to $30.802 billion from $22.302 billion, a gain of 38.1%.

By segment, freight sales rose 11.3% to $2.115 billion from $1.901 billion. Freight GAAP operating margin slipped to 21.3% from 22.1%, while adjusted operating margin edged up to 26.0% from 25.7%.

Transit sales increased 17.8% to $835 million from $709 million. Transit GAAP operating margin improved to 14.5% from 12.7%, and adjusted operating margin rose to 16.6% from 14.6%.

Within freight, equipment sales jumped 52.5%, digital sales increased 75.7%, and services sales fell 17.3%. In transit, sales rose 11.0% on a constant-currency basis.

Wabtec ended the quarter with $0.53 billion of cash, cash equivalents and restricted cash, and total debt of $6.54 billion. Available liquidity was $2.09 billion.

During the quarter, the company repurchased $242 million of stock and paid $53 million in dividends.

Wabtec raised its 2026 adjusted EPS guidance to a range of $10.25 to $10.65, up $0.20 at the midpoint, or 16.5%. Revenue guidance remains $12.19 billion to $12.49 billion, which implies 10.5% growth at the midpoint. Following these announcements, the company's shares moved -1.12%, and are now trading at a price of $245.54. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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