Wabtec Q2 Earnings Beat, Raises 2026 Guidance on Strong Freight and Transit Demand
WAB sits 45% above its 52-week low of $184.26.
Summary
Wabtec reported Q2 2026 adjusted EPS of $2.76, beating estimates, and raised full-year guidance on strong sales growth and margin expansion. The multi-year backlog jumped 41.7% to $30.93 billion.
Key Events · Earnings and Guidance · WAB
-
Q2 Earnings Beat
Adjusted EPS of $2.76, up 21.6% YoY, on sales of $3.18B, up 17.5% YoY. GAAP operating margin expanded 1.5 pts to 18.9%.
-
Guidance Raised
Full-year 2026 revenue guidance raised to $12.30B-$12.60B (midpoint +$110M) and adjusted EPS to $10.60-$10.90 (midpoint +$0.30).
-
Backlog Surge
Multi-year backlog reached $30.93B, up 41.7% YoY, driven by strong orders including a $1.0B Australian locomotive and services contract.
-
Cash Flow Strength
Operating cash flow of $441M, up from $209M a year ago, with cash conversion of 82%. The company returned $563M to shareholders in H1 2026 via buybacks and dividends.
Analysis · WAB · Manufacturing
Wabtec delivered a standout second quarter, with adjusted EPS of $2.76 beating expectations on 17.5% sales growth to $3.18 billion. Operating margins expanded in both segments, and cash from operations more than doubled to $441 million. The company raised its full-year revenue and adjusted EPS guidance, reflecting confidence in sustained demand across its freight and transit businesses. The multi-year backlog surged 41.7% to $30.93 billion, providing exceptional visibility. This performance reinforces Wabtec's ability to compound shareholder value through organic growth, acquisitions, and disciplined capital allocation.
At the time of this filing, WAB was trading at $267.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $44.7B. The 52-week trading range was $184.26 to $284.91. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.