Westinghouse Air Brake Technologies : 2026-04-22 - WAB 1Q'2026 Press Release - FINAL edited

Published: 2026-04-22 06:54:12 ET WAB

Published on 04/22/2026 at 06:54 am EDT

‌

SALES

GAAP DILUTED EARNINGS PER SHARE

ADJUSTED DILUTED EARNINGS PER SHARE

1Q'26

$2.95B

$2.12

$2.71

+13.0% YOY

+12.8% YOY

+18.9% YOY

Q1 2026 HIGHLIGHTS

"Wabtec delivered a strong start to 2026, with solid first quarter execution across our businesses driving double digit sales and adjusted EPS growth," said Rafael Santana, Wabtec's President and CEO.

"During the quarter we secured significant wins across multiple businesses, executed integration plans for our recent acquisitions, advanced key innovation initiatives, and further strengthened our portfolio, reinforcing Wabtec's position as a leading industrial technology company.

"With a strong pipeline of opportunities that continues to strengthen our visibility, a resilient installed base, and a committed global team, we remain well positioned to deliver profitable growth and continue compounding long-term value for our shareholders."

Rafael Santana President and CEO

Sales Growth of 13.0% to $2.95 Billion Driven by Both the Freight and Transit Segments

GAAP Operating Margin at 17.5%; Adjusted Operating Margin Up 0.2 pts to 21.9%

Strong Multi-year Backlog at $30.80 billion; 12-month Backlog Growth at 12.8%

GAAP Earnings Per Share of $2.12, Up 12.8%; Adjusted Earnings Per Share of

$2.71, Up 18.9%

PITTSBURGH, April 22, 2026 - Wabtec Corporation (NYSE: WAB) today reported first quarter 2026 GAAP earnings per diluted share of

$2.12, up 12.8% versus the first quarter of 2025. Adjusted earnings per diluted share were $2.71, up 18.9% versus the same quarter a year ago. First quarter sales were $2.95 billion and cash from operations was $199 million.

Wabtec Corporation Consolidated Financial Results

$ in millions except earnings per share and percentages; margin change in percentage points (pts)

First Quarter

2026

2025

Change

Net Sales

$2,950

$2,610

13.0 %

GAAP Gross Margin

36.0 %

34.5 %

1.5 pts

Adjusted Gross Margin

36.9 %

34.6 %

2.3 pts

GAAP Operating Margin

17.5 %

18.2 %

(0.7) pts

Adjusted Operating Margin

21.9 %

21.7 %

0.2 pts

GAAP Diluted EPS

$2.12

$1.88

12.8 %

Adjusted Diluted EPS

$2.71

$2.28

18.9 %

Cash Flow from Operations

$199

$191

Operating Cash Flow Conversion

40 %

43 %

Sales increased 13.0% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Inspection Technologies, Frauscher Sensor Technologies, and Dellner Couplers.

GAAP operating margin was lower than the prior year at 17.5%, and adjusted operating margin was modestly higher than the prior year at 21.9%. Both GAAP and adjusted operating margins benefited from strong sales growth in the quarter. GAAP operating margins were impacted by the exit of a low margin Digital project, restructuring costs, purchase accounting adjustments, and transaction costs associated with recent acquisitions.

GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales, and non-operational benefits primarily related to currency fluctuation and timing of tax expense.

Wabtec Corporation Freight Segment Financial Results

Net sales $ in millions; margin change in percentage points (pts)

First Quarter

2026

2025

Change

Net Sales

$2,115

$1,901

11.3 %

GAAP Gross Margin

37.3 %

36.0 %

1.3 pts

Adjusted Gross Margin

38.3 %

36.2 %

2.1 pts

GAAP Operating Margin

21.3 %

22.1 %

(0.8) pts

Adjusted Operating Margin

26.0 %

25.7 %

0.3 pts

Freight segment sales for the first quarter were up 11.3%. Equipment sales were up 52.5% driven by higher locomotive deliveries, while Services sales were down 17.3% due to lower modernization deliveries as expected. Digital sales were up 75.7% driven by the acquisitions of Inspection Technologies & Frauscher.

GAAP and adjusted operating margin benefited from gross margin improvements which was partially offset by higher operating expenses as a percentage of revenue. In addition, GAAP operating margin was impacted by the exit of a low margin Digital project, restructuring costs, and purchase accounting adjustments.

Wabtec Corporation Transit Segment Financial Results

Net sales $ in millions; margin change in percentage points (pts)

First Quarter

2026

2025

Change

Net Sales

$835

$709

17.8 %

GAAP Gross Margin

32.7 %

30.3 %

2.4 pts

Adjusted Gross Margin

33.2 %

30.4 %

2.8 pts

GAAP Operating Margin

14.5 %

12.7 %

1.8 pts

Adjusted Operating Margin

16.6 %

14.6 %

2.0 pts

Transit segment sales for the first quarter were up 17.8% driven by the acquisition of Dellner, higher OE and aftermarket sales, and favorable foreign currency exchange. Sales were up 11.0% on a constant currency basis.

GAAP & Adjusted operating margins were up as a result of improved gross margins which was partially offset by higher operating expenses as a percent of revenue.

Wabtec Corporation Consolidated Backlog Comparison

Backlog $ in millions

March 31,

2026

2025

Change

12-Month Backlog

$9,247

$8,196

12.8 %

Total Backlog

$30,802

$22,302

38.1 %

The Company's multi-year backlog continues to provide strong visibility. At March 31, 2026, the 12-month backlog was $1.05 billion higher than the prior year period. At March 31, 2026, the multi-year backlog was $8.50 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $8.07 billion higher, up 36.2%.

During the first quarter, the Company generated cash from operations of $199 million versus $191 million in the year ago period. The increase in cash was driven by higher net income.

At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $0.53 billion and total debt of $6.54 billion. At March 31, 2026, the Company's total available liquidity was $2.09 billion, which includes $0.52 billion in cash and cash equivalents plus $1.57 billion available under current credit facilities.

During the quarter, the Company repurchased $242 million of Wabtec shares and paid $53 million in dividends.

Wabtec raised its 2026 adjusted EPS guidance range to $10.25 - $10.65, raising it $0.20 at the midpoint, or up 16.5%.

Wabtec continues to expect revenues to be between $12.19 billion to 12.49 billion, up 10.5% at the midpoint.

About Wabtec

Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec's website at https://www.wabteccorp.com.

Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share because it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.

Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec's website at https://www.WabtecCorp.com and click on "Events & Presentations" in the "Investor Relations" section. Also, an audio replay of the call will be available by calling 1-855-669-9658 or

1-412-317-0088 (access code: 4354537).

Wabtec's earnings release and 2026 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.

This communication contains "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec's plans, objectives, expectations and intentions; Wabtec's expectations about future sales, earnings and cash conversion; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the actual or threatened imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors;

(2) changes in the financial condition or operating strategies of Wabtec's customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia's invasion of Ukraine; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec's reports filed with the SEC, including Wabtec's annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Kyra Yates / [email protected] / 817-349-2735

Tim Bader / [email protected] / 682-319-7925

‌Three Months Ended March 31,

2026

2025

Net sales

$ 2,950

$ 2,610

Cost of sales

(1,889)

(1,710)

Gross profit

1,061

900

Gross profit as a % of Net sales

36.0 %

34.5 %

Selling, general and administrative expenses

(401)

(307)

Engineering expenses

(56)

(46)

Amortization expense

(87)

(73)

Total operating expenses

(544)

(426)

Operating expenses as a % of Net sales

18.4 %

16.3 %

Income from operations

517

474

Income from operations as a % of Net sales

17.5 %

18.2 %

Interest expense, net

(71)

(46)

Other income (expense), net

(2)

Income before income taxes

469

426

Income tax expense

(106)

(99)

Effective tax rate

22.7 %

23.2 %

Net income

363

327

Less: Net income attributable to noncontrolling interest

(1)

(5)

Net income attributable to Wabtec shareholders

$ 362

$ 322

Earnings Per Common Share

Basic

Net income attributable to Wabtec shareholders $ 2.12 $ 1.88

Diluted

Net income attributable to Wabtec shareholders

$ 2.12

$ 1.88

Weighted average shares outstanding

Basic

170.0

170.5

Diluted

170.7

171.3

Three Months Ended March 31,

2026 2025

Segment Information

Freight Net sales $ 2,115 $ 1,901

Freight Income from operations

$ 450

$ 420

Freight Operating margin

21.3 %

22.1 %

Transit Net sales

$ 835

$ 709

Transit Income from operations

$ 121

$ 90

Transit Operating margin

14.5 %

12.7 %

Backlog Information (Note: 12-month is a sub-set of total)

March 31, 2026

December 31, 2025

March 31, 2025

Freight Total

$ 25,175

$ 22,493

$ 17,851

Transit Total

5,627

4,914

4,451

Wabtec Total

$ 30,802

$ 27,407

$ 22,302

Freight 12-month

$ 6,679

$ 6,022

$ 6,069

Transit 12-month

2,568

2,212

2,127

Wabtec 12-month

$ 9,247

$ 8,234

$ 8,196

‌March 31, 2026

December 31, 2025

In millions

Cash, cash equivalents and restricted cash

$ 531

$ 789

Receivables, net

2,252

1,897

Inventories, net

2,850

2,745

Other current assets

340

263

Total current assets

5,973

5,694

Property, plant and equipment, net

1,653

1,616

Goodwill

10,625

10,216

Other intangible assets, net

4,239

3,838

Other noncurrent assets

706

705

Total Assets

$ 23,196

$ 22,069

Current liabilities

$ 5,835

$ 5,150

Long-term debt

4,708

4,291

Other long-term liabilities

1,502

1,438

Total Liabilities

12,045

10,879

Shareholders' equity

11,103

11,142

Noncontrolling interest

Total Equity

11,151

11,190

Total Liabilities and Equity

$ 23,196

$ 22,069

‌Three Months Ended March 31,

2026

2025

In millions

Operating activities

Net income

$ 363

$ 327

Non-cash expense

151

127

Receivables

(305)

(226)

Inventories

(28)

(29)

Accounts payable

Other operating activities

(2)

(21)

Net cash provided by operating activities

199

191

Net cash used for investing activities

(1,105)

(44)

Net cash provided by (used for) financing activities

656

(172)

Effect of changes in currency exchange rates

(8)

Decrease in cash

(258)

(17)

Cash, cash equivalents and restricted cash, beginning of period

789

715

Cash, cash equivalents and restricted cash, end of period

$ 531

$ 698

Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.

‌Wabtec Corporation

Reconciliation of Reported Results to Adjusted Results (in millions)

Net Sales

Gross Profit

Operating Expenses

Income from Operations

First Quarter 2026 Actual Results Interest &

Other Exp Tax

Net Income

Noncontrolling Interest

Wabtec Net Income

EPS

Reported Results

$ 2,950

$ 1,061

$ (544) $

517

$ (48) $

(106) $

363

$ (1) $

362

$ 2.12

Restructuring and Portfolio Optimization costs

(1)

$ 0.02

Inventory Purchase Accounting charge

(5)

$ 0.11

Transaction costs

(2)

$ 0.06

Non-cash Amortization expense

(20)

$ 0.40

Adjusted Results

$ 2,950

$ 1,087

$ (442) $

645

$ (50) $

(132) $

463

$ (1) $

462

$ 2.71

Fully Diluted Shares Outstanding

170.7

Wabtec Corporation

Reconciliation of Reported Results to Adjusted Results

(in millions) First Quarter 2025 Actual Results

Net Gross Operating Income from Interest & Net Noncontrolling Wabtec

Sales Profit Expenses Operations Other Exp Tax Income Interest Net Income EPS

Reported Results

$ 2,610

$ 900

$ (426) $

474

$ (48) $

(99)

$ 327

$ (5) $

322

$ 1.88

Restructuring and Portfolio Optimization costs

(2)

$ 0.04

Transaction costs

(2)

$ 0.04

Non-cash Amortization expense

(17)

$ 0.32

Adjusted Results

$ 2,610

$ 903

$ (338) $

565

$ (48) $

(120)

$ 397

$ (5) $

392

$ 2.28

Fully Diluted Shares Outstanding

171.3

‌Wabtec Corporation

Reconciliation of Reported Results to Adjusted Results

(in millions) Fourth Quarter Year-to-Date 2025 Actual Results

Net Gross Operating Income from Interest & Net Noncontrolling Wabtec

Sales Profit Expenses Operations Other Exp Tax Income Interest Net Income EPS

Reported Results

$ 11,167

$ 3,806

$ (2,013) $

1,793

$ (201) $

(409) $

1,183

$ (13) $

1,170

$ 6.83

Restructuring and Portfolio Optimization costs

$ 0.45

Inventory Purchase Accounting charge

(13)

$ 0.23

Transaction costs

(19)

(4)

$ 0.15

Non-cash Amortization expense

296

(72)

224

$ 1.31

Adjusted Results

$ 11,167

$ 3,871

$ (1,604) $

2,267

$ (220) $

(497) $

1,550

$ (13) $

1,537

$ 8.97

Fully Diluted Shares Outstanding

171.1

Wabtec Corporation

Reconciliation of Reported Results to Adjusted Results

(in millions) Fourth Quarter Year-to-Date 2024 Actual Results

Net Gross Operating Income from Interest & Net Noncontrolling Wabtec

Sales Profit Expenses Operations Other Exp Tax Income Interest Net Income EPS

Reported Results

$ 10,387

$ 3,366

$ (1,757) $

1,609

$ (199) $

(343) $

1,067

$ (11) $

1,056

$ 6.04

Restructuring and Portfolio Optimization costs

(4)

(16)

$ 0.28

Non-cash Amortization expense

288

(70)

218

$ 1.24

Adjusted Results

$ 10,387

$ 3,403

$ (1,436) $

1,967

$ (203) $

(429) $

1,335

$ (11) $

1,324

$ 7.56

Fully Diluted Shares Outstanding

174.8

‌$

716

517

137

677

Consolidated Results

= Adjusted

EBITDA

Transaction Costs

Restructuring &

Depreciation &

Amortization

Other Income

(Expense)

Reported Income +

from Operations

Wabtec Corporation

First Quarter 2026 EBITDA Reconciliation (in millions)

474

608

(2)

119

591

Consolidated Results

= Adjusted

EBITDA

Transaction Costs

Restructuring &

Depreciation &

Amortization

Other Income

(Expense)

Wabtec Corporation

First Quarter 2025 EBITDA Reconciliation (in millions)

Reported Income +

from Operations

‌Three Months Ended March 31,

In millions

2026

2025

Freight Segment

Services

714

863

Equipment

726

476

Components

357

381

Digital Intelligence

318

181

Total Freight Segment

2,115

1,901

Transit Segment

Original Equipment Manufacturer

381

322

Aftermarket

454

387

Total Transit Segment

835

709

‌In millions Gross Profit

Three Months Ended March 31,

2026 2025

Income from

Operations Gross Profit

Income from Operations

Freight Segment Reported Results

$ 788

$ 450

$ 685

$ 420

Freight Segment Reported Margin

37.3 %

21.3 %

36.0 %

22.1 %

Restructuring and Portfolio Optimization costs

Inventory Purchase Accounting charge

Transaction costs

Non-cash Amortization expense

Freight Segment Adjusted Results

$ 810

$ 550

$ 687

$ 488

Freight Segment Adjusted Margin

38.3 %

26.0 %

36.2 %

25.7 %

Transit Segment Reported Results

$ 273

$ 121

$ 215

$ 90

Transit Segment Reported Margin

32.7 %

14.5 %

30.3 %

12.7 %

Restructuring and Portfolio Optimization costs

Inventory Purchase Accounting charge

Non-cash Amortization expense

Transit Segment Adjusted Results

$ 277

$ 138

$ 216

$ 103

Transit Segment Adjusted Margin

33.2 %

16.6 %

30.4 %

14.6 %

‌Three Months Ended March 31,

In millions Freight Transit Consolidated

2025 Net sales

$ 1,901

$ 709

$ 2,610

Acquisitions

184

225

Portfolio Optimization (Divestitures/Exits)

(10)

(3)

(13)

Foreign Exchange

Organic

2026 Net sales

$ 2,115

$ 835

$ 2,950

Change ($)

214

126

340

Change (%)

11.3 %

17.8 %

13.0 %

Wabtec Corporation

2026 First Quarter Cash Conversion Calculation (in millions)

Reported Cash from Operations ÷

(Net Income

+ Depreciation & Amortization) = Cash Conversion

Consolidated Results

$199

$363

$139

40%

Wabtec Corporation

2025 First Quarter Cash Conversion Calculation (in millions)

Reported Cash from Operations ÷

(Net Income

+ Depreciation & Amortization) = Cash Conversion

Consolidated Results

$191

$327

$120

43%

Disclaimer

Wabtec Corporation - Westinghouse Air Brake Technologies Corporation published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 10:53 UTC.