Wabtec Corporation “delivered another strong quarter, highlighted by margin expansion and double-digit earnings per share growth,” President and CEO Rafael Santana said July 24 in a second-quarter 2025 financial report. He noted that “[d]emand across our end markets and our pipeline of opportunities continues to be strong, with significant activity under way in key businesses.”
“Alongside the strength of our core business, I am especially proud of our year-to-date progress on M&A,” said Santana, referring to the Pittsburgh, Pa.-based company’s definitive agreements to acquire Austria-based Frauscher Sensor Technology Group GmbH, a supplier of train detection, wayside object control systems; Evident’s Inspection Technologies Division in Massachusetts; and Sweden-based Dellner Couplers. “We have committed $3.5 billion to investments that are expected to create immediate value for shareholders, with projected accretive growth profiles, higher adjusted EBITDA margins, increased adjusted EPS in the first year, and improving ROIC over time.”
For the three months ending June 30, 2025, Wabtec reported that its GAAP earnings per diluted share of $1.96 was up 19.5% from the prior-year period; adjusted, it was $2.27, up 15.8% from 2024. GAAP EPS and adjusted EPS increased from second-quarter 2024 “primarily due to higher sales, operating margin expansion, and benefits from share repurchases,” according to the company.
Second-quarter 2025 sales came in at $2.71 billion, up 2.3% from the same quarter in 2024, which Wabtec attributed to higher sales in Transit segment partially offset by lower Equipment sales; Freight revenue, it said, “was adversely impacted by lower locomotive deliveries than expected due to a supplied part issue.” Among the key sales drivers, according to Wabtec:
- Services: “Increased sales from increased parts sales and higher modernization deliveries.”
- Equipment: “Adversely impacted (approximately $60 million) by lower locomotive deliveries than expected due to a supplied part issue; deliveries shifting to second half.”
- Components: “Lower North America railcar build and the exit of low-margin businesses as a result of portfolio optimization.”
- Digital Intelligence: “Lower international sales driven by timing of projects.”
- Transit: “Higher OE sales and aftermarket sales; sales up 5.7% on constant currency basis.”
GAAP operating margin for the three months ending June 30, 2025, was higher than the prior year at 17.4%, and adjusted, it was higher than the prior year at 21.1%, according to Wabtec. The company said both GAAP and adjusted operating margins “benefited from higher sales and improved gross margins.”
At June 30, 2025, the 12-month backlog was $876 million higher than at June 30, 2024, according to Wabtec, and the multi-year backlog was $247 million lower than the prior-year period. The company said “excluding foreign currency exchange, the multi-year backlog was $448 million lower, down 2.0%.”
Freight segment sales for second-quarter 2025 “were largely flat” compared with the the same period a year ago, according to Wabtec. Services sales were up 6.0% “due to higher parts sales and modernization deliveries,” it noted. But “this was largely offset with the impact of lower locomotive deliveries in the quarter due to a supplied part issue and lower mining sales,” and these deliveries, it said, are expected to shift to second-half 2025. GAAP operating margin and adjusted operating margin “benefited from improved gross margin.”
Transit segment sales for second-quarter 2025 were up 8.7% “driven by higher OE and aftermarket sales,” Wabtec reported. GAAP and adjusted operating margins, it noted, “were up as a result of higher sales and improved gross margins.”
2025 Financial Guidance
Wabtec reported that revenue guidance was increased by $200 million at the mid-point with a range of $10.925 billion to $11.225 billion, “largely reflecting the acquisition of Evident Inspection Technologies Division completed on July 1, 2025.” Wabtec also increased its 2025 adjusted EPS guidance range to $8.55 to $9.15, up $0.20 at the mid-point. For full-year 2025, Wabtec said it expects operating cash flow conversion of greater than 90%.
“With the first half of the year complete, we remain focused on executing our priorities for the second half,” Rafael Santana said. He noted that “[w]hile the broader economic environment remains uncertain, we are committed to maintaining discipline and taking the necessary actions to achieve our goals.”
The Wabtec website provides more financial report details.
