Wabtec 3Q25: ‘Continued Growth in Backlog, Sales, Margin and Earnings’
For the third-quarter 2025, Wabtec reported that its GAAP earnings per diluted share of $1.81 was up 11.0% from the prior-year period; adjusted, it was $2.32, up 16.0% from 2024. GAAP EPS and adjusted EPS increased from third-quarter 2024 “primarily due to higher sales, operating margin expansion, and benefits from prior quarter share repurchases,” according to the company.
Third-quarter 2025 sales came in at $2.89 billion, up 8.4% from the same quarter in 2024 “driven by higher sales in the Freight segment, which includes the acquisition of Inspection Technologies, and in the Transit segment,” Wabtec said. Among the key sales drivers, according to the company:
- Services: “Lower sales driven by fewer modernization deliveries as expected.”
- Equipment: “Higher locomotive deliveries.”
- Components: “Industrial products growth offsetting lower North America railcar build and portfolio optimization initiatives.”
- Digital Intelligence: “Increased sales driven by Inspection Technologies acquisition.”
- Transit: “Higher OE and aftermarket sales; sales up 5.2% on constant currency basis.”
GAAP operating margin for third-quarter 2025 was higher than the prior year at 17.0%, and adjusted operating margin was higher than the prior year at 21.0%. Both GAAP and adjusted operating margins “benefited from higher sales and improved gross margins, partially offset by higher operating expenses as a percent of revenue,” according to Wabtec.
At Sept. 30, 2025, the 12-month backlog was $643 million higher than the prior-year period, according to Wabtec, and the multi-year backlog was $3.34 billion higher than the prior-year period. The company said “excluding foreign currency exchange, the multi-year backlog was $3.30 billion higher, up 14.9%.”
Freight segment sales for third-quarter 2025 were up 8.4%. Equipment sales were up 32.0% “driven by higher locomotive deliveries,” while Digital sales were up 45.6% “driven by the acquisition of Inspection Technologies,” according to Wabtec. Components sales were up slightly and, as expected, Services sales were down 11.6% “due to the timing of modernization deliveries.” GAAP operating margin “benefited from improved gross margin which was offset by higher operating expenses as a percentage of revenue and purchase accounting adjustments resulting from the Inspection Technologies acquisition,” the company noted. Adjusted operating margin “benefited from improved gross margin which was partially offset by higher operating expenses as a percentage of revenue,” Wabtec said.
Transit segment sales for third-quarter 2025 were up 8.2% “driven by higher OE and aftermarket sales,” Wabtec reported. GAAP operating margines, the company noted, “were up as a result of improved gross margins and lower operating expenses as a percent of revenue.” Adjusted operating margins “were up as a result of improved gross margins, partially offset by higher operating expenses as a percent of revenue.”
Wabtec raised and tightened its 2025 adjusted EPS guidance range to $8.85 to $9.05, up $0.10 at the mid-point. For full-year 2025, Wabtec said it continues to expect revenues to be between $10.925 billion and $11.225 billion, up 6.6% at the midpoint. Wabtec also expects operating cash flow conversion of greater than 90%.
“We continue to be encouraged by the pipeline of opportunities that remains ahead of us. Our team’s commitment to product innovation, disciplined cost management, focused execution and partnership with our customers has been instrumental in driving our ongoing success. Together with our strong results, these factors give us confidence to continue to deliver on profitable growth into the future,” said Santana. “Our team’s dedication positions us to drive Wabtec’s success, even in a dynamic and uncertain economic environment.”
The Wabtec website provides more financial report details.
