Overview

• U.S. rail equipment supplier's Q2 sales rose 17.5%, beating analyst expectations

• Adjusted EPS for Q2 grew 21.6%, beating analyst expectations

• Company raised full-year revenue and adjusted EPS guidance after strong Q2 results

Outlook

• Wabtec raises 2026 revenue guidance to $12.3 bln-$12.6 bln, up $110 mln at midpoint

• Company lifts 2026 adjusted EPS guidance to $10.60-$10.90, up $0.30 at midpoint

• Wabtec says strong multi-year backlog provides sales visibility for future periods

Result Drivers

• FREIGHT SEGMENT GROWTH - Higher locomotive deliveries and digital sales, including contributions from recent acquisitions, drove Freight segment sales up 16.9%

• TRANSIT SEGMENT GROWTH - Transit segment sales rose 18.9% due to the acquisition of Dellner Couplers, higher original equipment and aftermarket sales, and favorable foreign currency exchange

• MARGIN EXPANSION - Both GAAP and adjusted operating margins benefited from robust sales growth and improved gross margins in the quarter

Company press release: ID:nBw5W4RN7a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Beat	$3.18 bln	$3.07 bln (8 Analysts)
Q2 Adjusted EPS	Beat	$2.76	$2.60 (9 Analysts)
Q2 EPS		$2.33
Q2 Adjusted Gross Margin		36.70%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Westinghouse Air Brake Technologies Corp is $304.00, about 15.4% above its July 21 closing price of $263.53

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• July 20 - Germany's IVU Traffic Technologies H1 profit jumps, raises FY EBIT outlook

• July 21 - Valmont beats Q2 revenue estimates, raises outlook

• July 21 - 3M boosts annual profit forecast driven by resilient industrial unit

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