Overview

• Rail technology firm's Q4 revenue rose 14.8%, beating analyst expectations

• Adjusted EPS for Q4 increased 25%, beating analyst expectations

• Company's backlog reached a record $27 bln, up 23% yr/yr

Outlook

• Wabtec expects 2026 sales between $12.19 bln and $12.49 bln

• Company projects 2026 adjusted EPS between $10.05 and $10.45

• Wabtec's record $27 bln backlog supports sustained growth

Result Drivers

• FREIGHT SEGMENT GROWTH - Q4 sales increased 18.3%, driven by higher locomotive deliveries and acquisitions in digital technologies

• TRANSIT SEGMENT GROWTH - Q4 sales rose 6.7% due to strong original equipment and aftermarket sales

• BACKLOG EXPANSION - Record $27 bln backlog provides strong visibility for future growth

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$2.97 bln	$2.86 bln (9 Analysts)
Q4 Adjusted EPS	Beat	$2.10	$2.08 (10 Analysts)
Q4 EPS		$1.18
Q4 Adjusted Gross Margin		33.70%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "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 $245.00, about 0.6% above its February 10 closing price of $246.45

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw538sJxa

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