Earnings Overview#
On Wednesday, Wabtec Corporation (NYSE:WAB) announced its first-quarter earnings, reporting an adjusted earnings per share (EPS) of $2.71. This figure surpassed analyst expectations of $2.51 by $0.20. However, the company's revenue of $2.95 billion fell short of the consensus estimate of $2.96 billion, leading to a 2.54% decline in its stock during after-hours trading.
Revenue Growth#
Despite the revenue miss, Wabtec experienced a 13.0% year-over-year increase in revenue, driven by growth in both its Freight and Transit segments. This growth was bolstered by recent acquisitions, including Inspection Technologies, Frauscher Sensor Technologies, and Dellner Couplers. The Freight segment alone generated $2.12 billion in revenue, an 11.3% increase from the previous year, while the Transit segment reported $835 million, up 17.8% year-over-year.
Future Guidance#
Wabtec has raised its full-year adjusted EPS guidance to a range of $10.25 to $10.65, with a midpoint of $10.45 that aligns with analyst expectations. The company is also maintaining its revenue guidance for the year, projecting between $12.19 billion and $12.49 billion, with a midpoint of $12.34 billion.
Operational Highlights#
The company’s President and CEO, Rafael Santana, expressed optimism about Wabtec's performance, highlighting a strong start to 2026 and a robust pipeline of opportunities. In addition, Wabtec reported a multi-year backlog of $30.80 billion, a significant 38.1% increase from the previous year, while its 12-month backlog grew 12.8% to $9.25 billion. The company also generated $199 million in operating cash flow and repurchased $242 million of its shares during the quarter.