Wabtec Reports Strong Third Quarter 2026 Results
GAAP ADJUSTED SALES DILUTED DILUTED EARNINGS EARNINGS PER SHARE PER SHARE 3Q’26 3Q YTD ’26 3Q’26 3Q YTD ’26 3Q’26 3Q YTD ’26
“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS,” said Rafael Santana, Wabtec’s Chairman and CEO. “The strength of our performance reflects our momentum across the portfolio, disciplined execution by our teams, and the continued success of our strategic actions. These actions enhance our growth profile, expand margins, and increase the earnings power of the company. “Our teams continue to translate healthy customer demand into profitable growth while investing in technologies that will advance the future of transportation. These investments are strengthening our competitive position and reinforcing Wabtec as a leading Industrial Technology Company” Rafael Santana Chairman and CEO
• Sales Growth of 8.1% to $3.12 Billion Driven by Both the Freight and Transit Segments • GAAP Operating Margin at 20.0%; Adjusted Operating Margin Up 1.9 pts to 22.9% • GAAP Earnings Per Share of $2.42, Up 33.7%; Adjusted Earnings Per Share of $2.83, Up 22.0% • Raised and Tightened 2026 Adjusted Earnings Per Share Guidance; up 22% at the midpoint PITTSBURGH, October 21, 2026 – Wabtec Corporation (NYSE: WAB) today reported third quarter 2026 GAAP earnings per diluted share of $2.42, up 33.7% versus the third quarter of 2025. Adjusted earnings per diluted share were $2.83, up 22.0% versus the same quarter a year ago. Third quarter sales were $3.12 billion and cash from operations was $455 million. 2026 Third Quarter Consolidated Results
Wabtec Corporat… Consolid… Financial Results $ in millions except earnings per share and Third percenta… Quarter margin change in percenta… points (pts) 2026 2025 Change Net Sales $3,120 $2,886 8.1 % GAAP Gross 37.3 % 34.7 % 2.6 pts Margin Adjusted Gross 37.4 % 35.6 % 1.8 pts Margin GAAP Operating 20.0 % 17.0 % 3.0 pts Margin Adjusted Operating 22.9 % 21.0 % 1.9 pts Margin GAAP Diluted $2.42 $1.81 33.7 % EPS Adjusted Diluted $2.83 $2.32 22.0 % EPS Cash Flow from $455 $367 $88 Operatio… Operating Cash Flow 82 % 83 % Conversi…
• Sales increased 8.1% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Frauscher Sensor Technologies and Dellner Couplers.
• GAAP operating margin was higher than the prior year at 20.0%, and adjusted operating margin was higher than the prior year at 22.9%. Both GAAP and adjusted operating margins benefited from sales growth and improved gross margins in the quarter.
• GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales, operating margin expansion, and non-operational benefits primarily related to currency fluctuations.
Wabtec Corporati… Freight Segment Financial Results Net sales $ in millions; margin Third change Quarter in percentage points (pts) 2026 2025 Change Net Sales $2,237 $2,093 6.9 % GAAP Gross 38.5 % 35.8 % 2.7 pts Margin Adjusted Gross 38.5 % 37.0 % 1.5 pts Margin GAAP Operating 23.0 % 19.8 % 3.2 pts Margin Adjusted Operating 26.4 % 24.5 % 1.9 pts Margin
• Freight segment sales for the third quarter were up 6.9%. Services sales were up 6.7% driven by core services demand and higher modernization deliveries, while Equipment sales were up 0.3% due to increased mining sales, which were partially offset by lower locomotive deliveries. Digital sales were up 24.2% driven by the acquisition of Frauscher Sensor Technologies and strong core digital demand. Components sales were up 5.3% driven by industrial, maintenance of way, and international demand which offset lower North America rail build and portfolio optimization efforts.
• GAAP and adjusted operating margin benefited from gross margin improvements and lower operating expenses as a percentage of revenue.
Wabtec Corporati… Transit Segment Financial Results Net sales $ in millions; margin Third change Quarter in percentage points (pts) 2026 2025 Change Net Sales $883 $793 11.3 % GAAP Gross 34.5 % 31.7 % 2.8 pts Margin Adjusted Gross 34.6 % 31.8 % 2.8 pts Margin GAAP Operating 16.4 % 14.5 % 1.9 pts Margin Adjusted Operating 18.1 % 15.5 % 2.6 pts Margin
• Transit segment sales for the third quarter were up 11.3% driven by the acquisition of Dellner Couplers, and higher OE and aftermarket sales which was partially offset by unfavorable foreign currency exchange. Sales were up 12.5% on a constant currency basis.
• GAAP and adjusted operating margins were up as a result of improved gross margins which were partially offset by higher operating expenses as a percentage of revenue.
Wabtec Corporation Consolidated Backlog Comparison Backlog $ in millions September 30, 2026 2025 Change 12-Month Backlog $8,992 $8,267 8.8 % Total Backlog $31,435 $25,577 22.9 %
• The Company’s multi-year backlog continues to provide strong visibility. At September 30, 2026, the 12-month backlog was $0.73 billion higher than the prior year period. At September 30, 2026, the multi-year backlog was $5.86 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $5.46 billion higher, up 21.4%.
• During the third quarter, the Company generated cash from operations of $455 million versus $367 million in the year ago period. The increase in cash was driven by higher net income.
• At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $0.49 billion and total debt of $6.38 billion. At September 30, 2026, the Company’s total available liquidity was $2.09 billion, which includes $0.48 billion in cash and cash equivalents plus $1.61 billion available under current credit facilities.
• During the quarter, the Company repurchased $305 million of Wabtec shares and paid $52 million in dividends.
• Wabtec raised and tightened its 2026 adjusted EPS guidance range to $10.85 - $11.05, raising it $0.20 at the midpoint, or up 22.0% versus prior year.
• For the full year 2026, Wabtec continues to expect revenues to be between $12.30 billion to $12.60 billion, up 11.5% at the midpoint versus prior year.
Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec’s website at
Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share because it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088 (access code: 9897430). Information about non-GAAP Financial Information and Forward-Looking Statements
Wabtec’s earnings release and 2026 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non- GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including statements regarding Wabtec’s plans, objectives, expectations and intentions; Wabtec’s expectations about future sales, earnings and cash conversion; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the actual or threatened imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; (2) changes in the financial condition or operating strategies of Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia’s invasion of Ukraine and ongoing military conflicts in the Middle East; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward- looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED)
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED)
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended In millions September 30, Operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,170 $ 979 Non-cash expense 466 357 Receivables -342 -368 Inventories -100 -228 Accounts payable 67 76 Other operating activities -166 -49 Net cash provided by operating 1,095 767 activities Net cash used for investing -1,243 -1,887 activities Net cash (used for) provided by -147 907 financing activities Effect of changes in currency exchange -5 26 rates Decrease in cash -300 -187 Cash, cash equivalents and restricted 789 715 cash, beginning of period Cash, cash equivalents and restricted $ 489 $ 528 cash, end of period
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.
Three Months Ended In millions September 30, Freight Segment 2026 2025 ────────────────────────────────────────────────────────────────────────────── Services $ 794 $ 744 Equipment 679 677 Components 395 375 Digital Intelligence 369 297 Total Freight Segment $ 2,237 $ 2,093 Transit Segment Original Equipment $ 408 $ 367 Manufacturer Aftermarket 475 426 Total Transit Segment $ 883 $ 793 Nine Months Ended September 30, In millions 2026 2025 Freight Segment Services $ 2,256 $ 2,388 Equipment 2,142 1,699 Components 1,150 1,157 Digital Intelligence 1,047 669 Total Freight Segment $ 6,595 $ 5,913 Transit Segment Original Equipment $ 1,200 $ 1,042 Manufacturer Aftermarket 1,454 1,247 Total Transit Segment $ 2,654 $ 2,289
Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
Wabtec Corpora… 2026 Third Quarter Cash Convers… Calcula… (in million… Reported (Net Deprecia… Cash Cash from ÷ Income + & = Conversion Operatio… Amortiza… Consoli… $455 $411 $142 82% Results Wabtec Corpora… 2026 Third Quarter YTD Cash Convers… Calcula… (in million… Reported (Net Deprecia… Cash Cash from ÷ Income + & = Conversion Operatio… Amortiza… Consoli… $1,095 $1,170 $424 69% Results Wabtec Corpora… 2025 Third Quarter Cash Convers… Calcula… (in million… Reported (Net Deprecia… Cash Cash from ÷ Income + & = Conversion Operatio… Amortiza… Consoli… $367 $313 $128 83% Results Wabtec Corpora… 2025 Third Quarter YTD Cash Convers… Calcula… (in million… Reported (Net Deprecia… Cash Cash from ÷ Income + & = Conversion Operatio… Amortiza… Consoli… $767 $979 $365 57% Results
Full text with the tables
Exhibit 99.1
Wabtec Reports Strong Third Quarter 2026 Results
Raised and Tightened Adjusted EPS Guidance
GAAP ADJUSTED
SALES DILUTED DILUTED
EARNINGS EARNINGS
PER SHARE PER SHARE
3Q’26 3Q YTD ’26 3Q’26 3Q YTD ’26 3Q’26 3Q YTD ’26
$3.12B $9.25B $2.42 $6.86 $2.83 $8.29
+8.1% YOY +12.8%YOY +33.7% YOY +21.6% +22.0% YOY +20.5%
YOY YOY
Q3 2026 HIGHLIGHTS
“Wabtec delivered another strong quarter,
evidenced by sales growth, margin expansion and a
22% increase in adjusted EPS,” said Rafael
Santana, Wabtec’s Chairman and CEO.
“The strength of our performance reflects our
momentum across the portfolio, disciplined
execution by our teams, and the continued success
of our strategic actions. These actions enhance
our growth profile, expand margins, and increase
the earnings power of the company.
“Our teams continue to translate healthy customer
demand into profitable growth while investing in
technologies that will advance the future of
transportation. These investments are
strengthening our competitive position and
reinforcing Wabtec as a leading Industrial
Technology Company”
Rafael Santana Chairman and CEO
• Sales Growth of 8.1% to $3.12 Billion Driven by Both the Freight and Transit
Segments • GAAP Operating Margin at 20.0%; Adjusted Operating Margin Up 1.9 pts
to 22.9% • GAAP Earnings Per Share of $2.42, Up 33.7%; Adjusted Earnings Per
Share of $2.83, Up 22.0% • Raised and Tightened 2026 Adjusted Earnings Per Share
Guidance; up 22% at the midpoint PITTSBURGH, October 21, 2026 – Wabtec
Corporation (NYSE: WAB) today reported third quarter 2026 GAAP earnings per
diluted share of $2.42, up 33.7% versus the third quarter of 2025. Adjusted
earnings per diluted share were $2.83, up 22.0% versus the same quarter a year
ago. Third quarter sales were $3.12 billion and cash from operations was $455
million.
2026 Third Quarter Consolidated Results
Wabtec
Corporat…
Consolid…
Financial
Results
$ in
millions
except
earnings
per share
and Third
percenta… Quarter
margin
change in
percenta…
points
(pts)
2026 2025 Change
Net Sales $3,120 $2,886 8.1 %
GAAP
Gross 37.3 % 34.7 % 2.6 pts
Margin
Adjusted
Gross 37.4 % 35.6 % 1.8 pts
Margin
GAAP
Operating 20.0 % 17.0 % 3.0 pts
Margin
Adjusted
Operating 22.9 % 21.0 % 1.9 pts
Margin
GAAP
Diluted $2.42 $1.81 33.7 %
EPS
Adjusted
Diluted $2.83 $2.32 22.0 %
EPS
Cash Flow
from $455 $367 $88
Operatio…
Operating
Cash Flow 82 % 83 %
Conversi…
• Sales increased 8.1% compared to the year-ago quarter driven by higher sales
in the Freight and Transit segments, which includes the acquisitions of
Frauscher Sensor Technologies and Dellner Couplers.
• GAAP operating margin was higher than the prior year at 20.0%, and adjusted
operating margin was higher than the prior year at 22.9%. Both GAAP and adjusted
operating margins benefited from sales growth and improved gross margins in the
quarter.
• GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to
higher sales, operating margin expansion, and non-operational benefits primarily
related to currency fluctuations.
2026 Third Quarter Freight Segment Results
Wabtec
Corporati…
Freight
Segment
Financial
Results
Net sales
$ in
millions;
margin Third
change Quarter
in
percentage
points
(pts)
2026 2025 Change
Net Sales $2,237 $2,093 6.9 %
GAAP Gross 38.5 % 35.8 % 2.7 pts
Margin
Adjusted
Gross 38.5 % 37.0 % 1.5 pts
Margin
GAAP
Operating 23.0 % 19.8 % 3.2 pts
Margin
Adjusted
Operating 26.4 % 24.5 % 1.9 pts
Margin
• Freight segment sales for the third quarter were up 6.9%. Services sales were
up 6.7% driven by core services demand and higher modernization deliveries,
while Equipment sales were up 0.3% due to increased mining sales, which were
partially offset by lower locomotive deliveries. Digital sales were up 24.2%
driven by the acquisition of Frauscher Sensor Technologies and strong core
digital demand. Components sales were up 5.3% driven by industrial, maintenance
of way, and international demand which offset lower North America rail build and
portfolio optimization efforts.
• GAAP and adjusted operating margin benefited from gross margin improvements
and lower operating expenses as a percentage of revenue.
2026 Third Quarter Transit Segment Results
Wabtec
Corporati…
Transit
Segment
Financial
Results
Net sales
$ in
millions;
margin Third
change Quarter
in
percentage
points
(pts)
2026 2025 Change
Net Sales $883 $793 11.3 %
GAAP Gross 34.5 % 31.7 % 2.8 pts
Margin
Adjusted
Gross 34.6 % 31.8 % 2.8 pts
Margin
GAAP
Operating 16.4 % 14.5 % 1.9 pts
Margin
Adjusted
Operating 18.1 % 15.5 % 2.6 pts
Margin
• Transit segment sales for the third quarter were up 11.3% driven by the
acquisition of Dellner Couplers, and higher OE and aftermarket sales which was
partially offset by unfavorable foreign currency exchange. Sales were up 12.5%
on a constant currency basis.
• GAAP and adjusted operating margins were up as a result of improved gross
margins which were partially offset by higher operating expenses as a percentage
of revenue.
Backlog
Wabtec Corporation
Consolidated Backlog
Comparison
Backlog $ in millions September 30,
2026 2025 Change
12-Month Backlog $8,992 $8,267 8.8 %
Total Backlog $31,435 $25,577 22.9 %
• The Company’s multi-year backlog continues to provide strong visibility. At
September 30, 2026, the 12-month backlog was $0.73 billion higher than the prior
year period. At September 30, 2026, the multi-year backlog was $5.86 billion
higher than the prior year period, and excluding foreign currency exchange, the
multi-year backlog was $5.46 billion higher, up 21.4%.
Cash Flow and Liquidity Summary
• During the third quarter, the Company generated cash from operations of $455
million versus $367 million in the year ago period. The increase in cash was
driven by higher net income.
• At the end of the quarter, the Company had cash, cash equivalents and
restricted cash of $0.49 billion and total debt of $6.38 billion. At September
30, 2026, the Company’s total available liquidity was $2.09 billion, which
includes $0.48 billion in cash and cash equivalents plus $1.61 billion available
under current credit facilities.
• During the quarter, the Company repurchased $305 million of Wabtec shares and
paid $52 million in dividends.
2026 Financial Guidance
• Wabtec raised and tightened its 2026 adjusted EPS guidance range to $10.85 -
$11.05, raising it $0.20 at the midpoint, or up 22.0% versus prior year.
• For the full year 2026, Wabtec continues to expect revenues to be between
$12.30 billion to $12.60 billion, up 11.5% at the midpoint versus prior year.
About Wabtec
Wabtec Corporation (NYSE: WAB) is
revolutionizing the way the world
moves for future generations. The
company is a leading global provider
of equipment, systems, digital
solutions and value-added services
for the freight and transit rail
industries, as well as the mining,
marine and industrial markets. Wabtec
has been a leader in the rail
industry for over 155 years and has a
vision to achieve a sustainable rail
system in the U.S. and worldwide.
Visit Wabtec’s website at
www.wabteccorp.com
.
Forecasted GAAP Earnings Reconciliation
Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP
earnings per diluted share to forecasted adjusted earnings per diluted share
because it is unable to predict with reasonable certainty and without
unreasonable effort the impact and timing of restructuring-related and other
charges, including acquisition-related expenses and the outcome of certain
regulatory, legal and tax matters. The financial impact of these items is
uncertain and is dependent on various factors, including timing, and could be
material to our Consolidated Statements of Earnings.
Conference Call Information
Wabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To
listen via webcast, go to Wabtec’s website at www.WabtecCorp.com and click on
“Events & Presentations” in the “Investor Relations” section. Also, an audio
replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088
(access code: 9897430).
Information about non-GAAP Financial Information and Forward-Looking Statements
Wabtec’s earnings release and 2026 financial guidance mentions certain non-GAAP
financial performance measures, including adjusted gross profit, adjusted
operating expenses, adjusted operating margin, adjusted gross margin, EBITDA,
adjusted EBITDA, adjusted income tax expense, adjusted income from operations,
adjusted interest and other expense, adjusted net income, adjusted earnings per
diluted share and operating cash flow conversion. Wabtec defines EBITDA as
earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA
is further adjusted by restructuring costs. Wabtec defines operating cash flow
conversion as net cash provided by operating activities divided by net income
plus depreciation and amortization including deferred debt cost amortization.
While Wabtec believes these are useful supplemental measures for investors, they
are not presented in accordance with GAAP. Investors should not consider non-
GAAP measures in isolation or as a substitute for net income, cash flows from
operations, or any other items calculated in accordance with GAAP. In addition,
the non-GAAP financial measures included in this release have inherent material
limitations as performance measures because they add back certain expenses
incurred by the Company to GAAP financial measures, resulting in those expenses
not being taken into account in the applicable non-GAAP financial measure.
Because not all companies use identical calculations, Wabtec’s presentation of
non-GAAP financial measures may not be comparable to other similarly titled
measures of other companies. Included in this release are reconciliation tables
that provide details about how adjusted results relate to GAAP results.
This communication contains “forward-looking” statements as that term is defined
in Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
of 1995. All statements, other than historical facts, including statements
regarding Wabtec’s plans, objectives, expectations and intentions; Wabtec’s
expectations about future sales, earnings and cash conversion; and any
assumptions underlying any of the foregoing, are forward-looking statements.
Forward-looking statements concern future circumstances and results and other
statements that are not historical facts and are sometimes identified by the
words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,”
“seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,”
“could,” “project,” “predict,” “continue,” “target” or other similar words or
expressions. Forward-looking statements are based upon current plans, estimates
and expectations that are subject to risks, uncertainties and assumptions.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those indicated or anticipated by such forward-looking statements. The inclusion
of such statements should not be regarded as a representation that such plans,
estimates or expectations will be achieved. Important factors that could cause
actual results to differ materially from such plans, estimates or expectations
include, among others, (1) changes in general economic and/or industry specific
conditions, including the impacts of significant recent shifts in trade policies
(including the actual or threatened imposition of tariffs and retaliatory tariff
measures) as well as tax programs, inflation, supply chain disruptions, foreign
currency exchange and industry consolidation and market reactions to these
factors; (2) changes in the financial condition or operating strategies of
Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from
acquisitions and potential failure to realize synergies and other anticipated
benefits of acquisitions, including as a result of integrating acquired targets
into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal,
regulatory and tax regimes; (6) changes in the expected timing of projects; (7)
a decrease in freight or passenger rail traffic; (8) an increase in
manufacturing costs; (9) actions by third parties, including government
agencies; (10) the impacts of epidemics, pandemics or similar public health
crises on the global economy and, in particular, our customers, suppliers and
end-markets, (11) potential disruptions, instability and volatility in global
markets as a result of global military action, acts of terrorism or armed
conflict, including Russia’s invasion of Ukraine and ongoing military conflicts
in the Middle East; (12) cybersecurity and data protection risks and (13) other
risk factors as detailed from time to time in Wabtec’s reports filed with the
SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports
on Form 10-Q, current reports on Form 8-K and other documents filed with the
SEC. The foregoing list of important factors is not exclusive. Any forward-
looking statements speak only as of the date of this communication. Wabtec does
not undertake any obligation to update any forward-looking statements, whether
as a result of new information or development, future events or otherwise,
except as required by law. Readers are cautioned not to place undue reliance on
any of these forward-looking statements.
Wabtec Investor Contact
Kyra Yates / Kyra.Yates@wabtec.com / 817-349-2735
Wabtec Media Contact
Tim Bader / Tim.Bader@wabtec.com / 682-319-7925
Appendix A
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND
2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED)
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 3,120 $ 2,886 $ 9,249 $ 8,202
sal…
Cost
of -1,9… -1,8… -5,8… -5,3…
sal…
Gro… 1,164 1,002 3,386 2,840
pro…
Gro…
pro…
as a 37.3 % 34.7 % 36.6 % 34.6 %
% of
Net
sal…
Sel…
gen…
and -383 -375 -1,1… -1,0…
adm…
exp…
Eng… -67 -59 -193 -155
exp…
Amo… -89 -77 -267 -219
exp…
Tot…
ope… -539 -511 -1,6… -1,4…
exp…
Ope…
exp…
as a 17.3 % 17.7 % 17.8 % 17.1 %
% of
Net
sal…
Inc…
from 625 491 1,742 1,437
ope…
Inc…
from
ope…
as a 20.0 % 17.0 % 18.8 % 17.5 %
% of
Net
sal…
Int…
exp… -80 -65 -231 -157
net
Oth…
inc… 12 -1 33 21
(ex…
net
Inc…
bef… 557 425 1,544 1,301
inc…
tax…
Inc…
tax -146 -112 -374 -322
exp…
Eff…
tax 26.3 % 26.4 % 24.2 % 24.8 %
rate
Net 411 313 1,170 979
inc…
Les…
Net
inc…
att… -2 -3 -4 -11
to
non…
int…
Net
inc…
att… $ 409 $ 310 $ 1,166 $ 968
to
Wab…
sha…
Ear…
Per
Com…
Sha…
Bas…
Net
inc…
att… $ 2.43 $ 1.81 $ 6.88 $ 5.66
to
Wab…
sha…
Dil…
Net
inc…
att… $ 2.42 $ 1.81 $ 6.86 $ 5.64
to
Wab…
sha…
Wei…
ave…
sha…
out…
Bas… 168.2 170.5 169.1 170.5
Dil… 168.8 171.1 169.7 171.2
Appendix A
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (CONTINUED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED)
Three Nine
Mont… Mon…
Ended End…
Sept… Sep…
Seg… 30, 30,
Inf… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Fre…
Net $ 2,237 $ 2,093 $ 6,595 $ 5,9…
sal…
Fre…
Inc… $ 515 $ 414 $ 1,469 $ 1,2…
from
ope…
Fre…
Ope… 23.0 % 19.8 % 22.3 % 21.1 %
mar…
Tra…
Net $ 883 $ 793 $ 2,654 $ 2,2…
sal…
Tra…
Inc… $ 145 $ 115 $ 412 $ 314
from
ope…
Tra…
Ope… 16.4 % 14.5 % 15.5 % 13.7 %
mar…
Bac…
Inf…
(No… Sept… June Sep…
12-… 30, 30, 30,
is a 2026 2026 2025
sub…
of
tot…
Fre… $ 25,7… $ 25,3… $ 20,9…
Tot…
Tra… 5,670 5,600 4,670
Tot…
Wab… $ 31,4… $ 30,9… $ 25,5…
Tot…
Fre… $ 6,544 $ 6,638 $ 6,085
12-…
Tra… 2,448 2,502 2,182
12-…
Wab… $ 8,992 $ 9,140 $ 8,267
12-…
Appendix B
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
In millions
Cash, cash equivalents and
restricted $ 489 $ 789
cash
Receivables, net 2,264 1,897
Inventories, net 2,946 2,745
Other current assets 352 263
Total current assets 6,051 5,694
Property, plant and 1,672 1,616
equipment, net
Goodwill 10,621 10,216
Other intangible assets, 4,032 3,838
net
Other noncurrent assets 765 705
Total Assets $ 23,141 $ 22,069
Current liabilities $ 5,500 $ 5,150
Long-term debt 4,665 4,291
Other long-term liabilities 1,612 1,438
Total Liabilities 11,777 10,879
Shareholders' equity 11,333 11,142
Noncontrolling interest 31 48
Total Equity 11,364 11,190
Total Liabilities and $ 23,141 $ 22,069
Equity
Appendix C
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
In millions September 30,
Operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,170 $ 979
Non-cash expense 466 357
Receivables -342 -368
Inventories -100 -228
Accounts payable 67 76
Other operating activities -166 -49
Net cash provided by operating 1,095 767
activities
Net cash used for investing -1,243 -1,887
activities
Net cash (used for) provided by -147 907
financing activities
Effect of changes in currency
exchange -5 26
rates
Decrease in cash -300 -187
Cash, cash equivalents and
restricted 789 715
cash, beginning of period
Cash, cash equivalents and
restricted $ 489 $ 528
cash, end of period
Appendix D
Set forth below is the calculation of the non-GAAP performance measures included
in this press release. We believe that these measures provide useful
supplemental information to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec’s reported results prepared
in accordance with GAAP.
…
…
…
… …
… … &
… … … … …
… … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … … … … …
— 2 … 1 4 … 4 — 4 …
— — … … — … … — … …
$ … $ … $ … $ … $ … $ … … … … …
…
…
…
…
…
…
…
… … … … …
… &
… … … … … …
…
$ … $ … $ … $ … $ … $ … … … … …
— 5 1 6 4 … 8 — 8 …
— … — … — … … — … …
— — … … … — … — … …
— — … … — … … — … …
$ … $ … $ … $ … $ … $ … … … … …
…
Appendix D
Set forth below is the calculation of the non-GAAP performance measures included
in this press release. We believe that these measures provide useful
supplemental information to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec’s reported results prepared
in accordance with GAAP.
…
…
…
… …
… … & …
… … … … … … … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ $ $ $
— 2 4 6 — … $
— … — … — … $
— — 9 9 2 … $
— — … … — … $
$ … $ … $ … $ … $ … $ … $ $ $ $
…
…
…
…
…
…
… … … … … … … …
… &
… … … … … … … … … …
… …
$ … $ … $ … $ … $ … $ … $ $ $ $
— 8 … … — … $
— … — … — … $
— — … … … … $
— — … … — … $
$ … $ … $ … $ … $ … $ … $ $ $ $
Appendix D
Set forth below is the calculation of the non-GAAP performance measures included
in this press release. We believe that these measures provide useful
supplemental information to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec’s reported results prepared
in accordance with GAAP.
…
…
…
…
… …
… … & …
… … … … … … … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ $ $ $
— … … … — 1 $
— … — … — … $
— — … … … … $
— — … … — … $
$ … $ … $ … $ … $ … $ … $ $ $ $
…
…
…
…
… …
… … & …
… … … … … … … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $ $ $ $
— … … … … … $
— — … … — … $
$ … $ … $ … $ … $ … $ … $ $ $ $
Appendix E
Set forth below is the calculation of the non-GAAP performance measures included
in this press release. We believe that these measures provide useful
supplemental information to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec’s reported results prepared
in accordance with GAAP.
…
… … …
… + … + &
… … … … … = E… + R… = A…
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ 5 $ …
… + … + … = E… + R… = A…
… … & &
… … … … …
… …
$ … $ … $ … $ … $ … $ …
… + … + … = E… + R… = A…
… … & &
… … … … …
… …
$ … $ … $ … $ … $ … $ …
… + … + … = E… + R… = A…
… … & &
… … … … …
… …
$ … $ … $ … $ … $ … $ …
Appendix F
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
SALES BY PRODUCT LINE
(UNAUDITED)
Three Months Ended
In millions September 30,
Freight Segment 2026 2025
──────────────────────────────────────────────────────────────────────────────
Services $ 794 $ 744
Equipment 679 677
Components 395 375
Digital Intelligence 369 297
Total Freight Segment $ 2,237 $ 2,093
Transit Segment
Original Equipment $ 408 $ 367
Manufacturer
Aftermarket 475 426
Total Transit Segment $ 883 $ 793
Nine Months Ended
September 30,
In millions 2026 2025
Freight Segment
Services $ 2,256 $ 2,388
Equipment 2,142 1,699
Components 1,150 1,157
Digital Intelligence 1,047 669
Total Freight Segment $ 6,595 $ 5,913
Transit Segment
Original Equipment $ 1,200 $ 1,042
Manufacturer
Aftermarket 1,454 1,247
Total Transit Segment $ 2,654 $ 2,289
Appendix G
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT
(UNAUDITED)
… …
… …
… …
… …
… …
… … … …
… … … …
… … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ …
% … % … % … % …
1 2 2 6
— … … …
— 1 2 2
… … … …
$ … $ … $ … $ …
% … % … % … % …
$ … $ … $ … $ …
% … % … % … % …
1 3 4 …
— — 8 —
… 5 … …
$ … $ … $ … $ …
% … % … % … % …
Appendix H
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT
(UNAUDITED)
Three
Months
Ended
September
In 30,
millions Freight Transit Consolid…
──────────────────────────────────────────────────────────────────────────────
2025 Net $ 2,093 $ 793 $ 2,886
sales
Acquisi… 49 65 114
Portfol…
Optimiz… -11 -1 -12
(Divest…
Foreign 4 -9 -5
Exchange
Organic 102 35 137
2026 Net $ 2,237 $ 883 $ 3,120
sales
Change 144 90 234
($)
Change 6.9 % 11.3 % 8.1 %
(%)
Nine
Months
Ended
September
30,
2025 Net $ 5,913 $ 2,289 $ 8,202
sales
Acquisi… 396 175 571
Portfol…
Optimiz… -32 -5 -37
(Divest…
Foreign 38 49 87
Exchange
Organic 280 146 426
2026 Net $ 6,595 $ 2,654 $ 9,249
sales
Change 682 365 1,047
($)
Change 11.5 % 15.9 % 12.8 %
(%)
Appendix I
Set forth below is the calculation of the non-GAAP performance measures included
in this press release. We believe that these measures provide useful
supplemental information to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec's reported results prepared
in accordance with GAAP.
Wabtec
Corpora…
2026
Third
Quarter
Cash
Convers…
Calcula…
(in
million…
Reported (Net Deprecia… Cash
Cash from ÷ Income + & = Conversion
Operatio… Amortiza…
Consoli… $455 $411 $142 82%
Results
Wabtec
Corpora…
2026
Third
Quarter
YTD Cash
Convers…
Calcula…
(in
million…
Reported (Net Deprecia… Cash
Cash from ÷ Income + & = Conversion
Operatio… Amortiza…
Consoli… $1,095 $1,170 $424 69%
Results
Wabtec
Corpora…
2025
Third
Quarter
Cash
Convers…
Calcula…
(in
million…
Reported (Net Deprecia… Cash
Cash from ÷ Income + & = Conversion
Operatio… Amortiza…
Consoli… $367 $313 $128 83%
Results
Wabtec
Corpora…
2025
Third
Quarter
YTD Cash
Convers…
Calcula…
(in
million…
Reported (Net Deprecia… Cash
Cash from ÷ Income + & = Conversion
Operatio… Amortiza…
Consoli… $767 $979 $365 57%
Results