Strong Start with Backlog Expansion, Double Digit Sales & EPS Growth and Announces Increase in Full-Year EPS Guidance
-- Sales Growth of 13.0% to $2.95 Billion Driven by Both the Freight and
Transit Segments
-- GAAP Operating Margin at 17.5%; Adjusted Operating Margin Up 0.2 pts to
21.9%
-- Strong Multi-year Backlog at $30.80 Billion; 12-month Backlog Growth at
12.8%
-- GAAP Earnings Per Share of $2.12, Up 12.8%; Adjusted Earnings Per Share
of $2.71, Up 18.9%
PITTSBURGH--(BUSINESS WIRE)--April 22, 2026--
Wabtec Corporation $(WAB)$ today reported first quarter 2026 GAAP earnings per diluted share of $2.12, up 12.8% versus the first quarter of 2025. Adjusted earnings per diluted share were $2.71, up 18.9% versus the same quarter a year ago. First quarter sales were $2.95 billion and cash from operations was $199 million.
"Wabtec delivered a strong start to 2026, with solid first quarter execution across our businesses driving double digit sales and adjusted EPS growth," said Rafael Santana, Wabtec's President and CEO.
"During the quarter we secured significant wins across multiple businesses, executed integration plans for our recent acquisitions, advanced key innovation initiatives, and further strengthened our portfolio, reinforcing Wabtec's position as a leading industrial technology company.
"With a strong pipeline of opportunities that continues to strengthen our visibility, a resilient installed base, and a committed global team, we remain well positioned to deliver profitable growth and continue compounding long-term value for our shareholders."
2026 First Quarter Consolidated Results
Wabtec Corporation Consolidated Financial Results ------------------------------------------------------------------------------ $ in millions except earnings per share and percentages; margin change in percentage points (pts) First Quarter --------------------------------------------------- ------------------------- 2026 2025 Change --------------------------------------------------- ------ ------ --------- Net Sales $2,950 $2,610 13.0 % --------------------------------------------------- ------ ------ --------- GAAP Gross Margin 36.0 % 34.5 % 1.5 pts --------------------------------------------------- ------ ------ --------- Adjusted Gross Margin 36.9 % 34.6 % 2.3 pts --------------------------------------------------- ------ ------ --------- GAAP Operating Margin 17.5 % 18.2 % (0.7) pts --------------------------------------------------- ------ ------ --------- Adjusted Operating Margin 21.9 % 21.7 % 0.2 pts --------------------------------------------------- ------ ------ --------- GAAP Diluted EPS $2.12 $1.88 12.8 % --------------------------------------------------- ------ ------ --------- Adjusted Diluted EPS $2.71 $2.28 18.9 % --------------------------------------------------- ------ ------ --------- Cash Flow from Operations $199 $191 $8 --------------------------------------------------- ------ ------ --------- Operating Cash Flow Conversion 40 % 43 % --------------------------------------------------- ------ ------ --------- -- Sales increased 13.0% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Inspection Technologies, Frauscher Sensor Technologies, and Dellner Couplers. -- GAAP operating margin was lower than the prior year at 17.5%, and adjusted operating margin was modestly higher than the prior year at 21.9%. Both GAAP and adjusted operating margins benefited from strong sales growth in the quarter. GAAP operating margins were impacted by the exit of a low margin Digital project, restructuring costs, purchase accounting adjustments, and transaction costs associated with recent acquisitions. -- GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales, and non-operational benefits primarily related to currency fluctuation and timing of tax expense.
2026 First Quarter Freight Segment Results
Wabtec Corporation Freight Segment Financial Results
------------------------------------------------------------------------------
Net sales $ in millions; margin change in
percentage points (pts) First Quarter
--------------------------------------------------- -------------------------
2026 2025 Change
--------------------------------------------------- ------ ------ ---------
Net Sales $2,115 $1,901 11.3 %
--------------------------------------------------- ------ ------ ---------
GAAP Gross Margin 37.3 % 36.0 % 1.3 pts
--------------------------------------------------- ------ ------ ---------
Adjusted Gross Margin 38.3 % 36.2 % 2.1 pts
--------------------------------------------------- ------ ------ ---------
GAAP Operating Margin 21.3 % 22.1 % (0.8) pts
--------------------------------------------------- ------ ------ ---------
Adjusted Operating Margin 26.0 % 25.7 % 0.3 pts
--------------------------------------------------- ------ ------ ---------
-- Freight segment sales for the first quarter were up 11.3%. Equipment
sales were up 52.5% driven by higher locomotive deliveries, while
Services sales were down 17.3% due to lower modernization deliveries as
expected. Digital sales were up 75.7% driven by the acquisitions of
Inspection Technologies & Frauscher.
-- GAAP and adjusted operating margin benefited from gross margin
improvements which was partially offset by higher operating expenses as a
percentage of revenue. In addition, GAAP operating margin was impacted by
the exit of a low margin Digital project, restructuring costs, and
purchase accounting adjustments.
2026 First Quarter Transit Segment Results
Wabtec Corporation Transit Segment Financial Results
------------------------------------------------------------------------------
Net sales $ in millions; margin change in percentage
points (pts) First Quarter
----------------------------------------------------- -----------------------
2026 2025 Change
----------------------------------------------------- ------ ------ -------
Net Sales $835 $709 17.8 %
----------------------------------------------------- ------ ------ -------
GAAP Gross Margin 32.7 % 30.3 % 2.4 pts
----------------------------------------------------- ------ ------ -------
Adjusted Gross Margin 33.2 % 30.4 % 2.8 pts
----------------------------------------------------- ------ ------ -------
GAAP Operating Margin 14.5 % 12.7 % 1.8 pts
----------------------------------------------------- ------ ------ -------
Adjusted Operating Margin 16.6 % 14.6 % 2.0 pts
----------------------------------------------------- ------ ------ -------
-- Transit segment sales for the first quarter were up 17.8% driven by the
acquisition of Dellner, higher OE and aftermarket sales, and favorable
foreign currency exchange. Sales were up 11.0% on a constant currency
basis.
-- GAAP & Adjusted operating margins were up as a result of improved gross
margins which was partially offset by higher operating expenses as a
percent of revenue.
Backlog
Wabtec Corporation Consolidated Backlog Comparison
---------------------------------------------------------
Backlog $ in millions March 31,
----------------------------
2026 2025 Change
--------------------------- --------- -------- -------
12-Month Backlog $9,247 $8,196 12.8 %
--------------------------- --------- -------- -------
Total Backlog $30,802 $22,302 38.1 %
--------------------------- --------- -------- -------
The Company's multi-year backlog continues to provide strong visibility. At March 31, 2026, the 12-month backlog was $1.05 billion higher than the prior year period. At March 31, 2026, the multi-year backlog was $8.50 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $8.07 billion higher, up 36.2%.
Cash Flow and Liquidity Summary
-- During the first quarter, the Company generated cash from operations of
$199 million versus $191 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 $0.53 billion and total debt of $6.54 billion. At
March 31, 2026, the Company's total available liquidity was $2.09 billion,
which includes $0.52 billion in cash and cash equivalents plus $1.57
billion available under current credit facilities.
-- During the quarter, the Company repurchased $242 million of Wabtec
shares and paid $53 million in dividends.
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