Westinghouse Air Brake Technologies Corporation, known as Wabtec, raised its 2026 adjusted earnings forecast after third-quarter sales grew in its freight and transit businesses, while leaving its annual revenue outlook unchanged.
Wabtec said Oct. 21 that it now expects adjusted earnings of $10.85 to $11.05 per diluted share. The midpoint is $0.20 above its previous forecast. It maintained its full-year revenue projection of $12.30 billion to $12.60 billion. The company furnished the results and guidance with a Form 8-K filed with the SEC.
Third-quarter revenue increased 8.1% from a year earlier to $3.12 billion. Earnings under generally accepted accounting principles, or GAAP, rose to $2.42 per diluted share from $1.81. Adjusted earnings per share increased to $2.83 from $2.32.
GAAP operating margin widened to 20% from 17% a year earlier. Wabtec also reported an adjusted operating margin of 22.9%, compared with 21% in the year-earlier quarter.
Freight sales grew 6.9% to $2.24 billion, while transit sales rose 11.3% to $883 million. Wabtec said its acquisitions of Frauscher Sensor Technologies and Dellner Couplers contributed to growth. It also reported stronger demand for core freight services and higher transit original-equipment and aftermarket sales. Unfavorable currency exchange partly offset the transit gains.
Total backlog stood at $31.44 billion on Sept. 30, up 22.9% from a year earlier. Cash from operations rose to $455 million from $367 million. Share buybacks totaled $305 million during the quarter, and dividend payments totaled $52 million.
Wabtec did not provide a quantitative reconciliation of its forecast adjusted earnings per share to forecast GAAP earnings per share. It said it could not reliably predict the timing and effect of certain charges and legal, regulatory and tax matters.
