Strong quarterly performance tops expectations
Wabtec Corporation (NYSE:WAB) reported stronger-than-expected second-quarter 2026 results on Wednesday, driven by double-digit revenue growth, higher margins and robust demand across its Freight and Transit businesses.
The rail equipment manufacturer posted adjusted earnings per share of $2.76, exceeding the analyst consensus estimate of $2.60.
Revenue climbed 17.5% year over year to $3.18 billion, surpassing Wall Street expectations of $3.07 billion.
Shares of Wabtec rose 0.94% in premarket trading following the earnings release.
Company lifts full-year guidance
Following the strong first-half performance, Wabtec raised its financial outlook for 2026.
The company now expects full-year revenue of between $12.30 billion and $12.60 billion, with the midpoint of $12.45 billion exceeding the analyst consensus estimate of $12.38 billion.
Management also increased its adjusted earnings per share guidance to a range of $10.60 to $10.90. The midpoint of $10.75 is slightly ahead of analysts’ forecast of $10.63.
“Wabtec delivered a strong first half, with solid second quarter execution across our businesses driving robust sales growth, margin expansion and a 22% increase in adjusted EPS growth,” said Rafael Santana, Wabtec’s Chairman and CEO.
Freight and Transit businesses deliver double-digit growth
The Freight segment generated revenue of $2.24 billion during the quarter, representing a 16.9% increase from the prior year.
Transit revenue rose 18.9% year over year to $936 million, reflecting continued demand across the company’s transportation markets.
Adjusted operating margin improved to 21.9%, compared with 21.1% in the second quarter of 2025.
Wabtec ended the quarter with a multi-year backlog of $30.93 billion, while its 12-month backlog increased 11.3% to $9.14 billion.
Cash flow and shareholder returns strengthen
Cash generated from operating activities more than doubled to $441 million, compared with $209 million in the same period last year.
The company continued returning capital to shareholders during the quarter by repurchasing $215 million of its common stock and paying $53 million in dividends.