Wabtec Corporation (NYSE:WAB) shares advanced about 3% in pre-market trading Wednesday after the rail equipment supplier delivered stronger-than-expected fourth-quarter results and reported a record backlog of $27 billion.
The company posted adjusted earnings of $2.10 per share for the quarter, edging past the $2.08 consensus estimate. Revenue rose 14.8% year over year to $2.97 billion, ahead of analyst expectations of $2.86 billion. For full-year 2025, adjusted earnings increased 18.7% to $8.97 per share.
“The Wabtec team delivered a strong fourth quarter and full year results, reflecting the strength of our business and our ability to execute in dynamic markets,” said Rafael Santana, Wabtec’s President and CEO.
Wabtec’s multi-year backlog expanded 23.1% year over year to $27 billion, offering increased visibility into future growth. In the fourth quarter, Freight segment sales jumped 18.3%, supported by a 33.5% rise in equipment sales and a 74.4% surge in digital sales, partly driven by recent acquisitions.
Adjusted operating margin improved to 17.7%, up from 16.9% a year earlier, reflecting stronger gross margins. Operating cash flow for the quarter reached $992 million, compared with $723 million in the prior-year period.
Looking ahead, Wabtec forecast fiscal 2026 adjusted earnings between $10.05 and $10.45 per share, implying approximately 14% growth at the midpoint versus 2025. The board also approved a 24% increase in the quarterly dividend and expanded the company’s share repurchase authorization to $1.2 billion.
“Our record $27 billion multi-year backlog provides strong visibility and positions Wabtec for sustained growth,” Santana added.
Transit segment sales rose 6.7% in the quarter, although adjusted operating margin in that unit declined to 14.0% from 16.4% a year earlier, reflecting manufacturing inefficiencies and higher operating costs.