Wabtec Corporation (WAB) Q4 2025 Financial Results Summary
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Wabtec Corporation (WAB) Q4 2025 Financial Results Summary
PITTSBURGH, February 11, 2026 – Wabtec Corporation (NYSE: WAB) reported its financial results for the fourth quarter of 2025. Below is a summary of the key metrics and insights from the earnings report.
Financial Highlights
- Net Sales:
- Q4 2025: $2.97 billion, up 14.8% from Q4 2024 ($2.58 billion)
- Full Year 2025: $11.17 billion, up 7.5% from 2024
- GAAP Earnings per share (EPS):
- Q4 2025: $1.18, down 4.1% vs. Q4 2024 ($1.23)
- Full Year 2025: $6.83, up 13.1% from 2024 ($6.04)
- Adjusted Diluted EPS:
- Q4 2025: $2.10, up 25.0% vs. Q4 2024 ($1.68)
- Full Year 2025: $8.97, up 18.7% from 2024 ($7.56)
- GAAP Gross Margin:
- Q4 2025: 32.6%, up 1.7 points vs. Q4 2024 (30.9%)
- Adjusted Gross Margin:
- Q4 2025: 33.7%, up 2.1 points vs. Q4 2024 (31.6%)
- Operating Cash Flow:
- Q4 2025: $992 million, up 37.2% vs. Q4 2024 ($723 million)
- Cash Conversion:
- Q4 2025: 292%, up from 212% in Q4 2024
Segment Results
- Freight Segment:
- Net Sales: $2.12 billion, up 18.3% from Q4 2024 ($1.79 billion)
- GAAP Operating Margin: 15.0%, down 0.2 points from Q4 2024
- Transit Segment:
- Net Sales: $842 million, up 6.7% from Q4 2024 ($789 million)
- GAAP Operating Margin: 12.8%, down 0.2 points from Q4 2024
Backlog and Future Outlook
- Total Backlog:
- $27.4 billion, up 23.1% compared to December 2024 ($22.27 billion)
- 12-Month Backlog: $8.23 billion, up 7.2% from last year ($7.68 billion)
- Financial Guidance for 2026:
- Expected sales of $12.19 billion to $12.49 billion
- Expected adjusted EPS between $10.05 and $10.45, up 14% at the mid-point
Shareholder Returns
- Quarterly Dividend:
- Increased by 24% to 31 cents per share, payable on March 2, 2026
- Share Buyback Authorization:
- Increased to $1.2 billion with $75 million repurchased in Q4 2025
Additional Insights
- Wabtec reported strong fourth quarter results emphasizing sales growth primarily driven by the Freight segment, influenced by recent acquisitions.
- The fourth quarter GAAP operating margin decreased slightly due to restructuring costs tied to acquisitions, whereas adjusted operating margin expanded due to improved gross margins.
- Cash flow improvements were largely attributed to successful working capital management.
As Wabtec Corporation moves into 2026, it indicates a strong foundation with significant backlog, improved operational metrics, and a commitment to shareholder value through increased dividends and share repurchase programs.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
$ in millions except per share data
| Three Months Ended | Twelve Months Ended | |||
|---|---|---|---|---|
| December 31, 2025 | 2024 | December 31, 2025 | 2024 | |
| Net sales | $2,965 | $2,583 | $11,167 | $10,387 |
| Cost of sales | -1,999 | -1,786 | -7,361 | -7,021 |
| Gross profit | 966 | 797 | 3,806 | 3,366 |
| Gross profit as a % of Net sales | 32.6 % | 30.9 % | 34.1 % | 32.4 % |
| Selling, general and administrative expenses | -461 | -333 | -1,490 | -1,248 |
| Engineering expenses | -68 | -51 | -223 | -206 |
| Amortization expense | -81 | -79 | -300 | -303 |
| Total operating expenses | -610 | -463 | -2,013 | -1,757 |
| Operating expenses as a % of Net sales | 20.6 % | 17.9 % | 18.0 % | 16.9 % |
| Income from operations | 356 | 334 | 1,793 | 1,609 |
| Income from operations as a % of Net sales | 12.0 % | 12.9 % | 16.1 % | 15.5 % |
| Interest expense, net | -68 | -53 | -225 | -201 |
| Other income, net | 3 | 3 | 24 | 2 |
| Income before income taxes | 291 | 284 | 1,592 | 1,410 |
| Income tax expense | -87 | -71 | -409 | -343 |
| Effective tax rate | 29.7 % | 25.1 % | 25.7 % | 24.3 % |
| Net income | 204 | 213 | 1,183 | 1,067 |
| Less: Net income attributable to noncontrolling interest | -2 | -1 | -13 | -11 |
| Net income attributable to Wabtec shareholders | $202 | $212 | $1,170 | $1,056 |
| Earnings Per Common Share | ||||
| Basic | $1.19 | $1.23 | $6.84 | $6.05 |
| Diluted | $1.18 | $1.23 | $6.83 | $6.04 |
| Weighted average shares outstanding | ||||
| Basic | 170.3 | 171.2 | 170.5 | 174.1 |
| Diluted | 171.0 | 172.0 | 171.1 | 174.8 |
CONDENSED CONSOLIDATED BALANCE SHEETS
$ in millions
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Cash, cash equivalents and restricted cash | $789 | $715 |
| Receivables, net | 1,897 | 1,702 |
| Inventories, net | 2,745 | 2,314 |
| Other current assets | 263 | 212 |
| Total current assets | 5,694 | 4,943 |
| Property, plant and equipment, net | 1,616 | 1,447 |
| Goodwill | 10,216 | 8,710 |
| Other intangible assets, net | 3,838 | 2,934 |
| Other noncurrent assets | 705 | 668 |
| Total Assets | $22,069 | $18,702 |
| Current liabilities | $5,150 | $3,792 |
| Long-term debt | 4,291 | 3,480 |
| Other long-term liabilities | 1,438 | 1,297 |
| Total Liabilities | 10,879 | 8,569 |
| Shareholders’ equity | 11,142 | 10,091 |
| Noncontrolling interest | 48 | 42 |
| Total Equity | 11,190 | 10,133 |
| Total Liabilities and Equity | $22,069 | $18,702 |