Wabtec Raises 2026 Adjusted EPS Forecast After Third-Quarter Margin Growth

Wabtec Corporation raised its 2026 adjusted diluted earnings forecast after third-quarter sales and margins increased, lifting the midpoint by 20 cents while leaving its revenue range unchanged.

The company now expects adjusted EPS of $10.85 to $11.05, compared with its previous range of $10.60 to $10.90. The new midpoint represents 22% growth from 2025. Wabtec maintained its 2026 revenue outlook at $12.30 billion to $12.60 billion. It posted its third-quarter results Oct. 21.

Sales for the quarter ended Sept. 30 totaled $3.12 billion. Adjusted diluted EPS was $2.83, up 22% from a year earlier. Adjusted operating margin widened to 22.9% from 21%, an increase of 1.9 percentage points.

Factors supporting operating income included ongoing savings from Integration 3.0 and higher productivity. Gross-margin improvement also reflected favorable segment mix, restructuring savings and acquisition accretion. Higher commodity costs and net tariffs partly offset those gains.

Integration 3.0 is a multiyear effort to consolidate its footprint and streamline manufacturing, engineering, administrative and commercial work. The company expects $80 million to $100 million in one-time restructuring charges for the initiative and had recorded $45 million through Sept. 30.

Backlog stood at $31.435 billion at quarter-end, compared with $25.577 billion a year earlier, a 22.9% increase. Wabtec supplies equipment, systems and services to freight and transit rail, mining, marine and industrial markets.

Adjusted EPS is a non-GAAP measure. Wabtec gave no GAAP EPS reconciliation for its forecast because it could not reliably estimate when several restructuring, acquisition, regulatory, legal and tax effects would occur or how large they would be.