Wabtec reported strong second-quarter 2025 results, delivering higher earnings and improved margins, while raising its full-year guidance to reflect strong demand and disciplined cost management. This is reported by the railway transport news portal Railway Supply.

The company posted GAAP diluted EPS of $1.96, up 19.5% from last year, and adjusted EPS of $2.27, up 15.8%. Sales grew 2.3% to $2.71 billion, though locomotive shipment delays impacted revenue.

Wabtec
Photo: Wabtec

Wabtec Raises EPS Outlook Amid Market Momentum

President and CEO Rafael Santana emphasized strong execution and highlighted double-digit EPS growth with margin expansion. He noted robust demand across end markets and a strong pipeline of opportunities supporting long-term growth.

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Wabtec also advanced its M&A strategy, committing $3.5 billion to acquisitions that are expected to deliver immediate shareholder value. These deals should drive higher margins, improved ROIC, and adjusted EPS accretion within the first year.

Wabtec Performance by Segments and Backlog Trends

The Freight segment remained steady, with services sales up 6% due to higher parts and modernization demand, though locomotive delays and weaker mining sales offset gains. These deliveries are expected in the second half of 2025.

Transit outperformed with an 8.7% increase in sales, supported by higher original equipment and aftermarket orders. Both segments benefited from improved gross margins, driving GAAP operating margin to 17.4% and adjusted margin to 21.1%.

The 12-month backlog rose 11.9% year-over-year, while the multi-year backlog declined 2% on a currency-adjusted basis. Liquidity remains solid at $4.09 billion, including $1.5 billion in cash. Wabtec returned $94 million to shareholders via dividends and buybacks.

Looking forward, Wabtec raised its full-year revenue guidance to $10.93–$11.23 billion and increased its adjusted EPS outlook to $8.55–$9.15. Management expects operating cash flow conversion above 90% for 2025.

Despite global economic uncertainty, Wabtec remains focused on growth and efficiency. Strong liquidity, robust backlog, and strategic investments position the company for continued success.

Source: www.wabteccorp.com

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