Wabtec raised its 2026 guidance after second-quarter sales climbed 17.5% to $3.18 billion, with growth across freight and transit and stronger cash generation during the period.

Wabtec Rail shunting locomotive with passenger coaches at Doncaster Works
A Wabtec Rail shunting locomotive moves passenger coaches at Doncaster Works. Illustrative image; it does not depict the Q2 2026 financial announcement. Photo: Geof Sheppard / Wikimedia Commons / CC BY-SA 4.0

Freight and transit sales drive Q2 growth

According to Wabtec’s official second-quarter release⁠, freight segment sales increased 16.9% year over year. Equipment revenue rose 35.0% on higher locomotive deliveries, while services fell 4.2% because of lower modernization deliveries, which the company had expected.

Digital sales climbed 88.5%, reflecting the acquisitions of Inspection Technologies and Frauscher Sensor Technology⁠.

Transit segment sales rose 18.9% to $936 million, helped by the completed acquisition of Dellner Couplers⁠, higher original-equipment and aftermarket sales, and favorable exchange rates. Its adjusted operating margin increased 2.5 percentage points to 17.7%.

At the consolidated level, adjusted operating margin was 21.9%, up 0.8 percentage points. Adjusted earnings per diluted share increased 21.6% to $2.76.

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Backlog and cash flow support higher guidance

Cash flow from operations more than doubled to $441 million from $209 million. Wabtec attributed the increase to higher net income and favorable working capital.

At June 30, 2026, the company’s multi-year backlog stood at $30.93 billion, while its 12-month backlog was 11.3% above the year-earlier level.

Wabtec lifted its full-year revenue forecast to a range of $12.30 billion to $12.60 billion. That raised the midpoint by $110 million and placed the range 11.5% above 2025 revenue.

The company also increased its adjusted earnings-per-share outlook to $10.60–$10.90, raising the midpoint by $0.30. Wabtec said that midpoint would represent a 19.9% increase from the prior year. Both ranges remain forward-looking guidance rather than reported results.

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