WAB · Westinghouse Air Brake Technologies Corporation

Wabtec delivered strong Q1 2026 results with consolidated sales of $2.95 billion, up 13.0% year-over-year, driven by 11.3% growth in the Freight segment from higher equipment sales including locomotives and mining, plus 75.7% Digital sales growth from acquisitions like Inspection Technologies and Frauscher, offset by expected services decline. Transit sales rose 17.8% or 11.0% constant currency, boosted by Dellner acquisition, OE, and aftermarket. Adjusted operating margin expanded 20 basis points to 21.9%, benefiting from sales leverage, gross margin improvements via pricing and productivity, despite tariff pressures, acquisition costs, and low-margin project exit impacting GAAP margin at 17.5%. Adjusted EPS grew 18.9% to $2.71 from higher sales, margins, and non-operational currency/tax timing benefits. Backlog provides robust visibility with 12-month at $9.25 billion (+12.8%) and multi-year at $30.80 billion (+38.1%). Cash from operations reached $199 million, supporting $242 million share repurchases and $53 million dividends amid $2.09 billion liquidity. Management raised full-year 2026 adjusted EPS guidance to $10.25-$10.65 (midpoint +16.5%) while holding sales outlook at $12.19-$12.49 billion, signaling confidence in pipeline, integrations, and value creation framework amid resilient rail demand.