Oct 22 (Reuters) - Locomotive parts maker Wabtec WAB.N tightened its annual profit forecast on Wednesday, including reducing the upper limit, as the company navigates headwinds from U.S. tariffs.

The company, however, surpassed Wall Street quarterly profit estimates.

While the locomotive industry is benefiting from steady freight and digital demand, higher import costs and shifting trade policies under the Trump administration have pressured margins.

Higher locomotive deliveries lifted Wabtec's freight segment net sales by 8.4% year-over-year in the third quarter, while digital sales were up nearly 46%, driven by the acquisition of Inspection Technologies.

Net sales in Wabtec's transit segment, which caters to passenger vehicles such as subway cars and buses, rose 8.2% to about $793 million in the quarter.

Last month, Wabtec struck a $4.2 billion deal with Kazakhstan, eying emerging markets, as North American clients cut back on investments amid shifting U.S. trade policies.

The company said the cash provided by operations in the quarter was $367 million compared to $542 million last year, partially due to higher tariffs and working capital.

It adjusted its 2025 profit to be between $8.85 and $9.05 per share compared to its prior estimate of $8.55 to $9.15 per share.

The company's third-quarter net sales grew 8.4% to $2.88 billion, in line with expectations, according to data compiled by LSEG.

Wabtec's quarterly adjusted profit came in at $2.32 per share, beating analysts' average estimates of $2.27 per share.

(Reporting by Parth Chandna; Editing by Vijay Kishore)

((Parth.Chandna@thomsonreuters.com;))