Shares of Westinghouse Air Brake Technologies (WAB), also known as Wabtec, plummeted 5.34% in pre-market trading on Wednesday following the company's third-quarter earnings report and revised annual profit forecast. The locomotive parts maker cited headwinds from U.S. tariffs as a key factor impacting its outlook.

Despite surpassing Wall Street's quarterly profit estimates with adjusted earnings of $2.32 per share, up from $2.00 a year earlier, Wabtec tightened its 2025 profit forecast range. The company now expects adjusted earnings per share between $8.85 and $9.05, compared to its previous estimate of $8.55 to $9.15. This adjustment, particularly lowering the upper limit, seems to have disappointed investors.

The impact of U.S. tariffs was evident in the company's financials, with cash provided by operations in the quarter dropping to $367 million from $542 million last year. Wabtec attributed this decline partially to higher tariffs and working capital requirements. While the company reported growth in both its freight and transit segments, with digital sales up nearly 46%, the ongoing pressure from import costs and shifting trade policies under the Trump administration appears to be weighing on investor sentiment. As Wabtec navigates these challenges, the market's reaction reflects concerns about the company's ability to maintain growth in the face of ongoing trade tensions.