Abstract

Westinghouse Air Brake will release its quarterly results on February 11, 2026 Pre-Market, with investors focused on whether the company can meet revenue of US dollars 2.86 billion and adjusted EPS of 2.08 while sustaining margin performance and demonstrating resilient cash conversion.

Market Forecast

Consensus expectations for this quarter point to revenue of US dollars 2.86 billion, up 9.39% year over year, EBIT of US dollars 0.53 billion, up 20.42% year over year, and adjusted EPS of 2.08, up 20.76% year over year. While no explicit margin forecasts are provided, the mix of estimates suggests that operational discipline and pricing actions are expected to support profit growth alongside the projected top-line increase.

The main business highlights center on the Freight segment as the company’s core revenue engine and the Transit segment as a steady contributor; execution efficiency and price realization remain the predominant themes in both segments. The most promising near-term segment is Freight, which last quarter delivered revenue of US dollars 2.09 billion and represented 72.52% of the mix, tying demand visibility to aftermarket momentum and ongoing modernization programs.

Last Quarter Review

Westinghouse Air Brake reported revenue of US dollars 2.89 billion, a gross profit margin of 35.62%, GAAP net profit attributable to the parent company of US dollars 0.31 billion, a net profit margin of 10.74%, and adjusted EPS of 2.32, up 16.00% year over year. EBIT was US dollars 0.61 billion, up 15.84% year over year and above estimates, although GAAP net profit declined sequentially by 7.74%.

Freight revenue was US dollars 2.09 billion and Transit revenue was US dollars 0.79 billion, giving a revenue mix tilted toward Freight at 72.52% and Transit at 27.48%. The concentration in Freight clarifies why price realization, aftermarket throughput, and production cadence are central to quarterly performance.

Current Quarter Outlook

Freight Segment

The Freight segment remains the core driver of revenue and earnings in the near term, anchoring the company’s quarterly trajectory. The latest estimates for revenue and EBIT growth imply that unit deliveries, aftermarket parts, and modernization programs are progressing through the backlog at a disciplined pace. Price actions put in place through prior quarters are likely to continue supporting the revenue base, creating a tailwind for conversion when combined with operating efficiencies. This dynamic typically aids EBIT growth as fixed-cost absorption improves with higher volumes and stable plant utilization. Freight’s revenue scale also allows small gains in throughput and mix to translate into meaningful absolute profit, a feature that is consistent with the double-digit year-over-year growth implied for EBIT and EPS. With sequential volatility in GAAP net profit last quarter, investors will monitor the cadence of shipments and delivery timing to gauge whether Freight can smooth quarter-over-quarter variability while sustaining the year-over-year trajectory embedded in the estimates.

Transit Segment

The Transit segment is expected to provide steadier contributions, with deliveries and service activity pacing toward the quarter’s schedule. In this setup, consistency in project execution and backlog conversion takes precedence over rapid growth, as predictable throughput helps sustain margin quality even without outsized top-line expansion. Price realization on long-duration contracts remains important for the segment’s profitability, and the absence of margin guidance heightens the market’s attention to the realized spread between input costs and contract pricing in the quarter. Transit’s contributions to cash flow are closely watched because working capital discipline in multi-phase projects can influence free cash conversion for the group. The combination of steady execution and balanced cost control positions Transit to provide stability that supports overall EPS delivery, especially when Freight drives variation through order timing and aftermarket peaks.

Key Stock Price Drivers This Quarter

The stock’s near-term performance is likely to hinge on whether revenue, EBIT, and adjusted EPS meet or exceed US dollars 2.86 billion, US dollars 0.53 billion, and 2.08, respectively. Margin commentary will be pivotal because consensus does not provide explicit gross margin or net margin forecasts; any indications of sustained gross profit margin around last quarter’s 35.62% or signs of improvement would be taken as an affirmative signal on operational execution. Given the sequential decline in GAAP net profit last quarter, management’s color on quarter-over-quarter momentum will be scrutinized to assess whether profit normalization aligns with the year-over-year growth implied for this quarter. Cash conversion will be a secondary but influential driver: working capital movements tied to backlog execution, inventory positioning, and receivables collection can amplify or dampen the earnings narrative, particularly if revenue meets expectations but cash generation lags. Order intake across core offerings and aftermarket channels will also shape sentiment; a book-to-bill indicating healthy demand replenishment would support the forward view, whereas softer intake could shift attention to near-term exhaustion of backlog benefits. Finally, the cadence of price realization versus input cost trends will be monitored for signals on the sustainability of EBIT expansion, as the estimates embed year-over-year increases that are most credible when supported by durable pricing and mix improvements.

Analyst Opinions

The prevailing stance among available previews within the specified window is bullish, consistent with consensus estimates that embed year-over-year growth in revenue of 9.39%, EBIT of 20.42%, and adjusted EPS of 20.76%. The majority view emphasizes a constructive setup for this quarter, citing the projected acceleration in profit metrics as supportive of the broader investment case. Analysts leaning into the constructive outlook point to three core elements: the visibility of shipments through the near-term backlog, price realization that underpins margin resilience despite input-cost variability, and the alignment between revenue growth and EBIT expansion implied by the estimates. They also underscore Freight’s ability to convert incremental volumes into disproportionate profit gains due to scale and fixed-cost leverage, which is reflected in the strong year-over-year profile for EBIT and EPS. Transit is framed as a stabilizer for the quarter, with consistent execution and pricing discipline expected to support margin quality even if the segment does not lead growth. In aggregate, the bullish narrative centers on meeting or slightly exceeding the forecast thresholds for revenue and EPS while delivering measured commentary on margin sustainability and cash conversion, reinforcing a view that the company can translate top-line resilience into durable bottom-line performance over the quarter.