Overview
Wabtec Q3 sales rise 8.4% to $2.89 bln, beating analyst expectations
Adjusted EPS for Q3 increases 16% to $2.32, surpassing analyst estimates
Company raises and tightens 2025 adjusted EPS guidance
Outlook
Wabtec expects 2025 adjusted EPS guidance to $8.85-$9.05
Company expects 2025 revenue between $10.925 bln and $11.225 bln
Wabtec anticipates operating cash flow conversion over 90% for 2025
Result Drivers
FREIGHT SEGMENT GROWTH - Sales in the Freight segment rose 8.4% due to higher locomotive deliveries and the acquisition of Inspection Technologies, boosting digital sales by 45.6%
TRANSIT SEGMENT GROWTH - Transit segment sales increased 8.2% driven by higher original equipment and aftermarket sales
MARGIN IMPROVEMENT - Operating margins benefited from higher sales and improved gross margins, though offset by higher operating expenses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Meet | $2.89 bln | $2.89 bln (8 Analysts) |
Q3 Adjusted EPS | Beat | $2.32 | $2.27 (9 Analysts) |
Q3 EPS | $1.81 | ||
Q3 Adjusted Gross Margin | 35.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Westinghouse Air Brake Technologies Corp is $228.00, about 13.2% above its October 21 closing price of $198.00
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago
Press Release: ID:nBw8wzTKya
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)