Wabtec forecasts 2026 profit above estimates as higher locomotive deliveries lift demand

Reuters
Feb 11
Wabtec forecasts 2026 profit above estimates as higher locomotive deliveries lift demand

Feb 11 (Reuters) - Locomotive parts maker Wabtec WAB.N forecast 2026 profit above Wall Street estimates on Wednesday, as higher locomotive deliveries drive strong demand for its products.

The Pittsburgh, Pennsylvania-based company expects 2026 adjusted profit per share between $10.05 and $10.45, the midpoint of which is higher than analysts' estimates of $10.23, according to LSEG data.

Annual sales are forecast to be $12.19 billion to $12.49 billion, the midpoint of which is above estimates of $11.98 billion.

Higher locomotive deliveries lifted net sales for Wabtec's freight segment by 18.3% from a year earlier in the fourth quarter.

Its digital unit saw sales jumping nearly 74.4%, driven by the acquisition of Evident's inspection technologies division and Frauscher Sensor Technology, which specializes in train detection and wayside object control solutions.

Wabtec also benefitted from robust domestic and international demand for its digital products, as railroads ramp up investment to upgrade their networks.

Earlier this month, the company signed a $1.2 billion agreement with Union Pacific to modernize the railroad’s AC4400 locomotives.

Wabtec's adjusted profit rose to $2.1 per share in the fourth quarter, up from $1.68 per share a year ago. Analysts on average expected a profit of $2.08 per share.

Fourth-quarter revenue rose 14.8% to $2.97 billion, beating analysts' expectations of $2.86 billion.

(Reporting by Parth Chandna; Editing by Jonathan Ananda)

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

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