Wabtec Inc. (WAB)

Wabtec reported third-quarter 2026 sales of $3.12 billion on 21 October, up 8.1 percent from a year earlier 1. Adjusted earnings per share were $2.83, up 22.0 percent, and cash from operations was $455 million 1.

Sales growth and better gross margins lifted operating margin, and both the Freight and Transit segments grew, helped by the Frauscher and Dellner Couplers acquisitions 1. Finance chief John Olin said the timing of some locomotive deliveries shifted from the third quarter into the fourth 10.

The company raised its 2026 adjusted earnings per share guidance to $10.85 to $11.05 and continues to expect revenue of $12.30 billion to $12.60 billion 1. Backlog, meaning orders signed but not yet delivered, was $31.4 billion at 30 September 1.

Dellner Couplers, bought on 10 February 2026 for about $1.053 billion, is still in its first year of accounting, and the company has not finalized the purchase accounting for it 2. The open question is how much the three recent purchases add as they are folded in 1.

George Westinghouse founded the original Westinghouse Air Brake Co. in 1869 when he invented the air brake 3. The modern company was formed in 1990 when it bought assets from American Standard, and it went public on the New York Stock Exchange in 1995 3.

A 1999 merger with MotivePower Industries gave it its current name 3. The 2017 purchase of Faiveley Transport of France made it a leader in transit products for passenger trains 3. In 2019 it bought GE Transportation, which brought locomotives, services and digital products 3.

In 2025 net sales rose 7.5 percent to $11.17 billion 3. Organic growth added $464 million, led by more North American locomotive deliveries and higher parts sales in Freight, and by stronger demand in Transit 3. Acquisitions added $355 million 3.

Gross profit, revenue minus the cost of making the product, rose to $3.81 billion from $3.37 billion 3. The company credited productivity, savings from restructuring and the exit of low-margin business 3. Income from operations was $1.79 billion 3.

On 1 July 2025 it bought Evident's Inspection Technologies division, formerly part of Olympus, for about $1.797 billion 2. On 1 December 2025 it bought Frauscher Sensor Technology Group, an Austrian maker of train detection and axle counting systems, for about $792 million 2.

Railway Gazette reported the Frauscher price as an enterprise value of €675 million in cash, with Delachaux and Frauscher's chief executive as sellers 8. Wabtec bought Dellner Couplers from investment group EQT, and the deal was announced in March 2025 at US$960 million, Railway Gazette reported 7.

In 2023 Progress Rail, a Caterpillar company and rival locomotive maker, sued Wabtec in federal court in Delaware 2. The two companies announced a settlement on 26 February 2026, with no admission of liability 92.

Freight

Freight is the larger segment, with sales of $8.04 billion in 2025, or about 72 percent of the total 3. It builds and modernizes diesel-electric locomotives and sells parts, services, freight car components, electronics and signalling 3.

About 58 percent of Freight sales came from the aftermarket, the parts and service business for equipment already sold, and the installed base is nearly 24,600 locomotives 3. In the third quarter Freight sales rose 6.9 percent to $2.24 billion 1.

Within Freight, Digital sales rose 24.2 percent in that quarter, helped by Frauscher, while Equipment sales rose 0.3 percent as higher mining sales were partly offset by fewer locomotive deliveries 1.

Transit

Transit makes and services parts for regional and high speed trains, subway cars, light rail and buses, including brakes, doors, air conditioning and pantographs 3. It was about 28 percent of 2025 sales, at $3.13 billion, and about 56 percent of it was aftermarket 3.

Third-quarter Transit sales rose 11.3 percent to $883 million, driven by the Dellner purchase and higher original equipment and aftermarket sales 1. The company also reported $159 million in brake equipment orders in the quarter 10.

Plants and people

The largest site is Erie, Pennsylvania, at 3,800,000 square feet, followed by Fort Worth, Texas, at 1,438,000 3. Abroad, the largest are Astana, Kazakhstan, at 700,000 and Marhowrah, India, at 500,000 3.

The annual report counts about 31,000 employees and operations in over 50 countries 3. Rafael Santana is chairman and chief executive, and John Olin is chief financial officer 12.

The proxy statement of 31 March 2026 said chair Albert Neupaver, on the board since 2006, would retire after the 12 May 2026 annual meeting and that the board intended to appoint Santana as chair 5.

Rivals and problems

The annual report names Progress Rail, owned by a Caterpillar subsidiary, as the main locomotive rival, and New York Air Brake of Knorr-Bremse and Amsted Rail as the main component rivals in North America 3. Outside North America it names Knorr as the main rival 3.

An industry forecast for North American railcar builds in 2026 was cut to about 23,000 cars, 26 percent below last year, the chief executive said on the third-quarter call 10. The company also faces asbestos injury claims, which management believes will not be material 2.

The umbrella, in words

Exhibit 21 to the annual report, lists the Faiveley Transport group, Frauscher, Evident Inspection Technologies companies and Bloom Engineering among its subsidiaries 4. It lists Frauscher Sensor Technology Group GmbH of Austria as 100 percent owned 4.

Exhibit 21 also shows 50 percent interests in Changzhou CRRC Wabtec Diesel Engine Company of China and Datong Faiveley Railway Vehicle Equipment of China, and 24.8 percent of ABU GmbH of Germany 4.

The proxy lists three holders above 5 percent 5. It named FMR LLC with 10.2 percent and BlackRock with 7.1 percent as of 16 March 2026, from filings of 7 November 2025 and 17 April 2025 5.

Vanguard was listed at 11.8 percent from a filing of 13 February 2024, but its filing of 27 March 2026 reported 0.0 percent after an internal reorganization split its reporting 5.

The company expects 2026 adjusted earnings per share of $10.85 to $11.05 and revenue of $12.30 billion to $12.60 billion 1. It says it does not reconcile that forecast to reported earnings because the timing of charges is uncertain 1.

Finance chief John Olin said the company expects fourth-quarter margin expansion to be well above the third quarter's, as tariff headwinds fade against last year 10. Locomotive deliveries that slipped out of the third quarter are expected in the fourth 10.

Chief executive Rafael Santana said renewal of aging North American locomotive fleets is a tailwind not included in guidance 10. He said he was in Central Asia the week of the call and that fleets there will keep expanding 10.

On 6 February 2026 the board reauthorized share repurchases of up to $1.2 billion, and about $456 million remained at 30 September 2026 2. On 1 October 2026 it set up a commercial paper program of up to $2 billion, with none issued by then 6.