Wabtec Raises 2025 Earnings Outlook on Freight Demand, Margin Growth

Wabtec Corporation reported strong third-quarter earnings for 2025, surpassing Wall Street expectations with adjusted earnings of $2.32 per share and net sales rising 8.4% year-over-year to approximately $2.88 billion. The company raised its full-year adjusted earnings guidance to a range of $8.85 to $9.05 per share while maintaining its revenue outlook between $10.925 billion and $11.225 billion, reflecting confidence in growth despite economic uncertainties and trade tensions. Strong demand in both freight and transit segments supported the results, with freight equipment sales up 32% and digital sales increasing nearly 46%, bolstered by the acquisition of Inspection Technologies. However, challenges such as higher tariffs and import costs weighed on operating margins and cash flow, with cash provided by operations declining compared to the previous year. CEO Rafael Santana highlighted the company's solid backlog, sales growth, and margin improvements as indicators of ongoing strength in the rail equipment sector. Analysts view Wabtec's performance positively, noting its consistent revenue growth and robust market position despite some volatility in freight volumes.