Wabtec Reports Strong Q2 Earnings, Raises Guidance and Highlights M&A Success

Wabtec reported Q2 sales of $2.7 billion, a 2% YoY increase, and a 16% rise in adjusted EPS. The 12-month backlog grew by 11.9% to $8.2 billion. The company raised its 2025 guidance, projecting sales of approximately $11.1 billion and adjusted EPS between $8.55 and $9.15. Wabtec's transit segment experienced an 8.7% increase in sales, driven by infrastructure investment and global ridership. However, supply chain challenges and a decrease in North American railcar builds impacted revenues.

Wabtec Corporation (NYSE: WAB) reported its second-quarter 2025 results, showcasing a robust performance with significant improvements in earnings and backlog growth. The company’s GAAP diluted earnings per share (EPS) rose by 19.5% to $1.96, while adjusted diluted EPS increased by 15.8% to $2.27. Sales for the quarter were $2.71 billion, a 2.3% year-over-year (YoY) increase.

Key highlights of the quarter include a 17.4% GAAP operating margin and a 21.1% adjusted operating margin, driven by higher sales and improved gross margins. The 12-month backlog grew by 11.9% to $8.76 billion, providing strong visibility into future revenue streams.

Wabtec’s transit segment saw an 8.7% increase in sales, primarily driven by higher original equipment (OE) and aftermarket sales. However, the company experienced challenges in the freight segment due to lower locomotive deliveries, impacted by a supplied part issue. These deliveries are expected to shift to the second half of 2025.

The company also reported a 16% rise in adjusted EPS, which was attributed to higher sales, operating margin expansion, and benefits from share repurchases. Wabtec returned $94 million to shareholders via dividends and share repurchases.

Looking ahead, Wabtec raised its 2025 guidance, projecting sales of approximately $11.1 billion, with an adjusted EPS range of $8.55 to $9.15. This upward revision reflects the company’s strong first-half performance, significant M&A activity, and prudent cost management.

Wabtec’s CEO, Rafael Santana, expressed confidence in the company’s ability to maintain its momentum. He stated, “The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double-digit earnings per share growth.”

The company’s financial results reflect a resilient performance in the face of supply chain challenges and economic uncertainty. As Wabtec continues to execute its priorities for the second half of 2025, investors will closely watch for further updates on its progress and the impact of ongoing M&A activities.

References:
[1] https://www.wabteccorp.com/newsroom/press-releases/wabtec-reports-second-quarter-2025-results-raises-adjusted-eps-guidance