Wabtec Reports Strong Q1 2025 Results and Raises EPS Guidance

Westinghouse Air Brake Technologies Corporation ( (WAB) ) has released its Q1 earnings. Here is a breakdown of the information Westinghouse Air Brake Technologies Corporation presented to its investors.

Westinghouse Air Brake Technologies Corporation, known as Wabtec, is a leading global provider of equipment, systems, digital solutions, and value-added services for the freight and transit rail industries, as well as the mining, marine, and industrial markets. The company has been a pioneer in the rail industry for 155 years, with a vision to achieve a zero-emission rail system worldwide.

Wabtec Corporation reported a robust start to 2025, with significant growth in earnings per share and steady sales increases in both its Freight and Transit segments. The company announced a 22.9% year-over-year increase in GAAP diluted earnings per share and a 20.6% rise in adjusted diluted earnings per share, alongside a 4.5% increase in sales to $2.61 billion.

Key financial highlights for the first quarter of 2025 include a GAAP operating margin of 18.2% and an adjusted operating margin of 21.7%, both benefiting from higher sales and improved gross margins. The Freight segment saw a 4.2% sales increase, driven by a notable 16.9% rise in services, while the Transit segment experienced a 5.3% sales growth, supported by higher original equipment and aftermarket sales. Wabtec also returned $141 million to shareholders through dividends and share repurchases.

The company’s international business continues to gain momentum, contributing to higher profitability compared to the North American region. Wabtec’s 12-month backlog increased by 6.3% to $8.196 billion, providing strong visibility for future operations. Despite a decrease in cash flow from operations due to higher accounts receivables, Wabtec maintains a solid liquidity position with $698 million in cash and cash equivalents.

Looking ahead, Wabtec has increased its full-year adjusted EPS guidance, reflecting cautious optimism amid economic uncertainty. The company remains focused on delivering against its commitments, leveraging its geographic diversity and expanding installed base to drive growth in service, components, and digital solutions.