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Wabtec forecasts 2025 profit below estimates on soft freight demand
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Wabtec forecasts 2025 profit below estimates on soft freight demand
Feb 12, 2025 4:56 AM

Feb 12 (Reuters) - U.S. rail locomotive maker Wabtec

forecast 2025 profit largely below analysts' estimates

on Wednesday, as the industry tackles weak demand for new

locomotives due to a slowdown in freight activity.

The company expects its 2025 adjusted profit per share in

the range of $8.35 to $8.75, compared with analysts' average

expectations of $8.62, according to data compiled by LSEG.

Higher prices and borrowing costs have weakened consumer

demand for goods, causing a slowdown in freight volume

transported by rail.

Wabtec's freight segment produces new locomotives, supplies

aftermarket parts and services, and manufactures essential

components for freight cars.

Uncertainty over tariffs and future freight demand has

prompted railroads to adopt a cautious approach before making

significant investments in new equipment.

In the fourth quarter, sales in Wabtec's freight unit, its

largest, rose only by 0.3% to $1.79 billion.

The Pennsylvania-based company reported an adjusted profit

of $1.68 per share for fourth-quarter ended December 31,

compared with analysts' expectations of $1.72 per share.

Net sales in the quarter rose 2.3% to $2.58 billion, but

missed Wall Street expectations of $2.62 billion.

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