Overview

* Wabtec Q3 sales rise 8.4% to $2.89 bln, beating analyst expectations

* Adjusted EPS for Q3 increases 16% to $2.32, surpassing analyst estimates

* Company raises and tightens 2025 adjusted EPS guidance

Outlook

* Wabtec expects 2025 adjusted EPS guidance to $8.85-$9.05

* Company expects 2025 revenue between $10.925 bln and $11.225 bln

* Wabtec anticipates operating cash flow conversion over 90% for 2025

Result Drivers

* FREIGHT SEGMENT GROWTH - Sales in the Freight segment rose 8.4% due to higher locomotive deliveries and the acquisition of Inspection Technologies, boosting digital sales by 45.6%

* TRANSIT SEGMENT GROWTH - Transit segment sales increased 8.2% driven by higher original equipment and aftermarket sales

* MARGIN IMPROVEMENT - Operating margins benefited from higher sales and improved gross margins, though offset by higher operating expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Meet $2.89 $2.89

bln bln (8

Analysts

)

Q3 Beat $2.32 $2.27 (9

Adjusted Analysts

EPS )

Q3 EPS $1.81

Q3 35.60%

Adjusted

Gross

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for Westinghouse Air Brake Technologies Corp ( WAB ) is $228.00, about 13.2% above its October 21 closing price of $198.00

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)