Wabtec Q3 FY2026: sales up 8.1%, adjusted EPS $2.83 beats
Wabtec beat on the bottom line and lifted full-year adjusted EPS guidance, with gross margin up 2.6 points to 37.3% and a $31.44 billion backlog. The catch is that roughly half the sales increase came from acquisitions and part of the EPS beat came from currency, not operations. Read the scorecard for what repeatable demand looks like, and the balance sheet for what the deals cost.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $2.42 rose 33.7% and adjusted EPS of $2.83 rose 22.0%, clearing the $2.76 consensus by about $0.07. Management credited sales growth, margin expansion and non-operational currency benefits, so not all of the beat is repeatable. Adjusted operating margin of 22.9% was up 1.9 points, which is the cleaner signal.
Sales rose 8.1% to $3.12 billion from $2.89 billion a year ago, and gross margin climbed 2.6 points to 37.3%. Only $137 million of the $234 million increase was organic, with acquisitions adding $114 million and divestitures removing $12 million. Freight grew 6.9% to $2.24 billion and Transit 11.3% to $883 million, the latter helped by the Dellner Couplers deal.
Full-year revenue guidance was left at $12.30 billion to $12.60 billion, up 11.5% at the midpoint, while adjusted EPS guidance was raised $0.20 to $10.85 to $11.05. Nine-month sales of $9.25 billion and adjusted EPS of $8.29 imply roughly $3.20 billion of revenue and $2.66 of adjusted EPS in Q4 at the midpoints. That Q4 profit figure sits below the $2.83 just delivered, so the raise is not a straight-line extrapolation of this quarter.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-10-21
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