01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2025 net sales of $11.17 billiona, up from $10.39 billion in 2024, with income from operations of $1.79 billion versus $1.61 billion and net income attributable to Wabtec shareholders of $1.17 billion versus $1.06 billion.
Diluted earnings per share were $6.83b compared with $6.04 in 2024. Growth was driven by $464 million of organic sales, $355 million from acquisitions (primarily Inspection Technologies) and $33 million of favorable foreign exchange. Cost of sales as a percentage of net sales improved to 65.9% from 67.6%, reflecting productivity, restructuring savings and portfolio exits, though operating expenses rose 14.6% to $2.01 billion, partly on acquisition-related costs.
The company spent heavily on growth in 2025. Cash from operations was $1.76 billionc, but investing outflows of $2.75 billion were driven by the Inspection Technologies (about $1.79 billion) and Frauscher (about $792 million) acquisitions, and total debt rose to $5.5 billion at December 31, 2025. Total backlog reached $27.4 billion, including $15.5 billion of new orders in 2025.
Management also cited a $4.2 billiond multi-national locomotive order with Kazakhstan's KTZ as the largest in company history. Subsequent to year end, the Dellner Couplers acquisition (about €890 million) closed on February 10, 2026. Shareholder returns included $223 million of share repurchases and $173 million of dividends in 2025.
On February 6, 2026, the Board reauthorized a $1.2 billion repurchase program. The auditor, Ernst & Young LLP, issued unqualified opinions on both the financial statements and internal control over financial reporting, with the 2025 acquisitions excluded from the internal control assessment as permitted.
02—Key points
Key Highlights
- Net sales rose 7.5% to $11.17 billion, with organic growth of $464 million, $355 million from acquisitions and $33 million from favorable foreign exchange.
- Gross margin improved: cost of sales fell to 65.9% of net sales from 67.6%, and gross profit reached $3.81 billion versus $3.37 billion.
- Income from operations increased to $1.79 billion from $1.61 billion, while diluted EPS rose to $6.83 from $6.04.
- Total backlog was $27.4 billion at December 31, 2025, with 2026 expected deliveries of $8.23 billion; new orders in 2025 totaled $15.5 billion.
- Major 2025 acquisitions were Inspection Technologies (about $1.788 billion) and Frauscher (about $792 million); Dellner Couplers (about €890 million) closed February 10, 2026.
- Total debt was $5.5 billion at year end, funded partly by $1.25 billion of Senior Notes issued in 2025; the company maintained BBB / Baa2 / BBB investment-grade ratings with stable outlooks.
- Capital returns in 2025 included $223 million of share repurchases and $173 million of dividends, and the Board reauthorized a $1.2 billion buyback program on February 6, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Westinghouse Air Brake Technologies kept $0.11.
- Revenue$11.17B100.0%
- Cost of revenue−$7.36B65.9%
- Gross profit$3.81B34.1%
- Operating costs−$2.01B18.0%
- Operating income$1.79B16.1%
- Interest, other & tax−$610.0M5.5%
- Net income$1.18B10.6%
Where FY2025 revenue went
$11.17B- Cost of revenue: $7.36B, 66% of revenue
- SG&A: $1.49B, 13% of revenue
- Net income: $1.18B, 11% of revenue
- R&D: $223.0M, 2.0% of revenue
- Other operating costs: $300.0M, 2.7% of revenue
- Interest, other & tax: $610.0M, 5.5% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $11.17B$10.39B | +7.5% |
| Cost of Revenue | $7.36B$7.02B | +4.8% |
| Gross Profit | $3.81B$3.37B | +13.1% |
| R&D Expenses | $223.00M$206.00M | +8.3% |
| SG&A Expenses | $1.49B$1.25B | +19.4% |
| Operating Expenses | $2.01B$1.76B | +14.6% |
| Operating Income | $1.79B$1.61B | +11.4% |
| Net Income | $1.18B$1.07B | +10.9% |
| EPS (Basic) | $6.84$6.05 | +13.1% |
| EPS (Diluted) | $6.83$6.04 | +13.1% |
| Shares Outstanding (Basic) | 170.50M174.10M | −2.1% |
| Shares Outstanding (Diluted) | 171.10M174.80M | −2.1% |
05—Questions
Frequently Asked Questions
How did Wabtec's profitability change in 2025?
Income from operations increased to $1.79 billion from $1.61 billion, and net income attributable to Wabtec shareholders rose to $1.17 billion from $1.06 billion. Gross profit grew to $3.81 billion from $3.37 billion, helped by a lower cost of sales ratio of 65.9% versus 67.6%. Operating expenses rose 14.6%, largely from acquisition-related costs and higher SG&A.
What is driving the company's growth outlook?
Total backlog stood at $27.4 billion at December 31, 2025, and the company expects about $8.23 billion of it to be delivered in 2026. Management cited a $4.2 billion locomotive agreement with Kazakhstan's KTZ, $2.2 billion of North American locomotive orders signed in the fourth quarter, and expansion through acquisitions in Digital Intelligence and Transit.
How much debt does Wabtec carry, and how did the company fund its acquisitions?
Total debt was $5.5 billion at December 31, 2025. The company funded the Inspection Technologies and Frauscher acquisitions with cash on hand, new Senior Notes (a $500 million 2030 tranche and a $750 million 2035 tranche), a $725 million Term Loan Facility, and a $500 million 2025 Term Credit Agreement. The company stated it is in compliance with its financial covenants.
What are the main risks highlighted in the filing?
The filing highlights customer concentration (top five customers accounted for about 30% of net sales), cyclical demand in rail and transit, tariff and trade policy changes, supply chain and raw material cost volatility, integration risk from recent acquisitions, and exposure to international operations, where about half of 2025 net sales came from customers outside the United States. It also cites a pending Progress Rail lawsuit, with a trial on the remaining claims scheduled to begin February 23, 2026.
What capital allocation steps did management take?
In 2025 the company repurchased $223 million of stock and paid $173 million in dividends, at an annual dividend rate of about $212 million going forward. It retired 55 million treasury shares in the first quarter of 2025. On February 6, 2026, the Board reauthorized a $1.2 billion share repurchase program, superseding the prior $1.0 billion authorization.
06—Continue