01—Abstract
Summary
Summary of the 10-Q filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation (Wabtec) reported first-quarter 2026 net sales of $2.95 billiona, up from $2.61 billion in the prior-year period, with net income attributable to Wabtec shareholders of $362 million, or $2.12 per diluted share, versus $322 million, or $1.88 per diluted share, a year earlier.
Income from operations rose to $517 millionb from $474 million. Growth was driven by acquisitions contributing $225 million of sales, favorable foreign exchange adding $68 million, and organic sales growth of $60 million. Operating expenses rose 27.7% to $544 million, reflecting acquisition-related expense, higher compensation, and transaction costs of $13 million.
Gross margin improved, with cost of sales at 64.0% of net sales versus 65.5% a year earlier. The balance sheet changed materially during the quarter. Wabtec completed the acquisition of Dellner Couplers on February 10, 2026, for approximately $1.053 billionc, funded with cash on hand and borrowings.
Total debt rose to $6.54 billiond at March 31, 2026, from $5.54 billion at December 31, 2025, and cash, cash equivalents and restricted cash fell to $531 million from $789 million. Total available liquidity was $2.09 billion, down from $3.21 billion at year-end. Operating cash flow was $199 million, compared with $191 million a year earlier, as higher receivables absorbed cash.
Remaining performance obligations were approximately $30.8 billion, and the company reported that it expects to recognize about 30% of that amount over the next 12 months. The company also reported that it repurchased $242 million of stock in the quarter and paid $53 million in dividends. As of March 31, 2026, approximately $975 million remained under its stock repurchase authorization.
Management stated that it is unable to reasonably predict the full impact of tariffs, trade policy, supply chain disruptions, and macroeconomic volatility, though it does not expect a material impact on 2026 results because of mitigation efforts. Its credit ratings were BBB (Fitch), Baa2 (Moody's), and BBB (S&P), each with a stable outlook.
02—Key points
Key Highlights
- Net sales rose to $2.95 billion from $2.61 billion, a $340 million increase that included $225 million from acquisitions and $68 million from favorable foreign exchange.
- Net income attributable to Wabtec shareholders was $362 million ($2.12 per diluted share), compared with $322 million ($1.88 per diluted share) in the first quarter of 2025.
- Gross profit increased to $1.06 billion, and cost of sales was 64.0% of net sales versus 65.5% a year earlier.
- Dellner Couplers acquisition closed February 10, 2026, for approximately $1.053 billion, and reports within the Transit Segment.
- Total debt increased to $6.54 billion at March 31, 2026, from $5.54 billion at December 31, 2025, and total available liquidity declined to $2.09 billion from $3.21 billion.
- Backlog increased by $3.4 billion from December 31, 2025, to $30.8 billion, supported by a multi-year mining contract and a $210 million U.S. modernization order.
- Approximately $975 million remained under the stock repurchase authorization after $242 million of repurchases in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Westinghouse Air Brake Technologies kept $0.12.
- Revenue$2.95B100.0%
- Cost of revenue−$1.89B64.0%
- Gross profit$1.06B36.0%
- Operating costs−$544.0M18.4%
- Operating income$517.0M17.5%
- Interest, other & tax−$154.0M5.2%
- Net income$363.0M12.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 22, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.95B$2.61B | +13.0% |
| Cost of Revenue | $1.89B$1.71B | +10.5% |
| Gross Profit | $1.06B$900.00M | +17.9% |
| R&D Expenses | $56.00M$46.00M | +21.7% |
| SG&A Expenses | $401.00M$307.00M | +30.6% |
| Operating Expenses | $544.00M$426.00M | +27.7% |
| Operating Income | $517.00M$474.00M | +9.1% |
| Net Income | $363.00M$327.00M | +11.0% |
| EPS (Basic) | $2.12$1.88 | +12.8% |
| EPS (Diluted) | $2.12$1.88 | +12.8% |
| Shares Outstanding (Basic) | 170.00M170.50M | −0.3% |
| Shares Outstanding (Diluted) | 170.70M171.30M | −0.4% |
05—Questions
Frequently Asked Questions
What drove the increase in Wabtec's first-quarter 2026 sales?
Net sales increased $340 million to $2.95 billion. Acquisitions contributed $225 million, foreign exchange added $68 million, and organic sales grew $60 million. The Freight Segment's organic growth came mainly from higher equipment sales, including North American and international locomotive deliveries and mining, partly offset by lower services sales. The Transit Segment's organic growth came from aftermarket and original equipment sales.
How did the Dellner Couplers acquisition affect Wabtec's finances?
Wabtec acquired Dellner Couplers on February 10, 2026, for approximately $1.053 billion, funded with cash on hand and borrowings. The purchase added $475 million of goodwill and $531 million of other intangible assets on a preliminary basis. Total debt rose to $6.54 billion at March 31, 2026, and cash, cash equivalents and restricted cash fell to $531 million.
Is Wabtec's liquidity position weaker than at year-end 2025?
Total available liquidity fell to $2.09 billion at March 31, 2026, from $3.21 billion at December 31, 2025. The decline reflects lower cash, a reduced Revolving Credit Facility balance of $1.57 billion available (versus $2.00 billion), and no availability under the Revolving Receivables Program, which had $445 million borrowed. The company stated that it believes existing cash, operating cash flow, credit availability and capital market access will be sufficient for at least the next twelve months.
What did management say about tariffs and macroeconomic risks?
The company reported that it experienced increased tariff costs that unfavorably affected operating results and operating cash flow in the first quarter of 2026. Management said it does not expect a material impact on 2026 results because of mitigation actions, but it is unable to reasonably predict the future impact given the volatility of trade policies.
06—Continue