01—Abstract
Summary
Summary of the 10-Q filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation (Wabtec) reported second-quarter 2026 net sales of $3.18 billiona, up from $2.71 billion in the prior-year quarter, and net income attributable to Wabtec shareholders of $395 million, or $2.33 per diluted share, versus $336 million and $1.96 in the second quarter of 2025.
Net sales were $6.13 billionb for the six months ended June 30, 2026, with net income attributable to Wabtec shareholders of $757 million. The filing attributes the sales growth to acquisitions, including Dellner Couplers (acquired February 10, 2026 for approximately $1.053 billion) and the 2025 acquisitions of Inspection Technologies and Frauscher, as well as organic growth in both segments. Total multi-year backlog rose $3.5 billion in the first six months to a record $30.9 billion.
Cash flow from operations was $640 millionc for the first six months of 2026, up from $400 million a year earlier, while investing outflows of $1.16 billion reflected the Dellner acquisition. Total debt increased to $6.57 billion face value at June 30, 2026, from $5.54 billion at December 31, 2025, with current portion of long-term debt at $1.66 billion, including a $750 million 3.45% Senior Notes due 2026 and a $500 million term loan maturing November 27, 2026. Total available liquidity was $2.02 billion, compared with $3.21 billion at year-end 2025, and the company repurchased $457 million of stock in the first six months, with approximately $760 million remaining under its repurchase authorization.
The company reports that it is monitoring tariffs, trade policy, supply chain disruptions, and inflation, and states it does not expect a material impact on 2026 results from tariffs because of mitigation efforts, though it cannot reasonably predict future impacts. The company also reported an overall effective tax rate of 23.1%d for the six months and a settlement of the Progress Rail antitrust and related litigation in February 2026 with no impact on operating results or cash flows.
02—Key points
Key Highlights
- Q2 2026 net sales of $3,179 million, up from $2,706 million in Q2 2025; organic sales increased $229 million, acquisitions added $232 million, and foreign exchange added $24 million.
- Q2 2026 diluted EPS of $2.33 versus $1.96 in Q2 2025; six-month diluted EPS of $4.44 versus $3.84.
- Income from operations for Q2 2026 was $600 million, up from $472 million; Freight Segment operating income was $504 million and Transit Segment was $146 million.
- Total multi-year backlog reached a record $30.9 billion at June 30, 2026, up $3.5 billion during the first six months of 2026.
- Acquired Dellner Couplers on February 10, 2026 for approximately $1.053 billion, funded with cash and borrowings; total debt rose to $6,571 million face value from $5,541 million at December 31, 2025.
- Total available liquidity fell to $2,022 million from $3,207 million at December 31, 2025, and the company repurchased $457 million of stock in the first six months of 2026.
- Interest expense, net rose to $80 million in Q2 2026 from $46 million, due to higher average debt balances primarily related to acquisitions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Westinghouse Air Brake Technologies kept $0.12.
- Revenue$3.18B100.0%
- Cost of revenue−$2.02B63.5%
- Gross profit$1.16B36.5%
- Operating costs−$561.0M17.6%
- Operating income$600.0M18.9%
- Interest, other & tax−$204.0M6.4%
- Net income$396.0M12.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 22, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.18B$2.71B | +17.5% |
| Cost of Revenue | $2.02B$1.77B | +14.1% |
| Gross Profit | $1.16B$938.00M | +23.8% |
| R&D Expenses | $70.00M$50.00M | +40.0% |
| SG&A Expenses | $400.00M$347.00M | +15.3% |
| Operating Expenses | $561.00M$466.00M | +20.4% |
| Operating Income | $600.00M$472.00M | +27.1% |
| Net Income | $396.00M$339.00M | +16.8% |
| EPS (Basic) | $2.33$1.96 | +18.9% |
| EPS (Diluted) | $2.33$1.96 | +18.9% |
| Shares Outstanding (Basic) | 169.10M170.60M | −0.9% |
| Shares Outstanding (Diluted) | 169.60M171.20M | −0.9% |
05—Questions
Frequently Asked Questions
How did Wabtec perform in the second quarter of 2026?
Net sales rose to $3,179 million from $2,706 million, income from operations increased to $600 million from $472 million, and net income attributable to Wabtec shareholders was $395 million, or $2.33 per diluted share, compared with $336 million and $1.96 per diluted share in the second quarter of 2025.
What drove the increase in net sales?
The filing attributes the increase to acquisitions, which added $232 million, organic growth of $229 million driven by higher North American and international locomotive deliveries and mining sales in Freight, and higher Aftermarket and Original Equipment Manufacturing demand in Transit, plus $24 million from favorable foreign exchange.
How has the company's debt and liquidity changed?
Total debt at face value increased to $6,571 million at June 30, 2026 from $5,541 million at December 31, 2025, and current portion of long-term debt was $1,656 million. Total available liquidity declined to $2,022 million from $3,207 million, and the filing states the company believes its resources are sufficient for at least the next twelve months.
What are the main risks the filing highlights?
The filing cites macroeconomic volatility, changes to tariffs and trade policies, regional conflicts, supply chain disruptions, labor availability, inflation, and foreign currency fluctuations. It notes that tariffs unfavorably affected operating results and cash from operations in the first six months of 2026, and that the company is unable to reasonably predict the future impact of trade policy volatility.
What capital returns did the company make?
In the first six months of 2026, Wabtec repurchased $457 million of stock and paid $106 million in cash dividends. The board reauthorized a repurchase program of $1.2 billion in February 2026, with approximately $760 million remaining as of June 30, 2026.
06—Continue