01—Abstract
Summary
Summary of the 10-Q filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Westinghouse Air Brake Technologies Corporation (Wabtec) reported third-quarter 2026 net sales of $3.12 billiona, up from $2.89 billion in the prior-year quarter, and net income attributable to Wabtec shareholders of $409 million, compared with $310 million a year earlier.
Diluted EPS was $2.42b versus $1.81. Income from operations rose to $625 million from $491 million. For the first nine months of 2026, net sales were $9.25 billion and net income attributable to shareholders was $1.17 billion.
Operating cash flow for the nine months was $1.095 billionc, compared with $767 million a year earlier, while the company spent $1.06 billion on acquisitions, primarily Dellner Couplers, and $762 million on stock repurchases. Total debt rose to $6.38 billion at September 30, 2026, from $5.54 billion at year-end 2025, and cash, cash equivalents and restricted cash declined to $489 million. Current debt of $1.71 billion, including a $500 million term loan due November 2026 and a 3.45% senior note due 2026, is a near-term refinancing item.
Total available liquidity was $2.09 billiond. Backlog reached a record $31.4 billion, and the company established a commercial paper program of up to $2.0 billion after quarter end. Management notes that tariffs and commodity costs were headwinds to margins and cash flow, and that the company continues to pursue tariff refund claims.
The company stated that it is unable to reasonably predict the full impact of macroeconomic factors, supply chain disruptions and trade policy. Purchase price allocations for Dellner Couplers and Frauscher remain preliminary.
02—Key points
Key Highlights
- Net sales of $3.12 billion for the third quarter 2026, up from $2.89 billion; organic sales increased $137 million, and acquisitions added $114 million.
- Net income attributable to Wabtec shareholders of $409 million for the quarter, up from $310 million, and diluted EPS of $2.42 versus $1.81.
- Income from operations of $625 million for the quarter, up from $491 million, with Freight Segment income of $515 million and Transit Segment income of $145 million.
- Record multi-year backlog of $31.4 billion at September 30, 2026, up $4.0 billion during the first nine months of 2026.
- Operating cash flow of $1.095 billion for the nine months, up from $767 million, while the company spent $1.062 billion on acquisitions and $762 million on stock repurchases.
- Total debt of $6.38 billion at September 30, 2026, versus $5.54 billion at December 31, 2025; total available liquidity was $2.09 billion, down from $3.21 billion.
- Acquired Dellner Couplers on February 10, 2026 for approximately $1.053 billion; the company also established a commercial paper program of up to $2.0 billion after quarter end.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Westinghouse Air Brake Technologies kept $0.13.
- Revenue$3.12B100.0%
- Cost of revenue−$1.96B62.7%
- Gross profit$1.16B37.3%
- Operating costs−$539.0M17.3%
- Operating income$625.0M20.0%
- Interest, other & tax−$214.0M6.9%
- Net income$411.0M13.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 21, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.12B$2.89B | +8.1% |
| Cost of Revenue | $1.96B$1.88B | +3.8% |
| Gross Profit | $1.16B$1.00B | +16.2% |
| R&D Expenses | $67.00M$59.00M | +13.6% |
| SG&A Expenses | $383.00M$375.00M | +2.1% |
| Operating Expenses | $539.00M$511.00M | +5.5% |
| Operating Income | $625.00M$491.00M | +27.3% |
| Net Income | $411.00M$313.00M | +31.3% |
| EPS (Basic) | $2.43$1.81 | +34.3% |
| EPS (Diluted) | $2.42$1.81 | +33.7% |
| Shares Outstanding (Basic) | 168.20M170.50M | −1.3% |
| Shares Outstanding (Diluted) | 168.80M171.10M | −1.3% |
05—Questions
Frequently Asked Questions
How did Wabtec's third-quarter 2026 profitability compare with the prior year?
Income from operations rose to $625 million from $491 million, and net income attributable to Wabtec shareholders increased to $409 million from $310 million. Diluted EPS was $2.42 compared with $1.81. The gross profit rose to $1.164 billion from $1.002 billion, and the effective tax rate was 26.3% versus 26.4%.
What drove the increase in net sales?
Net sales rose $234 million to $3.12 billion. Acquisitions contributed $114 million, organic sales increased $137 million, and foreign exchange reduced sales by $5 million. Freight sales grew on higher locomotive modernization deliveries, core services and mining sales, while Transit sales grew on Aftermarket and Original Equipment Manufacturing demand.
How is Wabtec's debt and liquidity position changing?
Long-term debt including the current portion totaled $6.38 billion at September 30, 2026, up from $5.54 billion at year-end 2025. Current portion of long-term debt was $1.714 billion, including a $500 million term loan maturing November 27, 2026 and $750 million of 3.45% senior notes due 2026. Total available liquidity was $2.09 billion, and the company stated it was in compliance with its financial covenants.
What are the main risks and headwinds the company identified?
The company cited tariffs and net tariff costs, higher commodity costs, supply chain disruptions, labor availability, inflation and foreign currency fluctuations. It said the increased tariff costs unfavorably affected operating results and operating cash flow for the nine months, and that the net impact of tariffs and the timing of refunds remains uncertain. It also noted that it cannot reasonably predict the full impact of these factors.
What capital allocation actions did Wabtec take in 2026?
The board reauthorized a $1.2 billion stock repurchase program on February 6, 2026, and about $456 million remained at September 30, 2026. The company repurchased $762 million of stock in the first nine months and paid $158 million in cash dividends. It also invested $182 million in property, plant and equipment and completed the Dellner Couplers acquisition.
06—Continue