01—Abstract
Summary
Summary of the 8-K filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Wabtec reported third quarter 2025 sales of $2.89 billiona, up 8.4% year over year, with GAAP diluted EPS of $1.81 (up 11.0%) and adjusted diluted EPS of $2.32 (up 16.0%).
GAAP operating margin was 17.0% and adjusted operating margin was 21.0%, up 1.3 points. Multi-year backlog reached $25.6 billionb, and 12-month backlog was $8.27 billion, up 8.4%. The company cited a $4.2 billion locomotive contract with Kazakhstan Rail among recent wins.
Cash from operations fell to $367 millionc from $542 million in the prior-year quarter, which the filing attributes partly to increased tariffs and higher working capital. The company raised and tightened its 2025 adjusted EPS guidance to $8.85 to $9.05, up $0.10 at the midpoint. It continues to expect 2025 revenues of $10.925 billion to $11.225 billion, up 6.6% at the midpoint, and operating cash flow conversion of greater than 90 percent.
Total debt was $5.29 billiond at quarter-end against cash, cash equivalents and restricted cash of $528 million, and total available liquidity was $2.75 billion. The Freight segment grew sales 8.4% to $2.09 billion, with Equipment up 32.0% and Digital up 45.6% on the Inspection Technologies acquisition, while Services fell 11.6%.
The Transit segment grew sales 8.2% to $793 million, with its GAAP operating margin rising to 14.5%. The results and an investor presentation were furnished under Items 2.02 and 7.01 of Form 8-K.
02—Key points
Key Highlights
- Q3 2025 sales of $2.89 billion, up 8.4% YOY; Freight sales up 8.4% and Transit sales up 8.2%
- GAAP diluted EPS of $1.81, up 11.0%; adjusted diluted EPS of $2.32, up 16.0%
- Adjusted operating margin of 21.0%, up 1.3 points; GAAP operating margin of 17.0%
- Multi-year backlog of $25.6 billion, up 15.0% YOY; 12-month backlog of $8.27 billion, up 8.4%
- 2025 adjusted EPS guidance raised and tightened to $8.85 to $9.05, up $0.10 at the midpoint; revenue guidance of $10.925 billion to $11.225 billion
- Q3 cash from operations of $367 million, down from $542 million, partly due to increased tariffs and higher working capital
- Total debt of $5.29 billion and total available liquidity of $2.75 billion at September 30, 2025
03—Questions
Frequently Asked Questions
How did Wabtec perform in the third quarter of 2025?
Sales rose 8.4% to $2.89 billion, GAAP diluted EPS was $1.81 (up 11.0%), and adjusted diluted EPS was $2.32 (up 16.0%). Growth was driven by higher Freight sales, including the Inspection Technologies acquisition, and higher Transit sales.
What is the company's updated 2025 guidance?
Wabtec raised and tightened its 2025 adjusted EPS guidance to $8.85 to $9.05, up $0.10 at the midpoint. It continues to expect revenues of $10.925 billion to $11.225 billion, up 6.6% at the midpoint, and operating cash flow conversion of greater than 90 percent.
Why did operating cash flow decline in the quarter?
Cash from operations was $367 million in the third quarter versus $542 million a year earlier. The filing attributes the decline partly to increased tariffs and higher working capital. Cash conversion for the quarter was 83%, compared with 129% in the prior-year quarter.
What are the company's backlog and liquidity positions?
Total backlog was $25,577 million at September 30, 2025, up 15.0% from $22,234 million a year earlier, and 12-month backlog was $8,267 million, up 8.4%. At quarter-end the company had $528 million of cash, cash equivalents and restricted cash, total debt of $5.29 billion, and total available liquidity of $2.75 billion.
How did the business segments perform?
Freight sales rose 8.4% to $2.09 billion, with Equipment up 32.0% and Digital up 45.6% driven by the Inspection Technologies acquisition, while Services fell 11.6% on the timing of modernization deliveries. Transit sales rose 8.2% to $793 million, and its GAAP operating margin increased to 14.5% from 10.8%.
04—Continue