Wabtec reported a strong Q4 2025 with 14.8% revenue growth and 25% adjusted EPS growth, driven by record orders and backlog. Management guided 2026 revenue of $12.2-12.5B and EPS of $10.05-10.45, representing continued mid-teen EPS growth. Key themes include the launch of the EVO modernization program for aging locomotives, tariff headwinds peaking in H1 2026, and a shift in North America from modernization to new locomotive deliveries. Q4 2025 sales $2.97B (+14.8% YoY); adjusted EPS $2.10 (+25% YoY); cash from ops $992M.
Buzzberg read2026 EPS guidance implies 14% growth at midpointWabtec reported a strong Q4 2025 with 14.8% revenue growth and 25% adjusted EPS growth, driven by record orders and backlog. Management guided 2026 revenue of $12.2-12.5B and EPS of $10.05-10.45, representing continued mid-teen EPS growth. Key themes include the launch of the EVO modernization program for aging locomotives, tariff headwinds peaking in H1 2026, and a shift in North America from modernization to new locomotive deliveries. Q4 2025 sales $2.97B (+14.8% YoY); adjusted EPS $2.10 (+25% YoY); cash from ops $992M.Read full analysisCollapse analysis
Wabtec reported a strong Q4 2025 with 14.8% revenue growth and 25% adjusted EPS growth, driven by record orders and backlog. Management guided 2026 revenue of $12.2-12.5B and EPS of $10.05-10.45, representing continued mid-teen EPS growth. Key themes include the launch of the EVO modernization program for aging locomotives, tariff headwinds peaking in H1 2026, and a shift in North America from modernization to new locomotive deliveries. Q4 2025 sales $2.97B (+14.8% YoY); adjusted EPS $2.10 (+25% YoY); cash from ops $992M.
2026 guidance: revenue $12.2-12.5B (+10.5% at midpoint); adjusted EPS $10.05-10.45 (+14% at midpoint).
Management is confident in continued strong earnings growth driven by record backlog, pipeline momentum, and cost initiatives, despite near-term tariff and mix headwinds.
Capex
Investment and capacity
Management stated they have the capacity in North America and continue to invest in the quality of that capacity and productivity. They also noted that customers are investing in fleet modernization and technology-enabled operations, though specific capex numbers were not disclosed.
Tone · Confident
Management expressed strong confidence in the business momentum, record backlogs, and ability to deliver another strong cycle of growth.
Supply-chain alpha
A1
Wabtec's new EVO modernization program opens a fleet of ~10,000 units globally, with >20% reliability improvement and up to 7% fuel savings, extending the modernization tailwind beyond older DC fleets.
“Our new EVO modernization builds upon our proven EVO engine platform and is designed to deliver meaningful operational impacts... key new technologies such as an upgraded control system and EVO Advantage will be available.”
Wabtec expects North American railcar builds to decline another 22% to ~24,000 units in 2026, pressuring the components business, but industrial and heat transfer products are offsetting the weakness.
Tariff cost headwinds are accelerating and will peak in the first half of 2026, with a two-to-four-quarter lag before mitigation fully offsets; core services growth remains above mid-single digits despite mod revenue timing.
“Tariffs... will peak in 2026 in the first half... our mitigants will come in more equally over the year in that respect.”
Wabtec expects North American railcar builds to decline another 22% to ~24,000 units in 2026, pressuring the components business, but industrial and heat transfer products are offsetting the weakness. — The continued railcar build decline signals weak demand for new freight cars, impacting railcar manufacturers and lessors (Greenbrier, Trinity), but Wabtec's diversified portfolio mitigates the hit.
… in driving efficiency for our customers. Internationally, car loads continue to grow at a robust pace across core markets, such as Latin America, Africa, India, and Asia. Significant investments to expand and upgrade infrastructure are supporting our international orders pipeline. Looking at the North America railcar build, as discussed last quarter, demand for new railcars was down compared to the prior year and landed at approximately 31,000 cars for 2025. The industry outlook for 26 is expected to be 24,000 cars, down another 22% versus 2025. Finally, moving to the transit sector, we continue to see underlying indicators for growth. Ridership levels are rising in key markets such as Europe and India, and we are seeing high backlogs at car builders alongside increased public investment for fleet expansion and renewals. Next, let's turn to slide seven to discuss a few business highlights. This quarter, we converted more than $2 billion of pipeline into new locomotive and modernization orders for North American customers, an important milestone that reflects our customers' long-term commitment to invest in their fleets and further strengthen what is now our largest multi-year …
Wabtec's new EVO modernization program opens a fleet of ~10,000 units globally, with >20% reliability improvement and up to 7% fuel savings, extending the modernization tailwind beyond older DC fleets.