“In the fourth quarter, we achieved double digit sales growth, expanded adjusted operating margins, and grew adjusted EPS 25% … all while building a very strong backlog and generating robust operating cash flow,” Santana continued. “As we exit 2025, I am very encouraged by the underlying momentum of our business and our recent acquisitions, both of which we expect to drive significant value going forward.”
Wabtec reported 4Q25 GAAP earnings per diluted share of $1.18, down 4.1% vs. 4Q24. Adjusted earnings per diluted share were $2.10, up 25.0%. Sales were $2.97 billion and cash from operations was $992 million. Full-year 2025 GAAP earnings per diluted share were $6.83, up 13.1% vs. 2024. Adjusted earnings per diluted share were $8.97, up 18.7%. Total 2025 sales were $11.17 billion, and cash from operations was a record $1.76 billion.
4Q25 Consolidated Results
- Sales increased 14.8% compared to the year-ago quarter “driven by increased sales in the Freight segment, which included acquisitions (Inspection Technologies & Frauscher Sensor Technology), and in the Transit segment.”
- GAAP operating margin was lower than the prior year at 12.0% and adjusted operating margin was up versus the prior year at 17.7%. Both GAAP and adjusted operating margins “benefited from higher gross margin, which was partially offset by higher operating expenses as a percent of revenue.” GAAP operating margins were also “adversely impacted by restructuring costs associated with Integration 2.0 & 3.0, Portfolio Optimization charges, and transaction costs associated with recent acquisitions.”
- GAAP and adjusted EPS “benefited from higher sales and operating margin expansion which was partially offset by higher operating expenses as a percent of revenue. GAAP EPS was further impacted by restructuring charges and transaction costs tied to recent acquisitions.”
4Q25 Freight Segment Results
- Freight segment sales for the fourth quarter were up 18.3%. Equipment sales were up 33.5% “driven by higher locomotive deliveries,” while Digital sales were up 74.4% “driven by the acquisition of Inspection Technologies & Frauscher Sensor Technology.” Components sales were up 11.1%. Services sales were down 5.0% as expected “due to the timing of modernization deliveries.”
- GAAP and adjusted operating margin “benefited from gross margin improvement which was partially offset by higher operating expenses as a percent of revenue.” In addition, GAAP operating margin was “adversely impacted by one-time costs associated with the Portfolio Optimization initiative and purchase accounting adjustments resulting from Inspection Technologies acquisition.”
4Q25 Transit Segment Results
- Transit segment sales for the fourth quarter were up 6.7% “due to strong OE and aftermarket sales.”
- GAAP and adjusted operating margins were “impacted by manufacturing inefficiencies and higher operating expenses as a percent of revenue.”
Backlog
Wabtec’s 12-month and multi-year backlogs “continue to provide strong visibility,” the company said. “At the end of the fourth quarter, the 12-month backlog was $553 million higher than the prior year. And on Dec. 31, 2025, the multi-year backlog was $5.135 million higher than the same time a year ago. Excluding the impacts of foreign currency exchange, the 12-month backlog was up 4.7% and the multi-year backlog was up 20.5%.”
Cash Flow and Liquidity Summary
- During 4Q25, Wabtec generated cash from operations of $992 million vs. $723 million in the year ago period. The increase in cash flow from operations “benefited from improved working capital.”
- At the end of the quarter, the company had cash, cash equivalents and restricted cash of $0.79 billion and total debt of $5.54 billion. At December 31, 2025 the company’s total available liquidity was $3.21 billion, which includes $0.76 billion of cash and cash equivalents plus $2.00 billion available under current credit facilities and $0.44 billion of borrowings available under Wabtec’s Revolving Receivables Program.
- Wabtec repurchased $75 million of shares in the fourth quarter, bringing the full year total to $223 million.
- The Board of Directors increased the quarterly dividend by 24% by declaring a regular quarterly common dividend of 31 cents per share, payable on March 2, 2026, to holders of record on Feb. 17, 2026.
- The Board also increased the existing share repurchase authorization to $1.2 billion.
2026 Financial Guidance
- Wabtec’s 2026 financial guidance “expects sales to be in a range of $12.19 billion to $12.49 billion and adjusted earnings per diluted share to be in a range of $10.05 to $10.45.”
- Guidance, Wabtec says, “includes the impact from the recent acquisition of Dellner Couplers, which closed on February 10, 2026.”
“Looking ahead, our record $27 billion multi-year backlog provides strong visibility and positions Wabtec for sustained growth. At the same time, our team remains committed to advancing innovation, driving operational excellence, and maintaining disciplined capital allocation to deliver long-term value for our shareholders,” Santana concluded.
