Wabtec stock falls 3% on revenue miss despite earnings beat

Investing.com -- On Wednesday, Wabtec Corporation (NYSE: WAB) reported third quarter adjusted earnings per share of $2.83, surpassing the analyst consensus of $2.73 by $0.10.

Shares of the company fell 2.94% in pre-market trading following the announcement, and investors focused on the revenue shortfall and softer full-year revenue outlook despite the earnings beat.

Revenue came in at $3.12 billion, falling short of the $3.2 billion estimate. Revenue increased 8.1% YoY from $2.89 billion in the third quarter of 2025.

The company raised and tightened its full-year 2026 adjusted EPS guidance to a range of $10.85 to $11.05, with a midpoint of $10.95 that exceeds the analyst consensus of $10.87. Wabtec maintained its full-year revenue guidance of $12.3 billion to $12.6 billion, with a midpoint of $12.45 billion below the consensus estimate of $12.55 billion.

"Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS," said Rafael Santana, Wabtec’s Chairman and CEO.

The company’s Freight segment generated revenue of $2.24 billion, up 6.9% YoY, while the Transit segment posted revenue of $883 million, an increase of 11.3% YoY. Adjusted operating margin expanded to 22.9% from 21.0% in the prior year period.

Wabtec generated $455 million in cash from operations during the quarter, up from $367 million in the year-ago period. The company repurchased $305 million of shares and paid $52 million in dividends during the quarter.

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