The strong beat-and-raise quarter with accelerating revenue growth, margin expansion, and surging cash flow conversion (82% vs 46% YoY) signals robust operational momentum. The $30.9B multi-year backlog provides exceptional visibility. Watch for continued execution on Integration 3.0 savings and potential further guidance raises if tariff headwinds moderate. The 30% T+20 win rate on prior WAB calls suggests caution on near-term price action despite the fundamental strength.
Price Chart
Executive Summary
Wabtec reported strong Q2 2026 results with revenue of $3.18B (+17.5% YoY) and adjusted EPS of $2.76 (+21.6% YoY), beating consensus estimates of $2.61 EPS on $3.07B revenue. The company raised full-year 2026 revenue guidance to $12.30B-$12.60B and adjusted EPS guidance to $10.60-$10.90, signaling accelerating momentum across both Freight and Transit segments with robust backlog growth of 41.7% to $30.93B.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $3.18B, up 17.5% YoY, beating $3.07B consensus
- Adjusted EPS of $2.76, up 21.6% YoY, beating $2.61 consensus by 5.9%
- Full-year 2026 revenue guidance raised to $12.30B-$12.60B (up $110M at midpoint)
- Full-year 2026 adjusted EPS guidance raised to $10.60-$10.90 (up $0.30 at midpoint)
- GAAP operating margin expanded 1.5 pts to 18.9%; adjusted operating margin up 0.8 pts to 21.9%
- Cash from operations surged to $441M (82% conversion) vs $209M (46%) in prior year
- Multi-year backlog grew 41.7% to $30.93B, 12-month backlog up 11.3% to $9.14B
- Freight segment sales up 16.9%; Transit segment sales up 18.9%
- Company repurchased $215M in shares and paid $53M in dividends during Q2
Financial Impact
Revenue beat consensus by ~$110M (3.6%); EPS beat by $0.15 (5.9%); guidance raised by $0.30 at midpoint for full-year adjusted EPS
Risk Factors
- Tariff and raw material cost headwinds noted in operating income bridge
- Freight Services revenue declined 4.2% due to lower modernization deliveries
- Debt leverage at 2.2x with total debt of $6.57B
- Integration risks from recent acquisitions (Inspection Technologies, Frauscher, Dellner)
- Historical calibration shows only 30% win rate at T+20 on prior WAB reports
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049105 |
| Document: a2q26earningspresentatio.htm | 0001628280-26-049105 |
| Document: wab-20260722.htm | 0001628280-26-049105 |
| Document: 0001628280-26-049105-index-headers.html | 0001628280-26-049105 |
| Document: 0001628280-26-049105-index.html | 0001628280-26-049105 |
| Document: 0001628280-26-049105.txt | 0001628280-26-049105 |
| 8-K Data (Synthetic) | 0001628280-26-049105 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 5w ago | Insider Cluster | $297.62 $289.71 | ▼ −2.66% | ▼ −3.97% | $290.21 (−2.49%) |
Aug 21, 2026 5w ago | Insider Cluster | $297.57 $280.23 | ▼ −5.83% | ▼ −5.55% | $290.21 (−2.47%) |
Jul 27, 2026 9w ago | Insider Cluster | $300.90 $297.62 | ▼ −1.09% | ▼ −4.39% | $290.21 (−3.55%) |
Jul 22, 2026 10w ago | 8-K | $290.00 $292.23 | ▲ +0.77% | ▼ −2.13% | $290.21 (+0.07%) |
Jun 16, 2026 15w ago | Insider Cluster | $272.12 $262.02 | ▼ −3.71% | ▼ −3.91% | $290.21 (+6.65%) |
Apr 22, 2026 23w ago | 8-K | $261.43 $255.29 | ▼ −2.35% | ▼ −5.51% | $290.21 (+11.01%) |
Mar 10, 2026 29w ago | Insider Cluster | $246.52 $269.59 | ▼ −9.36% | ▼ −9.51% | $290.21 (−17.73%) |
Feb 24, 2026 31w ago | Insider Cluster | $264.30 $245.56 | ▼ −7.09% | ▼ −2.10% | $290.21 (+9.81%) |
Feb 24, 2026 31w ago | Insider Cluster | $264.30 $245.56 | ▼ −7.09% | ▼ −2.10% | $290.21 (+9.81%) |
Feb 24, 2026 31w ago | Insider Cluster | $264.30 $245.56 | ▼ −7.09% | ▼ −2.10% | $290.21 (+9.81%) |
US Market Status
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