The EPS beat and raised guidance are positive, but the revenue miss and decelerating growth (8.1% vs 17.5% in Q2) warrant monitoring. Watch the Q4 earnings call for commentary on locomotive delivery timing and tariff impacts, which the company flagged as assumptions in guidance.
Price Chart
Executive Summary
Wabtec reported strong Q3 2026 results with adjusted EPS of $2.83, beating consensus of $2.68 by 5.6%, and revenue of $3.12B (consensus $3.23B, a 3.4% miss). The company raised and tightened its full-year 2026 adjusted EPS guidance to $10.85-$11.05 (up $0.20 at the midpoint vs prior guidance), while maintaining revenue guidance of $12.30B-$12.60B. GAAP operating margin expanded 3.0 pts to 20.0%, and adjusted operating margin rose 1.9 pts to 22.9%. The beat was driven by margin expansion and strong cash flow ($455M operating cash flow), though revenue growth slowed to 8.1% YoY from 17.5% in Q2, partly due to lower locomotive deliveries.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS $2.83 vs consensus $2.68 (beat by 5.6%)
- Q3 2026 revenue $3.12B vs consensus $3.23B (miss by 3.4%)
- Revenue grew 8.1% YoY, decelerating from 17.5% in Q2
- GAAP EPS $2.42, up 33.7% YoY; adjusted EPS $2.83, up 22.0% YoY
- GAAP operating margin 20.0% (up 3.0 pts YoY); adjusted operating margin 22.9% (up 1.9 pts)
- Raised FY2026 adjusted EPS guidance to $10.85-$11.05 (up $0.20 at midpoint vs prior $10.60-$10.90)
- Maintained FY2026 revenue guidance $12.30B-$12.60B
- Cash from operations $455M, up from $367M a year ago
- 12-month backlog $8.99B, up 8.8% YoY; total backlog $31.4B, up 22.9%
- Repurchased $305M of shares and paid $52M in dividends in Q3
Financial Impact
Adjusted EPS beat consensus by $0.15 (5.6%), with raised full-year EPS guidance implying ~22% YoY growth at midpoint. Revenue missed consensus by ~$110M (3.4%), but guidance maintained.
Risk Factors
- Revenue miss of 3.4% vs consensus may pressure the stock if growth continues to decelerate
- Freight Equipment sales were flat (+0.3%) due to lower locomotive deliveries, partially offset by mining sales
- Tariff impacts and raw material costs remain headwinds, with guidance assuming tariffs in effect as of Oct 21, 2026
- Debt leverage ratio of 2.1x and $6.38B total debt could limit flexibility in a downturn
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000943452-26-000017 |
| Document: wab3q26earningspresentat.htm | 0000943452-26-000017 |
| Document: wab-20261021.htm | 0000943452-26-000017 |
| Document: 0000943452-26-000017-index-headers.html | 0000943452-26-000017 |
| Document: 0000943452-26-000017-index.html | 0000943452-26-000017 |
| Document: 0000943452-26-000017.txt | 0000943452-26-000017 |
| 8-K Data (Synthetic) | 0000943452-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 7d ago | 8-K | $288.96 | awaiting T+5 | awaiting T+5 | $278.95 (−3.46%) |
Oct 1, 2026 26d ago | 8-K | $287.54 $285.43 | ▼ −0.73% | ▼ −1.89% | $278.95 (−2.99%) |
Aug 24, 2026 9w ago | Insider Cluster | $297.62 $285.93 | ▼ −3.93% | ▼ −4.40% | $278.95 (−6.27%) |
Aug 21, 2026 9w ago | Insider Cluster | $297.57 $292.23 | ▼ −1.79% | ▼ −2.27% | $278.95 (−6.26%) |
Jul 27, 2026 13w ago | Insider Cluster | $300.90 $290.86 | ▼ −3.34% | ▼ −4.41% | $278.95 (−7.29%) |
Jul 22, 2026 14w ago | 8-K | $290.00 $291.76 | ▲ +0.61% | ▲ +3.01% | $278.95 (−3.81%) |
Jun 16, 2026 19w ago | Insider Cluster | $272.12 $270.26 | ▼ −0.68% | ▲ +1.55% | $278.95 (+2.51%) |
Apr 22, 2026 27w ago | 8-K | $261.43 $265.19 | ▲ +1.44% | ▲ +1.38% | $278.95 (+6.70%) |
Mar 10, 2026 33w ago | Insider Cluster | $246.52 $237.82 | ▲ +3.53% | ▲ +2.62% | $278.95 (−13.16%) |
Feb 24, 2026 35w ago | Insider Cluster | $264.30 $260.81 | ▼ −1.32% | ▼ −0.29% | $278.95 (+5.54%) |
US Market Status
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