With a market cap of $48.3 billion, Westinghouse Air Brake Technologies Corporation (WAB) is a Pittsburgh, Pennsylvania-based global provider of equipment, technology, digital solutions, and services for the freight rail and passenger transit industries. The company manufactures locomotives, braking systems, train control and signaling equipment, and other critical rail components, while offering maintenance, modernization, and aftermarket services.
The company is set to unveil its fiscal Q3 2026 results before the market opens on Wednesday, Oct. 21. Analysts expect WAB to report an adjusted EPS of $2.72, up 17.2% from $2.32 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in all of the last four quarters.
For fiscal 2026, analysts predict the locomotive parts maker to report an adjusted EPS of $10.89, a growth of 21.4% from $8.97 in fiscal 2025. In FY2027, EPS is likely to rise 14.1% annually to $12.43.
Shares of WAB have increased 48% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 17.3% gain and the State Street Industrial Select Sector SPDR ETF's (XLI) 11.4% return over the same period.
Westinghouse Air Brake Technologies has kept its growth engine running, outpacing the broader market with stronger operating efficiency, expanding margins, and disciplined capital allocation. Over the past five years, the company has widened its operating margin by 4 percentage points as it scaled its operations and improved cost efficiency. Share buybacks have provided another boost, helping EPS grow faster than revenue by reducing outstanding shares. Adding to its appeal, Wabtec’s robust 12.2% free cash flow margin gives it ample financial flexibility to reinvest in growth, pursue strategic opportunities, and return capital to shareholders.
WAB shares rose 1.1% on Sept. 21, after the company announced a long-term services agreement worth more than $700 million with La Compagnie du TransGuinéen (CTG) to maintain and support its new Evolution Series locomotive fleet in Guinea. Combined with locomotive orders placed in 2024, the deal brings Wabtec’s total business tied to the Simandou project to more than $1.2 billion, marking its largest services contract in Africa.
The multi-year agreement covers maintenance, parts overhauls, logistics, remote diagnostics, and workforce training to improve locomotive reliability and efficiency. The services will support Guinea’s 600-kilometer railway connecting the Simandou iron ore mine to the Port of Morebaya, a major infrastructure project expected to facilitate iron ore transportation and support the country’s long-term economic development.
Analysts' consensus view on WAB stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, nine suggest a "Strong Buy" and four give a "Hold." The average analyst price target is $329.67, indicating a potential upside of 15.1% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.