$WAB · WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP
Wabtec filed its Q3 FY2026 10-Q, reporting net sales of $3.12B (+8.1% YoY), GAAP diluted EPS of $2.42, and net income attributable to shareholders of $409M. Gross margin reached 37.3% and operating margin hit 20.0%, both expanding meaningfully year-over-year. Nine-month operating cash flow surged to $1.095B from $767M in the prior period.
- Q3 revenue rose 8.1% YoY to $3.12B, with organic growth of 5.2% across both Freight and Transit segments.
- GAAP diluted EPS of $2.42 vs. $1.81 in Q3 2025, a 33.7% increase.
- Operating margin expanded to 20.0% from 17.0% a year ago, driven by gross margin improvement to 37.3%.
- Nine-month operating cash flow nearly doubled to $1.095B from $767M in the prior-year period.
- Treasury stock repurchases totaled $762M in the first nine months, with 3.9M shares now held in treasury.
Shares are down 1.33% since filing at $285.38, a modest pullback on a $47.56B market cap despite strong operating leverage and cash generation. The decline may reflect profit-taking or macro concerns outweighing the beat.
Wabtec's 20.0% operating margin and near-doubling of operating cash flow signal exceptional execution in a capital-intensive industrial, even as debt and interest costs climb.
Wabtec's 20.0% operating margin and 37.3% gross margin set a high bar in rail equipment. Freight Equipment organic sales surged on higher North American and international locomotive deliveries, while Services lagged on lower modernization and engine overhaul volumes.
The filing flags ongoing volatility from supply chain disruptions, labor availability, broad-based inflation, tariffs and trade negotiations, and regional conflicts. Interest expense rose sharply — $80M in Q3 vs. $65M a year ago — reflecting higher debt levels from acquisitions.
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