Wabtec Corporation (NYSE:WAB) Earnings Preview: What to Expect in Q1 2025

Wabtec Corporation, trading as Westinghouse Air Brake Technologies (NYSE:WAB), is a key player in the rail industry, providing equipment, systems, and services for freight and transit rail. The company is set to release its first-quarter 2025 earnings on April 23, before the market opens. Analysts expect earnings per share (EPS) to be $2.01, with revenue projected at $2.61 billion.

The earnings estimate for Wabtec has been revised upward by 1.01% over the past 60 days, reflecting positive sentiment among analysts. This revision suggests confidence in Wabtec's performance, particularly in its Freight and Transit segments, which have driven a 4% revenue increase from the previous year. However, increased operating expenses may impact the bottom line.

Historically, Wabtec has a strong track record of surpassing earnings expectations, having exceeded the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 9.2%. This history of outperformance could influence investor expectations and reactions to the upcoming earnings report.

Despite the positive outlook, the consensus EPS estimate has been slightly revised downwards by 0.2% over the past 30 days. Such revisions are important as they can affect investor sentiment and short-term stock price movements. The actual earnings results compared to these estimates will play a crucial role in determining Wabtec's near-term stock price trajectory.

Wabtec's financial metrics provide additional context for its valuation. The company has a price-to-earnings (P/E) ratio of approximately 27.08 and a price-to-sales ratio of about 2.75. Its debt-to-equity ratio is around 0.34, indicating a moderate level of debt. These figures, along with a current ratio of about 1.30, suggest a stable financial position as Wabtec prepares to announce its earnings.

Wabtec (NYSE:WAB) saw its shares drop 9% intra-day today after delivering disappointing fourth-quarter results and issuing a weaker-than-expected 2025 earnings outlook.

For Q4, the rail equipment maker posted adjusted earnings per share of $1.68, falling short of the $1.74 consensus estimate. Revenue of $2.58 billion also missed forecasts of $2.63 billion, despite rising 2.3% year-over-year.

For full-year 2024, Wabtec reported adjusted EPS of $7.56 on revenue of $10.39 billion, reflecting 7.3% annual revenue growth. However, investors focused on the company's cautious guidance for 2025, with projected adjusted EPS of $8.35 to $8.75. The midpoint of $8.55 came in below Wall Street’s $8.64 estimate, raising concerns about slower earnings momentum.

Despite the earnings miss, Wabtec highlighted strong order growth, with Q4 orders increasing 20% year-over-year, driven by over $1 billion in new locomotive and modernization contracts. The company’s 12-month backlog grew 3% to $7.68 billion, signaling continued demand for its rail solutions.

While Wabtec delivered higher orders and margin expansion in 2024, the softer-than-expected profit outlook for 2025 has left investors wary, triggering the stock’s sharp decline.

Wabtec (NYSE:WAB) saw its shares drop 9% intra-day today after delivering disappointing fourth-quarter results and issuing a weaker-than-expected 2025 earnings outlook.

For Q4, the rail equipment maker posted adjusted earnings per share of $1.68, falling short of the $1.74 consensus estimate. Revenue of $2.58 billion also missed forecasts of $2.63 billion, despite rising 2.3% year-over-year.

For full-year 2024, Wabtec reported adjusted EPS of $7.56 on revenue of $10.39 billion, reflecting 7.3% annual revenue growth. However, investors focused on the company's cautious guidance for 2025, with projected adjusted EPS of $8.35 to $8.75. The midpoint of $8.55 came in below Wall Street’s $8.64 estimate, raising concerns about slower earnings momentum.

Despite the earnings miss, Wabtec highlighted strong order growth, with Q4 orders increasing 20% year-over-year, driven by over $1 billion in new locomotive and modernization contracts. The company’s 12-month backlog grew 3% to $7.68 billion, signaling continued demand for its rail solutions.

While Wabtec delivered higher orders and margin expansion in 2024, the softer-than-expected profit outlook for 2025 has left investors wary, triggering the stock’s sharp decline.