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With a market cap of $34.2 billion, Westinghouse Air Brake Technologies Corporation (WAB) is a global provider of technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries. The company operates through its Freight and Transit segments, offering advanced propulsion systems, braking equipment, digital solutions, and aftermarket services.
The Pittsburgh, Pennsylvania-based is expected to announce its fiscal Q3 2025 results soon. Ahead of this event, analysts forecast Wabtec to report an adjusted EPS of $2.27 for the quarter, up 13.5% from $2 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2025, analysts predict the locomotive parts maker to report an adjusted EPS of $8.89, a 17.6% growth from $7.56 in fiscal 2024.
Shares of Wabtec have increased 10.9% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 17.8% gain and the Industrial Select Sector SPDR Fund's (XLI) 14.7% return over the same period.
Despite Wabtec’s better-than-expected Q2 2025 adjusted EPS of $2.27, its shares tumbled 6.4% on Jul. 24 due to revenue of $2.71 billion, which missed the estimates. Investors were also disappointed by the decline in Freight segment sales caused by lower locomotive deliveries from a supplied part issue, which overshadowed strong Transit growth. Additionally, the rise in operating expenses to $466 million and higher debt levels raised concerns.
Analysts' consensus view on WAB stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 12 analysts covering the stock, seven suggest a "Strong Buy" and five give a "Hold." This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy."
The average analyst price target for Wabtec is $222.60, indicating a potential upside of 11.3% from the current levels.
