Wabtec Gears Up to Report Q2 Earnings: Is a Beat in Store?

Westinghouse Air Brake Technologies (WAB), operating as Wabtec Corporation, is scheduled to report second-quarter 2025 results on July 24, before market open.

Wabtec has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average beat of 5.86%.

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Let’s see how things have shaped up for Wabtec this earnings season.

Factors Likely to Have Influenced WAB's Q2 Performance

The Zacks Consensus Estimate for WAB’s second-quarter 2025 earnings has been revised upward by 0.46% in the past 60 days to $2.18 per share. Moreover, the consensus mark implies an 11.22% upside from the year-ago actual. The bottom-line performance is likely to have been aided by higher sales and operating margin expansion.

Notably, the Zacks Consensus Estimate for WAB’s second-quarter revenues is pegged at $2.77 billion, which indicates growth of 4.84% from the year-ago levels. The top line is likely to reflect strength across the Freight and Transit segments. 

The Zacks Consensus Estimate for second-quarter Freight revenues is pegged at $2.01 billion, indicating 4.6% growth from the year-ago reported figure. Our estimate for Freight revenues is pegged at $1.98 billion, which implies 3.6% growth from the prior-year figure. The segment is likely to have gained from the uptick in services.

The Zacks Consensus Estimate for second-quarter Transit revenues is pegged at $763 million, indicating 5.4% growth from the year-ago reported figure. Meanwhile, model estimates for Transit revenues are pegged at $755.8 million, indicating 4.4% growth from the prior-year figures. The uptick is likely to have been aided by strong aftermarket and original equipment sales.

On the flip side, lingering supply chain issues persist. Economic and political uncertainty is an overhang on WAB's financials. Wabtec’s substantial operations outside the United States make it vulnerable to the risks associated with foreign currency exchange rate fluctuations. Hence, volatility in foreign exchange is a significant concern. High operating expenses (backed by rise in selling, general and administrative expenses) continue to bother the company’s bottom line.

What Our Model Says About WAB

Our proven model predicts an earnings beat for Wabtec this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Wabtec has an Earnings ESP of +0.50% and a Zacks Rank #2 at present.

Wabtec Price and EPS Surprise

Wabtec price-eps-surprise | Wabtec Quote

Highlights of WAB's Q1 Earnings

Wabtec reported first-quarter 2025 earnings per share (excluding 40 cents from non-recurring items) of $2.28, which beat the Zacks Consensus Estimate of $2.01. The bottom line improved 20.6% year over year due to higher sales and operating margin expansion.

Revenues of $2.61 billion edged past the Zacks Consensus Estimate of $2.6 billion. The top line grew 4.5% year over year due to higher sales in the Freight and Transit segments.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

SkyWest, Inc.SKYW has an Earnings ESP of +3.06% and a Zacks Rank #2 at present. SKYW is scheduled to report second-quarter 2025 earnings on July 24. You can see the complete list of today’s Zacks #1 Rank stocks here.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company.

SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 17.1%. The Zacks Consensus Estimate for SKYW’s second-quarter 2025 earnings has been revised 1.30% upward in the past 60 days. SKYW’s second-quarter 2025 earnings are expected to grow 28.5% year over year. 

Knight-Swift Transportation Holdings Inc. (KNX) has an Earnings ESP of +3.22% and a Zacks Rank #3 at present. KNX is scheduled to report second-quarter 2025 earnings on July 23. 

KNX’s second-quarter 2025 earnings are expected to grow 41.67% year over year. The Zacks Consensus Estimate for KNX’s second-quarter 2025 earnings has been revised downward by 2.86% to 34 cents per share in the past 60 days. KNX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missed the mark in the remaining quarter), the average beat being 3.25%.

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This article originally published on Zacks Investment Research (zacks.com).

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