Wabtec Q2 Earnings Beat Estimates, Revenues Lag, 2025 View Up

Westinghouse Air Brake Technologies Corporation (WAB) reported second-quarter 2025 earnings per share (EPS) of $2.27, which beat the Zacks Consensus Estimate of $2.18. The bottom line improved 15.8% year over year due to higher sales, operating margin expansion and benefits from share repurchases. 

Revenues of $2.71 billion missed the Zacks Consensus Estimate of $2.77 billion. The top line grew 2.3% year over year due to higher sales in the Transit segment, partially offset by lower Equipment sales.  

Apart from reporting year-over-year growth on both earnings and revenues, Wabtec also issued a bullish 2025 guidance. Wabtec increased its 2025 adjusted EPS guidance range to $8.55 to $9.15 from the prior guided range of $8.35 to $8.95. The encouraging EPS guidance was driven by first-half performance, mergers & acquisitions, and focus on prudent cost management. The Zacks Consensus Estimate of $8.76 lies within the updated guidance.

For revenues, WAB raised its 2025 guidance to a range of $10.925 billion to $11.225 billion from the prior guided range of $10.725 billion to $11.025 billion, largely reflecting the acquisition of Evident Inspection Technologies Division, which was completed on July 1, 2025.  The Zacks Consensus Estimate of $11.00 billion lies within the updated guidance.

Rafael Santana, Wabtec’s president and chief executive officer, stated, “The Wabtec team has delivered another strong quarter, highlighted by margin expansion and double digit earnings per share growth. With the first half of the year complete, we remain focused on executing our priorities for the second half. Demand across our end markets and our pipeline of opportunities continues to be strong, with significant activity underway in key businesses.”

WAB’s Segmental Highlights

Freight segment’s net sales of $1.91 billion fell marginally by 0.1% year over year. Freight revenue was adversely impacted by lower locomotive deliveries than expected due to a supplied part issue. Services sales were up 6% due to higher parts sales and modernization deliveries, which were largely offset by the impact of lower locomotive deliveries in the quarter due to a supplied part issue and lower mining sales. These deliveries are expected to shift to the second half of 2025.

Freight segment’s adjusted operating margin improved 0.9 points year over year to 25%. Adjusted operating margin benefited from improved gross margin.

In the Transit segment, net sales grew 8.7% year over year to $787 million, due to strong aftermarket and original equipment sales. The segmental adjusted operating margin increased to 15.2% from 12.7% in the second quarter of 2024, aided by higher sales and better gross margins.

Other Q2 Details of WAB 

Total operating expenses in the reported quarter increased $22 million from a year ago to $466 million. Operating ratio (operating expenses as a % of net sales) rose to 17.2% from 16.8% a year ago.

Wabtec exited the second quarter with cash, cash equivalents and restricted cash of $1.49 billion compared with $698 million at the prior-quarter end. Long-term debt was $4.78 billion compared with $3.50 billion at the prior-quarter end.

During the reported quarter, WAB paid $44 million in dividends and repurchased shares worth $50 million.

Other Aspects of WAB's 2025 Guidance

For 2025, Wabtec continues to expect operating cash flow conversion to exceed 90%.

WAB's Zacks Rank

Currently, Wabtec carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share (EPS) (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

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