Wabtec CorporationWAB is strengthening its operations through strategic agreements. To this end, Wabtec has inked a multi-year locomotive deal worth $4.2 billion with National Company Kazakhstan Temir Zholy (KTZ), the national railway of Kazakhstan.
Through this deal, Wabtec aims to provide Evolution Series locomotives and long-term maintenance services to Kazakhstan’s state railway, KTZ. This deal reflects the largest locomotive agreement in Wabtec’s history.
Rafael Santana, president and chief executive officer of Wabtec, stated, “For over two decades, our partnership with KTZ has been critical in transforming Kazakhstan’s rail industry. This historic agreement embodies KTZ’s visionary approach for the country’s rail network as the primary link between Europe and Asia. By delivering advanced locomotives and long-term service solutions, Wabtec is a proud partner in Kazakhstan’s progress, helping to unlock the region’s enormous potential and developing the engineering competencies in the country’s railway industry.”
Deal Details
With Kazakhstan being WAB’s regional center of excellence, this locomotive order deal is expected to boost the partnership between WAB and KTZ and solidify Wabtec’s competitive position as a rail technology partner and innovator in the industry.
The next generation of Evolution Series locomotives should improve fuel efficiency and work for longer durations between maintenance overhauls. The new locomotives are expected to boost KTZ’s ongoing rail expansion and fleet renewal, and are manufactured to operate effectively in Kazakhstan's mountainous terrain climatic conditions.
The deal also includes maintenance services agreements to support the new locomotives and KTZ’s existing railroad fleet.
Wabtec currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider LATAM Airlines Group LTM and SkyWest SKYW.
LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.
SKYW currently sports a Zacks Rank #1.
SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.
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SkyWest, Inc. (SKYW): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report Wabtec (WAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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