Wabtec Corporation (WAB) is entering 2026 on a solid note, given that it has secured its latest $386 million follow-on order from New York’s Metropolitan Transportation Authority (MTA) to supply additional R255 hybrid battery-diesel work locomotives.
The agreement supports the Authority’s broader infrastructure renovation goals by equipping maintenance teams with safer, more capable and technologically advanced equipment to service the city’s transit network.The expanded deal covers both locomotives and spare parts.
Wabtec will manufacture the R255 locomotives at its design and development center in Erie, PA, with deliveries expected to begin in 2027. The advanced hybrid units will replace old equipment while improving reliability, operational efficiency, and air quality as part of the MTA's modernization efforts for safe transit solutions.
Designed to improve working conditions for maintenance crews — particularly in tunnels — the R255 hybrid locomotive can operate without emissions by relying on battery power during subway construction, maintenance and repair activities. Equipped with an almost 500-kWh battery, the locomotive can function in “battery-only” mode for multiple hours within compact work zones and can move work trains when third-rail power is de-energized.
Each R255 locomotive also incorporates advanced technologies to support the daily maintenance operations of crews. Features include onboard cameras and video recording systems that capture images of track infrastructure, lineside assets and signaling equipment, as well as onboard diagnostics that enable easy data-driven maintenance practices.
Alan Hamilton, vice president of Engineering at Wabtec, stated, “The success of the R255 hybrid locomotive is a tribute to the strong working relationship between Wabtec and the MTA. Our collaboration positioned this locomotive as the ideal solution to maintain the subway system efficiently and reliably.”
Zacks Rank & Other Stocks to Consider
Wabtec currently carries a Zacks Rank #2 (Buy).
Investors interested in the Transportation sector may also consider Expeditors International of Washington, Inc. (EXPD) and LATAM Airlines Group LTM, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expeditors has an expected earnings growth rate of 3.50% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%. The Zacks Consensus Estimate for EXPD’s 2025 earnings has moved 7.63% north in the past 60 days. Shares of Expeditors have gained 30.7% over the past six months.
LTM has an expected earnings growth rate of 52.63% for the current year. The company has a solid earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met in the remaining one, delivering an average beat of 29.84%. The Zacks Consensus Estimate for LTM’s 2025 earnings has moved 5.34% north in the past 60 days. LTM shares gained 32.5% in the past six months.
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Expeditors International of Washington, Inc. (EXPD): 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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