Westinghouse Air Brake Technologies
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Westinghouse Air Brake Technologies (WAB) investor relations material

Westinghouse Air Brake Technologies Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary11 Feb, 2026

Executive summary

  • Achieved record multi-year backlog of $27.41 billion (up 23.1% YoY) and 12-month backlog of $8.23 billion (up 7.2% YoY), supporting future revenue visibility.

  • Delivered strong Q4 and full-year 2025 performance with 14.8% Q4 sales growth, margin expansion, and adjusted EPS up 18.7% for the year.

  • Advanced strategic priorities through acquisitions and integration, driving operational efficiencies and unlocking synergies.

  • Board increased dividend by 24% and share buyback authorization to $1.2 billion, reflecting confidence in future performance.

  • Strong orders, backlog, and pipeline momentum support a positive outlook for 2026 and beyond.

Financial highlights

  • Q4 2025 sales reached $2.97 billion, up 14.8% YoY; full year sales were $11.17 billion, up 17.5%.

  • Q4 adjusted EPS was $2.10, up 25% YoY; full year adjusted EPS was $8.97, up 18.7%.

  • Q4 GAAP operating margin was 12.0%; adjusted operating margin was 17.7%.

  • Q4 operating cash flow was $992 million (292% conversion); full year cash from operations was $1.76 billion (104% conversion).

  • Backlog at year-end: $8.23 billion (12-month), $27.41 billion (multi-year).

Outlook and guidance

  • 2026 sales expected between $12.19–$12.49 billion; adjusted EPS of $10.05–$10.45, up 14% at midpoint.

  • Adjusted operating margin expected to increase, driven by productivity, integration, and portfolio optimization.

  • 5-year outlook: mid-single digit organic sales CAGR, 350+ bps adjusted operating margin expansion, double-digit adjusted EPS CAGR, and >90% cash conversion.

  • Guidance includes impact from the acquisition of Dellner Couplers, closed February 2026.

  • No longer providing annual cash conversion guidance, but long-term target remains above 90%.

When will GAAP results reflect core ops performance
Transit segment margin recovery plan
Backlog conversion and acquisition revenue impact
Impact of EVO modernization on fleet renewal?
Rationale for ending annual cash conversion guidance?
When do tariffs peak and what is the impact?
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Q1 202622 Apr, 2026
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Q1 202622 Apr, 2026

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Frequently asked questions

Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems and services for the freight rail and passenger transit industries worldwide. The company operates through three segments: Freight, Transit, and Industrial. The Freight segment designs, manufactures, sells and services value added products to control, suspend, support and maneuver railroad freight cars in North America, South America, Europe and the Middle East.

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