Westinghouse Air Brake Technologies (WAB) Q4 2025 earnings summary

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%.