Westinghouse Air Brake Technologies (WAB) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in Q4 and full year 2025, with 7.5% top-line growth, nearly 19% adjusted EPS growth, and record multi-year backlog of $27.4 billion, up 23% year-over-year.

• Q4 adjusted EPS increased 25% year-over-year to $2.10, while full year adjusted EPS reached $8.97, marking the fifth consecutive year of high-teens adjusted EPS growth.

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

• 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 sales reached $2.97 billion, up 14.8% year-over-year; full year sales were $11.17 billion, up 17.5%.

• Q4 GAAP operating income was $356 million; adjusted operating margin was 17.7%, up 0.8 percentage points year-over-year.

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

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

• Backlog at year-end: $8.2 billion (12-month, up 7.2% YoY), $27.4 billion (multi-year, up 23% YoY).

Outlook and guidance

• 2026 sales expected between $12.19–$12.49 billion, up 10.5% at midpoint; adjusted EPS guidance of $10.05–$10.45, representing 14% growth at midpoint.

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

• 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.

• Strong pipeline and backlog provide clear visibility for profitable growth in 2026 and beyond.