Q2 2026 Westinghouse Air Brake Technologies Corp Earnings Call Transcript
Key Points
- Westinghouse Air Brake Technologies Corp (WAB) delivered a strong first half of the year, exceeding expectations with robust growth, expanded margins, and double-digit earnings per share growth.
- Sales for the second quarter were $3.2 billion, up 17.5%, and adjusted EPS increased by 22% from the previous year.
- The company's 12-month backlog increased by 11% from the prior year, while the multiyear backlog exceeded $30 billion, up 42%.
- WAB secured significant business wins, including a $1 billion order from an Australian customer and a $184 million order for positive train control with Vale in Brazil.
- The company raised its full-year guidance, now expecting 2026 revenue of approximately $12.5 billion and adjusted EPS to be in the range of $10.60 to $10.90, up 20% at the midpoint.
- WAB faced tariff-related headwinds and unfavorable mix, which impacted operating margins despite overall growth.
- The North American railcar build forecast for 2026 is projected to be approximately 25,000 cars, down 21% from 2025.
- Component sales were down 0.7% due to the decline in the North America railcar build and lower revenue from portfolio optimization efforts.
- The company continues to manage through inflationary pressures, chip shortages, and rising manufacturing costs.
- WAB's services revenue is expected to be down for the full year due to a lower number of modernization deliveries in the first half compared to the prior year.
Good day, and welcome to the Wabtec Second Quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Kyra Yates, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Wabtec's Second Quarter 2026 Earnings Call. With us today are Chairman and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalerz. Today's slide presentation, along with our earnings release and financial disclosures were posted to our website earlier today and can be accessed on the Investor Relations tab.
Some statements we are making are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and presentation. We will also discuss non
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