Westinghouse Air Brake Technologies Corporation (WAB) is poised to release its earnings report for the third quarter of fiscal 2025, with analysts anticipating an adjusted earnings per share (EPS) of $2.27. This figure represents a 13.5% increase compared to the $2 reported in the same quarter last year. The company, based in Pittsburgh, Pennsylvania, has demonstrated a strong performance in recent quarters, having exceeded Wall Street’s earnings expectations in three of the last four reporting periods.
With a market capitalization of $34.2 billion, Westinghouse Air Brake Technologies operates within the freight rail and passenger transit sectors, focusing on advanced technology solutions. It segments its operations into Freight and Transit, offering a range of products including propulsion systems, braking equipment, and digital solutions.
Revenue Challenges and Share Performance
While the company reported an impressive adjusted EPS of $2.27 for Q2 2025, shares fell by 6.4% on July 24, largely due to revenue of $2.71 billion that fell short of market expectations. Investors expressed concern over a decline in sales within the Freight segment, attributed to lower locomotive deliveries stemming from a supplied part issue. This downturn overshadowed positive growth in the Transit segment, where revenues were strong.
Additionally, rising operating expenses, which reached $466 million, alongside increasing debt levels, raised red flags among investors. Over the past year, Wabtec’s shares have risen by 10.9%, a performance that lags behind the S&P 500 Index’s 17.8% gain and the Industrial Select Sector SPDR Fund’s 14.7% return.
Analyst Outlook and Future Projections
The consensus among analysts regarding WAB stock is cautiously optimistic, with an overall rating of “Moderate Buy.” Out of twelve analysts covering the stock, seven recommend a “Strong Buy,” while five suggest a “Hold.” This outlook reflects a slight improvement from three months prior, when only six analysts recommended a “Strong Buy.” The average price target for Wabtec stands at $222.60, indicating a potential upside of 11.3% from current prices.
Looking ahead, analysts expect Westinghouse Air Brake Technologies to achieve an adjusted EPS of $8.89 for fiscal 2025, representing a 17.6% increase from $7.56 in fiscal 2024. As Wabtec prepares to unveil its Q3 earnings, investors will be keenly observing not only the EPS figures but also insights into revenue trends and operational challenges.
All information provided in this article is for informational purposes only. Readers are encouraged to consult official disclosures for further details.
