Westinghouse Air Brake Technologies Corporation (NYSE: WAB) exceeded earnings expectations for the third quarter of 2025, reporting earnings per share (EPS) of $2.32 compared to analysts’ expectations of $2.28. The company announced these results during its earnings call on October 22, 2025, revealing significant growth in sales, margins, and overall operational performance.
During the call, Ms. Kyra Yates, Vice President of Investor Relations, introduced key executives, including President and CEO Rafael Ottoni Santana and CFO John A. Olin. Yates highlighted the availability of the earnings release and financial disclosures on the company’s Investor Relations website. She noted that some statements made during the call would contain forward-looking elements and encouraged participants to review the associated risks and assumptions.
In his opening remarks, Santana provided a comprehensive overview of the quarter’s performance, emphasizing a robust sales figure of $2.9 billion, which marked an 8% increase from the previous year. This growth was propelled by advancements in both the Freight and Transit segments, bolstered by the recent acquisition of Inspection Technologies. The adjusted EPS rose by 16%, reflecting improved sales and margin expansion. Additionally, operational cash flow reached $367 million, while the twelve-month backlog increased to $8.3 billion, representing an 8.4% rise.
Despite these positive results, Santana acknowledged the mixed outlook for the Freight business, noting a slight decline in active locomotive fleets compared to the same quarter last year. However, he pointed out that North American traffic had increased by 1.4%, and the company’s active locomotives outperformed industry averages. Looking forward, the forecast for North American railcar builds has been revised down to approximately 28,000 cars for 2025, a drop of 34% from the previous year.
Internationally, Westinghouse is experiencing strong demand in key markets including Asia, India, Brazil, and the Commonwealth of Independent States (CIS). Santana highlighted a landmark contract with Kazakhstan National Railway, valued at $4.2 billion, which represents the largest single rail order in history. This agreement involves supplying advanced locomotives and service solutions, further enhancing Westinghouse’s presence in the growing region.
In the mining sector, the company secured a multi-year agreement worth $125 million for ultra-class drive systems. The Transit segment also showed promise with $140 million in brake orders, driven by increased activity in India. The arrival of the first four Simandou locomotives in Guinea marked a significant milestone, showcasing the capabilities of Westinghouse’s Marora India locomotive plant.
The company is focused on sustaining its competitive edge in the Transit segment, which has shown consistent order growth due to rising ridership levels and public investment in rail infrastructure. Santana noted that the Transit backlog is expanding alongside the ongoing integration initiatives aimed at improving operational efficiencies and cost management.
Turning to financial specifics, CFO John A. Olin provided further insights into the company’s performance. He confirmed that the third quarter results aligned closely with their expectations, with an operating income of $491 million and an adjusted operating margin of 21%, an increase of 1.3 percentage points from the prior year. Despite the planned decline in service revenues due to modernization delivery timing, equipment and digital sales demonstrated robust growth.
Westinghouse also faces challenges, particularly from increased tariffs affecting cash flow and material costs. Olin outlined the company’s multifaceted approach to mitigating tariff impacts, including pursuing exemptions and adjusting supply chain strategies. He emphasized that the overall financial position remains strong, with a liquidity position of $2.75 billion and a net debt leverage ratio of 2.0 times.
Looking ahead to 2025, Santana expressed confidence in the company’s growth trajectory, raising the full-year adjusted EPS guidance to a range of $8.85 to $9.05, reflecting an 18% increase at the midpoint. He reiterated that Westinghouse is well-positioned to sustain profitable growth and continue delivering value to its stakeholders throughout the remainder of the year and beyond.
The earnings call concluded with a Q&A session, where analysts queried the leadership about specific market dynamics and future expectations. Overall, Westinghouse Air Brake Technologies Corporation’s strong quarterly performance underscores its resilience and strategic positioning in a rapidly evolving industry.
