Freight locomotive sales power Wabtec earnings

Core Insights - Wabtec reported stronger earnings with revenue and profits growing in both freight and transit segments, highlighting a strong quarter with growth in backlog, sales, margin, and earnings [1][4] Revenue and Earnings - Operating income increased by 17% to $491 million, while revenue grew by 8.4% to $2.89 billion, and earnings per share rose by 11% to $1.81 [1] - Freight segment revenue was up 8.4%, with equipment sales increasing by 32% due to higher locomotive deliveries, and digital sales rising by 46% following the acquisition of Inspection Technologies [2] Backlog and Orders - The freight segment's 12-month backlog increased by 9% year-over-year, and its multi-year backlog rose by 18%, supported by a record $4.2 billion locomotive order from Kazakhstan's national railway [3] - Transit segment's 12-month backlog rose by 7%, while the multi-year backlog grew by 4%, driven by unprecedented backlogs at car builders and passenger growth in key markets [3][4] Financial Outlook - Wabtec raised its full-year financial outlook, estimating earnings per share to rise by 18.4% at the midpoint of its range of $8.85 to $9.05 [4] - Despite strong momentum, executives expressed caution regarding the broader economic landscape as they approach the final quarter of the year [5]