Westinghouse Air Brake Technologies(US:WAB) ZACKS·2025-10-22 19:01Core Insights - Westinghouse Air Brake Technologies Corporation (WAB) reported strong third-quarter 2025 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [1][9]. Financial Performance - Quarterly earnings per share (EPS) reached $2.32, surpassing the Zacks Consensus Estimate of $2.23, and reflecting a 16% increase year-over-year due to higher sales, operating margin expansion, and share repurchase benefits [2][9]. - Revenues totaled $2.88 billion, exceeding the Zacks Consensus Estimate of $2.86 billion, and grew 8.4% year-over-year, driven by increased sales in both the Freight and Transit segments [2][9]. Segment Performance - The Freight segment reported net sales of $2.09 billion, an 8.4% year-over-year increase, supported by a 32% rise in Equipment sales and a 45.6% increase in Digital sales due to the acquisition of Inspection Technologies [4]. - The Transit segment's net sales grew 8.2% year-over-year to $793 million, bolstered by strong aftermarket and original equipment sales [5]. Operational Metrics - Total operating expenses rose by $64 million year-over-year to $511 million, with the operating ratio increasing to 17.7% from 16.8% [6]. - Cash, cash equivalents, and restricted cash at the end of the quarter stood at $528 million, down from $1.49 billion at the previous quarter-end, while long-term debt increased to $5.03 billion from $4.78 billion [6]. Dividend and Guidance - WAB paid $43 million in dividends during the quarter [7]. - The company raised its 2025 adjusted EPS guidance to a range of $8.85 to $9.05, tightening from the previous range of $8.55 to $9.15, with the Zacks Consensus Estimate of $8.90 falling within this guidance [8][10]. - Revenue guidance for 2025 remains between $10.925 billion and $11.225 billion, with the Zacks Consensus Estimate of $11.08 billion also within this range [10].