Wabtec (NYSE:WAB) delivered a standout performance in the final quarter of 2025, overcoming North American freight volume headwinds with a record-shattering $27 billion multi-year backlog.
The Pittsburgh-based rail leader reported adjusted diluted earnings of $2.10 per share, a 25% increase over the previous year, as a wave of high-tech locomotive modernizations and digital acquisitions began to hit the bottom line.
The company's fourth-quarter revenue rose nearly 15% to $2.97 billion, fueled by an 18.3% surge in the Freight segment.
A primary driver was the explosive growth in Digital sales, which skyrocketed 74.4% year-over-year.
This momentum was anchored by several "largest-in-history" contracts, including a $1.2 billion modernization deal with Union Pacific to upgrade 1,700 locomotives and a $670 million agreement with CSX.
While full-year 2025 sales reached $11.17 billion, adjusted EPS climbed nearly 19% to $8.97.
This consistent growth trajectory allowed the board to approve a 24% hike in the quarterly dividend to $0.31 per share and expand the share repurchase authorization to $1.2 billion.
The company’s cash conversion remained a point of strength, with $1.76 billion in cash from operations for the year.
Looking ahead to 2026, Wabtec issued a bullish guidance range for adjusted EPS of $10.05 to $10.45, implying a 14% growth rate at the midpoint.