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Westinghouse Air Brake Technologies (WAB) investor relations material
Westinghouse Air Brake Technologies Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record multi-year backlog of $27.41 billion (up 23.1% YoY) and 12-month backlog of $8.23 billion (up 7.2% YoY), supporting future revenue visibility.
Delivered strong Q4 and full-year 2025 performance with 14.8% Q4 sales growth, margin expansion, and adjusted EPS up 18.7% for the year.
Advanced strategic priorities through acquisitions and integration, driving operational efficiencies and unlocking synergies.
Board increased dividend by 24% and share buyback authorization to $1.2 billion, reflecting confidence in future performance.
Strong orders, backlog, and pipeline momentum support a positive outlook for 2026 and beyond.
Financial highlights
Q4 2025 sales reached $2.97 billion, up 14.8% YoY; full year sales were $11.17 billion, up 17.5%.
Q4 adjusted EPS was $2.10, up 25% YoY; full year adjusted EPS was $8.97, up 18.7%.
Q4 GAAP operating margin was 12.0%; adjusted operating margin was 17.7%.
Q4 operating cash flow was $992 million (292% conversion); full year cash from operations was $1.76 billion (104% conversion).
Backlog at year-end: $8.23 billion (12-month), $27.41 billion (multi-year).
Outlook and guidance
2026 sales expected between $12.19–$12.49 billion; adjusted EPS of $10.05–$10.45, up 14% at midpoint.
Adjusted operating margin expected to increase, driven by productivity, integration, and portfolio optimization.
5-year outlook: mid-single digit organic sales CAGR, 350+ bps adjusted operating margin expansion, double-digit adjusted EPS CAGR, and >90% cash conversion.
Guidance includes impact from the acquisition of Dellner Couplers, closed February 2026.
No longer providing annual cash conversion guidance, but long-term target remains above 90%.
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