Wabtec Reports 2.3% Net Sales Increase to $2.71 Billion in Q2 2025

Westinghouse Air Brake Technologies Corporation (Wabtec) reported its financial results for the second quarter and first half of 2025, revealing a net sales increase of 2.3% to $2.71 billion for the quarter, compared to $2.64 billion in the same period last year. For the first six months, net sales rose by 3.4% to $5.32 billion, up from $5.14 billion in 2024. The company attributed this growth to a combination of organic sales increases, acquisitions, and favorable foreign exchange impacts, despite challenges such as lower North American rail car builds and supply chain disruptions.

In terms of profitability, Wabtec's net income for the second quarter was $336 million, a 16.3% increase from $289 million in the prior year. For the first half of 2025, net income reached $658 million, compared to $561 million in the same period of 2024. The company’s gross profit margin improved, with gross profit for the quarter at $938 million, up from $874 million, reflecting effective cost management and a favorable sales mix. Operating expenses increased to $466 million from $444 million, primarily due to higher sales volume and transaction costs related to acquisitions.

Wabtec has been active in strategic acquisitions, completing the purchase of Evident’s Inspection Technologies division for approximately $1.78 billion on July 1, 2025. This acquisition is expected to enhance Wabtec's capabilities in non-destructive testing and inspection technologies. Additionally, the company announced agreements to acquire Frauscher Sensor Technology Group for approximately €675 million and Dellner Couplers for about €890 million, both aimed at strengthening its product offerings in the freight and transit segments.

Operationally, Wabtec reported a total of 170.9 million shares outstanding as of June 30, 2025, with a cash balance of $1.50 billion. The company continues to focus on driving operational efficiency through restructuring initiatives, including Integration 3.0, which aims to streamline operations and reduce complexity. Despite the positive financial performance, Wabtec acknowledged ongoing challenges such as macroeconomic volatility, supply chain disruptions, and inflationary pressures that could impact future results.

Looking ahead, Wabtec remains optimistic about its growth trajectory, bolstered by a strong order backlog and strategic acquisitions. The company expects to recognize approximately 38% of its remaining performance obligations, valued at $21.8 billion, over the next 12 months. However, it also cautioned that external factors, including changes in trade policies and labor availability, could pose risks to its operational performance and financial outlook.