Financial Performance: Wabtec reported Q2 2025 sales of $2.71 billion, reflecting a 2.3% year-over-year increase. Adjusted EPS rose 15.8% to $2.27. The company faced a supply part issue that negatively impacted revenues by approximately $60 million, suggesting underlying strength with organic growth potentially reaching 4.6% without this disruption.

Strong Backlog and Revenue Forecasts: Wabtec entered the second half of 2025 with a robust 12-month backlog of $8.2 billion, up 11.9% YOY. The company expects sales for the year to reach approximately $11.1 billion (6.5% growth from 2024) with adjusted EPS projected between $8.55 to $9.15, implying a 17% increase at the midpoint.

Challenges in Freight and Transit Markets: The North American railcar build forecast has been downgraded to approximately 29,000 cars versus 35,000 previously, showcasing concerns about the stability of freight demand. Despite strong demand for new locomotives and digital technologies, the active locomotive fleets have declined, signaling mixed market conditions.