Westinghouse Air Brake Technologies Corp., a leading rail equipment manufacturer, saw its stock plummet 6.78% in pre-market trading on Wednesday. This sharp decline followed the company's release of its 2025 financial guidance and fourth-quarter earnings results, which fell short of analysts' expectations due to weak freight demand.
The company forecasted 2025 sales between $10.73 billion and $11.03 billion, narrowly missing the FactSet consensus estimate of $11.03 billion. Additionally, Wabtec projected its adjusted earnings per share for 2025 to range from $8.35 to $8.75, lower than the analysts' average estimate of $8.62.
Wabtec cited sluggish freight activity and a cautious approach by railroads towards new equipment investments as the primary factors impacting its outlook. The slowdown in freight volume, driven by higher prices and borrowing costs, has dampened demand for new locomotives and freight cars, affecting Wabtec's core business segments.