What Happened?
Shares of rail equipment company Westinghouse Air Brake Technologies (NYSE: WAB) jumped 5.9% in the afternoon session after the company announced a landmark $4.2 billion locomotive order from Kazakhstan's national railway, marking the largest contract in the company's history.
The multi-year agreement with Kazakhstan Temir Zholy (KTZ) involved the delivery of 300 Evolution Series heavy-haul locomotive kits over the next decade. This deal significantly bolstered Wabtec's presence in Central Asia, positioning the company as a key technology partner in the region.
Adding to the news, Wabtec also revealed plans to launch diesel engine production in Kazakhstan, the first time the company will manufacture engines outside the United States. The positive developments were amplified as Citigroup initiated coverage on the stock with a "Buy" rating, signaling a bullish outlook from the investment bank.
The shares closed the day at $198.19, up 5.1% from previous close.
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What Is The Market Telling Us
Wabtec’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 11.1% on the news that the company delivered a weaker-than-expected quarter, with both revenue and EPS missing estimates and guidance for both metrics coming in below Wall Street's expectations. Growth was weighed down by the Freight segment, where sales were nearly flat. The Transit segment, however, grew 7.1%, helping lift overall revenue by 2.3%. Wabtec also introduced a new five-year forecast, targeting mid-single-digit annual revenue growth and 3.5 percentage points of adjusted operating margin expansion. The stock's reaction suggests investors were looking for stronger guidance.
Wabtec is up 5.3% since the beginning of the year, and at $199 per share, it is trading close to its 52-week high of $214.38 from July 2025. Investors who bought $1,000 worth of Wabtec’s shares 5 years ago would now be looking at an investment worth $3,200.
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