October 22, 2026 - TRA Newswire -
Class 1 railroad, Union Pacific, and a major provider to the freight rail and passenger transit sector, Wabtec, both reported strong income gains during the 2026 3rd quarter. Both have strong roots in Texas.
UNION PACIFIC:
Union Pacific Corporation (NYSE: UNP) reported third quarter 2026 net income of $2.1 billion, up 16%, and diluted earnings per share (EPS) of $3.49, up 16% compared to the same period in 2025.
"Union Pacific's third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling six percent volume growth," said Jim Vena, Union Pacific Chief Executive Officer. "We executed at a consistently high level, enabling record financial results and further reinforcing our position as the industry leader. We look forward to the upcoming steps of the Surface Transportation Board's merger review process and to delivering the benefits of America's first transcontinental railroad for our customers."
Union Pacific key indicators:
UP Operating revenue of $7.2 billion grew 15% driven by higher fuel surcharge, 6% volume growth, core pricing gains and increased other revenue partially offset by business mix. Freight revenue excluding fuel surcharge increased 6%.
Reported operating ratio improved 10 basis points to 59.1%. Adjusted operating ratio* increased 30 basis points to 58.8%. Higher fuel price unfavorably impacted operating ratio 140 basis points.
Reportable personal injury rate improved. Freight car velocity was 228 daily miles per car, a 1% increase. Average terminal dwell was 19.9 hours, a 2% improvement. Fuel consumption rate was 1.034, measured in gallons of fuel per thousand gross ton-miles, a 2% improvement. Workforce productivity was 1,219 car miles per employee, a 5% increase.
WABTEC:
“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted Earnings Per Share,” said Rafael Santana, Wabtec’s Chairman and CEO. The company’s multi-year backlog for freight locomotives and transit equipment continues to provide a strong base. At September 30, 2026, excluding foreign currency exchange, the multi-year backlog was $5.46 billion higher, up 21.4%.
Wabtec Corp, which has a strong manufacturing base in Fort Worth, reported third-quarter 2026 sales of $3.12 billion, up 8.1% year over year, as growth in its Freight and Transit segments drove higher earnings and operating margins.
The Pittsburgh-based company reported GAAP earnings per diluted share of $2.42, up 33.7% from the third quarter of 2025. Adjusted earnings per diluted share rose 22% to $2.83. Cash from operations totaled $455 million, compared with $367 million a year earlier.
GAAP operating margin increased to 20%, while adjusted operating margin expanded 1.9 percentage points to 22.9%. Both measures benefited from sales growth and improved gross margins, Wabtec said. Higher sales, operating margin expansion and non-operational benefits, primarily related to currency fluctuations, contributed to the increase in earnings per share.
The company raised and narrowed its 2026 adjusted earnings-per-share guidance to $10.85 to $11.05, an increase of $0.20 at the midpoint. Revenue guidance remains unchanged at $12.3 billion to $12.6 billion, representing growth of 11.5% at the midpoint compared with 2025.
Wabtec Freight Segment
Third-quarter Freight segment sales increased 6.9% year over year. Services sales rose 6.7%, driven by demand for core services and higher modernization deliveries. Equipment sales increased 0.3%, as higher mining sales partially offset lower locomotive deliveries. Digital sales climbed 24.2%, reflecting the acquisition of Frauscher Sensor Technologies and strong demand for core digital products. Components sales increased 5.3%, with demand from industrial, maintenance-of-way and international markets offsetting lower North American rail build activity and portfolio optimization efforts. Freight operating margins benefited from gross margin improvements and lower operating expenses as a percentage of revenue.
Wabtec Transit Segment
Transit segment sales rose 11.3% in the third quarter, driven by the acquisition of Dellner Couplers and higher original-equipment and aftermarket sales, partially offset by unfavorable foreign currency exchange. On a constant-currency basis, Transit sales increased 12.5%.
At the end of the quarter, Wabtec had $490 million in cash, cash equivalents and restricted cash, and total debt of $6.38 billion. Total available liquidity was $2.09 billion as of Sept. 30, comprising $480 million in cash and cash equivalents and $1.61 billion available under existing credit facilities. During the quarter, Wabtec repurchased $305 million in shares and paid $52 million in dividends.
Photo credit: Fort Worth Report - Union Pacific locomotive undergoing upgrades at Wabtec Fort Worth plant
Class 1 railroad, Union Pacific, and a major provider to the freight rail and passenger transit sector, Wabtec, both reported strong income gains during the 2026 3rd quarter. Both have strong roots in Texas.
UNION PACIFIC:
Union Pacific Corporation (NYSE: UNP) reported third quarter 2026 net income of $2.1 billion, up 16%, and diluted earnings per share (EPS) of $3.49, up 16% compared to the same period in 2025.
"Union Pacific's third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling six percent volume growth," said Jim Vena, Union Pacific Chief Executive Officer. "We executed at a consistently high level, enabling record financial results and further reinforcing our position as the industry leader. We look forward to the upcoming steps of the Surface Transportation Board's merger review process and to delivering the benefits of America's first transcontinental railroad for our customers."
Union Pacific key indicators:
UP Operating revenue of $7.2 billion grew 15% driven by higher fuel surcharge, 6% volume growth, core pricing gains and increased other revenue partially offset by business mix. Freight revenue excluding fuel surcharge increased 6%.
Reported operating ratio improved 10 basis points to 59.1%. Adjusted operating ratio* increased 30 basis points to 58.8%. Higher fuel price unfavorably impacted operating ratio 140 basis points.
Reportable personal injury rate improved. Freight car velocity was 228 daily miles per car, a 1% increase. Average terminal dwell was 19.9 hours, a 2% improvement. Fuel consumption rate was 1.034, measured in gallons of fuel per thousand gross ton-miles, a 2% improvement. Workforce productivity was 1,219 car miles per employee, a 5% increase.
WABTEC:
“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted Earnings Per Share,” said Rafael Santana, Wabtec’s Chairman and CEO. The company’s multi-year backlog for freight locomotives and transit equipment continues to provide a strong base. At September 30, 2026, excluding foreign currency exchange, the multi-year backlog was $5.46 billion higher, up 21.4%.
Wabtec Corp, which has a strong manufacturing base in Fort Worth, reported third-quarter 2026 sales of $3.12 billion, up 8.1% year over year, as growth in its Freight and Transit segments drove higher earnings and operating margins.
The Pittsburgh-based company reported GAAP earnings per diluted share of $2.42, up 33.7% from the third quarter of 2025. Adjusted earnings per diluted share rose 22% to $2.83. Cash from operations totaled $455 million, compared with $367 million a year earlier.
GAAP operating margin increased to 20%, while adjusted operating margin expanded 1.9 percentage points to 22.9%. Both measures benefited from sales growth and improved gross margins, Wabtec said. Higher sales, operating margin expansion and non-operational benefits, primarily related to currency fluctuations, contributed to the increase in earnings per share.
The company raised and narrowed its 2026 adjusted earnings-per-share guidance to $10.85 to $11.05, an increase of $0.20 at the midpoint. Revenue guidance remains unchanged at $12.3 billion to $12.6 billion, representing growth of 11.5% at the midpoint compared with 2025.
Wabtec Freight Segment
Third-quarter Freight segment sales increased 6.9% year over year. Services sales rose 6.7%, driven by demand for core services and higher modernization deliveries. Equipment sales increased 0.3%, as higher mining sales partially offset lower locomotive deliveries. Digital sales climbed 24.2%, reflecting the acquisition of Frauscher Sensor Technologies and strong demand for core digital products. Components sales increased 5.3%, with demand from industrial, maintenance-of-way and international markets offsetting lower North American rail build activity and portfolio optimization efforts. Freight operating margins benefited from gross margin improvements and lower operating expenses as a percentage of revenue.
Wabtec Transit Segment
Transit segment sales rose 11.3% in the third quarter, driven by the acquisition of Dellner Couplers and higher original-equipment and aftermarket sales, partially offset by unfavorable foreign currency exchange. On a constant-currency basis, Transit sales increased 12.5%.
At the end of the quarter, Wabtec had $490 million in cash, cash equivalents and restricted cash, and total debt of $6.38 billion. Total available liquidity was $2.09 billion as of Sept. 30, comprising $480 million in cash and cash equivalents and $1.61 billion available under existing credit facilities. During the quarter, Wabtec repurchased $305 million in shares and paid $52 million in dividends.
Photo credit: Fort Worth Report - Union Pacific locomotive undergoing upgrades at Wabtec Fort Worth plant