Wabtec forecasts 2025 profit below estimates on soft freight demand

Feb 12 (Reuters) - U.S. rail locomotive maker Wabtec WAB.N forecast 2025 profit largely below analysts' estimates on Wednesday, as the industry tackles weak demand for new locomotives due to a slowdown in freight activity.

The company expects its 2025 adjusted profit per share in the range of $8.35 to $8.75, compared with analysts' average expectations of $8.62, according to data compiled by LSEG.

Higher prices and borrowing costs have weakened consumer demand for goods, causing a slowdown in freight volume transported by rail.

Wabtec's freight segment produces new locomotives, supplies aftermarket parts and services, and manufactures essential components for freight cars.

Uncertainty over tariffs and future freight demand has prompted railroads to adopt a cautious approach before making significant investments in new equipment.

In the fourth quarter, sales in Wabtec's freight unit, its largest, rose only by 0.3% to $1.79 billion.

The Pennsylvania-based company reported an adjusted profit of $1.68 per share for fourth-quarter ended December 31, compared with analysts' expectations of $1.72 per share.

Net sales in the quarter rose 2.3% to $2.58 billion, but missed Wall Street expectations of $2.62 billion.