Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $31.49B
• Dividend Yield: 0.46%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.18
• Revenue Growth: 5.21%
• EPS Growth: 24.15%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 70
• Industry: Railroads
• EPS (TTM): 6.38
• Shares Outstanding: 171,126,330
• 10 Day Avg. Volume: 1,058,371
• 30 Day Avg. Volume: 1,110,008
• PEG Ratio: 1.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.04
• Price to Cash Flow (P/CF): 10.90
• P/FCF Ratio: 12.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $211.71
• Price Target Upside: 15.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Westinghouse Air Brake Technologies scores a strong 79, driven by excellent financial performance and positive earnings call insights. However, technical indicators suggest caution, and the high valuation tempers enthusiasm. The company is well-positioned for growth, especially internationally, but must navigate North American market challenges and tariff uncertainties.

Positive Factors

Mergers and Acquisitions

The acquisition of Dellner Couplers strengthens WAB's Transit product portfolio and financial profile.

Operational Performance

Wabtec achieved better-than-expected operational execution on its productivity initiatives.

Technological Innovation

The Rail Ghost project, an autonomous car inspection machine, could help save tens of millions of dollars in annual inspection costs.

Negative Factors

Earnings Guidance

WAB traded off -9% following a 4Q miss and a softer than expected 2025 guide as midpoints of revenue and EPS trailed consensus.

Freight Segment

A sequential Freight margin deterioration is expected in the second quarter.

Revenue Target

The company plans to eliminate $100 million of low margin revenues, which contributes to a muted revenue target.

Westinghouse Air Brake Technologies Business Overview & Revenue Model

Company Description

Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates through two segments, Freight and Transit. The Freight segment manufactures and services components for new and existing freight cars and locomotives; builds new commuter locomotives; rebuilds freight locomotives; supplies railway electronics, positive train control equipment, signal design, and engineering services; and provides related heat exchange and cooling systems. It serves publicly traded railroads; leasing companies; manufacturers of original equipment, including locomotives and freight cars; and utilities. The Transit segment manufactures and services components for new and existing passenger transit vehicles, such as regional trains, high speed trains, subway cars, light-rail vehicles, and buses; refurbishes subway cars; and provides heating, ventilation, and air conditioning equipment, as well as doors for buses and subways. This segment serves public transit authorities and municipalities, leasing companies, and manufacturers of subway cars and buses. It also provides electronically controlled pneumatic braking products; railway electronics; freight car trucks; draft gears, couplers, and slack adjusters; air compressors and dryers; heat exchangers and cooling products; and track and switch products. In addition, the company offers railway braking equipment and related components; friction products; new switcher locomotives; transit locomotive and car overhaul services; and freight locomotive overhaul, modernizations, and refurbishment services. Further, it provides platform screen doors; pantographs; window assemblies; couplers; accessibility lifts and ramps for buses and subway cars; and traction motors. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Wabtec generates revenue through the sale of its diverse range of products and services to the freight rail and transit industries. The company's key revenue streams include the manufacturing and sale of locomotives and freight cars, as well as aftermarket services such as maintenance, repair, and parts replacement. Additionally, Wabtec earns income from its digital solutions, which offer advanced analytics and monitoring for rail operations, helping customers optimize performance and reduce costs. The company also engages in significant partnerships and long-term contracts with major rail operators and government entities, which contribute to its stable revenue base.

Westinghouse Air Brake Technologies Financial Statement Overview

Summary

Westinghouse Air Brake Technologies shows strong financial performance with consistent revenue growth, robust profit margins, effective cash flow management, and a solid balance sheet. This positions the company well for future growth in the railroads industry.

Income Statement

Westinghouse Air Brake Technologies demonstrates strong financial performance with consistent revenue growth. The revenue increased from $10.387 billion to $10.5 billion, showing a positive growth trajectory. Gross profit margin stands robustly at approximately 31.56% TTM, with notable net profit margin growth to 12.47% TTM. EBIT and EBITDA margins are healthy, at 16.08% and 18.21% respectively, indicating strong operational efficiency and profitability.

Balance Sheet

The balance sheet of Westinghouse Air Brake Technologies is solid, with a reasonable debt-to-equity ratio of 0.39, indicating manageable leverage. The return on equity is impressive at 12.63% TTM, reflecting effective utilization of shareholder funds. The equity ratio is healthy at 54.29%, showcasing a stable financial structure with ample equity backing.

Cash Flow

The company exhibits strong cash flow management, with a high operating cash flow to net income ratio of 1.29 TTM, suggesting efficient cash generation relative to earnings. Free cash flow growth rate is slightly negative but remains strong, with robust free cash flow to net income ratio of 1.12 TTM, indicating strong liquidity and the ability to fund operations and investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.50B	10.39B	9.68B	8.36B	7.82B	7.56B
	Gross Profit
3.31B	3.37B	2.94B	2.29B	2.13B	1.90B
	EBIT
1.69B	1.61B	1.27B	1.06B	954.00M	859.50M
	EBITDA
2.02B	1.61B	1.79B	1.52B	1.41B	1.23B
	Net Income Common Stockholders
1.11B	1.06B	815.00M	633.00M	558.00M	414.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
698.00M	715.00M	620.00M	541.00M	473.00M	598.70M
	Total Assets
19.10B	18.70B	18.99B	18.52B	18.45B	18.45B
	Total Debt
4.01B	3.98B	4.38B	4.00B	4.06B	3.79B
	Net Debt
3.31B	3.27B	3.76B	3.46B	3.58B	3.19B
	Total Liabilities
8.68B	8.57B	8.46B	8.37B	8.21B	8.30B
	Stockholders Equity
10.37B	10.09B	10.49B	10.10B	10.20B	10.12B
Cash Flow		Free Cash Flow
1.47B	1.63B	1.01B	889.00M	943.00M	647.30M
	Operating Cash Flow
1.69B	1.83B	1.20B	1.04B	1.07B	783.70M
	Investing Cash Flow
-368.00M	-343.00M	-492.00M	-235.00M	-540.00M	-155.40M
	Financing Cash Flow
-1.25B	-1.37B	-633.00M	-708.00M	-653.00M	-619.00M

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 184.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAB, the sentiment is Positive. The current price of 184.03 is above the 20-day moving average (MA) of 174.09, above the 50-day MA of 179.76, and above the 200-day MA of 182.57, indicating a bullish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 70.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAB.

Westinghouse Air Brake Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	79 Outperform	$31.49B	29.06	10.62%	0.46%	5.21%	24.15%
NSC	76 Outperform	$50.16B	15.48	24.52%	2.38%	0.70%	135.08%
TRN	69 Neutral	$2.05B	15.36	14.57%	4.54%	3.21%	29.59%
UNP	69 Neutral	$131.00B	19.72	42.47%	2.47%	0.63%	5.93%
GBX	67 Neutral	$1.33B	6.79	14.69%	2.83%	-5.79%	82.71%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
RAIL	47 Neutral	$120.83M	―	156.43%	―	55.84%	-159.47%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Reports Strong Q1 2025 Results, Raises EPS Guidance

On April 23, 2025, Wabtec Corporation reported its first quarter results for 2025, highlighting a 4.5% increase in sales to $2.61 billion and a significant rise in earnings per share. The company announced an increase in full-year EPS guidance, reflecting strong performance across its Freight and Transit segments, with international business contributing notably to profitability. The results indicate robust business momentum, although the company remains cautious due to economic uncertainties.

Spark’s Take on WAB Stock

According to Spark, TipRanks’ AI Analyst, WAB is a Outperform.

Wabtec demonstrates strong financial performance and a promising outlook for 2025, driven by robust cash flow and strategic growth initiatives. The technical indicators suggest short-term caution due to downward momentum. The company’s valuation appears high, warranting careful consideration. Despite these challenges, the positive guidance and confidence in shareholder returns provide a balanced view, resulting in a solid stock score.

To see Spark’s full report on WAB stock, click here.

Wabtec Highlights Strong Financial Performance and Growth

On February 18, 2025, Wabtec released an investor presentation detailing its financial performance and strategic outlook. The presentation highlighted strong financial results, including an achievement of their five-year plan within three years, and emphasized their focus on profitability and growth through various strategic initiatives. The company also addressed potential risks and uncertainties that could impact future performance, emphasizing the resilience of its portfolio and significant recurring revenue base.

Wabtec Reports Strong Q4 2024 Results and 2025 Guidance

On February 12, 2025, Wabtec Corporation announced its fourth quarter 2024 results, highlighting a strong financial performance with a 2.3% year-over-year sales increase and substantial cash from operations. The adjusted earnings per share rose by 9.1% compared to the previous year, and the company reported a significant 52.7% increase in cash flow from operations for the full year 2024. Additionally, Wabtec provided its 2025 financial guidance, projecting a 13.1% increase in adjusted EPS at the midpoint. The company also announced a 25% hike in its quarterly dividend and expanded its share buyback authorization by $1 billion, reflecting robust shareholder returns and confidence in future growth.