Westinghouse Air Brake Technologies (WAB)
NYSE:WAB
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Westinghouse Air Brake Technologies
(NYSE:WAB)
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Rating:76Outperform
Price Target:
$291.00
▲(10.49% Upside)
Action:ReiteratedDate:04/22/26
The score is driven primarily by strong financial performance (improving margins and robust free cash flow) and a positive earnings update with raised 2026 EPS guidance and expanding backlog. Technicals are supportive but neutral in momentum, while valuation is a meaningful headwind due to the higher P/E and low dividend yield.
Positive Factors
Strong Free Cash Flow
Sustained FCF near reported earnings indicates high earnings quality and durable internal funding. Over the next 2–6 months this supports capex, M&A integration, buybacks/dividends and debt servicing, reducing reliance on external financing through industry cycles.
Negative Factors
Meaningful Debt Load
Material absolute debt reduces financial flexibility and raises sensitivity to interest and cash conversion variability. With debt not trending consistently lower, leverage limits strategic optionality and increases execution risk on M&A and buyback programs over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Sustained FCF near reported earnings indicates high earnings quality and durable internal funding. Over the next 2–6 months this supports capex, M&A integration, buybacks/dividends and debt servicing, reducing reliance on external financing through industry cycles.
Read all positive factors
Westinghouse Air Brake Technologies (WAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.84B
Dividend Yield0.46%
Average Volume (3M)944.15K
Price to Earnings (P/E)31.1
Beta (1Y)1.13
Revenue Growth4.40%
EPS Growth14.60%
CountryUS
Employees29,500
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)2.71
Shares Outstanding170,171,900
10 Day Avg. Volume1,190,633
30 Day Avg. Volume944,151
Financial Highlights & Ratios
PEG Ratio2.32
Price to Book (P/B)3.27
Price to Sales (P/S)3.26
P/FCF Ratio24.28
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue4.24
Enterprise Value/Gross Profit12.54
Enterprise Value/Ebitda20.92
Forecast
1Y Price Target
$289.36Price Target Upside9.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)10.45
Revenue Forecast (FY)$12.34B
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 ...
How the Company Makes Money
Wabtec makes money primarily by selling (1) original equipment and systems and (2) higher-margin aftermarket services and parts across the rail and transit lifecycle. A significant portion of revenue comes from providing components and subsystems ...
Westinghouse Air Brake Technologies Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how much revenue each product line generates, indicating which products are most successful and where there might be potential for growth or need for strategic adjustments.
Shows how much revenue each product line generates, indicating which products are most successful and where there might be potential for growth or need for strategic adjustments.
Data provided by:
The Fly
The FlyWestinghouse Air Brake Technologies Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call communicated a predominantly positive operational and financial performance: double-digit revenue growth, significant backlog expansion, strong adjusted EPS growth, accretive acquisitions running ahead of plan, and disciplined capital returns. Headwinds noted include tariff pressure (expected to affect H1 margins), input-cost inflation, a notable Services/modernization revenue decline, one-time acquisition and restructuring charges, and near-term lumpiness in backlog-to-revenue conversion. Overall, the positives (robust top-line growth, backlog, margin gains, cash generation and raised EPS guidance) materially outweigh the near-term and structural challenges.Positive Updates
Strong Revenue and EPS Growth
Q1 sales of $2.95 billion (rounded to $3.0B), up 13.0% year-over-year. Adjusted EPS of $2.71, up 18.9% versus prior year; GAAP EPS $2.12, up 12.8%.
Negative Updates
Services Revenue Decline and Modernization Softness
Services sales declined 17.3% YoY due to lower modernization deliveries; management expects continued lower year-over-year Services revenues in Q2 driven by modernization timing.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and EPS Growth
Q1 sales of $2.95 billion (rounded to $3.0B), up 13.0% year-over-year. Adjusted EPS of $2.71, up 18.9% versus prior year; GAAP EPS $2.12, up 12.8%.
Read all positive updates
Company Guidance
Wabtec raised its 2026 adjusted EPS guidance to $10.25–$10.65 (≈17% growth at the midpoint) while leaving revenue guidance unchanged; management said tariffs announced to date are built into the outlook and expects modest margin expansion in H1 with tariff pressure easing in H2. In Q1 the company reported sales of $2.95B (up 13.0% year‑over‑year; +10.4% ex‑currency), adjusted EPS $2.71 (up 18.9%), GAAP EPS $2.12 (up 12.8%), adjusted operating margin 21.9% (up 0.2 pts), GAAP operating margin 17.5%, gross margin 36.0% (up 1.5 pts; adjusted gross margin +2.3 pts), and adjusted effective tax rate of 22.2% (full‑year expected ~24.5%). Q1 cash flow from operations was $199M (40% cash conversion), liquidity $2.09B, net debt leverage 2.3x (in target 2.0–2.5x) after funding the ~$1B Dellner acquisition; backlog remains strong with 12‑month backlog up ~13% and multiyear backlog >$30B (up ~38%), while segment and product callouts included Equipment +52.5%, Services −17.3%, Components −6.3%, Digital Intelligence +75.7%, and Transit sales $835M (+17.8%).Westinghouse Air Brake Technologies Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.51B | 11.17B | 10.39B | 9.68B | 8.36B | 7.82B |
| Gross Profit | 3.89B | 3.52B | 3.37B | 2.94B | 2.54B | 2.37B |
| EBITDA | 2.33B | 2.37B | 2.07B | 1.79B | 1.47B | 1.35B |
| Net Income | 1.21B | 1.17B | 1.06B | 815.00M | 633.00M | 558.00M |
Balance Sheet | ||||||
| Total Assets | 23.20B | 22.07B | 18.70B | 18.99B | 18.52B | 18.45B |
| Cash, Cash Equivalents and Short-Term Investments | 531.00M | 789.00M | 706.00M | 620.00M | 541.00M | 473.00M |
| Total Debt | 4.71B | 5.54B | 3.98B | 4.07B | 4.00B | 4.06B |
| Total Liabilities | 12.04B | 10.88B | 8.57B | 8.46B | 8.37B | 8.21B |
| Stockholders Equity | 11.15B | 11.14B | 10.09B | 10.49B | 10.10B | 10.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.69B | 1.50B | 1.63B | 1.01B | 889.00M | 943.00M |
| Operating Cash Flow | 1.77B | 1.76B | 1.83B | 1.20B | 1.04B | 1.07B |
| Investing Cash Flow | -3.81B | -2.75B | -343.00M | -492.00M | -235.00M | -540.00M |
| Financing Cash Flow | 1.86B | 1.03B | -1.37B | -633.00M | -708.00M | -653.00M |
Westinghouse Air Brake Technologies Technical Analysis
Positive
263.37
Price Trends
252.81
Positive
236.24
Positive
216.95
Positive
Market Momentum
4.55
Negative
57.81
Neutral
34.12
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 263.37 is above the 20-day moving average (MA) of 254.35, above the 50-day MA of 252.81, and above the 200-day MA of 216.95, indicating a bullish trend. The MACD of 4.55 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 34.12 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 Risk Analysis
Westinghouse Air Brake Technologies disclosed 30 risk factors in its most recent earnings report. Westinghouse Air Brake Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Westinghouse Air Brake Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $43.84B | 31.11 | 10.77% | 0.46% | 4.40% | 14.60% | |
73 Outperform | $149.16B | 19.20 | 41.95% | 2.32% | 1.06% | 8.21% | |
65 Neutral | $1.49B | 34.09 | 9.51% | 2.71% | -8.66% | 27.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $308.60M | 28.35 | 4.34% | ― | -5.51% | -88.11% | |
55 Neutral | $2.46B | 8.44 | 24.45% | 4.34% | -33.03% | -44.18% | |
54 Neutral | $166.70M | 9.24 | -40.20% | ― | -6.18% | ― |
* Industrials Sector Average
WAB
Westinghouse Air Brake Technologies
261.52
80.45
44.43%
RAIL
Freightcar America
8.83
2.94
49.92%
GBX
Greenbrier
48.03
7.10
17.34%
FSTR
L. B. Foster Company
29.90
10.58
54.76%
TRN
Trinity Industries
31.23
7.66
32.49%
UNP
Union Pacific
249.40
34.69
16.15%
Westinghouse Air Brake Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Wabtec Posts Strong First-Quarter 2026 Sales and Earnings
Positive
Apr 22, 2026
On April 22, 2026, Wabtec reported strong first-quarter 2026 results, with sales up 13% year over year to $2.95 billion, driven by both its Freight and Transit segments and contributions from recent acquisitions. GAAP diluted EPS rose 12.8% to $2....
Business Operations and StrategyFinancial Disclosures
Wabtec Outlines Long-Term Growth and Profitability Strategy
Positive
Mar 3, 2026
On March 3, 2026, Wabtec posted an investor presentation outlining its long-term vision and performance strategy, highlighting a resilient portfolio, strong recurring revenue base and robust cash generation. The presentation detailed a 2025–...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Wabtec Posts Strong Q4 Results and Raises Shareholder Returns
Positive
Feb 11, 2026
On February 11, 2026, Wabtec reported that fourth-quarter 2025 sales rose 14.8% year over year to $2.97 billion, driven by strong growth in its Freight and Transit segments, with adjusted diluted EPS up 25% to $2.10 despite a 4.1% decline in GAAP ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.