Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $36.75B
• Dividend Yield: 0.47%
• Average Volume (3M): 877.76K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.19
• Revenue Growth: 4.40%
• EPS Growth: 14.60%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 2.32
• Shares Outstanding: 170,957,180
• 10 Day Avg. Volume: 686,350
• 30 Day Avg. Volume: 877,763
• PEG Ratio: 0.96
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 20.29
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 10.86
• Enterprise Value/Ebitda: 17.34
• 1Y Price Target: $235.17
• Price Target Upside: 9.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 8.97
• Revenue Forecast (FY): $11.07B

• Rating: 78 Outperform
• Price Target: $245.00 ▲(13.98% Upside)

Westinghouse Air Brake Technologies receives a strong overall score due to its robust financial performance and positive earnings call. The company's strategic international orders and increased EPS guidance are significant positives. However, the stock's high valuation and technical indicators suggest caution due to potential overvaluation and overbought conditions.

Positive Factors

International Expansion

This significant international order highlights WAB's strong global market position and potential for sustained revenue growth through strategic international partnerships.

Record Backlog

A record backlog indicates strong future revenue visibility and demand, providing a stable foundation for continued financial performance and growth.

Margin Expansion

Improved margins reflect effective cost management and operational efficiency, enhancing profitability and competitive positioning in the industry.

Negative Factors

Decline in Services Revenue

A decline in services revenue could indicate challenges in maintaining aftermarket service growth, potentially impacting long-term revenue diversification.

Tariff Pressure

Rising material costs from tariffs can squeeze margins and reduce cash flow, posing a risk to profitability and financial flexibility.

North American Railcar Build Reduction

A significant reduction in North American railcar builds could limit growth opportunities in a key market, affecting future revenue streams.

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

Westinghouse Air Brake Technologies generates revenue through multiple streams, primarily from the sale of its core products, which include braking systems and components for both freight and passenger rail systems. The company also earns significant income from aftermarket services, which involve maintenance, repair, and refurbishment of its products, providing continuous revenue through service contracts and parts sales. WAB has established key partnerships with various rail operators and manufacturers, allowing it to secure long-term contracts that contribute to stable revenue. Additionally, the company invests in research and development to innovate and expand its product offerings, which helps in capturing new markets and enhancing its competitive edge, leading to increased sales and profitability.

Westinghouse Air Brake Technologies Financial Statement Overview

Summary

Westinghouse Air Brake Technologies demonstrates solid financial health with strong profitability and a stable balance sheet. The company maintains robust margins and effective leverage management, although revenue growth has slowed. Cash flow metrics indicate a need for careful monitoring to ensure continued financial strength.

Income Statement

Westinghouse Air Brake Technologies shows strong profitability with a consistent increase in gross profit margin from 25.13% in 2020 to 33.72% in TTM. The net profit margin has also improved from 5.48% in 2020 to 10.94% in TTM, indicating enhanced cost management and operational efficiency. Revenue growth is steady, with a 2.11% increase in TTM, reflecting resilience in the railroads industry. However, the growth rate has slowed compared to previous years, which could be a concern if it continues.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.48 in TTM, showing prudent financial leverage. Return on equity has improved to 11.14% in TTM, indicating effective use of shareholder funds. The equity ratio remains strong, suggesting a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth in TTM, down by 3.17%, which could impact future investments. The operating cash flow to net income ratio is moderate at 0.37, indicating a reasonable conversion of income to cash. The free cash flow to net income ratio is strong at 0.94, suggesting efficient cash generation relative to net income. Continued focus on cash flow management is essential to maintain financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.79B	10.39B	9.68B	8.36B	7.82B	7.56B
Gross Profit	3.64B	3.37B	2.94B	2.54B	2.37B	2.14B
EBITDA	2.28B	2.07B	1.79B	1.47B	1.35B	1.14B
Net Income	1.18B	1.06B	815.00M	633.00M	558.00M	414.00M
Balance Sheet
Total Assets	21.53B	18.70B	18.99B	18.52B	18.45B	18.45B
Cash, Cash Equivalents and Short-Term Investments	528.00M	706.00M	620.00M	541.00M	473.00M	599.00M
Total Debt	5.29B	4.29B	4.07B	4.00B	4.06B	4.24B
Total Liabilities	10.43B	8.57B	8.46B	8.37B	8.21B	8.30B
Stockholders Equity	11.10B	10.09B	10.49B	10.10B	10.20B	10.12B
Cash Flow
Free Cash Flow	1.41B	1.63B	1.01B	889.00M	943.00M	647.30M
Operating Cash Flow	1.49B	1.83B	1.20B	1.04B	1.07B	783.70M
Investing Cash Flow	-2.12B	-343.00M	-492.00M	-235.00M	-540.00M	-155.40M
Financing Cash Flow	745.00M	-1.37B	-633.00M	-708.00M	-653.00M	-619.00M

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 214.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 214.95 is above the 20-day moving average (MA) of 205.73, above the 50-day MA of 201.34, and above the 200-day MA of 194.29, indicating a bullish trend. The MACD of 3.27 indicates Negative momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 96.39 is Negative, 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	78 Outperform	$36.75B	31.24	11.07%	0.47%	4.40%	14.60%
UNP	69 Neutral	$139.58B	19.97	41.62%	2.31%	1.06%	8.21%
TRN	67 Neutral	$2.22B	24.13	10.04%	4.34%	-33.03%	-44.18%
GBX	66 Neutral	$1.43B	7.28	14.03%	2.73%	-8.66%	27.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RAIL	60 Neutral	$164.08M	3.47	―	―	-6.18%	―
FSTR	57 Neutral	$280.72M	60.97	2.74%	―	-5.51%	-88.11%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Reports Strong Q3 2025 Financial Results

On October 22, 2025, Wabtec Corporation announced its third quarter results for 2025, highlighting a significant increase in sales and earnings. The company reported a sales growth of 8.4% to $2.89 billion and an adjusted earnings per share increase of 16.0% compared to the previous year. The strong performance was attributed to higher sales in the Freight segment, including the acquisition of Inspection Technologies, and in the Transit segment. Wabtec also raised its adjusted earnings per share guidance for 2025, reflecting confidence in continued profitable growth despite a dynamic economic environment.