Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $31.95B
• Dividend Yield: 0.48%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.18
• Revenue Growth: 3.38%
• EPS Growth: 17.21%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Railroads
• EPS (TTM): 2.27
• Shares Outstanding: 170,953,170
• 10 Day Avg. Volume: 1,701,384
• 30 Day Avg. Volume: 1,140,080
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 11.47
• Enterprise Value/Ebitda: 20.35
• 1Y Price Target: $226.60
• Price Target Upside: 21.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $218.00 ▲(16.65%Upside)

Wabtec demonstrates strong financial performance and a positive earnings outlook, supported by successful acquisition strategies and effective cost management. Technical indicators and valuation metrics suggest caution, but positive corporate events enhance growth potential. The overall score reflects a balanced view of strengths and risks.

Positive Factors

Acquisition

The acquisition of Dellner Couplers strengthens WAB's Transit product portfolio and financial profile, positioning Wabtec as the leading producer of transit market couplers globally.

Backlog and Margins

Analyst reiterates Buy rating and increases the price objective based on a robust backlog, improving margins, pending M&A, and synergy opportunities.

Revenue Growth

Revenue increased by 5% year-over-year, surpassing estimates, indicating strong performance.

Negative Factors

Freight Segment

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

Operational Challenges

Despite better-than-expected operational execution on productivity initiatives, Wabtec faces potential challenges in maintaining such performance levels.

Westinghouse Air Brake Technologies Business Overview & Revenue Model

Company Description

Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec Corporation, is a leading global provider of technology-based equipment, systems, and services for the rail industry. With operations spanning across freight rail, passenger transit, and industrial markets, Wabtec offers a comprehensive portfolio that includes locomotives, freight cars, passenger transit vehicles, signaling and control systems, and related aftermarket services. The company is renowned for its innovative solutions that enhance safety, efficiency, and performance within the transportation sector.

How the Company Makes Money

Wabtec Corporation generates revenue through the sale of its diversified range of products and services across several key segments. The company's primary revenue streams include the sale of original equipment for freight and passenger rail systems, which encompasses locomotives and railcars. Additionally, Wabtec earns substantial income from its aftermarket services, providing parts, maintenance, and repair services that support long-term customer relationships and recurring revenue. Another significant contributor to Wabtec's earnings is its digital electronics and signaling solutions, which optimize rail network performance and safety. Strategic partnerships and acquisitions also play a crucial role in expanding Wabtec's market presence and technological capabilities, further bolstering its revenue generation.

Westinghouse Air Brake Technologies Financial Statement Overview

Summary

Westinghouse Air Brake Technologies shows strong financial health with consistent revenue growth, solid profitability, and effective cash flow management. The company manages its leverage well and efficiently utilizes equity, positioning it strongly within the Railroads industry. Despite minor fluctuations in free cash flow growth, overall financial performance remains robust.

Income Statement

Westinghouse Air Brake Technologies shows a strong financial performance with consistent revenue growth, achieving a 22.5% increase from 2022 to TTM (Trailing-Twelve-Months). The company maintains solid profitability with a net profit margin of 13.05% in TTM. Gross profit margin is stable at 32.6%, and EBITDA margin has improved to 18.38%. These metrics indicate effective cost management and profitability within the Railroads industry.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.44 in TTM, indicating manageable leverage. The equity ratio stands at 52.96%, suggesting a solid equity base compared to total assets. Return on equity has improved to 12.76%, highlighting efficient use of equity in generating profits. Despite a slight increase in total debt over the years, the company's strong equity base supports financial stability.

Cash Flow

The cash flow analysis reveals strong liquidity with an operating cash flow to net income ratio of 1.21 in TTM, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 1.05, reflecting efficient conversion of earnings into free cash flow. The slight decline in free cash flow growth to -10.76% from 2023 to TTM suggests cautious capital allocation, but overall cash flow management remains effective.

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

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAB, the sentiment is Negative. The current price of 186.89 is below the 20-day moving average (MA) of 205.92, below the 50-day MA of 204.87, and below the 200-day MA of 194.31, indicating a bearish trend. The MACD of -4.21 indicates Positive momentum. The RSI at 26.05 is Positive, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAB.

Westinghouse Air Brake Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNP	80 Outperform	$130.11B	19.06	42.35%	2.44%	1.06%	8.13%
NSC	77 Outperform	$61.66B	18.57	24.11%	1.96%	0.71%	86.84%
WAB	71 Outperform	$31.95B	27.89	10.84%	0.48%	3.38%	17.21%
GBX	70 Outperform	$1.36B	6.17	16.16%	2.82%	0.71%	84.57%
TRN	68 Neutral	$1.95B	21.02	10.47%	4.88%	-22.95%	-40.67%
Sector *	58 Neutral	HK$13.15B	4.79	-3.05%	5.94%	3.60%	-58.57%
RAIL	53 Neutral	$187.37M	―	156.43%	―	12.58%	34.10%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Reports Strong Q2 2025 Earnings Growth

On July 24, 2025, Wabtec Corporation reported its second quarter results for 2025, highlighting a 19.5% increase in GAAP diluted earnings per share and a 15.8% rise in adjusted diluted earnings per share compared to the previous year. The company also raised its adjusted EPS guidance for the fiscal year 2025, driven by strong performance in the first half, strategic mergers and acquisitions, and effective cost management. Despite challenges such as lower locomotive deliveries due to supply issues, Wabtec achieved sales growth and margin expansion, reflecting its robust operational execution and commitment to shareholder returns.

The most recent analyst rating on (WAB) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.

Wabtec Completes Acquisition of Evident’s Inspection Division

On July 1, 2025, Wabtec Corporation completed the acquisition of Evident’s Inspection Technologies division, a leader in Non-Destructive Testing and Remote Visual Inspection solutions. This strategic acquisition enhances Wabtec’s Digital Intelligence business, doubling its total addressable market to $16 billion and expanding its reach into high-growth markets. The acquisition is expected to accelerate Wabtec’s growth, improve financial metrics, and provide immediate shareholder value.

The most recent analyst rating on (WAB) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.

Westinghouse Air Brake Technologies Completes $1.25 Billion Note Offering

On May 29, 2025, Westinghouse Air Brake Technologies Corporation completed a public offering of $1.25 billion in senior notes, with $500 million due in 2030 and $750 million due in 2035. This financial move is expected to impact the company’s operations by enhancing its liquidity and financial flexibility, positioning it strategically within the industry, and potentially affecting stakeholders through changes in debt structure and financial obligations.

The most recent analyst rating on (WAB) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.

Wabtec Announces $1.25 Billion Senior Notes Offering

On May 19, 2025, Wabtec Corporation announced the pricing of its public offering of $500 million in 4.900% Senior Notes due 2030 and $750 million in 5.500% Senior Notes due 2035. The proceeds from this offering will be used for general corporate purposes, including repaying outstanding 3.200% Senior Notes due 2025 and funding part of the acquisition of the Inspection Technologies division of Evident Corporation. The sale is expected to close on May 29, 2025, subject to customary closing conditions.

The most recent analyst rating on (WAB) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.

Westinghouse Air Brake Adds Wabtec as Debt Guarantor

Westinghouse Air Brake Technologies Corporation announced the addition of Wabtec US Rail, Inc. as a co-registrant and guarantor of its debt securities, reflecting this change in its financial statements for the first quarter of 2025 and the fiscal year of 2024. This move, including Wabtec US Rail, Inc.’s guarantee of the company’s senior notes, is part of a broader strategy to strengthen financial commitments and enhance the company’s credit profile, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (WAB) stock is a Hold with a $185.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.