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Westinghouse Air Brake Technologies
(NYSE:WAB)
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Rating:76Outperform
Price Target:
$304.00
▲(15.43% Upside)
Action:Reiterated
Date:05/16/26
WAB scores well on financial performance and a strongly positive earnings update (raised EPS guidance and expanding backlog), supported by a constructive technical trend. The main constraint on the overall score is valuation, with a relatively high P/E and very low dividend yield.
Positive Factors
Large multiyear backlog
A >$30B multiyear backlog materially increases multi-period revenue visibility and underpins near‑term demand. This backlog supports production planning, protects margins via scale, and creates recurring aftermarket opportunities as installed systems require parts and services over time.
Negative Factors
Services / modernization softness
Weakness in Services/modernization reduces higher‑margin recurring revenue and increases exposure to capital‑cycle variability. Because services typically smooth revenue and underpin aftermarket demand, prolonged softness can compress overall margins and reduce visibility into steady cash flows.
Read all positive and negative factors
Positive Factors
Negative Factors
Large multiyear backlog
A >$30B multiyear backlog materially increases multi-period revenue visibility and underpins near‑term demand. This backlog supports production planning, protects margins via scale, and creates recurring aftermarket opportunities as installed systems require parts and services over time.
Read all positive factors
Westinghouse Air Brake Technologies Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business segments, highlighting which areas are driving earnings and where there might be challenges or opportunities for improvement.
Reveals profitability across different business segments, highlighting which areas are driving earnings and where there might be challenges or opportunities for improvement.
Data provided by:
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The FlyWestinghouse Air Brake Technologies (WAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.08B
Dividend Yield0.46%
Average Volume (3M)835.98K
Price to Earnings (P/E)37.0
Beta (1Y)1.06
Revenue Growth9.59%
EPS Growth10.69%
CountryUS
Employees29,500
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)7.09
Shares Outstanding169,677,350
10 Day Avg. Volume806,389
30 Day Avg. Volume835,983
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 Cap1.19
Enterprise Value/Revenue4.56
Enterprise Value/Gross Profit13.50
Enterprise Value/Ebitda22.66
Forecast
1Y Price Target
$303.56Price Target Upside15.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)10.62
Revenue Forecast (FY)$12.38B
Westinghouse Air Brake Technologies Business Overview & Revenue Model
Company Description
Westinghouse Air Brake Technologies Corporation (WAB) delivers a comprehensive suite of advanced technological solutions, equipment, and services tailored for the global freight railway and urban mass transit sectors. Its operations are bifurcated...
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 Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 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 | 2.32B | 2.32B | 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 | 6.92B | 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 | 1.64B | 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
Neutral
263.37
Price Trends
264.45
Negative
259.58
Positive
236.05
Positive
Market Momentum
-1.12
Positive
45.61
Neutral
26.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAB, the sentiment is Neutral. The current price of 263.37 is below the 20-day moving average (MA) of 267.50, below the 50-day MA of 264.45, and above the 200-day MA of 236.05, indicating a neutral trend. The MACD of -1.12 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $44.08B | 37.00 | 10.94% | 0.46% | 9.59% | 10.69% | |
72 Outperform | $169.23B | 23.67 | 40.38% | 2.32% | 1.87% | 9.41% | |
67 Neutral | $442.93M | 39.07 | 6.39% | ― | 11.73% | -68.10% | |
64 Neutral | $2.77B | 11.19 | 24.50% | 4.34% | -27.72% | 91.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.44B | 13.59 | 9.51% | 2.71% | -25.62% | -52.74% | |
57 Neutral | $270.07M | 8.96 | -33.78% | ― | -4.92% | ― |
* Industrials Sector Average
WAB
Westinghouse Air Brake Technologies
261.21
48.60
22.86%
RAIL
Freightcar America
7.99
-3.93
-32.97%
GBX
Greenbrier
47.30
-4.97
-9.51%
FSTR
L. B. Foster Company
42.55
18.35
75.83%
TRN
Trinity Industries
35.69
8.94
33.44%
UNP
Union Pacific
286.96
57.08
24.83%
Westinghouse Air Brake Technologies Corporate Events
Executive/Board ChangesShareholder Meetings
Westinghouse Air Brake Shareholders Back Board, Pay, Auditor
Positive
May 15, 2026
At its 2026 Annual Meeting of Stockholders held on May 12, 2026, Westinghouse Air Brake Technologies shareholders elected three directors, Rafael Santana, Lee C. Banks and Byron S. Foster, to new three-year terms expiring in 2029, with each nomine...
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–...
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.