Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $33.79B
• Dividend Yield: 0.48%
• Average Volume (3M): 988.70K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.16
• 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: 834,870
• 30 Day Avg. Volume: 988,695
• 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: 1.17
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 10.86
• Enterprise Value/Ebitda: 17.34
• 1Y Price Target: $227.40
• Price Target Upside: 13.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $222.00 ▲(10.81% Upside)

Westinghouse Air Brake Technologies' strong earnings call performance and solid financial health are the most significant factors driving the score. The company's robust international demand and strategic cost management initiatives support a positive outlook. However, the neutral technical indicators and fair valuation suggest a balanced risk-reward profile.

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 (WAB) is a leading global provider of technology-based products and services for the freight and transit rail industries. The company operates in several sectors, including freight rail, transit systems, and aftermarket services. WAB specializes in the design and manufacture of a wide range of products, including braking systems, electronic controls, and positive train control systems, as well as providing services that enhance the safety and efficiency of rail operations.

How the Company Makes Money

Westinghouse Air Brake Technologies generates revenue primarily through the sale of its core products, which include advanced braking systems and electronic control solutions for both freight and transit applications. Key revenue streams come from original equipment manufacturing (OEM) sales, where WAB supplies components for new rail vehicles, and aftermarket services, which include maintenance, repair, and replacement parts for existing systems. The company also benefits from long-term contracts and service agreements with major rail operators, which ensure a steady income flow. Strategic partnerships with rail operators and other industry stakeholders further enhance WAB's market position and contribute to its earnings through collaborative projects and joint ventures.

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: 200.34
• 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 200.34 is above the 20-day moving average (MA) of 196.95, above the 50-day MA of 194.22, and above the 200-day MA of 193.89, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 89.64 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
FSTR	―	$288.89M	7.97	22.67%	―	-7.03%	397.79%
WAB	―	$33.79B	28.72	11.07%	0.48%	4.40%	14.60%
GBX	―	$1.42B	6.45	16.16%	2.70%	0.71%	84.57%
UNP	―	$128.48B	18.39	41.62%	2.47%	1.06%	8.21%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TRN	―	$2.29B	24.60	10.47%	4.24%	-22.95%	-40.67%
RAIL	―	$187.26M	―	―	―	-6.00%	-12.45%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Reports Strong Q3 2025 Financial Performance

Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec, is a leading global provider of equipment, systems, digital solutions, and value-added services for the freight and transit rail industries, as well as the mining, marine, and industrial markets. The company has been a leader in the rail industry for over 155 years, with a vision to achieve a sustainable rail system worldwide.

Westinghouse Air Brake Technologies Reports Strong Q3 Earnings

Westinghouse Air Brake Technologies Corporation’s recent earnings call painted a picture of robust financial health, underscored by impressive growth in sales, backlog, and margins. The company celebrated successful international orders and strategic acquisitions, though it acknowledged challenges such as a decline in services revenue, tariff pressures, and a reduction in North American railcar builds. Despite these hurdles, the overall sentiment was positive, highlighting a strong performance and an optimistic outlook.

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.

The most recent analyst rating on (WAB) stock is a Buy with a $222.00 price target. To see the full list of analyst forecasts on Westinghouse Air Brake Technologies stock, see the WAB Stock Forecast page.