Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $32.85B
• Dividend Yield: 0.5%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.16
• Revenue Growth: 3.38%
• EPS Growth: 17.21%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 70
• Industry: Railroads
• EPS (TTM): 2.27
• Shares Outstanding: 170,953,170
• 10 Day Avg. Volume: 1,033,495
• 30 Day Avg. Volume: 1,156,217
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.74
• Enterprise Value/Gross Profit: 11.24
• Enterprise Value/Ebitda: 18.02
• 1Y Price Target: $224.25
• Price Target Upside: 18.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $214.00 ▲(13.34% Upside)

Westinghouse Air Brake Technologies receives a strong overall score driven by robust financial performance and a positive earnings call outlook. The company's strategic acquisitions and increased guidance highlight future growth potential. However, technical indicators and valuation suggest caution, with potential overvaluation and mixed market momentum.

Positive Factors

Revenue Growth

The growth in the Transit segment indicates strong demand and expanding market opportunities, supporting long-term revenue growth potential.

Strategic Acquisitions

These acquisitions enhance Wabtec's market position and are projected to generate significant revenue and margin improvements, bolstering future growth.

Backlog Growth

A growing backlog reflects robust demand and provides revenue visibility, supporting sustained business operations and strategic planning.

Negative Factors

Supply Chain Challenges

Ongoing supply chain issues can disrupt operations and revenue, posing risks to meeting customer demand and financial targets.

Reduced Railcar Forecast

A reduced railcar forecast indicates potential market demand weakness, which could impact future sales and growth in the rail sector.

Decrease in Equipment Sales

Declining equipment sales, driven by external factors, may affect revenue streams and challenge the company's ability to sustain growth.

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 consistent revenue growth, strong profitability, and effective cash flow management. The company maintains a stable leverage position and efficient equity utilization, positioning it well within the Railroads industry.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.56B	10.39B	9.68B	8.36B	7.82B	7.56B
Gross Profit	3.52B	3.37B	2.94B	2.54B	2.37B	2.14B
EBITDA	2.19B	2.07B	1.79B	1.47B	1.35B	1.14B
Net Income	1.15B	1.06B	815.00M	633.00M	558.00M	414.00M
Balance Sheet
Total Assets	20.39B	18.70B	18.99B	18.52B	18.45B	18.45B
Cash, Cash Equivalents and Short-Term Investments	1.49B	706.00M	620.00M	541.00M	473.00M	599.00M
Total Debt	4.78B	3.98B	4.07B	4.00B	4.06B	4.24B
Total Liabilities	9.55B	8.57B	8.46B	8.37B	8.21B	8.30B
Stockholders Equity	10.80B	10.09B	10.49B	10.10B	10.20B	10.12B
Cash Flow
Free Cash Flow	1.45B	1.63B	1.01B	889.00M	943.00M	647.30M
Operating Cash Flow	1.67B	1.83B	1.20B	1.04B	1.07B	783.70M
Investing Cash Flow	-384.00M	-343.00M	-492.00M	-235.00M	-540.00M	-155.40M
Financing Cash Flow	-394.00M	-1.37B	-633.00M	-708.00M	-653.00M	-619.00M

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 188.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 188.82 is below the 20-day moving average (MA) of 192.44, below the 50-day MA of 198.21, and below the 200-day MA of 194.05, indicating a bearish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 is Neutral, 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	76 Outperform	$128.12B	18.77	42.35%	2.51%	1.06%	8.13%
FSTR	76 Outperform	$290.48M	8.29	22.67%	―	-7.03%	397.79%
WAB	71 Outperform	$32.85B	28.30	10.84%	0.50%	3.38%	17.21%
GBX	69 Neutral	$1.46B	6.62	16.16%	2.69%	0.71%	84.57%
TRN	64 Neutral	$2.31B	24.85	10.47%	4.19%	-22.95%	-40.67%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
RAIL	44 Neutral	$162.20M	―	156.43%	―	-6.00%	-12.45%

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.

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.