Westinghouse Air Brake Technologies (WAB)
NYSE:WAB
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Westinghouse Air Brake Technologies
(NYSE:WAB)
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Rating:74Outperform
Price Target:
$295.00
▲(10.37% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by strong financial performance (margin expansion and solid cash generation) and constructive earnings-call outlook with robust backlog and growth guidance. These positives are tempered by a stretched technical setup (overbought indicators) and a demanding valuation (high P/E and low yield), with rising debt a notable financial risk to monitor.
Positive Factors
Backlog and Guidance Visibility
A multiyear backlog above $27B (up 23% YoY) and a 12-month backlog of $8.2B provide durable revenue visibility across the next several quarters. This backlog underpins management's 2026 sales guidance and supports production planning, margin predictability and cash conversion.
Negative Factors
Rising Leverage
Debt growth to $5.54B and higher leverage reduce financial flexibility; net leverage (~1.9x noted in guidance) plus modest operating-cashflow-to-debt coverage (~0.34) mean interest or refinancing risk and less room for acquisitions or downturns without adding cost or equity dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Guidance Visibility
A multiyear backlog above $27B (up 23% YoY) and a 12-month backlog of $8.2B provide durable revenue visibility across the next several quarters. This backlog underpins management's 2026 sales guidance and supports production planning, margin predictability and cash conversion.
Read all positive factors
Westinghouse Air Brake Technologies (WAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.20B
Dividend Yield0.46%
Average Volume (3M)895.67K
Price to Earnings (P/E)31.1
Beta (1Y)1.19
Revenue Growth4.40%
EPS Growth14.60%
CountryUS
Employees29,500
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)2.10
Shares Outstanding170,517,200
10 Day Avg. Volume927,707
30 Day Avg. Volume895,671
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 Cap1.10
Enterprise Value/Revenue4.57
Enterprise Value/Gross Profit13.69
Enterprise Value/Ebitda21.88
Forecast
1Y Price Target
$286.36Price Target Upside7.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)10.44
Revenue Forecast (FY)$12.34B
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 ...
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 signific...
Westinghouse Air Brake Technologies Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how much revenue each product line generates, indicating which products are most successful and where there might be potential for growth or need for strategic adjustments.
Shows how much revenue each product line generates, indicating which products are most successful and where there might be potential for growth or need for strategic adjustments.
Data provided by:
The Fly
The FlyWestinghouse Air Brake Technologies Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: solid revenue growth, meaningful adjusted EPS expansion, record cash generation, expanding backlogs, successful acquisitions, and enhanced shareholder returns. Key challenges include tariff-induced cost pressure, timing-related softness in modernization/services, GAAP charges from restructuring and acquisitions, and a weaker North American railcar build outlook for 2026. Management highlighted successful integration savings and raised cost-savings guidance, reinforcing confidence in achieving mid-to-high-teens adjusted EPS growth in 2026. On balance, the positive operational results, cash strength, backlog growth, and proactive cost/integration actions outweigh the near-term headwinds and one-time charges.Positive Updates
Full-Year Revenue and EPS Growth
2025 revenue grew 7.5% year-over-year and adjusted EPS increased 18.7% (nearly 19%), demonstrating strong top-line growth and profitability on an adjusted basis.
Negative Updates
GAAP EPS and Operating Income Charges
Q4 GAAP diluted EPS was $1.18, down 4.1% YoY. The quarter included net pretax charges of $55 million for restructuring and transaction costs and purchase accounting impacts from acquisitions, which pressured GAAP results.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue and EPS Growth
2025 revenue grew 7.5% year-over-year and adjusted EPS increased 18.7% (nearly 19%), demonstrating strong top-line growth and profitability on an adjusted basis.
Read all positive updates
Company Guidance
The company guided 2026 sales of $12.2–$12.5 billion (≈10.5% growth at the midpoint) and adjusted EPS of $10.05–$10.45 (≈14% growth at the midpoint), noting the outlook incorporates the Delner acquisition and is supported by a twelve‑month backlog of $8.2 billion (up 7% YoY) and a multiyear backlog above $27 billion (up 23% YoY); management also pointed to very strong cash performance (average cash conversion >110% over the past two years and a six‑year average of ~99%) but said it will no longer provide annual cash conversion guidance beginning in 2026. Financial position remains healthy with Q4 liquidity of $3.21 billion and net debt leverage of 1.9x after funding roughly $765 million of acquisitions, and capital allocation actions include a 24% dividend increase and a $1.2 billion share repurchase authorization; management expects operating‑margin expansion (no specific full‑year margin number given) and reiterated Integration 3.0 targets of $115–$140 million run‑rate savings by 2028 (with estimated implementation costs of $125–$155 million).Westinghouse Air Brake Technologies Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.17B | 10.39B | 9.68B | 8.36B | 7.82B |
| Gross Profit | 3.52B | 3.37B | 2.94B | 2.54B | 2.37B |
| EBITDA | 2.37B | 2.07B | 1.79B | 1.47B | 1.35B |
| Net Income | 1.17B | 1.06B | 815.00M | 633.00M | 558.00M |
Balance Sheet | |||||
| Total Assets | 22.07B | 18.70B | 18.99B | 18.52B | 18.45B |
| Cash, Cash Equivalents and Short-Term Investments | 789.00M | 706.00M | 620.00M | 541.00M | 473.00M |
| Total Debt | 5.54B | 3.98B | 4.07B | 4.00B | 4.06B |
| Total Liabilities | 10.88B | 8.57B | 8.46B | 8.37B | 8.21B |
| Stockholders Equity | 11.14B | 10.09B | 10.49B | 10.10B | 10.20B |
Cash Flow | |||||
| Free Cash Flow | 1.50B | 1.63B | 1.01B | 889.00M | 943.00M |
| Operating Cash Flow | 1.76B | 1.83B | 1.20B | 1.04B | 1.07B |
| Investing Cash Flow | -2.75B | -343.00M | -492.00M | -235.00M | -540.00M |
| Financing Cash Flow | 1.03B | -1.37B | -633.00M | -708.00M | -653.00M |
Westinghouse Air Brake Technologies Technical Analysis
Positive
267.28
Price Trends
249.98
Positive
233.05
Positive
215.55
Positive
Market Momentum
5.07
Negative
65.81
Neutral
87.30
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 267.28 is above the 20-day moving average (MA) of 248.12, above the 50-day MA of 249.98, and above the 200-day MA of 215.55, indicating a bullish trend. The MACD of 5.07 indicates Negative momentum. The RSI at 65.81 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $46.20B | 31.11 | 10.77% | 0.46% | 4.40% | 14.60% | |
73 Outperform | $148.65B | 19.20 | 41.95% | 2.32% | 1.06% | 8.21% | |
65 Neutral | $1.61B | 34.09 | 9.51% | 2.71% | -8.66% | 27.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.76B | 8.44 | 24.45% | 4.34% | -33.03% | -44.18% | |
59 Neutral | $309.22M | 28.35 | 2.74% | ― | -5.51% | -88.11% | |
53 Neutral | $171.28M | 9.24 | -40.20% | ― | -6.18% | ― |
* Industrials Sector Average
WAB
Westinghouse Air Brake Technologies
267.28
94.86
55.01%
RAIL
Freightcar America
8.98
3.86
75.39%
GBX
Greenbrier
52.15
12.42
31.26%
FSTR
L. B. Foster Company
30.00
10.08
50.60%
TRN
Trinity Industries
34.60
10.16
41.56%
UNP
Union Pacific
250.51
33.36
15.36%
Westinghouse Air Brake Technologies Corporate Events
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–...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Wabtec Posts Strong Q4 Results and Raises Shareholder Returns
Positive
Feb 11, 2026
On February 11, 2026, Wabtec reported that fourth-quarter 2025 sales rose 14.8% year over year to $2.97 billion, driven by strong growth in its Freight and Transit segments, with adjusted diluted EPS up 25% to $2.10 despite a 4.1% decline in GAAP ...
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.