Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $35.20B
• Dividend Yield: 0.41%
• Average Volume (3M): 974.40K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.20
• Revenue Growth: 5.21%
• EPS Growth: 24.15%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 91
• Industry: Railroads
• EPS (TTM): 2.28
• Shares Outstanding: 171,126,330
• 10 Day Avg. Volume: 803,775
• 30 Day Avg. Volume: 974,399
• PEG Ratio: 5.29
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.41
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 10.95
• Enterprise Value/Ebitda: 4.42
• 1Y Price Target: $210.33
• Price Target Upside: 2.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Westinghouse Air Brake Technologies scores a strong 79, driven by excellent financial performance and positive earnings call insights. However, technical indicators suggest caution, and the high valuation tempers enthusiasm. The company is well-positioned for growth, especially internationally, but must navigate North American market challenges and tariff uncertainties.

Positive Factors

Acquisitions

The acquisition of Dellner Couplers strengthens WAB's Transit product portfolio and financial profile.

Earnings

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

Innovation

The Rail Ghost project, an autonomous car inspection machine, could help save tens of millions of dollars in annual inspection costs.

Negative Factors

Freight Segment Performance

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

Stock Performance

WAB traded off -9% following a 4Q miss and a softer than expected 2025 guide as midpoints of revenue and EPS trailed consensus.

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 manufactures and services components for new and existing freight cars and locomotives; builds new commuter locomotives; rebuilds freight locomotives; supplies railway electronics, positive train control equipment, signal design, and engineering services; and provides related heat exchange and cooling systems. It serves publicly traded railroads; leasing companies; manufacturers of original equipment, including locomotives and freight cars; and utilities. The Transit segment manufactures and services components for new and existing passenger transit vehicles, such as regional trains, high speed trains, subway cars, light-rail vehicles, and buses; refurbishes subway cars; and provides heating, ventilation, and air conditioning equipment, as well as doors for buses and subways. This segment serves public transit authorities and municipalities, leasing companies, and manufacturers of subway cars and buses. It also provides electronically controlled pneumatic braking products; railway electronics; freight car trucks; draft gears, couplers, and slack adjusters; air compressors and dryers; heat exchangers and cooling products; and track and switch products. In addition, the company offers railway braking equipment and related components; friction products; new switcher locomotives; transit locomotive and car overhaul services; and freight locomotive overhaul, modernizations, and refurbishment services. Further, it provides platform screen doors; pantographs; window assemblies; couplers; accessibility lifts and ramps for buses and subway cars; and traction motors. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

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 performance with consistent revenue growth, robust profit margins, effective cash flow management, and a solid balance sheet. This positions the company well for future growth in the railroads industry.

Income Statement

Westinghouse Air Brake Technologies demonstrates strong financial performance with consistent revenue growth. The revenue increased from $10.387 billion to $10.5 billion, showing a positive growth trajectory. Gross profit margin stands robustly at approximately 31.56% TTM, with notable net profit margin growth to 12.47% TTM. EBIT and EBITDA margins are healthy, at 16.08% and 18.21% respectively, indicating strong operational efficiency and profitability.

Balance Sheet

The balance sheet of Westinghouse Air Brake Technologies is solid, with a reasonable debt-to-equity ratio of 0.39, indicating manageable leverage. The return on equity is impressive at 12.63% TTM, reflecting effective utilization of shareholder funds. The equity ratio is healthy at 54.29%, showcasing a stable financial structure with ample equity backing.

Cash Flow

The company exhibits strong cash flow management, with a high operating cash flow to net income ratio of 1.29 TTM, suggesting efficient cash generation relative to earnings. Free cash flow growth rate is slightly negative but remains strong, with robust free cash flow to net income ratio of 1.12 TTM, indicating strong liquidity and the ability to fund operations and investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.50B	10.39B	9.68B	8.36B	7.82B	7.56B
	Gross Profit
3.31B	3.37B	2.94B	2.29B	2.13B	1.90B
	EBIT
1.69B	1.61B	1.27B	1.06B	954.00M	859.50M
	EBITDA
2.02B	1.61B	1.79B	1.52B	1.41B	1.23B
	Net Income Common Stockholders
1.11B	1.06B	815.00M	633.00M	558.00M	414.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
698.00M	715.00M	620.00M	541.00M	473.00M	598.70M
	Total Assets
19.10B	18.70B	18.99B	18.52B	18.45B	18.45B
	Total Debt
4.01B	3.98B	4.38B	4.00B	4.06B	3.79B
	Net Debt
3.32B	3.27B	3.76B	3.46B	3.58B	3.19B
	Total Liabilities
8.68B	8.57B	8.46B	8.37B	8.21B	8.30B
	Stockholders Equity
10.37B	10.09B	10.49B	10.10B	10.20B	10.12B
Cash Flow		Free Cash Flow
1.47B	1.63B	1.01B	889.00M	943.00M	647.30M
	Operating Cash Flow
1.69B	1.83B	1.20B	1.04B	1.07B	783.70M
	Investing Cash Flow
-368.00M	-343.00M	-492.00M	-235.00M	-540.00M	-155.40M
	Financing Cash Flow
-1.25B	-1.37B	-633.00M	-708.00M	-653.00M	-619.00M

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 205.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 205.69 is above the 20-day moving average (MA) of 189.67, above the 50-day MA of 182.38, and above the 200-day MA of 184.88, indicating a bullish trend. The MACD of 6.76 indicates Negative momentum. The RSI at 74.10 is Negative, neither overbought nor oversold. The STOCH value of 94.47 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
WAB	79 Outperform	$35.20B	32.24	10.62%	0.41%	5.21%	24.15%
NSC	75 Outperform	$55.48B	16.81	24.52%	2.19%	0.70%	135.08%
TRN	71 Outperform	$2.19B	16.53	14.14%	4.32%	-9.40%	8.41%
UNP	70 Outperform	$138.27B	20.85	42.47%	2.30%	0.63%	5.93%
GBX	67 Neutral	$1.49B	7.51	14.69%	2.57%	-5.79%	82.71%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
RAIL	52 Neutral	$147.18M	―	156.43%	―	12.58%	34.10%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Reports Strong Q1 2025 Results, Raises EPS Guidance

On April 23, 2025, Wabtec Corporation reported its first quarter results for 2025, highlighting a 4.5% increase in sales to $2.61 billion and a significant rise in earnings per share. The company announced an increase in full-year EPS guidance, reflecting strong performance across its Freight and Transit segments, with international business contributing notably to profitability. The results indicate robust business momentum, although the company remains cautious due to economic uncertainties.

Spark’s Take on WAB Stock

According to Spark, TipRanks’ AI Analyst, WAB is a Outperform.

Wabtec demonstrates strong financial performance and a promising outlook for 2025, driven by robust cash flow and strategic growth initiatives. The technical indicators suggest short-term caution due to downward momentum. The company’s valuation appears high, warranting careful consideration. Despite these challenges, the positive guidance and confidence in shareholder returns provide a balanced view, resulting in a solid stock score.

To see Spark’s full report on WAB stock, click here.