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Westinghouse Air Brake Technologies
(NYSE:WAB)
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Rating:72Outperform
Price Target:
$315.00
▲(6.08% Upside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by strong underlying fundamentals (revenue/margin expansion and solid free cash flow) and a notably constructive earnings outlook (raised EPS guidance and strong backlog/coverage). These positives are tempered by premium valuation (high P/E, low yield) and weaker near-term technical momentum (below short-term averages with negative MACD), with leverage trending higher as a secondary risk.
Positive Factors
Recurring aftermarket strength
Wabtec’s large installed base supports recurring aftermarket and service revenue because rail assets are long-lived and require ongoing maintenance for safety and reliability. Compatibility and switching costs can deepen customer relationships, helping stabilize earnings beyond cyclical equipment deliveries.
Negative Factors
Lower North American railcar builds
Lower railcar production can weaken demand for Wabtec’s components and equipment, particularly in the Freight segment. Although services and other products provide offsets, a depressed build cycle may constrain original-equipment growth and create uneven demand across the near-term planning horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket strength
Wabtec’s large installed base supports recurring aftermarket and service revenue because rail assets are long-lived and require ongoing maintenance for safety and reliability. Compatibility and switching costs can deepen customer relationships, helping stabilize earnings beyond cyclical equipment deliveries.
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
$45.70B
Dividend Yield0.43%
Average Volume (3M)923.15K
Price to Earnings (P/E)33.7
Beta (1Y)0.96
Revenue Growth13.25%
EPS Growth16.83%
CountryUS
Employees31,000
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)8.07
Shares Outstanding167,802,380
10 Day Avg. Volume1,147,788
30 Day Avg. Volume923,153
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 Cap1.20
Enterprise Value/Revenue4.49
Enterprise Value/Gross Profit12.82
Enterprise Value/Ebitda21.93
Forecast
1Y Price Target
$331.20Price Target Upside11.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)10.97
Revenue Forecast (FY)$12.50B
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 by selling rail equipment and technology and by providing recurring aftermarket and service support over the life of that installed equipment. Its revenue model is primarily driven by (1) original equipment sales and project del...
Westinghouse Air Brake Technologies Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 17, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Wabtec reported broad-based sales, earnings, margin, backlog, cash-flow, and segment growth; raised adjusted EPS guidance; cited strong order coverage, business wins, acquisition performance, and multiple long-term growth opportunities. The main challenges were the decline in North American railcar builds, mixed freight-market conditions, tariff and currency headwinds, lower locomotive deliveries caused by timing, and higher acquisition-related expenses, but management characterized these issues as manageable and maintained a confident outlook.Positive Updates
Strong Third-Quarter Financial Performance
Third-quarter sales were $3.12 billion, up 8.1% year over year and up 8.3% excluding currency. GAAP operating income increased 27.3% to $625 million, GAAP earnings per diluted share rose 33.7% to $2.42, and adjusted EPS increased 22.0% to $2.83.
Negative Updates
North American Railcar Build Reduction
The 2026 North American industry railcar build forecast was reduced to approximately 23,000 cars from approximately 25,000 cars previously, representing a 26% reduction from last year's build. Management also referred to the industry projection as being down about 27%.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Third-quarter sales were $3.12 billion, up 8.1% year over year and up 8.3% excluding currency. GAAP operating income increased 27.3% to $625 million, GAAP earnings per diluted share rose 33.7% to $2.42, and adjusted EPS increased 22.0% to $2.83.
Read all positive updates
Company Guidance
For 2026, Wabtec raised full year adjusted EPS guidance to the range of $10.85-$11.05, up 22% at the midpoint, while revenue guidance remains unchanged; year-to-date organic growth sits at 5.2%, and the company expects that organic growth will be above 5%. Fourth-quarter margin expansion is expected to be a fair amount higher than the third quarter, with “oversize margin” and $0.20 higher overall EPS. The 2026 North America railcar build forecast is approximately 23,000 cars, a 26% reduction from last year's car build, while industry forecast for 2027 is to be going up back to really 2025 numbers, still well below here the replacement ratio. For the longer term, the company expects margin growth certainly in 2027, with a 350-plus basis points framework, about two-thirds from the cost side and the other third from delivering innovative products.Westinghouse Air Brake Technologies Financial Statement Overview
Summary
Income Statement
86
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 | 12.21B | 11.17B | 10.39B | 9.68B | 8.36B | 7.82B |
| Gross Profit | 4.28B | 3.52B | 3.37B | 2.94B | 2.54B | 2.37B |
| EBITDA | 2.50B | 2.27B | 2.07B | 1.79B | 1.47B | 1.35B |
| Net Income | 1.37B | 1.17B | 1.06B | 815.00M | 633.00M | 558.00M |
Balance Sheet | ||||||
| Total Assets | 23.14B | 22.07B | 18.70B | 18.99B | 18.52B | 18.45B |
| Cash, Cash Equivalents and Short-Term Investments | 489.00M | 789.00M | 706.00M | 620.00M | 541.00M | 473.00M |
| Total Debt | 6.77B | 5.54B | 3.98B | 4.07B | 4.00B | 4.06B |
| Total Liabilities | 11.78B | 10.88B | 8.57B | 8.46B | 8.37B | 8.21B |
| Stockholders Equity | 11.36B | 11.14B | 10.09B | 10.49B | 10.10B | 10.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.78B | 1.50B | 1.63B | 1.01B | 889.00M | 943.00M |
| Operating Cash Flow | 2.09B | 1.76B | 1.83B | 1.20B | 1.04B | 1.07B |
| Investing Cash Flow | -2.10B | -2.75B | -343.00M | -492.00M | -235.00M | -540.00M |
| Financing Cash Flow | -23.00M | 1.03B | -1.37B | -633.00M | -708.00M | -653.00M |
Westinghouse Air Brake Technologies Technical Analysis
Negative
296.94
Price Trends
287.06
Negative
281.23
Negative
266.20
Positive
Market Momentum
-1.76
Positive
35.09
Neutral
36.21
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 296.94 is above the 20-day moving average (MA) of 285.96, above the 50-day MA of 287.06, and above the 200-day MA of 266.20, indicating a neutral trend. The MACD of -1.76 indicates Positive momentum. The RSI at 35.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.21 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $45.70B | 33.75 | 12.17% | 0.43% | 13.25% | 16.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $370.19M | 32.28 | 6.49% | 1.33% | 10.13% | -67.50% | |
62 Neutral | $5.84B | 16.27 | 13.35% | 1.57% | 22.81% | 15.43% | |
57 Neutral | $1.18B | 11.01 | 6.57% | 3.47% | -25.64% | -52.74% | |
53 Neutral | $2.03B | 5.94 | 31.93% | 4.86% | -18.95% | 260.48% | |
49 Neutral | $138.71M | -10.58 | 21.95% | 1.97% | -0.50% | 47.71% |
* Industrials Sector Average
WAB
Westinghouse Air Brake Technologies
272.35
72.94
36.58%
RAIL
Freightcar America
4.23
-5.63
-57.10%
GATX
GATX
165.47
9.64
6.18%
GBX
Greenbrier
38.09
-6.36
-14.30%
FSTR
L. B. Foster Company
35.19
8.81
33.40%
TRN
Trinity Industries
25.54
-1.53
-5.66%
Westinghouse Air Brake Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Wabtec Raises Guidance After Strong Third-Quarter Results
Positive
Oct 21, 2026
On October 21, 2026, Wabtec reported strong third-quarter 2026 results, with net sales rising 8.1% year over year to $3.12 billion and cash from operations reaching $455 million. GAAP diluted earnings per share climbed 33.7% to $2.42, while adjust...
Business Operations and StrategyPrivate Placements and Financing
Wabtec Launches $2 Billion Commercial Paper Program
Positive
Oct 1, 2026
On October 1, 2026, Westinghouse Air Brake Technologies Corporation established a $2 billion commercial paper program to issue short‑term, unsecured notes guaranteed by multiple Wabtec and GE Transportation affiliates. The notes, with maturi...
Business Operations and StrategyFinancial Disclosures
Wabtec Reports Strong Second Quarter 2026 Financial Results
Positive
Jul 22, 2026
On July 22, 2026, Wabtec reported strong second quarter 2026 results, with sales rising 17.5% year on year to $3.18 billion and cash from operations more than doubling to $441 million. GAAP diluted earnings per share increased 18.9% to $2.33, whil...
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.