Westinghouse Air Brake Technologies Corporation
- Open
- 290.51
- Day high
- 291.70
- Day low
- 285.65
- Prev close
- 292.23
- Volume
- 989K
- Mkt cap
- $48.3B
- P/E (TTM)
- 38.4
- EPS (TTM)
- $7.45
- P/B
- 4.3
- P/S
- 4.0
- Yield
- 0.33%
- Per share
- $0.93
- ▼Insiders net selling -$7.6M over the last 3 months (0 open-market buys, 37 sales)
- 🏛Institutions accumulating (13F)
Westinghouse Air Brake Technologies Corporation (WAB) is a Industrials company listed on NYSE. The stock is up 50% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 37 sales (SEC Form 4).
Westinghouse Air Brake Technologies Corporation (WAB) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WAB earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 22, 2026 | $2.59 | $2.76 | +6.4% | $3.2B | +3.6% |
| Apr 22, 2026 | $2.52 | $2.71 | +7.8% | $3.0B | -0.2% |
| Feb 11, 2026 | $2.08 | $2.10 | +1.0% | $3.0B | +3.5% |
| Oct 22, 2025 | $2.28 | $2.32 | +1.8% | $2.9B | +0.2% |
| Jul 24, 2025 | $2.17 | $1.96 | -9.7% | $2.7B | -2.3% |
| Apr 23, 2025 | $2.03 | $2.28 | +12.3% | $2.6B | +0.1% |
| Feb 12, 2025 | $1.74 | $1.68 | -3.4% | $2.6B | -1.5% |
| Oct 23, 2024 | $1.90 | $2.00 | +5.3% | $2.7B | -0.7% |
| Jul 24, 2024 | $1.88 | $1.96 | +4.3% | $2.6B | +0.2% |
| Feb 14, 2024 | $1.58 | $1.54 | -2.5% | $2.5B | +1.7% |
| Oct 25, 2023 | $1.46 | $1.70 | +16.4% | $2.5B | +6.1% |
| Jul 27, 2023 | $1.35 | $1.41 | +4.4% | $2.4B | +6.9% |
WAB insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 24, 2026 | Mendonca Rogerioofficer: President, Equipment Group | Sell | 9 | $296.24 |
| Aug 24, 2026 | Mendonca Rogerioofficer: President, Equipment Group | Sell | 2,910 | $297.05 |
| Aug 21, 2026 | Fetsko Michaelofficer: Pres., Freight Components Grp. | Sell | 2,962 | $293.16 |
| Aug 21, 2026 | Fetsko Michaelofficer: Pres., Freight Components Grp. | Sell | 288 | $293.84 |
| Aug 18, 2026 | Sbrocco Gregoryofficer: EVP Operations | Sell | 952 | $300.00 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 54 | $298.85 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 120 | $297.68 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 80 | $296.46 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 629 | $299.70 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 194 | $298.26 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 397 | $296.14 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 334 | $298.90 |
| Aug 6, 2026 | Santana Rafaeldirector, officer: President and CEO | Sell | 518 | $297.05 |
| Jul 27, 2026 | DeNinno David Lofficer: Exec VP, General Counsel, Sec. | Sell | 3,000 | $301.31 |
| Jul 27, 2026 | Gebhardt Ericofficer: Chief Technology Officer | Sell | 2,353 | $299.69 |
Source: WAB SEC Form 4 filings, latest Aug 24, 2026. For informational purposes only — not investment advice.
See the full WAB insider & 13F page →Westinghouse Air Brake Technologies Corporation company profile
Overview
Westinghouse Air Brake Technologies Corporation (NYSE:WAB), commonly known as Wabtec, is a global technology company that provides equipment, systems, and services for the freight rail and passenger transit industries. Founded in 1869 and headquartered in Pittsburgh, Pennsylvania, the company has evolved from its origins as a manufacturer of air brake systems into a comprehensive provider of rail transportation solutions. Through strategic acquisitions and organic growth, Wabtec has become one of the world's leading suppliers of locomotive technology, freight car components, and transit systems, serving customers across North America and international markets.
Business
Wabtec operates in the rail transportation industry, providing technology-based solutions across two primary business segments. The rail industry serves as the backbone for moving freight across continents and transporting passengers in urban and intercity settings, requiring specialized equipment that can handle extreme loads, weather conditions, and safety requirements. The Freight segment represents the larger portion of Wabtec's business, manufacturing and servicing components for freight cars and locomotives that transport goods across rail networks. This includes building new commuter locomotives, rebuilding existing freight locomotives, and providing railway electronics such as Positive Train Control (PTC) equipment - a safety system that automatically stops trains to prevent collisions and derailments. The segment also supplies heat exchange and cooling systems essential for locomotive operation, along with critical components like brake systems, couplers that connect rail cars, and draft gears that absorb impact forces. This segment primarily serves publicly traded railroads, leasing companies that own rail equipment, original equipment manufacturers, and utility companies. The Transit segment focuses on passenger transportation, manufacturing and servicing components for regional trains, high-speed trains, subway cars, light-rail vehicles, and buses. Key products include heating, ventilation, and air conditioning (HVAC) systems, doors for buses and subways, platform screen doors that separate passengers from train tracks for safety, pantographs that collect electricity from overhead wires, and accessibility equipment like lifts and ramps. This segment serves public transit authorities, municipalities, leasing companies, and manufacturers of passenger rail vehicles. Based on recent financial reports, the Freight segment generates approximately 65-70% of total revenue, while the Transit segment contributes around 30-35%. The company also provides digital intelligence solutions and extensive aftermarket services, which have become increasingly important revenue drivers with higher margins and recurring revenue characteristics.
Revenue model
Wabtec generates revenue through multiple complementary business models that create a balanced portfolio of growth and stability. The company's revenue streams include product sales of new equipment, aftermarket services and parts, and increasingly, digital solutions and software licensing. Product sales represent the largest revenue component, encompassing new locomotives, freight car components, transit vehicle parts, and complete system installations. These sales typically involve large contracts with railroads, transit authorities, and equipment manufacturers, often with multi-year delivery schedules. The company's customers include Class I railroads (the largest freight railroads in North America), regional and short-line railroads, transit agencies, locomotive leasing companies, and original equipment manufacturers. Aftermarket services provide a critical recurring revenue stream with higher margins than new equipment sales. This includes locomotive modernization and overhaul services, where Wabtec rebuilds aging locomotives with new technology to extend their operational life and improve efficiency. Parts and maintenance services generate steady cash flow as rail equipment requires regular maintenance and component replacement throughout its 20-40 year operational life. Service contracts often span multiple years, providing revenue visibility and customer stickiness. Digital intelligence solutions represent a growing revenue source, offering software-based products like Trip Optimizer (which uses algorithms to optimize fuel consumption and train handling) and various predictive maintenance and fleet management systems. These solutions typically generate recurring subscription or usage-based revenue with high margins. Several factors influence Wabtec's profitability margins. Positive factors include the aging North American locomotive fleet driving replacement demand, increasing international infrastructure investment particularly in emerging markets, growing emphasis on fuel efficiency and emissions reduction creating demand for newer technology, and the shift toward higher-margin services and digital solutions. Negative factors include commodity price volatility affecting raw material costs, competitive pricing pressure particularly in mature markets, foreign exchange fluctuations impacting international operations, and cyclical nature of railroad capital spending tied to economic conditions and freight volumes.
Competitive moat
Wabtec possesses a moderate but meaningful competitive moat built on several defensive characteristics, though the strength varies across its business segments. The company's primary moat stems from its installed base advantage and switching costs. Once Wabtec equipment is installed on locomotives or rail cars, customers face significant costs and operational disruption to switch to competing systems. This is particularly strong in safety-critical systems like braking and control equipment, where reliability and regulatory compliance are paramount. The company benefits from high barriers to entry in the rail industry due to stringent safety regulations and certification requirements. New entrants must navigate complex approval processes with agencies like the Federal Railroad Administration, which can take years and require substantial investment. Wabtec's century-plus operating history provides credibility and regulatory relationships that are difficult for new competitors to replicate. Network effects exist in Wabtec's digital solutions, where Trip Optimizer and other software products become more valuable as more locomotives in a network use them, enabling better coordination and optimization. The company's extensive service network and parts distribution also create customer convenience that competitors struggle to match quickly. However, Wabtec's moat faces several challenges. The rail industry has relatively few large customers, giving buyers significant negotiating power and limiting pricing flexibility. Technological disruption poses a long-term threat, particularly from alternative transportation modes and potential shifts toward autonomous vehicles for freight. International markets, while offering growth opportunities, often favor local suppliers and face political risks. Additionally, some of Wabtec's products face competition from well-established industrial conglomerates like GE Transportation (now part of Wabtec through acquisition) and international competitors, preventing the company from achieving monopolistic pricing power. Overall, Wabtec operates in a relatively stable oligopoly with meaningful but not insurmountable competitive advantages, making it more defensible than cyclical industrials but less protected than true monopolistic businesses.
Risks & safety
Wabtec demonstrates a solid financial position with moderate margin of safety, though valuation metrics suggest limited upside at current levels. **Liquidity and Solvency:** - Strong balance sheet with $698 million in cash and short-term investments as of Q1 2025 - Current ratio of 1.34 indicates adequate short-term liquidity - Debt-to-equity ratio of 0.39 represents manageable leverage levels - Positive free cash flow generation of $147 million in Q1 2025, with strong full-year 2024 free cash flow of $1.6 billion - No immediate solvency concerns given stable cash generation and manageable debt load **Valuation Metrics:** - Trading at 24x P/E ratio based on recent earnings, above historical industrial averages - EV/EBITDA of 14.7x suggests modest premium valuation - Price-to-book ratio of 3.0x indicates market expectations of continued ROE improvement - Graham number of $50.83 significantly below current price of $181.97, suggesting overvaluation by traditional value metrics **Other Considerations:** - Cyclical business model tied to railroad capital spending creates earnings volatility risk - Strong competitive position and recurring service revenue provide some downside protection - International expansion offers growth potential but adds currency and political risks
Recent development
Over the past few years, Wabtec has undergone significant strategic transformation focused on operational efficiency, international expansion, and technology advancement. The company launched Integration 2.0 in 2022, a comprehensive restructuring program targeting $75-90 million in run-rate cost savings by 2025, which has been succeeded by Integration 3.0 announced in 2024 with even more ambitious targets of $100-125 million in additional savings by 2028. International market expansion has become a cornerstone of Wabtec's growth strategy, with the company securing major contracts across emerging markets. Notable wins include a $405 million locomotive order with Kazakhstan Railways, a $300 million service agreement in Kazakhstan, and significant orders in the Asia-Pacific region totaling $130 million. The company has emphasized that international markets consistently deliver higher profitability than North American operations, driven by long-term productivity improvements and platform standardization. Digital transformation represents another key strategic pivot, with Wabtec expanding its Digital Intelligence solutions and targeting an increase in recurring revenue from the current 30% to over 50% of the digital business. The company has focused on predictive maintenance, fleet optimization software, and data analytics services that provide ongoing value to customers while generating higher-margin recurring revenue. Decarbonization initiatives have gained prominence as railroads seek to reduce emissions. Wabtec has developed flexible solutions including bio-fuels, renewable fuels compatibility, and preparation for potential hydrogen integration. The company launched its Green Friction braking solution and continues investing in technologies that help customers transition to cleaner operations. The company has also pursued portfolio optimization, focusing on higher-margin, technology-driven solutions while maintaining its core equipment manufacturing capabilities. Management has indicated they have their strongest M&A pipeline to date, targeting digital technologies, near-adjacencies like mining, and bolt-on acquisitions with recurring revenue potential.
WAB company profile · for informational purposes only — not investment advice.
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