One-glance verdict
Within fair range
$264.42 our estimate vs market $286.82
Wall Street consensus: $330.00 (24.8% higher than our fair-value estimate)
8% above our estimate
Fundamentals snapshot
Westinghouse Air Brake Technologies Corporation
WAB · NYQ · Industrials · Railroads
Current price
$286.82
52-week range
$186.06 - $306.64
Market cap
$48.45B
Balance sheet
Watch
7.97x Adequate
Net debt $6.28B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 7.3% last year.
- Reward Returns 11.6% on equity, ahead of 16% of its peers.
- Risk Net debt grew 38.0% over 3 years.
- Risk Stock trades 29.0% above its 5-year average P/E.
What this company does
Westinghouse Air Brake Technologies Corporation
Westinghouse Air Brake Technologies Corporation, also known as Wabtec, makes important equipment and services for trains, like braking systems and engines, for both freight and passenger transport. Most of its money comes from selling these products and offering maintenance and repair services, which is important because it shows how much customers rely on their reliable parts and ongoing support.
How the company got here
Westinghouse Air Brake Technologies Corporation, or Wabtec, has a history stretching back to 1869 when George Westinghouse invented the automatic air brake, revolutionizing train safety and efficiency. The modern company was formed in 1999 through a merger, and further expanded significantly with the acquisition of GE Transportation in 2019. These strategic moves have positioned Wabtec as a global leader in providing essential equipment and services for the rail industry. The company's long-standing presence and continuous innovation underscore its deep roots in transportation technology.
What it actually does
Wabtec is a major player in the transportation sector, specifically focusing on the rail industry. They design, manufacture, and service a wide array of products and systems that are crucial for the safe and efficient operation of both freight trains and passenger transit vehicles. Think of them as the company that makes the critical components that keep trains moving, from the brakes that stop them to the complex electronic systems that control them. Their offerings also extend to digital solutions that help manage and optimize rail operations.
Freight
The Freight segment is a significant part of Wabtec's business, focusing on equipment and services for the freight rail industry. This includes building new locomotives (the powerful engines that pull freight trains) and modernizing existing ones. They also produce and service a wide range of freight car components, such as braking systems and electronic equipment, which are essential for the safe transport of goods. A key aspect of this segment is the aftermarket business, where Wabtec provides ongoing maintenance, parts, and upgrades for the equipment they've sold, ensuring long-term reliability and performance.
Transit
Wabtec's Transit segment is dedicated to serving the passenger rail and public transportation sector. This involves providing critical systems and components for various transit vehicles, including subway cars, commuter trains, and buses. Their products in this segment range from braking and door systems to climate control and passenger information systems. Similar to the Freight segment, Wabtec also offers extensive aftermarket services, including maintenance and refurbishment, to keep these vital public transportation systems running smoothly.
What management is betting on now
Wabtec's current strategy is heavily focused on innovation and sustainability, particularly in developing zero-emission rail technologies, such as battery-electric locomotives. They are also investing in digital solutions to enhance the efficiency and safety of rail operations through data analytics and advanced monitoring systems. Furthermore, the company is actively pursuing growth through strategic acquisitions, integrating new technologies and expanding its market reach. Management aims to drive earnings growth by leading the industry in these key areas.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$496.00M
FY2024 Q4
$639.00M
FY2025 Q1
$147.00M
FY2025 Q2
$170.00M
FY2025 Q3
$312.00M
FY2025 Q4
$870.00M
FY2026 Q1
$153.00M
FY2026 Q2
$379.00M
Revenue
$3.18B
Net income
$395.00M
Diluted EPS
2.33
Operating cash flow
$441.00M
Free cash flow
$379.00M
Fetching…
Sources
Revenue
$2.95B
Net income
$362.00M
Diluted EPS
2.12
Operating cash flow
$199.00M
Free cash flow
$153.00M
Fetching…
Sources
Revenue
$2.96B
Net income
$202.00M
Diluted EPS
1.18
Operating cash flow
$992.00M
Free cash flow
$870.00M
Fetching…
Sources
Revenue
$2.89B
Net income
$310.00M
Diluted EPS
1.81
Operating cash flow
$367.00M
Free cash flow
$312.00M
Fetching…
Sources
Revenue
$2.71B
Net income
$336.00M
Diluted EPS
1.96
Operating cash flow
$209.00M
Free cash flow
$170.00M
Fetching…
Sources
Revenue
$2.61B
Net income
$322.00M
Diluted EPS
1.88
Operating cash flow
$191.00M
Free cash flow
$147.00M
Fetching…
Sources
Revenue
$2.58B
Net income
$212.00M
Diluted EPS
1.24
Operating cash flow
$723.00M
Free cash flow
$639.00M
Fetching…
Sources
Revenue
$2.66B
Net income
$283.00M
Diluted EPS
1.63
Operating cash flow
$542.00M
Free cash flow
$496.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $264.42 vs current price $286.82
Wall Street consensus is the average analyst price target: $330.00 (24.8% higher than our fair-value estimate).
Our most-likely fair value is $264.42 a share — about 7.8% away from today's price of $286.82, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $6.3B. Interest coverage 8.0x.
Net debt
$6.28B
Interest coverage
7.97x
Westinghouse Air Brake Technologies Corporation's profit covers its interest bill about 8.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
WAB
BASELINE
Westinghouse Air Brake Technologies Corporation
Total debt $6.94B Interest coverage 7.97x This is the baseline the peer rows are being compared against.
Total debt $45.15B Interest coverage 22.21x +179% vs WAB Carries about 2.8x more debt cushion than WAB.
Total debt $8.29B Interest coverage 11.75x +47% vs WAB Carries about 1.5x more debt cushion than WAB.
Total debt $12.48B Interest coverage 1.36x -83% vs WAB Carries about 5.8x less debt cushion than WAB.
Total debt $5.37B Interest coverage 1.31x -84% vs WAB Carries about 6.1x less debt cushion than WAB.
Total debt $1.88B Interest coverage 4.34x -46% vs WAB Carries about 1.8x less debt cushion than WAB.
What you should know
The case for and against WAB
3 Rewards
3 Risks
Rewards
-
Revenue grew 7.3% last year.
-
Returns 11.6% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 38.0% over 3 years.
-
Stock trades 29.0% above its 5-year average P/E.
-
Insider ownership is only 0.7% (peer median: 1.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.55x
Forward P/E
22.97x
P/B
4.33x
P/S
4.04x
EV/EBITDA
20.65x
PEG ratio
1.37x
Profitability
How much profit each dollar creates
Gross margin
35.7%
Operating margin
19.2%
Net margin
10.6%
ROE
11.6%
ROA
6.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.62x
Current ratio
1.12x
Quick ratio
0.53x
Total debt
$6.94B
Total cash
$660.00M
Growth
How the business has been compounding
Revenue TTM
$11.98B
Revenue 5Y CAGR
9.3%
EPS TTM
7.44
EPS 5Y CAGR
25.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.00B
Free CF TTM
$1.50B
FCF margin
12.5%
Dividend
Shareholder payout
Yield
0.4%
Payout ratio
15.0%
Last ex-div date
2026-11-17