Westinghouse Air Brake Technologies Corporation (WAB) AI Stock Analysis

Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec, manufactures and services equipment for the global freight rail and passenger transit industries. It operates in two main segments: Freight and Transit. The Freight segment builds, rebuilds, and services freight components and locomotives, supplying railway electronics, positive train control equipment, signal design, and cooling systems to railroads, leasing firms, and original equipment manufacturers. The Transit segment manufactures components for passenger transit vehicles, including high-speed trains, subway cars, light-rail vehicles, and buses, offering braking systems, doors, and heating and ventilation products to transit authorities and municipalities.

Wabtec grew annual revenue from $7.82B in FY2021 to $11.17B in FY2025, reflecting a 5-year revenue CAGR of 8.1%. Operating margin expanded over the same timeframe from 11.2% in FY2021 to 16.7% in FY2025, while net margin rose from 7.1% to 10.5%. Net income increased from $558.0M to $1.17B, with EPS rising from $4.27 to $8.97. For the trailing twelve months, revenue reached $11.98B with an operating margin of 19.2%. In the latest quarter ended June 30, 2026, quarterly revenue grew 17.5% year-over-year, and quarterly earnings grew 18.9%.

As of June 30, 2026, Wabtec held $670.0M in cash and short-term investments against $6.94B in total debt, resulting in net debt of $6.27B. Shareholders' equity was $11.24B, with a debt-to-equity ratio of 0.62 and a current ratio of 1.12. In FY2025, operating cash flow was $1.76B and free cash flow stood at $1.50B. Capital expenditures were $260.0M, share buybacks totaled $223.0M, and dividends paid were $173.0M. The 5-year share count change was -8.8%.

Trading at $286.82, Wabtec carries a trailing P/E of 38.6x and a forward P/E of 23.8x, both above the median of its S&P 500 Industrials peers of 28.4x and 20.1x, respectively. Its enterprise value is $55.26B, with an EV/EBITDA of 22.2x compared to the peer median of 17.2x, and a price-to-sales multiple of 4.0x against the peer median of 3.1x. The stock has gained 48.8% over the past year and 220.5% over five years, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% over the same periods.

Wabtec pays an annual forward dividend of $1.24 per share, translating to a dividend yield of 0.43% with a payout ratio of 11.9%. The company has paid dividends for 32 consecutive years, supported by an annualized 5-year dividend growth rate of 15.8%. Distributions are made quarterly, with the last ex-dividend date on August 18, 2026.

Wabtec has 9 Strong Buy, 1 Buy, and 2 Hold ratings from analysts, with no Sell or Strong Sell recommendations. The mean price target is $330.00, representing 15.1% upside from the last close of $286.82. Consensus estimates project FY2026 EPS of $10.87 on revenue of $12.55B, followed by FY2027 EPS of $12.48 on revenue of $13.45B. Wabtec beat EPS estimates in each of the last 4 quarters, and the next earnings date is October 21, 2026.

This page is an AI-written research summary of Westinghouse Air Brake Technologies Corporation (WAB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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