📊 WAB Key Takeaways
Is Westinghouse Air Brake Technologies Corp. (WAB) a Good Investment?
WAB demonstrates solid operational performance with 7.5% revenue growth and strong cash generation (1.5B FCF), supported by healthy profitability margins (10.5% net margin, 16.1% operating margin). The company maintains conservative leverage (0.50x debt/equity) and exceptional interest coverage (427.4x), indicating financial stability, though liquidity metrics warrant monitoring given modest current ratio of 1.11x.
WAB shows solid fundamental quality with healthy revenue growth, strong operating and free cash flow generation, and durable margins for an industrial business. Profitability remains strong, with a 16.1% operating margin and 13.4% free cash flow margin, while leverage appears manageable relative to equity and cash generation. The main limitation is that net income growth has lagged revenue growth, suggesting investors should watch whether margin discipline and conversion to earnings remain intact.
Why Buy Westinghouse Air Brake Technologies Corp. Stock? WAB Key Strengths
- Strong free cash flow generation of 1.5B with 13.4% FCF margin demonstrates operational efficiency and cash conversion capability
- Healthy profitability across all margins (gross 34.1%, operating 16.1%, net 10.5%) indicating pricing power and cost control
- Conservative leverage profile with 0.50x debt/equity ratio and exceptional 427.4x interest coverage providing financial flexibility
- Consistent revenue growth of 7.5% YoY in cyclical railroad equipment sector demonstrates market demand resilience
- Strong margin profile with 34.1% gross margin, 16.1% operating margin, and 10.5% net margin
- Robust cash generation, including $1.76B operating cash flow and $1.50B free cash flow
- Manageable leverage with 0.50x debt-to-equity and ample earnings coverage of interest obligations
WAB Stock Risks: Westinghouse Air Brake Technologies Corp. Investment Risks
- Liquidity position shows some pressure with current ratio of 1.11x and quick ratio of 0.57x, suggesting potential working capital constraints
- Modest net income growth of 0.3% YoY despite 7.5% revenue growth indicates margin pressure or operational deleverage concerns
- High insider activity with 51 Form 4 filings in 90 days requires monitoring for potential insider selling or volatility signals
- Dependence on cyclical railroad equipment sector creates exposure to economic downturns and capital spending reductions by rail operators
- Net income growth was nearly flat despite 7.5% revenue growth, which may indicate slower earnings conversion
- Liquidity is only adequate, with a 1.11x current ratio and 0.57x quick ratio
- Long-term debt of $5.54B remains meaningful and could reduce flexibility if operating conditions weaken
Key Metrics to Watch
- Free cash flow trend and working capital efficiency given liquidity concerns
- Revenue growth sustainability and gross margin trends to identify margin pressure sources
- Debt levels and leverage ratios as company scales operations
- Operating cash flow conversion and capital expenditure requirements
- Net income and operating margin progression relative to revenue growth
- Free cash flow conversion and balance sheet liquidity
Westinghouse Air Brake Technologies Corp. (WAB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Westinghouse Air Brake Technologies Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WAB Profit Margin, ROE & Profitability Analysis
WAB vs Industrial Sector: How Westinghouse Air Brake Technologies Corp. Compares
How Westinghouse Air Brake Technologies Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Westinghouse Air Brake Technologies Corp. Stock Overvalued? WAB Valuation Analysis 2026
Based on fundamental analysis, Westinghouse Air Brake Technologies Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Westinghouse Air Brake Technologies Corp. Balance Sheet: WAB Debt, Cash & Liquidity
WAB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Westinghouse Air Brake Technologies Corp.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.53 reflects profitable operations.
WAB Revenue Growth, EPS Growth & YoY Performance
WAB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.7B | $283.0M | $1.63 |
| Q2 2025 | $2.6B | $289.0M | $1.64 |
| Q1 2025 | $2.5B | $272.0M | $1.53 |
| Q3 2024 | $2.6B | $240.0M | $1.33 |
| Q2 2024 | $2.4B | $191.0M | $1.06 |
| Q1 2024 | $2.2B | $169.0M | $0.93 |
| Q3 2023 | $2.1B | $160.0M | $0.88 |
| Q2 2023 | $2.0B | $166.0M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Westinghouse Air Brake Technologies Corp. Dividends, Buybacks & Capital Allocation
WAB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Westinghouse Air Brake Technologies Corp. (CIK: 0000943452)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WAB
What is the AI rating for WAB?
Westinghouse Air Brake Technologies Corp. (WAB) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WAB's key strengths?
Claude: Strong free cash flow generation of 1.5B with 13.4% FCF margin demonstrates operational efficiency and cash conversion capability. Healthy profitability across all margins (gross 34.1%, operating 16.1%, net 10.5%) indicating pricing power and cost control. ChatGPT: Strong margin profile with 34.1% gross margin, 16.1% operating margin, and 10.5% net margin. Robust cash generation, including $1.76B operating cash flow and $1.50B free cash flow.
What are the risks of investing in WAB?
Claude: Liquidity position shows some pressure with current ratio of 1.11x and quick ratio of 0.57x, suggesting potential working capital constraints. Modest net income growth of 0.3% YoY despite 7.5% revenue growth indicates margin pressure or operational deleverage concerns. ChatGPT: Net income growth was nearly flat despite 7.5% revenue growth, which may indicate slower earnings conversion. Liquidity is only adequate, with a 1.11x current ratio and 0.57x quick ratio.
What is WAB's revenue and growth?
Westinghouse Air Brake Technologies Corp. reported revenue of $11.2B.
Does WAB pay dividends?
Westinghouse Air Brake Technologies Corp. pays dividends, with $173.0M distributed to shareholders in the trailing twelve months.
Where can I find WAB SEC filings?
Official SEC filings for Westinghouse Air Brake Technologies Corp. (CIK: 0000943452) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WAB's EPS?
Westinghouse Air Brake Technologies Corp. has a diluted EPS of $6.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WAB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Westinghouse Air Brake Technologies Corp. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WAB stock overvalued or undervalued?
Valuation metrics for WAB: ROE of 10.5% (sector avg: 15%), net margin of 10.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy WAB stock in 2026?
Our dual AI analysis gives Westinghouse Air Brake Technologies Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WAB's free cash flow?
Westinghouse Air Brake Technologies Corp.'s operating cash flow is $1.8B, with capital expenditures of $260.0M. FCF margin is 13.4%.
How does WAB compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 10.5% (avg: 10%), ROE 10.5% (avg: 15%), current ratio 1.11 (avg: 1.8).