Westinghouse Air Brake Technologies Corporation (WAB) Stock

Westinghouse Air Brake Technologies Corporation (WAB) is a Industrials stock trading at $279.82 (as of 2026-09-02), with a market capitalization of $47.48B and a trailing P/E of 37.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Westinghouse Air Brake Technologies Corporation supplies technology-based equipment, systems, and services for freight rail and passenger transit. It operates through two segments—Freight and Transit—providing components and engineering services for rail vehicles and associated electronics, and supporting passenger vehicle components, refurbishment, and related systems for transit agencies and rail industry customers.

Understand Westinghouse Air Brake Technologies Corporation: how it makes money

Westinghouse Air Brake designs and services braking systems, locomotive components, positive train control electronics, and commuter rail equipment for freight railroads and transit agencies worldwide. Most revenue comes from Freight segment product and service contracts ($2.1B of $3.2B), with a steady service-replacement stream supplementing cyclical new-build orders.

Safety-critical brakes, positive train control systems, and signaling are embedded in the installed railcar and locomotive fleet, so the service and rebuild layer becomes a recurring revenue foundation that cushions the cyclical new-build swing.

Revenue by segment (latest quarter)
Freight$2.1B
Transit$0.8B

Business quality (Solid): Solid structural quality (19% operating margin, growing services mix, deeply embedded installed base), but the 35x multiple prices in sustained outperformance that a 22% railcar build decline in 2026 tests directly.

Valuation: At 35× earnings, WAB trades 73% above the Shipbuilding & Railroad Equipment average (20×).

Bull case

  • Multi-year modernization tailwind: Management framed the North American fleet as sitting at the start of a large replacement cycle for brakes, PTC, and locomotive components, giving the services and rebuild book a multi-year order pipeline even as new-car builds cyclically dip.
  • Cost savings compound to 2028: Integration 3.0 savings guidance was raised to $115 to $140 million by 2028, a structural margin lever that should widen operating margins beyond the current 19% even if revenue growth moderates.

Bear case

  • Railcar build cycle turning down: North American railcar builds are expected to decline another 22% in 2026, and modernization activity is also slated to fall, which directly compresses the new-build portion of Freight revenue that accounts for 66% of total sales.
  • Tariff costs not fully absorbed: Management said tariff impacts are growing and cannot be fully mitigated by the first three mitigating levers, pointing to persistent gross-margin pressure that the 36% figure does not yet reflect.
  • Premium multiple demands flawless execution: WAB trades at 35.2x earnings versus a 20.4x industry average, a 73% premium that leaves little room for the 2026 build slowdown or tariff headwinds to hit margins without a meaningful re-rating.
Valuation — source: SEC EDGAR (first-party)
Price$279.82
Market Cap$47.48B
P/E Ratio37.7
EV / EBITDA21.7
Price / Book4.22
Price / Sales3.96
FCF Yield3.2%
DCF Value (model)$63.09
DCF Upside vs Price-77.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$11.17B
Net Margin10.5%
Revenue Growth (YoY)17.5%
EPS Growth (YoY)18.9%
FCF Growth (YoY)67.8%
Financial Health — source: SEC EDGAR
Altman Z-Score3.68 (safe)
Piotroski F-Score5/9 (moderate)
Valuation vs Sector & Industry
Stock P/E37.7
Sector P/E (Industrials)25.7
Industry P/E (Shipbuilding & Railroad Equipment)20.2
vs Sector46.4%
vs Industry86.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderFMR LLC ($4.93B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorIndustrials
IndustryShipbuilding & Railroad Equipment
CEORafael Ottoni Santana
Employees29,500
CountryUS
IPO Date1995-06-16

Westinghouse Air Brake Technologies Corporation earnings call transcripts

  • WAB Q4 FY25 earnings call transcript (reported 2026-02-11) · analysis

All WAB earnings calls

Related Companies (Shipbuilding & Railroad Equipment; 8 comparable companies)

  • Westlake Corporation (WLK)
  • Cintas Corporation (CTAS)
  • International Flavors & Fragrances Inc. (IFF)
  • Motorola Solutions, Inc. (MSI)
  • Oshkosh Corporation (OSK)
  • The Mosaic Company (MOS)
  • Vertiv Holdings Co (VRT)
  • Owens Corning (OC)
WAB earnings history · WAB institutional & insider holders · WAB KPIs & operating metrics · WAB financials · WAB investor presentations & press releases · WAB SEC filings · WAB peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.