# Westinghouse Air Brake Technologies (WAB.US)

Canonical: https://gigainvestors.com/s/WAB

Analysis as of: 2026-10-16T07:33:00.904Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $287.76 per share; close as of 2026-10-15.

Estimated value: low $96.03 per share, central $115.09 per share, high $133.65 per share. Buy at or below the central value $115.09 per share. Valuation as of 2026-10-16T07:33:00.904Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.11×

- FY2018: 0.11×

- FY2019: 0.08×

- FY2020: 0.10×

- FY2021: 0.11×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.15×

- FY2025: 0.17×

### moat: pass

- ROIC, median of available years: 15.4%

- ROIC, second-lowest year: 10.0%

- Typical minus recent gross margin: -1.1 pp

- Typical gross margin (annual median): 30.3%

- Recent gross margin (lower of latest and 3-year median): 31.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 6.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.4%

- FY2017: 15.8%

- FY2018: 10.0%

- FY2019: 8.9%

- FY2020: 10.4%

- FY2021: 12.9%

- FY2022: 15.0%

- FY2023: 18.6%

- FY2024: 26.2%

- FY2025: 24.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.31×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.6B

- Net income, five-year total: $4.2B

- Return on incremental invested capital: 135.0%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -6.8 pp

- Working capital / revenue, final three-year average: 27.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.56×

- FY2022: 1.44×

- FY2023: 1.36×

- FY2024: 1.24×

- FY2025: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.8% vs 24.5%

- Per-share earnings: 3.35 to 6.04 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: $28B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.7%

- Per-share value change: $2.70

- Per-share value, starting three-year median: $3.35

- Per-share value, ending three-year median: $6.04

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 1.8%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $14B

- Cumulative net income, 10 years: $5.8B

- ROIC, first three-year median: 15.8%

- ROIC, last three-year median: 24.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.35

- FY2017: $2.73

- FY2018: $3.06

- FY2019: $1.84

- FY2020: $2.17

- FY2021: $2.97

- FY2022: $3.46

- FY2023: $4.54

- FY2024: $6.04

- FY2025: $6.84

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: 1.1%

- FY2018: -0.2%

- FY2019: -3.6%

- FY2020: -2.0%

- FY2021: -2.8%

- FY2022: -2.2%

- FY2023: -2.0%

- FY2024: -4.2%

- FY2025: -2.7%

## Holders

- [Steven Romick](https://gigainvestors.com/FPA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Ron Muhlenkamp](https://gigainvestors.com/MUHL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 14% a year for ten years · sales +7.5%

Story as of 2026-10-16T09:59:50.375Z; price observation 2026-10-15.

Price needs cash profits to grow 14% a year for ten years

- 2025-04-24: WAB Q1 Earnings Call: International Strength, Cost Controls, and Tariff Uncertainty Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/wab-q1-earnings-call-international-143929802.html))

- 2026-01-07: Wabtec Secures $386 Million Order from New York’s MTA for New Locomotives ([finance.yahoo.com](https://finance.yahoo.com/news/wabtec-secures-386-million-order-120000878.html))

- 2026-02-12: WAB Q4 Deep Dive: Backlog Expansion and Strategic Initiatives Drive Growth Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/wab-q4-deep-dive-backlog-053336783.html))

- 2026-04-22: Wabtec raises 2026 adjusted EPS outlook to $10.25-$10.65 while holding revenue guidance unchanged ([seekingalpha.com](https://seekingalpha.com/news/4577908-wabtec-raises-2026-adjusted-eps-outlook-to-10_25-10_65-while-holding-revenue-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-29: Strong Earnings, Guidance Send Wabtec Shares to New Highs ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/strong-earnings-guidance-send-wabtec-145736754.html))

### Sales · FY2024–2025

sales +7.5%; source https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm; observed 2026-02-13.

- FY2016: $2.9B 

- FY2017: $3.9B 

- FY2018: $4.4B 

- FY2019: $8.2B 

- FY2020: $7.6B 

- FY2021: $7.8B 

- FY2022: $8.4B 

- FY2023: $9.7B 

- FY2024: $10B 

- FY2025: $11B 

### Gross margin · FY2025

gross margin 31.5%; source https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm; observed 2026-02-13.

- FY2016: 31.5% 

- FY2017: 27.4% 

- FY2018: 28.3% 

- FY2019: 27.8% 

- FY2020: 28.3% 

- FY2021: 30.3% 

- FY2022: 30.4% 

- FY2023: 30.4% 

- FY2024: 32.4% 

- FY2025: 31.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in railroads; annual sales are USD 11.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); FY2025: revenue 11167000000; grossProfit 3515000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WAB.US: Westinghouse Air Brake Technologies Corporation provides locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It operates in two segments, Freight and Transit. It offers diesel-electric and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; electronically controlled pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, and train cruise and remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers, as well as heating, ventilation, and air conditioning (HVAC) systems; heat transfer components and systems; custom engineered burners and combustion systems; rail gear, signaling, and switch products; and turbochargers. Further, it offers freight locomotive overhauls, modernizations, and refurbishment; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; long-term parts arrangements; and way equipment maintenance services. Additionally, it provides railway and freight braking equipment and related components; brake shoes, discs, and pads; HVAC equipment; access and platform screen doors; pantographs; power converters and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

### Why customers stay

Margins ranged from 30.4% to 32.4% during 2023–25; it earns 15.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 30.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 32.4%.

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 31.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2016,0.2137718237923183],[2017,0.15796536693722782],[2018,0.10031738631912239],[2019,0.08947596628026269],[2020,0.10439298425000526],[2021,0.12917106749732427],[2022,0.15011709601873538],[2023,0.18550349960357718],[2024,0.2615662255943811],[2025,0.24459951660380097]]; median 0.1540412314779816. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 30% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); Gross margin observations: [[2021,0.3028637177192534],[2022,0.30375508251614447],[2023,0.3042265164823809]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 223 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 50216000; owner earnings 323933925.2881265. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 89466000; owner earnings 276034000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 93305000; owner earnings 310895000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 185300000; owner earnings 460700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 136400000; owner earnings 662600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 130000000; owner earnings 869000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2022: growth capex 0; upkeep 149000000; owner earnings 910000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: growth capex 0; upkeep 186000000; owner earnings 1106000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 207000000; owner earnings 1308000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); FY2025: growth capex 0; upkeep 260000000; owner earnings 1367000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,32430000],[2017,42218000],[2018,46277000],[2019,81700000],[2020,92500000],[2021,92000000],[2022,111000000],[2023,123000000],[2024,140000000],[2025,173000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); FY2025: cash repurchases 223000000 USD.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WAB.US SharesStats.PercentInsiders = 0.697 percentage points; cache date 2026-10-16.

### What could break it

"A significant portion of our sales may be derived from our international operations" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm (filed 2026-02-13); A significant portion of our sales may be derived from our international operations

### What the price says

The price assumes cash profits grow 14% yearly over ten years; actual growth was 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Ten-year compound average after fade. Initial solved rate 0.18988098957314692. Price 287.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.267096880605323 → FY2025 7.98947983635301. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $77.31 per share

- 2016-11: $84.67 per share

- 2016-12: $83.02 per share

- 2017-01: $86.64 per share

- 2017-02: $80.12 per share

- 2017-03: $78.00 per share

- 2017-04: $83.89 per share

- 2017-05: $81.75 per share

- 2017-06: $91.50 per share

- 2017-07: $75.36 per share

- 2017-08: $70.57 per share

- 2017-09: $75.75 per share

- 2017-10: $76.50 per share

- 2017-11: $76.90 per share

- 2017-12: $81.43 per share

- 2018-01: $81.04 per share

- 2018-02: $81.34 per share

- 2018-03: $81.40 per share

- 2018-04: $88.81 per share

- 2018-05: $97.51 per share

- 2018-06: $98.58 per share

- 2018-07: $110.32 per share

- 2018-08: $108.32 per share

- 2018-09: $104.88 per share

- 2018-10: $82.02 per share

- 2018-11: $94.60 per share

- 2018-12: $70.25 per share

- 2019-01: $69.16 per share

- 2019-02: $73.26 per share

- 2019-03: $73.72 per share

- 2019-04: $74.07 per share

- 2019-05: $62.38 per share

- 2019-06: $71.76 per share

- 2019-07: $77.68 per share

- 2019-08: $69.21 per share

- 2019-09: $71.86 per share

- 2019-10: $69.37 per share

- 2019-11: $78.57 per share

- 2019-12: $77.80 per share

- 2020-01: $73.86 per share

- 2020-02: $68.70 per share

- 2020-03: $48.13 per share

- 2020-04: $56.42 per share

- 2020-05: $61.07 per share

- 2020-06: $57.57 per share

- 2020-07: $62.19 per share

- 2020-08: $66.55 per share

- 2020-09: $61.88 per share

- 2020-10: $59.30 per share

- 2020-11: $73.30 per share

- 2020-12: $73.20 per share

- 2021-01: $74.21 per share

- 2021-02: $72.43 per share

- 2021-03: $79.16 per share

- 2021-04: $82.07 per share

- 2021-05: $82.76 per share

- 2021-06: $82.30 per share

- 2021-07: $84.87 per share

- 2021-08: $89.79 per share

- 2021-09: $86.21 per share

- 2021-10: $90.73 per share

- 2021-11: $88.77 per share

- 2021-12: $92.11 per share

- 2022-01: $88.90 per share

- 2022-02: $92.82 per share

- 2022-03: $96.17 per share

- 2022-04: $89.91 per share

- 2022-05: $94.46 per share

- 2022-06: $82.08 per share

- 2022-07: $93.47 per share

- 2022-08: $87.65 per share

- 2022-09: $81.35 per share

- 2022-10: $93.28 per share

- 2022-11: $101.09 per share

- 2022-12: $99.81 per share

- 2023-01: $103.81 per share

- 2023-02: $104.33 per share

- 2023-03: $101.06 per share

- 2023-04: $97.67 per share

- 2023-05: $92.63 per share

- 2023-06: $109.67 per share

- 2023-07: $118.44 per share

- 2023-08: $112.52 per share

- 2023-09: $106.27 per share

- 2023-10: $106.02 per share

- 2023-11: $116.56 per share

- 2023-12: $126.90 per share

- 2024-01: $131.57 per share

- 2024-02: $141.29 per share

- 2024-03: $145.68 per share

- 2024-04: $161.08 per share

- 2024-05: $169.23 per share

- 2024-06: $158.05 per share

- 2024-07: $161.15 per share

- 2024-08: $169.57 per share

- 2024-09: $181.77 per share

- 2024-10: $187.98 per share

- 2024-11: $200.62 per share

- 2024-12: $189.59 per share

- 2025-01: $207.92 per share

- 2025-02: $185.36 per share

- 2025-03: $181.35 per share

- 2025-04: $184.74 per share

- 2025-05: $202.32 per share

- 2025-06: $209.35 per share

- 2025-07: $192.05 per share

- 2025-08: $193.50 per share

- 2025-09: $200.47 per share

- 2025-10: $204.44 per share

- 2025-11: $208.55 per share

- 2025-12: $213.45 per share

- 2026-01: $230.14 per share

- 2026-02: $263.95 per share

- 2026-03: $249.91 per share

- 2026-04: $269.89 per share

- 2026-05: $261.16 per share

- 2026-06: $269.60 per share

- 2026-07: $290.86 per share

- 2026-08: $285.93 per share

- 2026-09: $287.18 per share

- 2026-10: $286.51 per share

## Annual estimated value (USD per share)

- FY2016: low $58.62 per share, central $83.84 per share, high $97.91 per share

- FY2017: low $64.92 per share, central $86.22 per share, high $100.71 per share

- FY2018: low $69.70 per share, central $92.68 per share, high $107.73 per share

- FY2019: low $42.43 per share, central $53.16 per share, high $61.68 per share

- FY2020: low $35.88 per share, central $43.92 per share, high $50.85 per share

- FY2021: low $36.08 per share, central $43.37 per share, high $50.26 per share

- FY2022: low $48.23 per share, central $57.55 per share, high $66.70 per share

- FY2023: low $70.59 per share, central $85.20 per share, high $98.90 per share

- FY2024: low $78.91 per share, central $94.34 per share, high $109.42 per share

- FY2025: low $89.33 per share, central $106.87 per share, high $123.94 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/943452/000162828026008067/wab-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.