Investment Thesis
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 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
WAB 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
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
WAB Financial Metrics
WAB Profitability Ratios
WAB Balance Sheet & Liquidity
WAB 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 Growth Metrics (YoY)
WAB Quarterly 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.
WAB Capital Allocation
WAB SEC Filings
Access official SEC EDGAR filings for WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP (CIK: 0000943452)