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Westinghouse Air Brake Technologies Corporation
S&P 500
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$47.6B
Market Cap
31.3
P/E
1.50
PEG
9.9%
ROCE
11.1%
ROE
0.53
D/E
17.7%
OPM
-7.3%
% from 52W High
80
α RS
🔍 WAB is showing a momentum setup because RS Rating is 80, it matches 2 of 39 tracked screener presets, and Sector RRG has Industrials in the Improving quadrant with the trail still strengthening. The main caution: margin_expansion's Backtest win rate is only 45.4%. Net: Mixed signal stack, not a recommendation. ? RS Rating Conviction RRG Backtest
Sources
RS Rating 80 · Conviction 2/39 · Industrials in Improving quadrant · Backtest win rate 45.4%
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🌏 Global Investor Returns
Currency-adjusted total returns for WAB including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

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.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding WAB
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 116.1K $29.0M 0.05% Mar 2026
Stan Druckenmiller Duquesne Family Office 94.9K $23.7M 0.70% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.18B
+17.5% YoY
Operating Income
$600M
+27.1% YoY
Operating Margin
21.9%
+0.8pp YoY
Adjusted EPS
$2.76
+21.6% YoY
What Went Right
  • Revenue growth was broad-based: Freight +16.9%, Transit +18.9%, with equipment +35% and digital +88.5%.
  • Adjusted operating margin expanded 0.8pp to 21.9% despite tariffs and unfavorable mix.
  • Multiyear backlog jumped 41.7% to $30.93B, including a $1B Australia order and $184M PTC order from Vale.
  • Q2 cash from operations was $441M, up from $209M a year ago.
What to Watch
  • North American railcar build forecast remains down 21% in 2026, pressuring components sales.
  • Services revenue was down 4.2% in Q2 due to lower modernization deliveries; full-year services revenue expected to decline.
  • Management cited tariff headwinds, chip shortages, and inflationary pressure as lingering risks.
  • International deal cycles remain long, with multiple large orders still in the pipeline.
Management Guidance
  • Full-year 2026 revenue raised to approximately $12.5B (up 11.5% YoY), from prior ~$12.4B midpoint.
  • Full-year adjusted EPS raised to $10.60–$10.90, up ~20% at the midpoint ($10.75).
  • Q3 revenue growth expect slightly higher than Q4; margin growth to be back-half loaded, with a meaningful acceleration in Q4.
Investor Lens
The thesis is stronger after this call. Revenue momentum is broadening—organic growth hit 8.5% in Q2 (vs 2.3% in Q1) and the flow business is accelerating, while backlog coverage is at multi-year highs. Management also raised full-year EPS guidance by $0.30 at the midpoint, signalling confidence in back-half margin expansion. Key risks remain tariffs and the transitory nature of freight-driven flow demand, but the multi-year international pipeline (Australia, Brazil, PTC) plus early Dellner/Inspection Technologies contributions support the long-term growth framework.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat and raise; sales up 17.5%, adjusted EPS up 21.6%.
Revenue
Sales rose 17.5% YoY to $3.18B, driven by both Freight (+16.9% to $2.24B) and Transit (+18.9% to $936M). Organic growth was ~8.5%, with the remainder from acquisitions and ~1.3pp favourable FX.
Profitability
GAAP operating income was $600M, up 27.1% YoY. Adjusted EPS was $2.76, up 21.6% YoY, and GAAP EPS was $2.33, up 18.9%.
Margins
Adjusted operating margin expanded 0.8pp to 21.9% (Freight 25.8%, Transit 17.7%). Gross margin improved 1.9pp to 36.7% adjusted, helped by productivity, Integration 3.0, and acquisition mix, partly offset by tariffs and rising costs.
Balance Sheet
Q2 cash from operations was $441M, versus $209M a year ago. Total liquidity was $2.02B, net debt leverage 2.2x, and the company repurchased $215M of shares during the quarter.
Key Risks
Management flagged ongoing tariff headwinds, chip shortages impacting electronics, and lower modernization deliveries in H1. North American railcar build is still forecast down ~21% in 2026, keeping pressure on the components business.
Outlook
Full-year revenue guidance raised to ~$12.5B (up 11.5%) and adjusted EPS to $10.60–$10.90. Q3 revenue growth is expected to be slightly higher than Q4, while Q4 margin growth should accelerate significantly.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-22
Q2 delivered strong revenue and margin growth, with sales up 17.5% and adjusted EPS up 22%. Backlogs and pipeline remain robust, supporting raised 2026 guidance for both revenue and EPS. Productivity initiatives and acquisitions are driving margin expansion.
Q1 2026 Q1 2026 2026-04-22
Q1 saw 13% sales growth and 19% higher adjusted EPS, with strong backlogs and robust cash flow. Guidance for adjusted EPS was raised, reflecting operational and non-operational gains, while tariff and input cost headwinds are expected to ease in the second half.
Q4 2025 Q4 2025 2026-02-11
Delivered strong Q4 and full-year results with double-digit revenue and EPS growth, record backlog, and robust cash flow. 2026 guidance calls for continued top-line and margin expansion, supported by acquisitions, cost initiatives, and a strong international pipeline.
Q3 2025 Q3 2025 2025-10-22
Q3 saw 8% sales growth and 16% adjusted EPS growth, driven by strong freight and transit performance and the Inspection Technologies acquisition. Backlog hit record highs, international demand surged, and full-year EPS guidance was raised, despite tariff and economic headwinds.
Q2 2025 Q2 2025 2025-07-24
Q2 saw 2.3% sales growth and 16% adjusted EPS growth, with strong margin expansion and a record 12-month backlog. Guidance for 2025 was raised, reflecting robust demand, recent acquisitions, and accelerating second-half growth. Acquisitions are expected to be immediately accretive.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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