Upside case
Bull case
$439+62.4%
WAB would need investors to value it at roughly 41x earnings — about 16x more generous than today's 25x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Westinghouse Air Brake Technologies Corporation (WAB) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
34
analysts
21 bullish · 1 bearish · 34 covering WAB
Strong Buy
0
Buy
21
Hold
12
Sell
1
Strong Sell
0
Consensus Target
$291
+7.6% vs today
Scenario Range
$154 – $439
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
25.5x
Forward P/E · Market cap $45.9B
WAB price targets
Three scenarios for where WAB stock could go
Current
~$270
Confidence
58 / 100
Updated
May 1, 2026
Where we are now
Current · $270
Bear
$154
Base
$376
Bull
$439
Market caseClosest to today
Base case
$376+39.2%
At 35x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$154-42.9%
If investor confidence fades or macro conditions deteriorate, a 11x multiple contraction could push WAB down roughly 43% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Westinghouse Air Brake Technologies Corporation
WAB · NYSEIndustrialsRailroadsDecember year-end
Westinghouse Air Brake Technologies is a leading provider of technology-based equipment, systems, and services for the global freight rail and passenger transit industries. It generates revenue primarily through two segments: Freight (roughly 70% of sales) supplying components for locomotives and freight cars, and Transit (roughly 30%) providing equipment for passenger vehicles like trains and buses. The company's competitive advantage lies in its deep industry expertise, long-standing customer relationships, and comprehensive portfolio of mission-critical rail technologies that create high switching costs.
Market Cap
$45.9B
Revenue TTM
$11.5B
Net Income TTM
$1.2B
Net Margin
10.5%
WAB Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+5.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$1.96/$2.17
Revenue
$2.7B/$2.8B
Q4 2025
EPS
$2.32/$2.28
Revenue
$2.9B/$2.9B
Q1 2026
EPS
$2.10/$2.08
Revenue
$3.0B/$2.9B
Q2 2026
EPS
$2.71/$2.51
Revenue
$3.0B/$3.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.96/$2.17 | -9.7% | $2.7B/$2.8B | -2.3% |
| Q4 2025 | $2.32/$2.28 | +1.8% | $2.9B/$2.9B | +0.2% |
| Q1 2026 | $2.10/$2.08 | +1.0% | $3.0B/$2.9B | +3.5% |
| Q2 2026 | $2.71/$2.51 | +8.0% | $3.0B/$3.0B | -0.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$12.5B
+8.3% YoY
FY2
$13.5B
+8.2% YoY
EPS Outlook
FY1
$8.54
+20.5% YoY
FY2
$9.51
+11.3% YoY
Trailing FCF (TTM)$1.6B
FCF Margin: 14.3%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
WAB beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
WAB Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $11.2B
Product Mix
Latest annual revenue by segment or product family
Freight Segment
72.0%
+7.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
49.5%
+9.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Freight Segment is the largest disclosed segment at 72.0% of FY 2025 revenue, up 7.6% YoY.
UNITED STATES is the largest reported region at 49.5%, up 9.0% YoY.
WAB Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Overvalued
Fair value est. $246 — implies -7.2% from today's price.
Premium to Fair Value
7.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WAB
39.6x
vs
S&P 500
25.2x
+57% premium
vs Industrials Trailing P/E
WAB
39.6x
vs
Industrials
25.9x
+53% premium
vs WAB 5Y Avg P/E
Today
39.6x
vs
5Y Average
30.1x
+32% premium
Forward PE
25.5x
S&P 500
19.1x
+34%
Industrials
20.8x
+22%
5Y Avg
—
—
Trailing PE
39.6x
S&P 500
25.2x
+57%
Industrials
25.9x
+53%
5Y Avg
30.1x
+32%
PEG Ratio
1.54x
S&P 500
1.75x
-12%
Industrials
1.59x
-3%
5Y Avg
—
—
EV/EBITDA
21.4x
S&P 500
15.3x
+40%
Industrials
13.9x
+54%
5Y Avg
16.2x
+32%
Price/FCF
30.6x
S&P 500
21.3x
+44%
Industrials
20.6x
+48%
5Y Avg
21.2x
+44%
Price/Sales
4.1x
S&P 500
3.1x
+31%
Industrials
1.6x
+159%
5Y Avg
2.6x
+56%
Dividend Yield
0.37%
S&P 500
1.88%
-80%
Industrials
1.24%
-70%
5Y Avg
0.52%
-27%
| Metric | WAB | S&P 500 | Industrials | 5Y Avg WAB |
|---|---|---|---|---|
| Forward PE | 25.5x | 19.1x+34% | 20.8x+22% | — |
| Trailing PE | 39.6x | 25.2x+57% | 25.9x+53% | 30.1x+32% |
| PEG Ratio | 1.54x | 1.75x-12% | 1.59x | — |
| EV/EBITDA | 21.4x | 15.3x+40% | 13.9x+54% | 16.2x+32% |
| Price/FCF | 30.6x | 21.3x+44% | 20.6x+48% | 21.2x+44% |
| Price/Sales | 4.1x | 3.1x+31% | 1.6x+159% | 2.6x+56% |
| Dividend Yield | 0.37% | 1.88% | 1.24% | 0.52% |
WAB trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWAB Financial Health
Verdict
Strong
WAB generates $1.6B in free cash flow at a 14.3% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.5B
Revenue Growth
TTM vs prior year
+9.6%
Gross Margin
Gross profit as a share of revenue
33.8%
Operating Margin
Operating income divided by revenue
16.1%
Net Margin
Net income divided by revenue
10.5%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.09
Free Cash Flow (TTM)
Cash generation after capex
$1.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
14.3%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.6%
ROA
Return on assets, trailing twelve months
5.6%
Cash & Equivalents
Liquid assets on the balance sheet
$789M
Net Debt
Total debt minus cash
$4.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.9× FCF
~2.9 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
10.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.9%
Dividend
0.4%
Buyback
0.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$223M
Dividend / Share
Annualized trailing dividend per share
$1.01
Payout Ratio
Share of earnings distributed as dividends
14.8%
Shares Outstanding
Declining as buybacks retire shares
170M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWAB Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Supply Chain Disruptions
Lingering supply chain issues, including higher commodity costs and shortages of components, chips, and labor, continue to pose challenges. These disruptions can delay production, increase costs, and erode margins.
High Risk
Operating Expenses
Rising operating expenses, particularly in Selling, General & Administrative (SG&A) costs, have negatively affected the company's bottom line. Continued expense growth could compress profitability if not offset by revenue gains.
High Risk
Customer Concentration
Top five customers accounted for approximately 30% of Wabtec’s total revenue in 2023. Consolidation among these major rail customers could influence pricing, contract terms, and order patterns, increasing revenue concentration risk.
Medium
Valuation
Wabtec’s forward price-to-sales ratio is higher than the industry average, suggesting the stock may be considered expensive. A valuation correction could pressure the share price if earnings do not justify the premium.
Medium
Economic Downturns
A global industrial slowdown or a significant downturn in the railcar or locomotive markets could adversely affect revenue generation. Demand erosion in these core segments would directly impact top-line growth.
Medium
Foreign Exchange Volatility
Wabtec has substantial international operations, making it sensitive to fluctuations in foreign exchange rates. Currency swings can affect earnings and cash flows from overseas markets.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WAB Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Strong Backlog & Growth Pipeline
WAB’s backlog stands at $27 billion as of early 2026, providing clear revenue visibility. The company is targeting organic growth through its digital intelligence initiatives and expanding presence in international markets.
Strategic Acquisitions Expand Portfolio
Recent purchases of Dellner Couplers and Frauscher Sensor Technology Group broaden WAB’s product range and strengthen its market reach, positioning the firm for higher cross‑sell opportunities.
Low Dividend Payout & Reinvestment
With a dividend payout ratio of just 18.16 %, WAB retains the majority of earnings for growth. The firm has also increased its quarterly dividend, signaling a commitment to returning value while funding expansion.
Margin Expansion & Operational Efficiency
Adjusted operating margins have risen sharply from 2020 to 2025, thanks to productivity gains, lean initiatives, and integration savings. These improvements underpin stronger profitability prospects.
Positive Analyst Sentiment & Upside Potential
A majority of analysts rate WAB as “Buy” or “Strong Buy,” citing backlog visibility, recurring service and digital revenue, margin expansion, and consistent earnings growth as key drivers of upside.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WAB Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$270.49
52W Range Position
94%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$184.26
+46.8% from the low
52-Week High
$275.84
-1.9% from the high
1 Month
+6.48%
3 Month
+9.81%
YTD
+25.1%
1 Year
+43.0%
3Y CAGR
+39.6%
5Y CAGR
+27.1%
10Y CAGR
+13.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WAB vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
25.5x
vs 28.3x median
-10% below peer median
Revenue Growth
+8.3%
vs +10.8% median
-23% below peer median
Net Margin
10.5%
vs 10.8% median
-3% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WAB WAB Westinghouse Air Brake Technologies Corporation | $45.9B | 25.5x | +8.3% | 10.5% | Buy | +7.6% |
TT TT Trane Technologies plc | $108.0B | 32.9x | +8.2% | 13.4% | Hold | +6.2% |
ITT ITT ITT Inc. | $19.4B | 28.3x | +14.2% | 10.8% | Buy | +6.0% |
RXO RXO RXO, Inc. | $3.2B | — | +10.8% | -1.7% | Hold | -18.5% |
GNS GNSS Genasys Inc. | $90M | — | +91.4% | -29.2% | — | — |
ALS ALSN Allison Transmission Holdings, Inc. | $10.6B | 14.1x | +8.8% | 14.9% | Hold | -9.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WAB Dividend and Capital Return
WAB returns 0.9% annually — 0.37% through dividends and 0.5% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.9%
Dividend + buyback return per year
Buyback Yield
0.5%
Dividend Yield
0.37%
Payout Ratio
14.8%
How WAB Splits Its Return
Div 0.37%
Buyback 0.5%
Dividend 0.37%Buybacks 0.5%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.01
Growth Streak
Consecutive years of dividend increases
6Y
3Y Div CAGR
18.6%
5Y Div CAGR
15.8%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$223M
Estimated Shares Retired
824.4K
Approx. Share Reduction
0.5%
Shares Outstanding
Current diluted share count from the screening snapshot
170M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.31 | — | — | — |
| 2025 | $1.00 | +25.0% | 0.6% | 1.1% |
| 2024 | $0.80 | +17.6% | 3.3% | 3.7% |
| 2023 | $0.68 | +13.3% | 1.8% | 2.3% |
| 2022 | $0.60 | +25.0% | 2.6% | 3.2% |
FAQ
7 questionsWAB Investor Questions
Common questions answered from live analyst data and company financials.
01Is Westinghouse Air Brake Technologies Corporation (WAB) stock a buy or sell in 2026?
Westinghouse Air Brake Technologies Corporation (WAB) is rated Buy by Wall Street analysts as of 2026. Of 34 analysts covering the stock, 21 rate it Buy or Strong Buy, 12 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $291, implying +7.6% from the current price of $270. The bear case scenario is $154 and the bull case is $439.
02What is the WAB stock price target for 2026?
The Wall Street consensus price target for WAB is $291 based on 34 analyst estimates. The high-end target is $318 (+17.6% from today), and the low-end target is $221 (-18.3%). The base case model target is $376.
03Is Westinghouse Air Brake Technologies Corporation (WAB) stock overvalued in 2026?
WAB trades at 25.5x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals slightly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Westinghouse Air Brake Technologies Corporation (WAB) stock in 2026?
The primary risks for WAB in 2026 are: (1) Supply Chain Disruptions — Lingering supply chain issues, including higher commodity costs and shortages of components, chips, and labor, continue to pose challenges. (2) Operating Expenses — Rising operating expenses, particularly in Selling, General & Administrative (SG&A) costs, have negatively affected the company's bottom line. (3) Customer Concentration — Top five customers accounted for approximately 30% of Wabtec’s total revenue in 2023. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Westinghouse Air Brake Technologies Corporation's revenue and earnings forecast?
Analyst consensus estimates WAB will report consensus revenue of $12.5B (+8.3% year-over-year) and EPS of $8.54 (+20.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $13.5B in revenue.
06When does Westinghouse Air Brake Technologies Corporation (WAB) report its next earnings?
A confirmed upcoming earnings date for WAB is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Westinghouse Air Brake Technologies Corporation generate?
Westinghouse Air Brake Technologies Corporation (WAB) generated $1.6B in free cash flow over the trailing twelve months — a free cash flow margin of 14.3%. WAB returns capital to shareholders through dividends (0.4% yield) and share repurchases ($223M TTM).