| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 38.0x | 17.8x | Bottom tier | |
Growth | 73 | 13.4% | 7.1% | Top tier | |
Quality | 66 | 8.8% | 4.5% | Top tier | |
Safety | 66 | 2.8x | 2.6x | Around median | |
Capital Return | 36 | 0.40% | 2.12% | Bottom tier | |
Momentum | 87 | 56.8% | 2.9% | Top tier | |
Sentiment | 36 | 7 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Westinghouse Air Brake Technologies Corporation, commercially known as Wabtec and trading under the ticker WAB, operates as an industrial technology company serving the freight rail, mass transit, and mining markets. It generates revenue from locomotives and equipment, fleet services and modernization, components, and digital intelligence, automation, and safety solutions; in Q2 FY2026, Transit segment sales reached $936 million, while the Freight segment accounted for the remainder of total quarterly sales of approximately $3.18 billion. The revenue profile is based on a mix of fast-cycle business linked to fleet activity, representing about 30% of operations, and long-term contracts and agreements supporting approximately 70% of revenue.
In Q2 FY2026, sales increased 17.5% year over year to $3.18 billion, or 16.6% excluding currency effects, and the financial statements reported rounded revenue of $3.2 billion, gross profit of $1.2 billion, net income of $395 million, and diluted earnings per share of $2.33. GAAP gross margin was 36.5%, up 1.8 percentage points, and operating margin was 18.9%, while adjusted operating margin increased 0.8 points to 21.9%. Freight segment sales grew 16.9%, Transit sales 18.9%, Equipment sales 35%, and Digital Intelligence sales 88.5%, while Components sales declined 0.7%.
Net income for the twelve months ended FY2026 was approximately $1.3 billion on revenue of $12.0 billion, compared with net income of $1.2 billion and revenue of $11.2 billion in FY2025. Q2 FY2026 generated operating cash flow of $441 million, with liquidity exceeding $2 billion and a net debt-to-EBITDA ratio of 2.2 times. During H1 FY2026, the company repurchased $457 million of shares, including $215 million in Q2, and also paid dividends of $53 million during the quarter.
The average analyst price target is $326.5, with a range of $291 to $355 and a consensus rating of “Buy”; the average is approximately 6.5% above the 52-week range high of $306.64, while the highest target exceeds that high by approximately 15.8%. By contrast, the price-to-earnings ratio cited in the August 23, 2026 data was approximately 39.7 times versus 26.2 times for the industry, reflecting a rerating driven by Q2 FY2026 growth, raised guidance, and backlog expansion, but leaving the stock sensitive to any slowdown in revenue or margins. The 52-week range extends from $184.26 to $306.64, illustrating the scale of the rerating that preceded analysts’ expectations reaching their current range.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Growth came from Equipment, fast-cycle services, acquisitions, and international demand; sales increased 17.5% to $3.18 billion in Q2 FY2026. Equipment grew 35%, Digital Intelligence 88.5%, and Transit 18.9%, while organic growth was 8.5% during the quarter and 5.5% during H1. The $1 billion Australian order and the $184 million Positive Train Control order with Vale also added new backlog coverage.
The multiyear backlog exceeded $30 billion in Q2 FY2026, up 42% year over year, while the 12-month backlog increased 11%. The multiyear Freight backlog reached $25.33 billion, and its 12-month backlog reached $6.64 billion. Management says the short-term backlog supports mid-single-digit organic growth, while part of the multiyear backlog extends across several years and does not all convert into near-term revenue.
The company raised the midpoint of its revenue outlook to approximately $12.5 billion, representing growth of 11.5% from FY2025 and one percentage point above the previous guidance. It also raised the adjusted earnings per share range to $10.60–$10.90, with growth of approximately 20% at the midpoint, and increased the guidance midpoint by $0.30 to $10.75. The increase was based on the strength of flow business, productivity, and Integration 3.0, but management expects revenue growth to moderate in H2 as results are compared with the inclusion of Inspection Technologies in the prior period.
Automated analysis for informational purposes only — not investment advice.
GAAP gross margin was 36.5%, up 1.8 percentage points from Q2 of the previous fiscal year. GAAP operating margin increased 1.5 points to 18.9%, and adjusted operating margin reached 21.9% after increasing 0.8 points. The improvement came from productivity, integration savings, and cost recovery through price-escalation provisions, offset by pressure from tariffs, higher manufacturing costs, and an unfavorable business mix.
EVO Advantage received its first North American order in Q2 FY2026 after the program was announced in Q1 FY2026. The program is designed to modernize the installed locomotive base and improve fuel efficiency, and management states that modernization programs deliver average fuel-consumption savings exceeding 5%, depending on the customer application and fleet operating method. The $1.3 billion of modernization orders the company received in the previous year did not include EVO Advantage, so most of the conversion of opportunities for the new product into orders remains ahead of the company.
The clearest cyclical risk is the forecast for approximately 25 thousand railcars to be built in North America during FY2026, down 21% from FY2025, which has pressured Components sales. The company also expects Services revenue to decline in FY2026 because of lower modernization deliveries in H1, alongside moderating revenue growth in H2. Tariffs, inflation, and electronic-chip shortages are additional risks, despite pricing and productivity measures and the shifting of some sourcing.
