Westinghouse Air Brake Technologies Corporation (WAB)

WAB stock has trended up by 6.61% in the past six months. Wabtec reported its Q2 2025 sales of $2.71 billion, a 2.3% year-over-year increase, though slightly below consensus estimates. The company's Q3 2025 earnings were $2.32 EPS, topping the consensus estimate of $2.28, with revenue of $2.89 billion, an 8.4% increase from the prior year. Wabtec raised its adjusted EPS guidance for 2025 to $8.85–$9.05, citing a record global backlog. Wabtec declared a regular quarterly common dividend of 25 cents per share, payable on November 26, 2025, to holders of record on November 12, 2025. Analysts have maintained a "Moderate Buy" consensus rating for WAB, with an average price target of $225.38. The company's 12-month backlog surged 11.9% to $8.21 billion, and its multi-year backlog reached $22.3 billion.

Wabtec's demand is influenced by broader trends in the rail industry, which is undergoing transformations driven by sustainability initiatives, technological advancements, and evolving market dynamics. The company has experienced strong demand for its freight and transit rail products, particularly in international markets. U.S. freight rail demand is projected to expand 2–3% annually through 2030, and transit rail modernization projects in North America and Europe are accelerating. Despite some near-term challenges like delayed deliveries, Wabtec's management expects these to shift to the second half of 2025, with no meaningful erosion of order demand. Key trends driving demand include the increasing need for sustainable transportation, digitalization, and automation in the rail industry.

Westinghouse Air Brake Technologies Corp. (WAB), known as Wabtec, is a global provider of technology-based equipment, systems, digital solutions, and value-added services for various sectors. Wabtec operates through Freight and Transit business segments, offering locomotives, components, digital solutions, and services. The company provides diesel-electric and liquid natural gas-powered locomotives, including the Evolution Series and the FLXdrive. They also offer rail braking systems, freight car trucks, air compressors, HVAC systems, heat transfer components, burners, rail gear, signaling, switch products, turbochargers, brake shoes, pantographs and auxiliary power converters. Wabtec provides positive train control equipment, railway electronics, signal design, distributed locomotive power, train cruise controls, IoT hardware and software, edge-to-cloud analytics, asset performance management, and network optimization solutions. The company offers freight locomotive overhauls, modernizations, refurbishment, maintenance, unit exchange of locomotive components, parts arrangements, and maintenance of way equipment and services. Net sales are predominantly from rail freight transport (71.9%), with the remainder from bus, metro, and high-speed train transport (28.1%).

Wabtec has a significant global presence, operating in over 50 countries with customers, manufacturing, and service footprints across all continents. Key regions for net sales include the United States (47.4%), North America (8.6%), Asia and the Middle East (20.3%), Europe (17.5%), South America (4.3%), and Africa (1.9%). India hosts Wabtec's largest engineering center outside the U.S.

Wabtec's brand reputation has been positively impacted by its focus on sustainability and innovation in transportation. Wabtec unveiled the world's first battery-electric freight locomotive, FLXdrive, and launched its Green Friction braking solution. Wabtec is positioning itself to capitalize on the global shift toward smart, sustainable rail systems through strategic digital acquisitions and its Port Optimizer™ cloud-based software. Wabtec emphasizes a diverse team and inclusive culture, focusing on continuous improvement and exceeding customer needs.

Institutional investors are the primary holders of Wabtec stock. Key institutional investors include The Vanguard Group, Inc., BlackRock, Inc., State Street Global Advisors, Inc., and T. Rowe Price Group, Inc.. Individual ownership accounts for a smaller percentage of the total shares. Insiders have sold a total of 6,281 shares valued at $1,204,240 over the last ninety days, with 1.10% of the stock owned by corporate insiders.