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olivLaw · US equity research

Wabtec Corporation WAB

Railroad Equipment · SIC 3743

294.97USD+1.09% · 1 dayClose 04 Nov 2026

Wabtec is a global provider of locomotives, equipment, systems and services for freight and passenger rail, as well as mining, marine and industrial markets. Quarterly sales reached 3.12 billion USD in the third quarter of 2026, while the multi-year backlog hit a record 31.4 billion USD at September 30, 2026.

At the close of 04 Nov 2026, Wabtec Corporation (WAB) stock was 294.97 USD (+1.09% on the day), with market capitalisation 49.5 bn USD, P/E 36.6 on diluted EPS of 8.05 USD over the last 12 months, dividend yield 0.40%, beta 1.08, 52-week range 196.14–305.79 USD. Latest reported quarter (Q3 2026): revenue of 3.1 bn USD (+8.1% YoY), net income of 409.0 m USD (+31.9% YoY), diluted EPS 2.42 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
49.5 bn USD
shares as of 16 Oct 2026
P/E (TTM)
36.6
Diluted EPS TTM 8.05 · TTM to 30 Sept 2026
E/P (TTM)
2.73%
TTM to 30 Sept 2026
Dividend yield
0.40%
DPS 12m 1.18
Beta (2y)
1.08
Volatility (1y) 26%
52-week range
196.14305.79

Price history

Loading chart…

Technical reading

RSI (14)
60.0
strong (55–70)
Bollinger (20, 2)
273.74 – 294.77
above the upper band · %B 1.01 · band width 7.4%
SMA 50 / 200
285.20 / 268.91
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.57 / -0.79
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+1.1%−1.1%+2.2 pp—
3 months−0.5%−0.5%+0.0 pp—
6 months+9.1%+4.4%+4.7 pp—
Year to date+38.2%+12.3%+25.9 pp—
1 year+44.3%+13.5%+30.7 pp—
3 years+165.0%+76.4%+88.6 pp—
5 years+213.1%+63.7%+149.4 pp—
Max drawdown (1y)
−10.9%
28 Jul 2026 → 23 Oct 2026
Max drawdown (5y)
−23.7%
30 Jan 2025 → 08 Apr 2025
Compound annual growth (5y)
+25.6%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
3.1 bn USD
+8.1% YoY
Net income
409.0 m USD
+31.9% YoY
Diluted EPS
2.42
+33.7% YoY
net / operating
13.1% / 20.0%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue2.6 bn2.6 bn2.7 bn2.9 bn3.0 bn3.0 bn3.2 bn3.1 bn
Cost of revenue1.8 bn1.7 bn1.8 bn1.9 bn2.0 bn1.9 bn2.0 bn2.0 bn
Gross profit797.0 m900.0 m938.0 m1.0 bn966.0 m1.1 bn1.2 bn1.2 bn
Research & development51.0 m46.0 m50.0 m59.0 m68.0 m56.0 m70.0 m67.0 m
SG&A333.0 m307.0 m347.0 m375.0 m461.0 m401.0 m400.0 m383.0 m
Operating income334.0 m474.0 m472.0 m491.0 m356.0 m517.0 m600.0 m625.0 m
Depreciation & amortisation128.0 m120.0 m117.0 m128.0 m136.0 m139.0 m143.0 m142.0 m
Interest expense53.0 m46.0 m46.0 m65.0 m68.0 m71.0 m80.0 m80.0 m
Pre-tax income284.0 m426.0 m450.0 m425.0 m291.0 m469.0 m518.0 m557.0 m
Income tax71.0 m99.0 m111.0 m112.0 m87.0 m106.0 m122.0 m146.0 m
Net income212.0 m322.0 m336.0 m310.0 m202.0 m362.0 m395.0 m409.0 m
Diluted EPS1.23 ≈1.881.961.811.18 ≈2.122.332.42
Operating cash flow723.0 m191.0 m209.0 m ≈367.0 m ≈992.0 m199.0 m441.0 m ≈455.0 m ≈
Capex84.0 m44.0 m39.0 m ≈55.0 m ≈122.0 m46.0 m62.0 m ≈74.0 m ≈
Dividends paid34.0 m43.0 m44.0 m ≈43.0 m ≈43.0 m53.0 m53.0 m ≈52.0 m ≈
Share repurchases123.0 m98.0 m50.0 m ≈0 ≈75.0 m242.0 m215.0 m ≈305.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 93 percentile of its own 44-quarter history (min 17.2, median 29.2, max 53.6; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue4.4 bn8.2 bn7.6 bn7.8 bn8.4 bn9.7 bn10.4 bn11.2 bn
Revenue YoY+12.4%+87.9%−7.9%+3.5%+6.9%+15.7%+7.3%+7.5%
Net income294.9 m327.0 m414.0 m558.0 m633.0 m815.0 m1.1 bn1.2 bn
Net income YoY+12.4%+10.9%+26.6%+34.8%+13.4%+28.8%+29.6%+10.8%
Diluted EPS3.051.842.172.963.464.536.046.83
Diluted EPS YoY+12.1%−39.7%+17.9%+36.4%+16.9%+30.9%+33.3%+13.1%
net %6.8%4.0%5.5%7.1%7.6%8.4%10.2%10.5%
Free cash flow221.4 m830.0 m648.0 m943.0 m889.0 m1.0 bn1.6 bn1.5 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
789.0 m USD
Financial debt
5.5 bn USD
Net debt
4.8 bn USD
Equity
11.2 bn USD
Total assets
22.1 bn USD
Debt / equity
0.50x
Current ratio
1.11x
ROE
11.0%
ROA
5.7%
FCF margin
13.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
9.7 bn
2024
10.4 bn
2025
11.2 bn

SEC (XBRL)· 13 Feb 2026verified

Cost of revenue
2023
6.7 bn
2024
7.0 bn
2025
7.4 bn

SEC (XBRL)· 13 Feb 2026verified

Gross profit
2023
2.9 bn
2024
3.4 bn
2025
3.8 bn

SEC (XBRL)· 13 Feb 2026verified

Research & development
2023
218.0 m
2024
206.0 m
2025
223.0 m

SEC (XBRL)· 13 Feb 2026verified

SG&A
2023
1.1 bn
2024
1.2 bn
2025
1.5 bn

SEC (XBRL)· 13 Feb 2026verified

Operating income
2023
1.3 bn
2024
1.6 bn
2025
1.8 bn

SEC (XBRL)· 13 Feb 2026verified

Depreciation & amortisation
2023
531.0 m
2024
503.0 m
2025
501.0 m

SEC (XBRL)· 13 Feb 2026verified

EBITDA
2023
1.8 bn ≈
2024
2.1 bn ≈
2025
2.3 bn ≈

SEC (XBRL)· 13 Feb 2026derived

Interest expense
2023
218.0 m
2024
201.0 m
2025
225.0 m

SEC (XBRL)· 13 Feb 2026verified

Pre-tax income
2023
1.1 bn
2024
1.4 bn
2025
1.6 bn

SEC (XBRL)· 13 Feb 2026verified

Income tax
2023
267.0 m
2024
343.0 m
2025
409.0 m

SEC (XBRL)· 13 Feb 2026verified

Net income
2023
815.0 m
2024
1.1 bn
2025
1.2 bn

SEC (XBRL)· 13 Feb 2026verified

Diluted EPS
2023
4.53
2024
6.04
2025
6.83

SEC (XBRL)· 13 Feb 2026verified

Weighted average diluted shares
2023
179.5 m
2024
174.8 m
2025
171.1 m

SEC (XBRL)· 13 Feb 2026verified

Dividend per share
2023
0.68
2024
0.80
2025
1.00

SEC (XBRL)· 13 Feb 2026verified

Balance sheet · USD

Cash
2023
620.0 m
2024
715.0 m
2025
789.0 m

SEC (XBRL)· 13 Feb 2026verified

Receivables
2023
1.2 bn
2024
1.2 bn
2025
1.4 bn

SEC (XBRL)· 13 Feb 2026verified

Inventories
2023
2.3 bn
2024
2.3 bn
2025
2.7 bn

SEC (XBRL)· 13 Feb 2026verified

Current assets
2023
4.9 bn
2024
4.9 bn
2025
5.7 bn

SEC (XBRL)· 13 Feb 2026verified

Property, plant & equipment, net
2023
1.5 bn
2024
1.4 bn
2025
1.6 bn

SEC (XBRL)· 13 Feb 2026verified

Goodwill
2023
8.8 bn
2024
8.7 bn
2025
10.2 bn

SEC (XBRL)· 13 Feb 2026verified

Intangibles (excl. goodwill)
2023
3.2 bn
2024
2.9 bn
2025
3.8 bn

SEC (XBRL)· 13 Feb 2026verified

Total assets
2023
19.0 bn
2024
18.7 bn
2025
22.1 bn

SEC (XBRL)· 13 Feb 2026verified

Accounts payable
2023
1.3 bn
2024
1.3 bn
2025
1.4 bn

SEC (XBRL)· 13 Feb 2026verified

Short-term debt
2023
781.0 m
2024
500.0 m
2025
1.3 bn

SEC (XBRL)· 13 Feb 2026verified

Long-term debt
2023
3.3 bn
2024
3.5 bn
2025
4.3 bn

SEC (XBRL)· 13 Feb 2026verified

Current liabilities
2023
4.1 bn
2024
3.8 bn
2025
5.2 bn

SEC (XBRL)· 13 Feb 2026verified

Total liabilities
2023
8.5 bn
2024
8.6 bn
2025
10.9 bn

SEC (XBRL)· 13 Feb 2026verified

Equity
2023
10.5 bn
2024
10.1 bn
2025
11.2 bn

SEC (XBRL)· 13 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
1.2 bn
2024
1.8 bn
2025
1.8 bn

SEC (XBRL)· 13 Feb 2026verified

Capex
2023
186.0 m
2024
207.0 m
2025
260.0 m

SEC (XBRL)· 13 Feb 2026verified

Free cash flow
2023
1.0 bn ≈
2024
1.6 bn ≈
2025
1.5 bn ≈

SEC (XBRL)· 13 Feb 2026derived

Investing cash flow
2023
-492.0 m
2024
-343.0 m
2025
-2.7 bn

SEC (XBRL)· 13 Feb 2026verified

Financing cash flow
2023
-633.0 m
2024
-1.4 bn
2025
1.0 bn

SEC (XBRL)· 13 Feb 2026verified

Dividends paid
2023
123.0 m
2024
140.0 m
2025
173.0 m

SEC (XBRL)· 13 Feb 2026verified

Share repurchases
2023
409.0 m
2024
1.1 bn
2025
223.0 m

SEC (XBRL)· 13 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
7.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
10.1%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
8.1%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
11.4%
computed by olivLawFY 2025
Net income growth (YoY)
10.8%
computed by olivLawFY 2025
Net income CAGR 3Y
22.7%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
23.1%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
13.1%
computed by olivLawFY 2025
EPS CAGR 3Y
25.4%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
25.8%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-7.9%
computed by olivLawFY 2025

Profitability

Gross margin
35.6%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
21.8%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
17.2%
computed by olivLawTTM to 30 Sept 2026
Net margin
11.2%
computed by olivLawTTM to 30 Sept 2026
FCF margin
14.6%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
12.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
6.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
9.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
11.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
14.7%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
11.3%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
5.9 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
2.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
0.6x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
7.0x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
1.1x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
0.6x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
2.1 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
304.0 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
1.8 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
130.3%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
78.5%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
52 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
132 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
67 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
117 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
49.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
55.4 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
36.2x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
36.6x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
2.7%
computed by olivLawTTM to 30 Sept 2026
P/B
4.4x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
4.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
20.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
26.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
4.5x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
27.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
3.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.4%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
2.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
3.67
computed by olivLawbalance sheet at 30 Sept 2026

Valuation

olivLaw classification

Neutral profile

Score: 54 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

294.97 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 49.5 bn USD

Key indicators

Market capitalisation
49.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
36.6x
computed by olivLawTTM to 30 Sept 2026
P/B
4.4x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
20.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
12.2%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
11.2%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
7.5%
computed by olivLawFY 2025
Dividend yield
0.4%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

36/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 16 Oct 2026
Source: SEC (XBRL)published 21 Oct 2026
verified 3202derived 242

Score by group

  • Balance sheet56
  • Valuation13
  • Quality74
  • Growth92
  • Returns58

Estimated value range

Low
155.28
USD per share
Mid
197.60
USD per share
High
266.43
USD per share
Price: 294.97 USD
The price is above the range
Potential to the central value: -33.0% (value / price − 1)
Margin of safety: -49.3% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 155.28 – 266.43 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)155.28 – 266.43 (Mid 197.60)
    WACC 8.8% · starting FCFF 2.0 bn USD · terminal value share of EV 75%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 26.9%
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)outside the aggregate13.14 – 17.67 (Mid 15.07)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 54/100

FactorValueScoreWeight used
ROIC · Quality9.5%58 (on a fixed band)10%
Net margin · Quality11.2%75 (on a fixed band)6%
FCF conversion · Quality130.3%100 (on a fixed band)6%
Revenue CAGR 3Y · Growth10.1%84 (on a fixed band)8%
EPS CAGR 3Y · Growth25.4%100 (on a fixed band)8%
Net debt / EBITDA · Balance sheet2.2x51 (on a fixed band)10%
Interest coverage · Balance sheet7.0x85 (on a fixed band)6%
Current ratio · Balance sheet1.1x25 (on a fixed band)4%
P/E (TTM) · Valuation36.6x0 (on a fixed band)10%
EV/EBITDA · Valuation20.8x0 (on a fixed band)10%
FCF yield · Valuation3.6%45 (on a fixed band)8%
Shareholder yield (distributions) · Returns2.1%30 (on a fixed band)6%
Payout ratio (FCF) · Returns11.3%100 (on a fixed band)4%

Score groups

  • Balance sheet56/100 · 3/3 factors with a value
  • Growth92/100 · 2/2 factors with a value
  • Quality74/100 · 3/3 factors with a value
  • Returns58/100 · 2/2 factors with a value
  • Valuation13/100 · 3/3 factors with a value

Memo

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION (WAB). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 11.2 bn USD in 2025; YoY growth 7.5%; net margin 11.2%; ROE 12.2%; net debt/EBITDA 2.2x.

The estimated value range is 155.28–266.43 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 197.60 USD, the price of 294.97 USD leaves a potential of -33.0% (value / price − 1) and a margin of safety of -49.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 54/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 11.2%
  • FCF conversion: 130.3%
  • Revenue CAGR 3Y: 10.1%
  • EPS CAGR 3Y: 25.4%
  • Interest coverage: 7.0x
  • Payout ratio (FCF): 11.3%

What contradicts it

  • Current ratio: 1.1x
  • P/E (TTM): 36.6x
  • EV/EBITDA: 20.8x
  • Shareholder yield (distributions): 2.1%
  • The price is above the estimated value range

Versus the vertical median

Not enough comparable companies with data for an average.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
186.49
Total return -36% · Per year -36%
328.85
Total return 12% · Per year 12%
494.19
Total return 68% · Per year 68%
3 years
202.02
Total return -30% · Per year -11%
398.80
Total return 37% · Per year 11%
654.96
Total return 124% · Per year 31%
5 years
218.85
Total return -24% · Per year -5%
483.62
Total return 67% · Per year 11%
868.03
Total return 198% · Per year 24%
What moves the 3-year price the most
  • Exit P/E± 99.70
  • Net margin± 69.79
  • Annual revenue growth± 54.36
  • Annual dilution± 5.86

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Wabtec is a global provider of locomotives, equipment, systems and services for freight and passenger rail, as well as mining, marine and industrial markets. Quarterly sales reached 3.12 billion USD in the third quarter of 2026, while the multi-year backlog hit a record 31.4 billion USD at September 30, 2026.

SWOT

Strengths

  • A large installed base of locomotives and railcars generates recurring service and parts revenue that stabilizes results through economic cycles.
  • The multi-year backlog reached a record level, giving visibility into future revenue.
  • Long experience in rail innovation and the certifications needed in regulated markets raise barriers for new entrants.

Weaknesses

  • Debt has risen after recent acquisitions, which increases financing costs and limits flexibility.
  • Dependence on a few key customers means losing one major account could have a significant effect on results.
  • Integrating several acquisitions and restructuring programmes carries execution costs and risks.

Opportunities

  • Fleet modernization and rail digitalization could expand the services and software business.
  • Mining and industrial markets offer additional demand for existing products and services.
  • Acquisitions in detection, inspection and couplers could add recurring revenue and deepen the transit position.

Threats

  • Trade tariffs and shifting trade policy could raise costs and compress margins.
  • Competitors with larger resources or government support could limit price increases.
  • Reduced public funding for passenger transit could delay orders in the Transit Segment.

Risks

  • Dependence on key customershigh

    The company relies on a few large customers, and lower demand or lost relationships could significantly affect results 1.

  • Market cyclicalitymedium

    The rail industry is sensitive to economic conditions and government spending, and deferred orders could reduce revenue 1.

  • Acquisition integration riskmedium

    Recent acquisitions might not deliver expected synergies or may take longer than planned, and goodwill impairment could affect equity 1.

  • Tariffs and supply chainhigh

    Supply chain disruptions and tariffs could raise production costs and delay deliveries, affecting margins 23.

  • Indebtednessmedium

    Total debt has grown after recent acquisitions, which could limit financial flexibility if funding conditions worsen 3.

Investment thesis

What would need to be true (bull case)

  • A record order backlog and growing recurring service revenue could support steady long-term growth if execution stays disciplined 23.
  • Rising operating margins and a strong profit outlook suggest good conversion of sales into earnings, especially if acquisition integration succeeds 3.
  • A leading position in rail equipment and investment in digitalization could open new revenue streams in markets with durable demand 1.

What would break the thesis

  • Higher debt and acquisition integration costs could limit cash available for dividends and buybacks if demand slows 23.
  • Tariffs and cost pressures could erode margins, particularly if expected refunds are delayed or smaller than anticipated 2.
  • Industry cyclicality and reliance on public budgets could delay major orders and affect the short-term revenue path 1.

What to watch

  • Trend in adjusted operating margin and the effect of tariffs on costsQ4 2026
  • Conversion of the record order backlog into recognized revenue2027
  • Progress of the Integration 3.0 programme and realization of targeted synergies2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The business model relies on a large installed base that generates recurring revenue from parts, modernizations and overhauls. The company has an installed base of nearly 24,600 locomotives, supporting its service and remanufacturing activity 1. A broad product portfolio helps balance the cyclical nature of the rail industry 1.

Market context

The global rail market grew 2.7% in 2021-2023 according to a UNIFE study cited by the company, and the forecast points to a 3% compound annual growth rate through 2027 1. Freight demand depends on overall economic activity, while transit demand depends on government funding and passenger ridership 1. Wabtec aims to benefit from fleet modernization and investment in digitalization and automation 1.

Trends

  • Fleet modernizationtailwind

    Ageing locomotive and freight car fleets drive investment in modernization and replacement, supporting service and component sales 12.

  • Digitalization and automationtailwind

    Investment in digitalization, safety and automation opens opportunities for Digital Intelligence solutions, including recent acquisitions in testing and detection 13.

  • Trade tariffs and costsheadwind

    Tariffs and trade policy have raised costs and affected cash flow, and the final effect depends on expected refunds 2.

  • Public funding cyclicalitymixed

    Transit projects depend on government budgets that can be delayed or cancelled, which could reduce OE and aftermarket orders 1.

Competitive position

Wabtec operates in a global market with a limited number of established competitors, some with greater financial resources or government backing 1. Price competition is strong and cost-conscious customers with negotiating power have limited price increases 1. Competition also rests on product performance, technology, quality and customer service 1.

Competitive strengths include the installed base, certifications required in regulated markets and the ability to develop new technologies, but a competitor investing heavily in innovation could narrow this gap 1.

  • Alstom

    European rail equipment and transit supplier named in the global competitive context, with no confirmed US listing.

  • Siemens Mobility

    Division of the Siemens group active in signalling and rail vehicles, a global transit competitor without its own US ticker.

  • CRRC

    Chinese locomotive and railcar maker with strong government support, a source of price pressure in international markets.

  • Progress Rail (Caterpillar)

    Rail division of a US industrial group, active in locomotives and services for freight operators.

News & filings

In the press

The latest news item in our archive is from 23 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Wabtec Corporation · 13 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Wabtec Corporation · 21 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Wabtec Corporation · 21 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.