Wabtec (WAB)
NYSEIndustrialsRailroadsSnapshot 2026-07-07
$259.19-0.81%
Close 2026-07-07 · 1-day change
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Track WAB free→Wabtec grows sales about 13% yearly, driven by acquisitions and backlog. Profit margins stay near 17.5%. Free cash flow is improving modestly. The company raised EPS guidance to about $10.45 for 2026.
Profit margins are slipping, down from 18.2% to 17.5%. Cash flow growth is slow, only a small increase from $191M to $199M. The sector faces headwinds that may pressure demand and growth.
The price is about 7% above our fair value near $244, reflecting roughly 10% revenue growth expected by analysts. Our fair value is 20% below the Street median, indicating some caution versus more optimistic views.
Breaks if: Cash flow from operations falls below $190 million next year
Wabtec is focused on improving cash conversion to enhance financial flexibility and shareholder value.
Stated in 2 of last 2 quarters. Cash Flow from Operations increased from $191 million in 2025-Q1 to $199 million in 2026-Q1. The focus on improving cash conversion is showing limited progress, with a modest increase in cash flow.
Breaks if: Operating margin falls below 16% next year
Wabtec aims to maintain its operating margin through disciplined cost management and operational efficiency.
Stated in 2 of last 2 quarters. GAAP Operating Margin decreased from 18.2% in 2025-Q1 to 17.5% in 2026-Q1. Despite efforts to maintain margins, the trajectory shows a slight decline, indicating challenges in sustaining operating efficiency.
Breaks if: YoY revenue growth falls below 10% next year
Wabtec aims to drive significant value through sales and earnings growth, supported by acquisitions and backlog expansion.
Stated in 2 of last 2 quarters. Sales increased 13.0% compared to the year-ago quarter, from $2.61 billion in 2025-Q1 to $2.95 billion in 2026-Q1. The trajectory is delivering on the stated growth focus, supported by acquisitions and backlog expansion.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Cash Flow from Operations $199 million versus $191 million in the year ago period.”
“Strong Full Year Cash from Operations at $1.8 Billion or 104% Cash Conversion.”
“GAAP Operating Margin at 17.5%; Adjusted Operating Margin Up 0.2 pts to 21.9%.”
“GAAP Operating Margin 12.0%; Adjusted Operating Margin 17.7%.”
“CEO: 'Wabtec delivered a strong start to 2026, with solid first quarter execution...'”
“CEO: 'The Wabtec team delivered a strong fourth quarter and full year results...'”