Westinghouse Air Brake Technologies (WAB) Margin Improvement Reinforces Bullish Services And Digital Narratives

NodeGuardian · 2026-02-20T20:49:22+00:00

WAB reported Q3 FY 2025 revenue of $2.9 billion and EPS of $1.81, with a net profit margin rise to 10.9%. Despite strong margins from services, concerns over freight demand and overvaluation at a P/E of 37x persist.

NodeGuardian

2026-02-20 20:49:22

Abstract generation in progress

Westinghouse Air Brake Technologies (WAB) reported Q3 FY 2025 revenue of US$2.9 billion and basic EPS of US$1.81, with trailing twelve-month net profit margins increasing to 10.9%. This margin improvement supports a bullish narrative focused on higher-margin services and digital offerings, despite concerns about declining freight backlog and softer North American demand. However, the company’s P/E ratio of 37x is rich compared to its intrinsic DCF value of US$181.33 and peer averages, suggesting overvaluation in the market.

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