WABWESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP

Railroad Equipment

Revenue: $11.2B; 7.5% YoY
Operating margin: 16.1%; 3.7% YoY
EBITDA: $2.3B; 8.6% YoY
Market cap: $47.0B
Employees: 31,000; $360K revenue each
Net debt / EBITDA: 1.4×; $3.3B net debt
AI in 10-K: 0.8; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersNo
—
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
150% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
23% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
46% of assets
Over 40% of assets
Shareholder dissentNo
—
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$360K · 46th pct
Bottom quartile of its SIC industry
Quiet on AINo
0.8 per 10K words · 30th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.4× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$47.0B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$43M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$7.8B	$8.4B	$9.7B	$10.4B	$11.2B	7.5%
Operating income	$876M	$1.0B	$1.3B	$1.6B	$1.8B	11%
Net income	$558M	$633M	$815M	$1.1B	$1.2B	11%
Operating cash flow	$1.1B	$1.0B	$1.2B	$1.8B	$1.8B	4.1%
Capex	$130M	$149M	$186M	$207M	$260M	26%
Stock-based comp	$46M	$41M	$47M	$66M	$80M	21%
Buybacks	$300M	$473M	$409M	$1.1B	$223M	80%
Dividends	$92M	$111M	$123M	$140M	$173M	24%

Deal filings

Filed	Form	Acquirer	Price	Premium
Oct 12, 2018	DEFM14A	General Electric Company	$109.31	31.31%
Aug 8, 2018	PREM14A	General Electric Company	$109.31	30.8%

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $43M · 132
Net: −$43M

Pay vs performance

No pay-versus-performance disclosure yet.