AI Takeaway
WAB delivered strong FY2025 results with revenue growing 7.5% to $11.2B and net income rising 10.8% to $1.17B, driven by margin expansion, though a major acquisition significantly increased debt and investing outflows.
Revenue
$11.17B
++7.51% YoY
EPS (Basic)
$6.84
++13.06% YoY
Gross Margin
34.1%
++1.68% YoY
Operating Income
$1.79B
++11.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
WAB grew total revenue 7.5% year-over-year from $10.39B to $11.17B in FY2025, reflecting sustained demand across its freight and transit segments. Gross profit expanded at a faster pace of 13.1% to $3.81B, indicating improved pricing power and product mix.
Source: Source: 10-K Income Statement
Gross margin improved 170 basis points to 34.1% and operating margin expanded 57 basis points to 16.1% in FY2025, demonstrating operating leverage even as SG&A expenses rose sharply by 19.4% to $1.49B, likely reflecting acquisition-related costs.
Source: Source: 10-K Income Statement & Key Ratios
Investing cash outflows surged to -$2.75B in FY2025 from -$343M in the prior year, a 701% increase, suggesting a major acquisition was completed. Total assets grew 18.0% to $22.07B and long-term debt jumped 39.2% to $5.54B to help fund the transaction.
Source: Source: 10-K Balance Sheet & Cash Flow Statement
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Upgrade to unlockLong-term debt surged 39.2% to $5.54B in FY2025, and total liabilities rose 27.0% to $10.88B, pushing the debt-to-equity ratio to approximately 0.98. This elevated leverage increases WAB's sensitivity to interest rate movements and could constrain financial flexibility if business conditions deteriorate.
Source: Source: 10-K Balance Sheet
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Upgrade to unlockReported EPS of $2.10 versus the $2.10 analyst consensus — a -0.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.17B | $10.39B | +7.51% |
Cost of Revenue | $7.36B | $7.02B | +4.84% |
Gross Profit | $3.81B | $3.37B | +13.07% |
Operating Income | $1.79B | $1.61B | +11.44% |
Net Income | $1.17B | $1.06B | +10.80% |
EPS (Basic) | $6.84 | $6.05 | +13.06% |
EPS (Diluted) | $6.83 | $6.04 | +13.08% |
R&D Expense | $223M | $206M | +8.25% |
SG&A Expense | $1.49B | $1.25B | +19.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $22.07B | $18.7B | +18.00% |
Current Assets | $5.69B | $4.94B | +15.19% |
Total Liabilities | $10.88B | $8.57B | +26.96% |
Current Liabilities | $5.15B | $3.79B | +35.81% |
Stockholders' Equity | $11.14B | $10.09B | +10.42% |
Long-Term Debt | $5.54B | $3.98B | +39.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.76B | $1.83B | -4.09% |
Investing Cash Flow | $-2.75B | $-343M | -700.87% |
Financing Cash Flow | $1.03B | $-1.37B | +175.20% |
Share Buybacks | $223M | $1.1B | -79.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 34.1% | 32.4% | +1.68% |
Operating Margin | 16.1% | 15.5% | +0.57% |
Net Margin | 10.5% | — | — |
ROE | 10.5% | — | — |
ROA | 5.3% | — | — |
Current Ratio | $1.106 | — | — |
Debt to Equity | $0.976 | — | — |
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WAB had a strong FY2025, with revenue growing 7.5% to $11.17B and net income rising 10.8% to $1.17B. Gross margin expanded to 34.1% and diluted EPS grew 13.1% to $6.83, reflecting solid operational execution.
WAB's 7.5% revenue increase to $11.17B in FY2025 was accompanied by gross profit growth of 13.1% to $3.81B, suggesting both volume growth and improved pricing or product mix. The company also saw operating income rise 11.4% to $1.79B, indicating broad-based business strength.
The financial data strongly suggests a significant acquisition occurred in FY2025, as investing cash outflows surged to -$2.75B from -$343M in the prior year, a roughly 700% increase. Long-term debt also jumped 39.2% to $5.54B, consistent with acquisition financing, and total assets grew 18.0% to $22.07B.
The most significant risks include elevated financial leverage, with long-term debt rising to $5.54B and a debt-to-equity ratio near 1.0x, and integration risk from the apparent large acquisition. Additionally, current liabilities surged 35.8% to $5.15B, leaving a thin current ratio of 1.11 that could pressure liquidity if business conditions soften.
WAB generated $1.76B in operating cash flow in FY2025, a slight 4.1% decline from $1.83B in the prior year despite higher net income, likely due to working capital changes. The large investing outflow of -$2.75B was primarily acquisition-related rather than a sign of deteriorating business cash generation.