How does Wabtec (WAB) make money?

Wabtec (WAB) generates revenue primarily from Freight Segment, which accounted for 71.6% of total revenue in TTM through Q2 2026. The company reported $12B in revenue and converted 10.6% of it into net profit, equivalent to roughly $1.27B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Wabtec (WAB)?

Wabtec (WAB) reported a gross profit margin of 34.3% in TTM through Q2 2026, equivalent to $4.11B in gross profit on $12B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Wabtec (WAB)?

Wabtec (WAB) reported an operating profit margin of 16.5% in TTM through Q2 2026, equivalent to $1.98B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Wabtec (WAB)?

Wabtec (WAB) reported a net profit margin of 10.6% in TTM through Q2 2026, equivalent to $1.27B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Wabtec (WAB) profitable?

Yes. Wabtec (WAB) reported $1.27B in net income for TTM through Q2 2026, with a net profit margin of 10.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Wabtec (WAB) invest in research and development?

Wabtec (WAB) invested $239M in research and development during TTM through Q2 2026, roughly 2.0% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Wabtec (WAB) spend on capital expenditures?

Wabtec (WAB) spent $147M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 1.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Wabtec (WAB) generate?

Wabtec (WAB) generated $1.85B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 15.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Wabtec (WAB)?

Wabtec (WAB) had an effective tax rate of 25.1% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Wabtec (WAB)?

Wabtec (WAB) reports revenue across 2 reportable product segments, led by Freight Segment at 71.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Wabtec Makes Money: 2026 Visual Revenue Map

Wabtec (WAB) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 22, 2026).

Wabtec discloses geographic revenue only in annual filings. to view the full breakdown.

Wabtec (WAB) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Wabtec (WAB), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Freight Segment	$8.57B	71.6%
Transit Segment	$3.41B	28.4%
Total	$12B	100%

Freight Segment$8.57B
Transit Segment$3.41B
Total$12B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Wabtec (WAB) reports revenue across 2 reportable product segments; the largest segment was Freight Segment at 71.6%, followed by Transit Segment (28.4%).

Frequently asked questions

Data & methodology

Wabtec (WAB) Key Financials

Charts, filings, and peer comparison for every metric

Trains Company Knowledge

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

WAB Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation