WA

Westinghouse Air Brake Technologies Corporation stock research

Mar 31, 2024

FY2024 Q1

Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Mar 31, 2024

Revenue held steady compared to the immediately preceding quarter and rose relative to the same quarter one year earlier. Gross profit increased and cost of revenue declined, resulting in a higher gross margin on both comparisons.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue held steady compared to the immediately preceding quarter and rose relative to the same quarter one year earlier. Gross profit increased and cost of revenue declined, resulting in a higher gross margin on both comparisons.

  • The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which improved gross margin despite stable revenue.
  • Gross margin improved from the previous quarter and from the same quarter last year, reflecting lower cost of revenue in the current period.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.6%

Gross profit

$815.0M

Revenue

$2.5B

Cost of revenue

$1.7B

Quarter-over-quarter change

+2.4 pts

Year-over-year change

+2.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$2.4B$723.0M$1.7B30.0%
Sep 30, 2023$2.5B$792.0M$1.8B31.1%
Dec 31, 2023$2.5B$764.0M$1.8B30.2%
Mar 31, 2024$2.5B$815.0M$1.7B32.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

+2.4 pts

Year-over-year change

Mar 31, 2023

+2.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the reduction in cost of revenue relative to revenue, which improved gross margin despite stable revenue.

Gross margin improved from the previous quarter and from the same quarter last year, reflecting lower cost of revenue in the current period.

Monitor the trend in cost of revenue as a proportion of revenue in future quarters.