WA

Westinghouse Air Brake Technologies Corporation stock research

Sep 30, 2024

FY2024 Q3

Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin was slightly lower than the prior quarter but higher than the same quarter last year, indicating improved profitability year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin was slightly lower than the prior quarter but higher than the same quarter last year, indicating improved profitability year-over-year.

  • The strongest observable margin driver is the increase in gross profit relative to revenue growth, as gross margin improved year-over-year despite stable cost of revenue.
  • Compared to the immediately preceding quarter, gross margin weakened slightly from a higher level. Compared to the same quarter one year earlier, gross margin improved significantly.

Gross margin snapshot

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

Gross margin

33.0%

Gross profit

$880.0M

Revenue

$2.7B

Cost of revenue

$1.8B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+2.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$2.5B$764.0M$1.8B30.2%
Mar 31, 2024$2.5B$815.0M$1.7B32.6%
Jun 30, 2024$2.6B$874.0M$1.8B33.1%
Sep 30, 2024$2.7B$880.0M$1.8B33.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-0.0 pts

Year-over-year change

Sep 30, 2023

+2.0 pts

What the margin says

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

The strongest observable margin driver is the increase in gross profit relative to revenue growth, as gross margin improved year-over-year despite stable cost of revenue.

Compared to the immediately preceding quarter, gross margin weakened slightly from a higher level. Compared to the same quarter one year earlier, gross margin improved significantly.

Monitor the trend in cost of revenue, which remained stable in the current quarter but could impact margins if it changes.