Westinghouse Air Brake Technologies Corporation stock research
FY2025 Q1
Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was lower than the prior quarter but similar to the year-ago quarter, resulting in a gross margin that strengthened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was lower than the prior quarter but similar to the year-ago quarter, resulting in a gross margin that strengthened sequentially and year-over-year.
- The strongest observable margin driver was the improvement in gross profit relative to revenue, as gross profit increased while revenue remained stable sequentially and grew year-over-year. This indicates that cost of revenue was managed more effectively in the current quarter.
- Compared to the immediately preceding quarter, gross margin improved from a lower level to a higher level. Compared to the same quarter one year earlier, gross margin also strengthened from a lower level to a higher level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.5%
Gross profit
$900.0M
Revenue
$2.6B
Cost of revenue
$1.7B
Quarter-over-quarter change
+3.6 pts
Year-over-year change
+1.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $2.6B | $874.0M | $1.8B | 33.1% |
| Sep 30, 2024 | $2.7B | $880.0M | $1.8B | 33.0% |
| Dec 31, 2024 | $2.6B | $797.0M | $1.8B | 30.9% |
| Mar 31, 2025 | $2.6B | $900.0M | $1.7B | 34.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+3.6 pts
Year-over-year change
Mar 31, 2024
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the improvement in gross profit relative to revenue, as gross profit increased while revenue remained stable sequentially and grew year-over-year. This indicates that cost of revenue was managed more effectively in the current quarter.
Compared to the immediately preceding quarter, gross margin improved from a lower level to a higher level. Compared to the same quarter one year earlier, gross margin also strengthened from a lower level to a higher level.
Monitor changes in accounts receivable and unbilled accounts receivable, as they increased notably from the prior quarter end, which may affect future cash flows.