WA

Westinghouse Air Brake Technologies Corporation stock research

Jun 30, 2025

FY2025 Q2

Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Jun 30, 2025

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was higher than the prior quarter but unchanged from a year ago, resulting in a gross margin that improved sequentially and year-over-year.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue was higher than the prior quarter but unchanged from a year ago, resulting in a gross margin that improved sequentially and year-over-year.

  • Gross profit grew faster than revenue relative to both comparison periods, indicating that the cost of revenue increased at a slower pace than revenue. This relationship drove the gross margin higher.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher, leading to a slightly improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved more notably.

Gross margin snapshot

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

Gross margin

34.7%

Gross profit

$938.0M

Revenue

$2.7B

Cost of revenue

$1.8B

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+1.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$2.7B$880.0M$1.8B33.0%
Dec 31, 2024$2.6B$797.0M$1.8B30.9%
Mar 31, 2025$2.6B$900.0M$1.7B34.5%
Jun 30, 2025$2.7B$938.0M$1.8B34.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2025

+0.2 pts

Year-over-year change

Jun 30, 2024

+1.6 pts

What the margin says

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

Gross profit grew faster than revenue relative to both comparison periods, indicating that the cost of revenue increased at a slower pace than revenue. This relationship drove the gross margin higher.

Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher, leading to a slightly improved gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved more notably.

Monitor the trend in cost of revenue relative to revenue, as it remained stable year-over-year but increased sequentially.