Westinghouse Air Brake Technologies Corporation stock research
FY2025 Q4
Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened sequentially but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened sequentially but improved relative to the year-ago period.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, supporting margin improvement, but the opposite occurred sequentially.
- Compared to the immediately preceding quarter, gross margin was lower, with revenue higher and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue higher and cost of revenue higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$966.0M
Revenue
$3.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $2.6B | $900.0M | $1.7B | 34.5% |
| Jun 30, 2025 | $2.7B | $938.0M | $1.8B | 34.7% |
| Sep 30, 2025 | $2.9B | $1.0B | $1.9B | 34.7% |
| Dec 31, 2025 | $3.0B | $966.0M | $2.0B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.1 pts
Year-over-year change
Dec 31, 2024
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the year-ago quarter, supporting margin improvement, but the opposite occurred sequentially.
Compared to the immediately preceding quarter, gross margin was lower, with revenue higher and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue higher and cost of revenue higher.
Monitor the sequential weakening of gross margin despite higher revenue, as it may indicate a shift in the cost structure relative to revenue growth.