Core Thesis - Westinghouse Air Brake Technologies Corporation (WAB) is positioned as a dominant player in the global freight and transit markets, providing essential rail infrastructure solutions, which include locomotives, braking systems, and digital rail technologies [2][4] Financial Performance - WAB has demonstrated strong financial returns, with a five-year compound annual growth rate (CAGR) of 24.7% compared to the S&P 500's 14.6%, and a three-year CAGR of 31% versus the S&P's 19.4% [3] - The company has a 10-year median return on invested capital of approximately 8% and maintains a balanced capital structure with a debt-to-equity ratio of 44% [4] Revenue Composition - The freight segment contributes 72% of WAB's revenues, while the transit segment accounts for 28%, providing a stable international demand [4] - Historical revenue growth has averaged 13% annually, with a forward outlook driven by fleet modernization, decarbonization initiatives, and emerging-market transit build-outs [4] Market Position and Strategy - WAB combines recurring aftermarket revenues with exposure to long-cycle equipment orders, resulting in a durable and predictable business model [2][4] - Management has reaffirmed guidance and highlighted strategic wins in digital and clean-energy rail solutions, maintaining disciplined cost control for long-term visibility [5] Valuation - The stock is currently trading modestly above its intrinsic value estimate of $177, indicating potential for long-term growth [5]