Cummins vs Wabtec
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KIRA’s take AI analyst
I put Cummins and Wabtec side by side, using each one’s latest annual report. Here is what stands out:
- Cummins is the larger business, with $33.7B of revenue in fiscal 2025 against $11.2B for Wabtec, about 3.0 times as much.
- Wabtec grew revenue faster (7.5%, against −1.3%).
- Wabtec kept more of each dollar of sales as operating profit (16.1% operating margin, against 12.0%).
- Wabtec turned more of its sales into free cash flow (13.4% FCF margin, against 7.1%).
- Cummins earned a higher return on the capital invested in it (18.3%, against 9.1%).
- Investors pay more for each dollar of Wabtec’s earnings: a P/E of 34.5x against 26.7x for Cummins.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Cummins
CMI
4/11
5-year growthReturn on capitalReturn on equityNet debt / EBITDA
Wabtec
WAB
6/11
Revenue growthGross marginOperating marginNet marginFCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | CMI FY25 | WAB FY25 |
|---|---|---|
| Size | ||
| Market cap | $72.3B | $46.9B |
| Revenue | $33.7B | $11.2B |
| Free cash flow | $2.4B | $1.5B |
| Net income | $3.0B | $1.2B |
| Growth | ||
| Revenue growth | −1.3% | 7.5% |
| 5-year growth | 11.2% | 8.1% |
| Share count change | −0.3% | −2.1% |
| Profitability | ||
| Gross margin | 25.3% | 34.1% |
| Operating margin | 12.0% | 16.1% |
| Net margin | 8.8% | 10.5% |
| FCF margin | 7.1% | 13.4% |
| Return on capital | 18.3% | 9.1% |
| Return on equity | 26.2% | 11.0% |
| Balance sheet | ||
| Net debt | $3.6B | $4.8B |
| Net debt / EBITDA | 0.7x | 2.1x |
| Dividends and buybacks | $1.1B | $396M |
| Valuation & quality | ||
| P/E | 26.7x | 34.5x |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.