Rail & Road
A Solid Long-Term Play in the Resilient Rail Industry Backed by Cramer’s Bullish Call

Wabtec Corporation (WAB) has emerged as a pillar of stability in the global rail industry, driven by robust financial performance, strategic innovation, and a dividend history that has consistently rewarded shareholders. Jim Cramer’s recent “Mad Money” endorsement—urging investors to “Grab Some Wabtec”—adds momentum to this already compelling story. Let’s dissect why WAB is positioned for long-term success and why now could be an ideal time to buy.
Cramer’s Endorsement: A Vote of Confidence
In his June 25, 2025 Mad Money Lightning Round, Jim Cramer explicitly recommended buying Wabtec, contrasting it with his bearish stance on Workday (WDAY). This call underscores Wabtec’s role as a leader in a sector primed for growth. Cramer’s rationale likely hinges on Wabtec’s dual focus on freight and transit rail solutions, which are critical to global supply chains and urban mobility.
Financial Fortitude: Outperforming in a Volatile Market
Wabtec’s Q1 2025 results彰显其坚韧实力:- Revenue grew 4.5% year-over-year to $2.61 billion, with both freight (up 4.2%) and transit (up 5.3%) segments contributing.- Adjusted EPS surged 20.6% to $2.28, benefiting from margin expansion (adjusted operating margin rose 1.9 points to 21.7%).- Backlog strength: The 12-month backlog increased by $486 million to $8.196 billion, reflecting solid demand visibility.
This performance is particularly notable amid macroeconomic headwinds, including rising interest rates and supply chain disruptions. Wabtec’s ability to sustain profitability while expanding its addressable market—bolstered by its April 2024 acquisition of Evident’s inspection technologies—positions it to capitalize on long-term rail modernization trends.
Market Dominance and Global Reach
Wabtec’s geographic diversification is a key strength:- International revenue growth has averaged high single digits over two years, driven by demand in Europe, Asia, and Australia. – Strategic partnerships: A $1.8 billion 10-year agreement with Vale to enhance locomotive efficiency on Brazil’s Carajás Railway, and collaboration with Australia’s ARTC to improve rail interoperability, highlight its global footprint.
In the freight segment, Wabtec’s services revenue (up 16.9% year-over-year) reflects the growing demand for predictive maintenance and digital solutions—a trend accelerated by its Evident acquisition, which doubled its AI-driven inspection capabilities.
Sustainable Tech: Leading the Green Transition
Wabtec is at the forefront of rail’s sustainability shift:- Green Friction Technology: Deployed in Paris, this innovation reduces particulate emissions in rail tunnels, addressing environmental concerns.- Hydrogen Fuel Cell Locomotives: Aligning with regulatory trends like California’s diesel locomotive ban (effective 2024) and Scotland’s net-zero goals via hydrogen trains.- Digital Intelligence: $181 million in freight segment sales came from digital solutions, underscoring the shift toward data-driven efficiency.
These initiatives not only meet ESG mandates but also create recurring revenue streams through services and upgrades—a moat against competitors.
Dividend Stability: A Reliable Income Stream
Wabtec has increased its dividend every year since 2022:- 2020–2025 Dividend Growth: From $0.12 per quarter to $0.25, totaling $1.00 annually in 2025, with a yield of ~0.5% (based on a $211.78 stock price). – Dividend Cover: A healthy 8.3x ratio ensures payouts are sustainable even in downturns.
Valuation: Attractive Relative to Peers
While Wabtec’s P/E ratio of 31.47 is higher than peers like PACCAR (11.94) or Cummins (11.57), this reflects its premium positioning in high-growth sustainability and digital rail solutions. Key comparisons:- Market Cap: $34.52 billion vs. PACCAR’s $49.57 billion—Wabtec’s smaller size allows for faster innovation adoption.- Backlog-to-Sales Ratio: Wabtec’s $8.196 billion 12-month backlog (3.1x annualized sales) outpaces many peers, indicating strong future revenue.
Risks to Consider
- Supply Chain Volatility: Higher accounts receivable reduced operating cash flow conversion to 43% (vs. 84% in 2024). Management aims to improve this through better working capital management.
- Currency Fluctuations: International revenue exposes Wabtec to exchange rate risks, though hedging strategies mitigate this.
- Economic Downturn: Reduced freight volumes in a recession could pressure margins, though services and aftermarket sales offer resilience.
Final Analysis: Buy WAB with a Long-Term Lens
Wabtec’s combination of strong fundamentals, sustainable tech leadership, and dividend reliability makes it a compelling buy. Cramer’s endorsement aligns with its strategic positioning in a sector ripe for modernization. While risks exist, Wabtec’s backlog, global partnerships, and innovation pipeline suggest it will weather macro challenges.
Investment Recommendation: Buy WAB for a portfolio seeking stability and growth in infrastructure. A price target of $230–$240 (based on 2025 EPS guidance midpoint of $8.65 and a P/E multiple of 27x) offers ~8–14% upside. Hold for 3–5 years to capture the full potential of rail’s green transition.
In a world where reliable infrastructure underpins economic resilience, Wabtec is more than a stock—it’s a stake in the future of global transportation.
Rail & Road
Kazipet Railway Manufacturing Set to Begin Full-Scale Production by 2026, Boosting India’s Railway Industry and Regional Growth

Monday, July 21, 2025
Kazipet Railway Manufacturing is set to begin full-scale production by 2026, a move that will significantly boost both India’s railway industry and regional economic growth. The strategic ₹500 crore investment in the Telangana-based facility will enable the plant to manufacture state-of-the-art coaches, locomotives, and metro components using advanced technology. This initiative not only strengthens India’s infrastructure by expanding domestic railway production but also contributes to the region’s industrial development, creating thousands of jobs and supporting ancillary industries. By 2026, Kazipet Railway Manufacturing is expected to play a pivotal role in meeting the nation’s growing demand for modernized railway components, propelling India closer to its goal of self-reliance in rail technology.
Strategic Investment Fuels Technological Innovation
A ₹500 crore (≈ $60 million) investment will fund the installation of cutting-edge machinery at the Kazipet plant. This will include the adoption of robotic painting and automated storage systems, advancing the plant’s capacity to produce high-quality railway components. By integrating state-of-the-art technology, the facility will help meet the demand for modernized rolling stock, improving both operational efficiency and production capacity across India’s railway network.
The investment in modern machinery ensures that Kazipet Railway Manufacturing remains at the forefront of global industrial standards, allowing it to provide advanced solutions for the nation’s growing railway infrastructure needs. This move is set to position the plant as a major player in the development of India’s railway industry.
Boosting Regional Economy and Employment
The establishment of the Kazipet Railway Manufacturing facility is expected to significantly benefit the region’s economy. The plant is set to create thousands of jobs, not only within the manufacturing plant itself but also in the surrounding industries that will support its operations. This influx of employment opportunities will contribute to the region’s economic growth and play a pivotal role in Telangana’s industrial expansion.
Moreover, the Kazipet project is part of a larger ₹6,100 crore (≈ $735 million) infrastructure initiative announced in 2023. This initiative includes the development of 176 kilometers of highways and the establishment of the Kazipet railway unit, further boosting industrial activity in the region. By providing a strong industrial base and fostering economic growth, the plant is expected to attract additional investments to Telangana, making it a key hub for manufacturing and infrastructure in India.
Supporting India’s Vision for Self-Sufficiency in Railway Technology
Kazipet Railway Manufacturing aligns with India’s long-term goal of achieving self-reliance in railway technology. By reducing the country’s dependence on foreign imports for essential railway components, the plant supports the government’s “Atmanirbhar Bharat” (Self-Reliant India) initiative. This effort aims to strengthen domestic manufacturing capabilities and reduce the reliance on external suppliers, boosting the nation’s competitive edge in the global railway market.
The plant’s advanced production capacity will contribute to the modernization of India’s railways, helping to meet the rising demand for efficient, reliable, and sustainable transportation solutions. With production slated to begin in 2026, the Kazipet facility will play a crucial role in building a self-sufficient and resilient railway network that meets the needs of the nation’s growing economy.
Modernizing India’s Rail Infrastructure
The Kazipet Railway Manufacturing project forms a key component of India’s broader rail modernization strategy, which focuses on enhancing the country’s railway systems to keep pace with increasing demand for transportation. With advanced manufacturing capabilities, the Kazipet facility will help provide high-quality, domestically produced railway components, reducing costs and ensuring a steady supply of critical parts for the nation’s rail network.
The establishment of the plant represents a major step forward in improving operational efficiency within India’s railway system, aligning with national goals to modernize infrastructure and expand capacity. By supporting the production of advanced coaches, locomotives, and metro components, the plant will play a vital role in enhancing India’s rail network, ensuring it remains competitive in the face of growing global demand for railway services.
Kazipet Railway Manufacturing is set to transform India’s railway manufacturing landscape. With a significant investment in advanced technologies, the plant will play a central role in regional economic development, job creation, and the modernization of India’s rail infrastructure. As the plant prepares for full-scale production in 2026, it stands as a key contributor to India’s self-reliance in railway technology, industrial growth, and transportation efficiency. The Kazipet facility will not only help modernize India’s railway systems but also pave the way for a future-focused, self-sustaining transport infrastructure.
Rail & Road
Biggest ever rail passenger satisfaction survey launches nationwide
The biggest passenger satisfaction survey in the history of Britain’s railway has launched.
The Rail Customer Experience Survey marks another important step in putting customers at the heart of the railway.
Approximately ten thousand passengers a month will be asked their views on the rail network, while travelling to their destination, with the aim of speaking to an estimated 130,000 passengers every year.
Passengers will be able to voice their experiences and share their views on their journeys and areas for improvement.
The first set of results will become publicly available on an interactive online dashboard in Autumn 2025. Passenger views will be used to help train operators improve the day-to-day service for passengers and inform industry decision-making for the improvement of rail services. This way, they can be at the forefront of driving systemic change to improve Britain’s railways and make sure operators are delivering what customers want and need.
The survey is a collaboration between Rail Delivery Group, Department for Transport, Network Rail, Transport Focus and the Customer and Revenue Growth team, previously part of the Great British Railways Transition Team.
Jacqueline Starr, Executive Chair and Chief Executive Officer of Rail Delivery Group said:
“The industry is excited to offer this new and meaningful way for customers’ voices to be effectively and consistently heard across the rail network. No matter which train operator you travel with or where you are headed, you’ll have the opportunity to speak directly to us and know that you’re being listened to.
“We’re going to make it easier for customers to share their views with the industry, and it will help the industry put those views into practice. Making a real difference for customers. And, as the industry moves towards the creation of Great British Railways, this helps us to make sure that where there is best practice, it is spread across the network so that everyone can benefit, no matter where they live.”
Rail Minister Lord Hendy said:
“Great British Railways is putting passengers back at the heart of our transport network. Hearing directly from those that use our trains about how to improve them will help us return services to a standard we can be proud of again.
“We are proud to deliver this ambitious project alongside organisations across the rail sector, coming together to commit to change and improvements for the nation’s railways.”
Laura Shoaf, Chair of Shadow Great British Railways said:
“The launch of this survey marks a significant step forward for Britain’s railways. By launching the largest-ever passenger survey, Shadow Great British Railways partners are putting customers at the heart of everything we do.
“Talking directly to ten thousand passengers every month — while they travel — will give us an unprecedented understanding of the real passenger experience.
“As we progress toward establishing Great British Railways, this survey is a vital tool to identify what’s working well and best practices are shared across the entire network — so that all passengers benefit from consistent, high-quality service.”
Natasha Grice, Director at the independent watchdog Transport Focus said:
“It’s critical that we listen to what passengers tell us are the most important areas to improve upon when it comes to the experiences they are having across the rail industry. The new survey is going to do exactly that, by providing a significant increase in the amount of feedback we hear. This can only be a good thing, and will help us all to remain focused on delivering improvements to the passenger experience.
“As well as publishing our quarterly scorecard highlighting how operators are performing across a number of industry metrics, we will be producing a 6 – monthly official statistics report starting in May 2026.”
Suzanne Donnelly, Customer & Revenue Growth Director for Network Rail said:
“The launch of this survey is a powerful example of the whole railway sector coming together to deliver a step change in rail’s customer insight capability.
“Developed collaboratively by the Rail Delivery Group, Network Rail, the Department for Transport, train operating companies, and other partners, this programme puts the passenger voice at the centre of our shared decision-making.
“It lays a crucial foundation for understanding current customer needs and creating the right conditions for Great British Railways — which will ultimately help to rebuild public trust and encourage more people to travel by train.”
This survey replaces the National Rail Passenger Survey and comes in at more than double the total sample size. To be held continuously with no planned end date, the rolling survey will cover the entire rail industry, bringing together elements from previous industry-level surveys for the first time. This new methodology leverages new technology to pinpoint the train a respondent is travelling on. It will help to fully reflect the everyday experience of rail passengers, providing a common framework for the whole industry to measure passenger satisfaction, with results data providing new, universal benchmarks that can be compared across the whole network.
Rail & Road
c2c transitions to public ownership

As the c2c rail franchise transitions to public ownership under the Department for Transport on, formally becoming c2c Railway Limited, Trenitalia reflects on what it describes a meaningful and productive chapter in its UK journey – one marked by sustained investment, operational innovation and a shared commitment to delivering high-quality rail services – while reaffirming its continued role in supporting the long-term development of the UK transport sector and contributing to national and regional economic growth.
While rail industry reform continues to take shape, Trenitalia says it remains firmly committed to its future in the UK market and to maintaining investment across the broader mobility ecosystem. This includes its recent application to operate high-speed services between London and Paris, forming part of a broader commitment to building a more interconnected and sustainable European rail network.
As part of the FS Group, with more than a century of rail experience across Italy and internationally, Trenitalia’s transition from franchise operator marks not an exit, but a repositioning to strategic partner, ready to contribute its expertise to the vision set out by Great British Railways and its interaction with local bodies while running the railway as a national network.
In doing so, Trenitalia continues to foster partnerships with UK-based SMEs, universities and innovation hubs, supporting knowledge exchange and long-term sector resilience.
Since acquiring c2c in 2017, it says its goal was ambitious: to translate the skills, discipline and customer-focused excellence developed in the highly competitive Italian market for British customers. This has included a significant focus on service quality, technological advancement and long-term value for passengers.
Over the past eight years, c2c has supported over 315 million passenger journeys and operated 935,000 services and has been consistently recognised as one of the UK’s most punctual train operators, achieving a 94.5% overall customer satisfaction score in most recent Transport Focus survey period – the highest of any UK train operating company.
A substantial programme of investment underpinned this performance. Highlights include the introduction of 10 new Alstom electric trainsets, representing a £100 million commitment to fleet modernisation, and the delivery of the UK’s first fully contactless national rail network, now used for over 10,000 daily taps across the c2c route.
In parallel, improvements to ticketing with Trenitalia’s fully digital PICO system, replacing multiple outdated legacy UK ticket systems, passenger compensation, and upgrades to station facilities have further contributed to a smoother, more modern customer experience.
Trenitalia’s management of c2c has also played a material role in supporting the wider regional economy and community. Each weekday, over 25,000 commuters rely on c2c services into London, with independent analysis showing that rail travel contributes approximately £590 million annually to businesses in the East of England.
Operational excellence has remained a consistent focus, supported by effective fare compliance measures that recovered £596,000 from evasion in the most recent year. c2c has also earned multiple independent accreditations recognising its commitment to passenger and staff safety, including certifications in Health & Safety, Safeguarding, Secure Stations and the White Ribbon initiative.
Complementing these efforts, working in lockstep with the government through targeted investments such as the Station Improvement Fund and the Customer & Communities Investment Fund (CCIF) has significantly enhanced the passenger experience by upgrading facilities and services across the network’s stations.
Ernesto Sicilia, Managing Director at Trenitalia UK, commented: “Our management of c2c has been grounded in a resolve for continuous improvement and being in tune with the needs of the communities we serve.
“As the franchise moves to public ownership, we acknowledge both the progress made and the ongoing challenges of unifying a fragmented rail industry. In the meantime, we will continue to support and deliver services on the Avanti West Coast franchise until it too transitions to public ownership in 2026.
“While our role as operator is ending, our dedication to sharing knowledge, supporting innovation and fostering collaboration remains unchanged. We recognise that building a resilient and integrated rail network takes time and Trenitalia is determined to play a constructive part in that journey.”
As the c2c franchise returns to public hands, Trenitalia has said it extends its sincere appreciation to the teams, passengers and industry partners who have contributed to this journey. Trenitalia has said it takes great pride in the achievements realised during this time and looks forward to contributing to the next chapter of UK rail.
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