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Wabtec (WAB) Secures Oder for London Underground Upgrade

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Westinghouse Air Brake Technologies Corporation (WAB - Free Report) , which operates under the name of Wabtec Corporation, won an order under the London Underground’s Piccadilly Upgrade Program.

The order, valued in excess of $70 million, requires Wabtec to supply brakes, air conditioning and ventilation (HVAC), passenger information systems and third-rail current collectors to Siemens Mobility for the upgrade of “one of the world’s busiest transit systems”.

Per Lilian Leroux, president of Wabtec’s Transit business, “These orders build upon our long-standing relationship with Siemens Mobility and will support one of the most modern and sustainable metros ever built.”

According to the order, Wabtec will initially supply the components to 94 new trains. The bogie brakes help the London Underground with a weight saving of 250 kg. Moreover, these aid in reducing the train’s energy expenditure apart from offering a significant two-year extension on overhaul intervals, thus lowering maintenance costs. Moreover, the sanding system will enhance safety by improving traction and adhesion in the demanding environment prevalent in London.

The contract win for Wabtec under the project will see trains in the London “Deep Tube” well-equipped with air-conditioning systems for the first time. These systems are designed to curb energy consumption. In addition, the new passenger information system is aimed at enriching the travel experience of passengers by offering facilities like comprehensive information displays.

Additionally, the trains following the upgrade will be fashioned with Wabtec’s third-rail current collectors, designed with resin moulding technology on selected components to decrease weight by more than 15%.

Notably, the project to uplift London’s underground system will not only facilitate travel for the city’s vast population but also create an avenue of job opportunities in the process. Naturally, Wabtec’s involvement in this key project a major lever for the company.

Zacks Rank & Stocks to Consider

Wabtec  currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks  Transportation  sector are Kansas City Southern ,Triton International Limited   and  Herc Holdings (HRI - Free Report) . Kansas City Southern carries a Zacks Rank #2 (Buy) while Triton and Herc Holdings sport a Zacks Rank #1 (Strong Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Kansas City Southern, Triton and Herc Holdings is projected at 15%, 10% and 31.2%, respectively.

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