Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q1 2026 Earnings Presentation
25 slides from Westinghouse Air Brake Technologies's earnings presentation, Apr 22, 2026
Slide 1: Wabtec Financial Results & Company Highlights
Wabtec Financial Results & Company Highlights F I R S T Q UA RT E R 2 0 2 6
Slide 2: Forward Looking Statements & Non-GAAP Financial Information
Forward Looking Statements & Non-GAAP Financial Information This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
Slide 3: Today's Participants
Today’s Participants RAFAEL SANTANA President & Chief Executive Officer JOHN OLIN Executive Vice President & Chief Financial Officer KYRA YATES Vice President, Investor Relations 3
Slide 4: 1Q 2026 Overview
1Q 2026 Overview 1Q 2026 HIGHLIGHTS Increased sales driven by both Freight and Sales $2.95B 13.0% Transit segments (including acquisitions) Operating 17.5% 0.7 pts 21.9% 0.2 pts Adj. operating margin up despite tariff headwinds Margin GAAP Adjusted Adjusted EPS improvement driven by strong Earnings
Slide 5: 2026 Key Metrics
2026 Key Metrics NORTH AMERICA INTERNATIONAL NA RAILCAR DELIVERIES Industry Freight Traffic Industry Freight Volumes 44K HISTORICAL 45K 10-YEAR AVERAGE 41K 42K 8.9% 8.0% 31K 2.5% 5.3% 24K 1.8% 3.8% 1.4% 0.0% 0.1% 2Q25 3Q25 4Q25 1Q26 Brazil China India South Kazakhstan Africa 2022 2023 2024 2025 2026
Slide 6: Executing On Our Value Creation Framework
Executing On Our Value Creation Framework RECENT WINS Accelerate innovation of scalable ▪ Secured a multi-billion-dollar, multi-year mining technologies contract for drive systems and aftermarket parts Grow and refresh expansive global ▪ Won $210 million multi-year modernization order with installed
Slide 7: Disciplined, Very High Return M&A Driving Portfolio Strength
Disciplined, Very High Return I N T E G R AT I O N U P DAT E M&A Driving Portfolio Strength Integration Status Financial Integration Synergies ~$4.6B of Capital Deployed Since 2020 Plan Inspection ($’s in Billions) $2.5 Tech PORTFOLIO ENHANCING Frauscher BOLT-ONS & NEAR-IN $1.0 $1.1 ADJACENCIES WITH
Slide 8: 1Q 2026 Financial Summary
1Q 2026 Financial Summary SALES OP. INCOME / OP. MARGIN EARNINGS PER SHARE $645M $2.71 $2.95B $565M 21.9% $2.61B $517M $2.28 $474M 21.7% $2.12 18.9% 0.2 13.0% 17.5% pts $1.88 YOY YOY 18.2% YOY 0.7 12.8% pts YOY YOY 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 GAAP GAAP ADJ(1) ADJ(1) GAAP GAAP A
Slide 9: 1Q 2026 Sales
1Q 2026 Sales PRODUCT LINE 1Q26 Y OY 1Q KEY DRIVERS (in millions) Equipment $ 726 52.5% Higher locomotive deliveries & increased mining sales Services $ 714 (17.3)% Sales growth in core services offset by lower modernization deliveries as expected Lower North America rail car build and lower revenue
Slide 10: 1Q 2026 Consolidated Operating Income
1Q 2026 Consolidated 1 Q O P E R AT I N G I N C O M E Operating Income KEY DRIVERS ($ in millions) GAAP Adjusted 2025 GROSS PROFIT $900 $903 VOLUME % Gross Profit 34.5% 34.6% Higher sales in Equipment & Transit, and acquisitions Volume MIX/PRICING Mix/Pricing Cost recovery through contract escalatio
Slide 11: 1Q 2026 Freight Segment Performance
1Q 2026 Freight Segment Performance SALES(2) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $550M $2.12B $488M 26.0% $6.68B $1.90B $450M $6.07B $420M 25.7% 0.3 21.3% pts 11.3% 22.1% YOY 10.1% YOY YOY 0.8 pts YOY 2025 2026 2025 2026 2025 2026 2025 2026 GAAP GAAP ADJ(1) ADJ(1) (2) M u l t i-Ye ar Ba c k l o
Slide 12: 1Q 2026 Transit Segment Performance
1Q 2026 Transit Segment Performance SALES (1) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $835M $138M $2.57B $709M $121M 16.6% $2.13B 17.8% 14.5% $103M $90M 2.0 20.7% YOY pts 1.8 14.6% YOY YOY 12.7% pts YOY 2025 2026 2025 2026 2025 2026 2025 2026 GAAP GAAP ADJ ADJ M u l t i - Y e a r B a c k l o g (1)
Slide 13: Resilient Business Allows For Execution On Financial Priorities
Resilient Business Allows For Execution On Financial Priorities DISCIPLINED CAPITAL ALLOCATION FOCUSED ON CASH CONVERSION (1) $258M $242M Share repurchases Use of Cash CASH FROM OPS $53M Dividends $1,012M 1Q 2026 $199M Net Debt 1Q 2025 40% Cash Conv $1,059M Acquisitions/Dispositions Proceeds $191M $
Slide 14: 2026 Updated Financial Guidance
2026 Updated Financial Guidance P R I O R G U I DA N C E U P D AT E D G U I D A N C E REVENUES REVENUES $12.19B to $12.49B $12.19B to $12.49B 9.2% - 11.8% 9.2% - 11.8% AD J U S T E D D I L U T E D E P S AD J U S T E D D I L U T E D E P S $10.05 to $10.45 $10.25 to $10.65 12.0% - 16.5% 14.3% - 18.7%
Slide 15: 2026 Key Expectations
2026 Key Expectations 5-YEAR OUTLOOK Strong revenue growth, margin expansion, and increased earnings Mid Single Digit ORGANIC SALES CAGR Positive productivity driven by continuous cost improvement combined with realization of Integration 3.0 and Portfolio Optimization 350+ bps ADJUSTED OPERATING MAR
Slide 16: Income Statement
Income Statement WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION Appendix A (1 of 2) CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Net sales $ 2,950 $ 2,610
Slide 17: Income Statement
Income Statement Appendix A (2 of 2) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended March 31, 2026 2025 Segment Information Freig
Slide 18: Balance Sheet
Balance Sheet Appendix B WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2026 December 31, 2025 In millions Cash, cash equivalents and restricted cash $ 531 $ 789 Receivables, net 2,252 1,897 Inventories, net 2,850 2,745 Other current asset
Slide 19: Cash Flow
Cash Flow Appendix C WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 2026 2025 In millions Operating activities Net income $ 363 $ 327 Non-cash expense 151 127 Receivables (305) (226) Inventories (28) (29) Accou
Slide 20: EPS and Non-GAAP Reconciliation
EPS and Non-GAAP Reconciliation Appendix D Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons.
Slide 21: EBITDA Reconciliation
EBITDA Reconciliation Appendix E Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP f
Slide 22: Sales by Product Line
Sales by Product Line Appendix F WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SALES BY PRODUCT LINE (UNAUDITED) Three Months Ended March 31, In millions 2026 2025 Freight Segment Equipment $ 726 $ 476 Components 357 381 Digital Intelligence 318 181 Services 714 863 Total Freight Segment $ 2,115 $
Slide 23: Segment Gross Margin & Operating Margin Reconciliation
Segment Gross Margin & Operating Margin Reconciliation Appendix G WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS - BY SEGMENT (UNAUDITED) Three Months Ended March 31, 2026 2025 Income from Income from In millions Gross Profit Operations Gross P
Slide 24: Segment Sales Reconciliation
Segment Sales Reconciliation Appendix H WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION RECONCILIATION OF CHANGES IN NET SALES - BY SEGMENT (UNAUDITED) Three Months Ended March 31, Freight Transit Consolidated 2025 Net Sales $ 1,901 $ 709 $ 2,610 Acquisitions 184 41 225 Portfolio Optimization (Dives
Slide 25: Cash Conversion Reconciliation
Cash Conversion Reconciliation Appendix I Set forth below is the calculation of the non-GAAP performance measures included in this press release. We believe that these measures provide useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. N
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