Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q4 2025 Earnings Presentation
32 slides from Westinghouse Air Brake Technologies's earnings presentation, Feb 11, 2026
Slide 1: Fourth Quarter 2025 Wabtec Financial Results & Company Highlights
FOURTH QUARTER 2025 Wabtec Financial Results & Company Highlights Exhibit 99.2
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
3 RAFAEL SANTANA President & Chief Executive Officer JOHN OLIN Executive Vice President & Chief Financial Officer KYRA YATES Vice President, Investor Relations Today’s Participants
Slide 4: Wabtec Highlights
Wabtec Highlights Very strong financial performance in Q4 and FY 2025 Strong orders, backlog & pipeline momentum moving into 2026 M&A and integration initiatives driving value creation Positive financial outlook for 2026 & Beyond 4
Slide 5: 4Q 2025 Overview
5 4Q 2025 Overview WA B T E C ’ S S T R O N G U N D E R LY I N G M O M E N T U M C O N T I N U E S Sales Increased sales driven by both Freight (including acquisitions) and Transit segments Operating margin benefits from sales growth and improved gross margin Adjusted EPS improvement driven by highe
Slide 6: 2025 Key Metrics
3.0% 2.5% 1.4% 0.0% 6 2025 Key Metrics 1Q25 2Q25 3Q25 4Q25 Industry Active Locomotives 4Q22 4Q23 4Q24 4Q25 Source: Association of American Railroads Source: Wabtec Industry Freight Traffic Source: UIC & Operator Reports (U.S., Europe & India) 2022 2023 2024 2025 6.2% 1.9% 5.2% 6.8% -2.0% Wabtec Inst
Slide 7: Recent Wins and Value Creation Framework
▪ Secured $2.2 billion in N.A. loco & mods orders - $1.3 billion orders for modernizations - $0.9 billion orders for new locomotives ▪ Digital signed $75 million of orders for PTC & KinetiX in key international markets ▪ First Battery Electric Locomotives delivered to BHP ▪ Completed the acquisition
Slide 8: Resilient Portfolio Through The Cycle
8 Resilient Portfolio Through The Cycle Demonstrated Execution Robust Backlog & Recurring Revenue Strong Cash Generation 2020 2021 2022 2023 2024 20252020 2021 2022 2023 2024 2025 ▪ Expanded margins over the last 5 years despite significant headwinds ▪ Growing backlogs, aggressively managing costs,
Slide 9: North America Fleet Renewal Opportunity
>2,500 Mods Completed ~14K+ Locomotives E V O F D L AC DC/AC Opportunity ~4,900 F L E E T S TAT S C U R R E N T P R O D U C T O F F E R I N G S Failure Per Locomotive Year Maintenance Cost / Year Age of Locomotive Age of Locomotive WA B T E C ’ S T O TA L F L E E T B R E A K D O W N • EVO Modernizat
Slide 10: 4Q 2025 Financial Summary
$1.23 $1.18 $1.68 $2.10 10 4Q 2025 Financial Summary I N C R E AS E D S AL E S , AD J . O P E R AT I N G M AR G I N AN D AD J . E P S G R O W T H (1) Adjusted numbers represent non-GAAP financial measures. See Appendix for additional details and reconciliations 2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ(
Slide 11: 4Q 2025 Sales
4Q 2025 Sales 11 PROD UC T L INE 4Q25 YOY 4Q KEY D R IV ER S (in millions) Equipment $ 666 33.5% Services $ 667 (5.0)% Components $ 429 11.1% Digital Intelligence $ 361 74.4% Freight segment $ 2,123 18.3% Transit segment $ 842 6.7% TOTAL SALES $ 2,965 14.8% Lower sales driven by fewer modernization
Slide 12: 4Q 2025 Consolidated Operating Income
12 4Q 2025 Consolidated Operating Income ($ in millions) 2 0 2 4 G R O S S P R O F I T $ 7 9 7 $ 8 1 5 % Gross Profit 30.9% 31.6% Volume Mix/Pricing Raw Materials/Tariffs Currency Manufacturing/Other 2 0 2 5 G R O S S P R O F I T $ 9 6 6 $ 9 9 9 % Gross Profit 32.6% 33.7% 2 0 2 4 O P I N C O M E $ 3
Slide 13: 4Q 2025 Freight Segment Performance
13 4Q 2025 Freight Segment Performance 2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ(1) 2 0 2 5 ADJ(1) $273M 15.0% 15.2% $348M 19.4% $470M 22.1% $318M 2 0 2 4 2 0 2 5 $2.12B $1.79B 18.3% YOY 2 0 2 4 2 0 2 5 $6.02B $5.58B 8.0% YOY Note: Adjusted numbers represent non-GAAP financial measures. See Appendix for
Slide 14: 4Q 2025 Transit Segment Performance
14 4Q 2025 Transit Segment Performance 2 0 2 4 GAAP 2 0 2 5 GAAP 2 0 2 4 ADJ 2 0 2 5 ADJ 2 0 2 4 2 0 2 5 2 0 2 4 2 0 2 5 12-Month Backlog decreased 2.3% year-over-year, ex-currency M u l t i - Y e a r B a c k l o g +14.7% YoY (+7.1%, ex-currency) 2.0% Ex-Currency OP. INCOME / OP. MARGIN 12-MONTH BAC
Slide 15: Resilient Business Allows For Execution On Financial Priorities
15 Resilient Business Allows For Execution On Financial Priorities S T R O N G F I N A N C I A L P E R F O R M A N C E ; I N V E S T I N G F O R P R O F I TA B L E G R O W T H A N D M A X I M I Z I N G S H A R E H O L D E R R E T U R N S Strong 2025 cash conversion of 104% … driven by higher net inc
Slide 16: Integration 2.0, 3.0 & Portfolio Optimization Update
16 Integration 2.0, 3.0 & Portfolio Optimization Update Integration 2.0 Update Integration 3.0 Update $5M R U N - R A T E S A V I N G S ( 2 ) Unrealized Restructuring charges (1) $46M $3M $22M $49M $87M $28M $103M Realized Original expectations were for $75-$90M savings & $110-$135M in charges (1) R
Slide 17: Full Year 2025 Overview
17 Full Year 2025 Overview WA B T E C ' S S T R O N G U N D E R LY I N G M O M E N T U M C O N T I N U E S Sales Increased sales driven by both Freight (including acquisitions) and Transit segments Operating margin benefits from sales growth and improved gross margin EPS improvement driven by higher
Slide 18: 2026 Outlook and Guidance
2026 Outlook and Guidance 2026 GUIDANCE REVENUES $12.190B to $12.490B ADJUSTED DILUTED EPS $10.05 to $10.45 9.2% 11.8% 12.0% 16.5%- - Outlook In Line With Long-term Growth Framework E Q U I P M E N T Higher international locomotive deliveries C O M P O N E N T S Strong demand for industrial products
Slide 19: 2026 Key Expectations
19 2026 Key Expectations Continued momentum across the portfolio driven by strong orders, backlog, and pipeline … internationally and in North America Positive productivity driven by continuous cost improvement combined with realization of Integration 3.0 and Portfolio Optimization Wabtec is well-po
Slide 20: Income Statement Appendix A (1 of 2)
Income Statement Appendix A (1 of 2) 20 2025 2024 2025 2024 Net sales 2,965$ 2,583$ 11,167$ 10,387$ Cost of sales (1,999) (1,786) (7,361) (7,021) Gross profit 966 797 3,806 3,366 Gross profit as a % of Net Sales 32.6% 30.9% 34.1% 32.4% Selling, general and administrative expenses (461) (333) (1,490)
Slide 21: Income Statement Appendix A (2 of 2)
Income Statement Appendix A (2 of 2) 21 2025 2024 2025 2024 Segment Information Freight Net Sales 2,123$ 1,794$ 8,036$ 7,468$ Freight Income from Operations 318$ 273$ 1,567$ 1,422$ Freight Operating Margin 15.0% 15.2% 19.5% 19.0% Transit Net Sales 842$ 789$ 3,131$ 2,919$ Transit Income from Operatio
Slide 22: Balance Sheet Appendix B
Balance Sheet Appendix B 22 December 31, 2025 December 31, 2024 In millions Cash, cash equivalents and restricted cash 789$ 715$ Receivables, net 1,897 1,702 Inventories, net 2,745 2,314 Other current assets 263 212 Total current assets 5,694 4,943 Property, plant and equipment, net 1,616 1,447 Good
Slide 23: Cash Flow Appendix C
Cash Flow Appendix C 23 2025 2024 In millions Operating activities Net income 1,183$ 1,067$ Non-cash expense 569 580 Receivables (36) (34) Inventories (182) (117) Accounts Payable 34 70 Other operating activities 191 268 Net cash provided by operating activities 1,759 1,834 Net cash used for investi
Slide 24: EPS and Non-GAAP Reconciliation Appendix D (1 of 2)
EPS and Non-GAAP Reconciliation Appendix D (1 of 2) 24 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported R
Slide 25: EPS and Non-GAAP Reconciliation Appendix D (2 of 2)
EPS and Non-GAAP Reconciliation Appendix D (2 of 2) 25 Wabtec Corporation Reconciliation of Reported Results to Adjusted Results (in millions) Gross Operating Income from Interest & Noncontrolling Wabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPS Reported R
Slide 26: EBITDA Reconciliation Appendix E
EBITDA Reconciliation Appendix E 26 Wabtec Corporation 2025 Q4 EBITDA Reconciliation (in millions) Reported Income Other Income Depreciation & Restructuring & Adjusted from Operations (Expense) Amortization Transaction Costs EBITDA Consolidated Results $356 $3 $133 $492 $98 $590 Wabtec Corporation 2
Slide 27: Sales by Product Line Appendix F
Sales by Product Line Appendix F 27 In millions 2025 2024 Freight Segment Equipment 666$ 499$ Components 429 386 Digital Intelligence 361 207 Services 667 702 Total Freight Segment 2,123$ 1,794$ Transit Segment Original Equipment Manufacturer 351$ 339$ Aftermarket 491 450 Total Transit Segment 842$
Slide 28: Segment Gross Margin & Operating Margin Reconciliation Appendix G
Segment Gross Margin & Operating Margin Reconciliation Appendix G 28 In millions Gross Profit Income from Operations Gross Profit Income from Operations Gross Profit Income from Operations Gross Profit Income from Operations Freight Segment Reported Results 703$ 318$ 556$ 273$ 2,835$ 1,567$ 2,523$ 1
Slide 29: Segment Sales Reconciliation Appendix H
Segment Sales Reconciliation Appendix H 29 In millions Freight Transit Consolidated 2024 Net Sales 1,794$ 789$ 2,583$ Acquisitions 167 4 171 Portfolio Optimization (Divestitures/Exits) (2) (19) (21) Foreign Exchange 5 37 42 Organic 159 31 190 2025 Net Sales 2,123$ 842$ 2,965$ Change ($) 329 53 382 C
Slide 30: Cash Conversion Reconciliation Appendix I (1 of 2)
Cash Conversion Reconciliation Appendix I (1 of 2) 30 Wabtec Corporation 2025 Q4 Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated Results $992 $204 $136 292% Wabtec Corporation 2025 Q4 YTD Cash Conversion Calculation (in millions) Reported Cash from Operations Con
Slide 31: Cash Conversion Reconciliation Appendix I (2 of 2)
Cash Conversion Reconciliation Appendix I (2 of 2) 31 2023 Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated Results $1,201 $825 $531 89% 2022 Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated Results $1,038 $641 $479 93% 2021 Cas
Slide 32: Operating Margin Reconciliation Appendix J
Operating Margin Reconciliation Appendix J 32 In millions 2020 2021 2022 2023 2024 2025 Reported Income from Operations 745$ 876$ 1,011$ 1,266$ 1,609$ 1,793$ Reported Margin 9.9% 11.2% 12.1% 13.1% 15.5% 16.1% Restructuring & Portfolio Optimization costs 116 78 52 79 70 76 Inventory Purchase Accounti
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