Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Investor Presentation (2026)
58 slides from Westinghouse Air Brake Technologies's investor presentation, 2026
Slide 1: A Vision & Strategy Built on Performance
A Vision & Strategy Built on Performance 2026
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigati
Slide 3: Table of Contents
Table of Contents Page 4 Why Wabtec 11 Company Profile & Key Growth Drivers 16 Value Creation Framework Drive Efficiencies Through Emerging 26 Technologies 32 Strategies to Drive Profitable Growth 43 Disciplined Value Creation 48 Long-Term Guidance 52 Appendix 3
Slide 4: Why Wabtec
Why Wabtec 4
Slide 5: Partner in Rail Innovation For Over 155 Years
Wabtec Has Been a Partner In Rail Innovation For Over 155 Years FREIGHT SEGMENT TRANSIT SEGMENT D I G I TA L EQUIPMENT SERVICES COMPONENTS INTELLIGENCE ~20% ~12M ~30% ~1B >85% Of the world’s rail Messages Of global freight Gallons of fuel saved Of every major transit freight is moved monitored cars
Slide 6: Wabtec's Financial Performance
Wabtec’s Financial Performance 5-YEAR OUTLOOK 2025 through 2029 2025 KEY HIGHLIGHTS Mid Single Digit $11.17B 7.5% YOY ORGANIC SALES CAGR SALES 16.1% 350+ bps GAAP OPERATING MARGIN 140 bps YOY ADJUSTED OPERATING 20.3% ADJUSTED OPERATING MARGIN ADJUSTED OPERATING MARGIN MARGIN EXPANSION $6.83 Double D
Slide 7: Resilient Portfolio Through The Cycle
Resilient Portfolio Through The Cycle Demonstrated Execution Robust Backlog & Recurring Revenue Strong Cash Generation O P E R AT I N G M A R G I N 12-MONTH BACKLOG 20.3% C A S H F R O M O P E R AT I O N S 18.9% $8.2B $1.8B $1.8B $7.5B $7.7B 15.5%16.1% 17.0% $6.3B $6.8B 12.1% 13.1% 15.9% 16.2% 117%
Slide 8: Driving Continuous Operational Improvement
Driving Continuous Operational Improvement C A P I TA L E F F I C I E N C Y M E T R I C S FIXED ASSET PRODUCTIVITY RETURN ON INVESTED CAPITAL(1) 7.2 8.4% 6.9 7.8% 6.5 5.9 6.4% 5.2 5.2% 4.6% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Total net sales/property, plant, and equipment, net (1) Repr
Slide 9: Disciplined Capital Deployment
Disciplined Capital Deployment C A P I TA L D E P L O Y M E N T P R I O R I T I E S 2020 – 2025 CAPITAL ALLOCATION 1 Maintain Strong Balance Sheet Maintain investment-grade rating 2 CapEx/Debt/Other 9% Invest In Sustainable Growth R&D and CapEx Dividends 10% Net Acquisitions / Divestitures 3 Increas
Slide 10: Driving Long-Term Value Through Strategic Acquisitions
Driving Long-Term Value Through Strategic Acquisitions B U I L D I N G A S T R O N G E R T E C H N O L O G Y P L AT F O R M VALUE CREATION Inspection Technologies HIGHLIGHTS Global leader in non-destructive testing, remote visual inspection, and analytical instruments Accretive solutions for mission
Slide 11: Company Profile & Key Growth Drivers
Company Profile & Key Growth Drivers 11
Slide 12: Wabtec Operates Its Business In Two Segments
Wabtec Operates Its Business In Two Segments GLOBAL LEADER IN FREIGHT AND TRANSIT RAIL TECHNOLOGIES 50+ Countries 28% FREIGHT: 72% Services TRANSIT: 28% PORTFOLIO ~31K 21% Equipment $11.2B 28% Transit 2025 REVENUES 14% Employees Components 9% Digital Intelligence 12
Slide 13: Attractive Revenue Profile
Attractive Revenue Profile AT T R A C T I V E ROBUST AFTERMARKET BROAD SCALE IN STRONG MIX OF END MARKETS PORTFOLIO GLOBAL MARKETS RECURRING REVENUES 5% 17% 8% 45% 50% 14% 30% 53% 50% 55% 18% 55% Freight OE North America (48% in U.S.) Non-Recurring Europe Transit Aftermarket APAC Recurring All Other
Slide 14: Sales Growth Expected To Drive Incremental Margins Of ~31%
Sales Growth Expected To Drive Incremental Margins Of ~31% Based On Wabtec’s Fixed-Cost Structure COST OF GOODS SOLD SG&A Fixed Variable Costs 15-20% Costs FIXED MANUFACTURING 15-20% 15-20% 80-85% FIXED SG&A Variable 80-85% 80-85% Costs ~31% Fixed Costs INCREMENTAL MARGIN 66% OF 2025 REVENUE 12% OF
Slide 15: Mix Dynamics Changing As Industry Renews Aging Locomotive Fleet
Mix Dynamics Changing As Industry Renews Aging Locomotive Fleet 5 – YEAR GROWTH EXPECTATIONS (1) PRODUCT MARGIN MIX ACCRETION Sensitivity to Margin Drivers the cycle Equipment High Digital Intelligence Components Medium Services Components Services (2) Medium Equipment Digital Intelligence Medium Tr
Slide 16: Value Creation Framework
Value Creation Framework 16
Slide 17: Growth Drivers
Growth Drivers VA LU E C R E AT I O N Accelerate innovation of scalable technologies F R A M E WO R K F O R 1 Build high-margin, innovative and scalable products to increase customer productivity, automation, utilization, and capacity DELIVERING THE 2 Grow and refresh expansive global installed base
Slide 18: Accelerate Innovation of Scalable Technologies
Accelerate Innovation of Scalable Technologies Growth Driver #1 ~6-7% ENHANCE EXISTING TECHNOLOGY PRODUCTS target annual organic investment in technology INVENT, TEST AND as % of sales SCALE FUTURE TECHNOLOGIES 18
Slide 19: Grow and Refresh Expansive Global Installed Base
Grow and Refresh Expansive Global Installed Base Growth Driver #2 LOCOMOTIVE MARKET MODS ( I N C L U D E S PAR K E D L O C O S ) MAINTENANCE Installed Avg Age Base (years) COMPONENTS NORTH AMERICA 30K 24 DIGITAL APAC 21K 22 CIS/EU 27K 27 LATAM 3K 24 SUB-SAHARAN 5K 21 AFRICA Customers projected to sp
Slide 20: North America Fleet Replenishment
North America Fleet Replenishment Growth Driver #2 N O R T H AM E R I C A L O N G - T E R M WAB T E C N O R T H AM E R I C A L O C O M O T I V E S L O C O M O T I V E F L E E T R E N E WAL N E W & M O D E R N I Z AT I O N S D E L I V E R I E S ~ 525 units per year ~ 400 units per year ~15K Current a
Slide 21: North America Fleet Renewal Opportunity
North America Fleet Renewal CUSTOMER OUTCOMES Opportunity Growth Driver #2 FLEET PROFILE (1) PRODUCTIVITY WA B T E C ’ S T O TA L FLEET BREAKDOWN Failure Per Locomotive Year 1 AC traction Availability Failures >2,500 T4 FUEL EFFICIENCY 2 Mods T3 DC Completed Engine improvements T1 ~14K+ Digital solu
Slide 22: International Revenue Growth
International Revenue Growth(1) Growth Driver #2 REGIONAL REVENUE Europe CIS I N T E R N AT I O N A L R E V E N U E 2025 by Business 2025 by Region '22 '23 '24 '25 '22 '23 '24 '25 SSA / MENA 8% Transit 10% 9% APAC 8% 9% Europe Equipment APAC South America 51% 14% Services CIS Components 39% 33% Sout
Slide 23: Driving Efficiency Improvements
Driving Efficiency Improvements Growth Driver #3 2x CARBON REDUCTION GROWING DEMAND 75% reduction in carbon emissions per ton- mile versus trucking ~300M TONS (1) E N V I R O N M E N TA L B E N E F I T Global demand for TO DAY transport growing SAFER fast…freight and 22x fewer deaths and injuries pe
Slide 24: Expand High-Margin Recurring Revenue Streams
Expand High-Margin Recurring Revenue Streams Growth Driver #4 56% OF COMPANY PROFIT IN 2025 45% DRIVEN BY RECURRING REVENUES Driven by expansive installed base of locomotives and significant content on transit / freight cars 55% Includes such items as service businesses, replacement parts, software
Slide 25: Drive Continuous Operational Improvement
Drive Continuous Operational Improvement Growth Driver #5 3-5% WHAT HOW Lean/continuous improvement and Industry 4.0, 90% On Time Manufacturing excellence Delivery, Rooftop reductions, make vs. buy, local production, Historical average mfg cost Working capital cycle improvement productivity / year s
Slide 26: Drive Efficiencies Through Emerging Technologies
Drive Efficiencies Through Emerging Technologies 26
Slide 27: Committed To Creating A More Sustainable Future
We’re Committed To Creating A More Sustainable Future SUSTA I NA B I L ITY PR INC IPL ES DRIVING RESPONSIBLE EMPOWERING PEOPLE AND INNOVATING WITH PURPOSE OPERATIONS COMMUNITIES We are committed to We are committed to We are committed to developing responsible providing safe work driving a culture b
Slide 28: Wabtec's Path To Lower Emission Locomotives
Wabtec’s Path To Lower Emission Locomotives DEVELOP BEST-IN-CLASS ZERO E N AB L E T R AN S I T I O N TO WAR D N E AR Z E R O E M I S S I ON S EMISSIONS TECHNOLOGY Step 1 - Fleet Renewal through Step 2 – Enable Wabtec Engines for Tier 4 & Mods Alternative Fuels Battery Electric (FLXDRIVE) Wabtec Adva
Slide 29: Locomotive Technology Road Map For Sustainability
Locomotive Technology Road Map For Sustainability Potential Sustainability Past 2025 Future Outcomes Introduced Evolution Tier 4 Tier 4 High locomotive in 2013 Efficiency • 76% NOx & 70% Tier 4 PM reductions1 • 8% CO2 reduction Delivered first DC to AC EVO Mods & FDL Advantage modernization in 2015
Slide 30: Digital Technical Solutions
Digital Technical Solutions I M PA C T UP TO ~30% reduction in emissions and fuel utilization UP TO C A PA B I L I T Y E V O L U T I O N ▪ 22% efficiencies today … 30% TOTAL 3% → 4% MOVEMENT PLANNER 18% EPA certified FUEL SAVINGS ACROSS DISPATCH SYSTEM SAVINGS* Optimizes the use of slack time to THE
Slide 31: Transit – Government Funding, Decarbonizing Passenger Transport
Transit – Government Funding, Decarbonizing Passenger Transport TA I LW I N D T O T R A N S I T S Y S T E M S P O R T F O L I O PASSENGER RAIL (28 CO2/PKM) ROAD (102 CO2/PKM) U.S. EUROPEAN UNION $290B in 2022 -2032 $104B in 2021-2027 for passenger rail for rail AIR (244 CO2/PKM) GERMANY INDIA $109B
Slide 32: Strategies to Drive Profitable Growth
Strategies to Drive Profitable Growth 32
Slide 33: Equipment – Primary Growth Drivers
Equipment – Primary Growth Drivers INTERNATIONAL LOCOMOTIVE GROWTH 1 ▪ Commodities, regional development, and global trade ▪ Emphasis on rail for sustainability & productivity NORTH AMERICA FLEET UPGRADE 2 ▪ Higher haulage, asset reliability and efficiency needs ▪ Aging fleet ▪ Intermodal growth 3 T
Slide 34: Equipment $2.4B
REVENUE BY END MARKET REVENUE BY GEOGRAPHY Equipment DIVERSIFIED GLOBAL BASE TO DRIVE GROWTH 7% $2.4B North America 40% Locomotive 16% APAC 60% Mining, Marine, CIS, MENA, SSA Drilling, Other 60% 17% South America 2025 Revenue KEY CUSTOMERS AFTERMARKET REVENUE RECURRING REVENUE 17% 13% OE Non-Recurri
Slide 35: Services – Primary Growth Drivers
Services – Primary Growth Drivers 1 I N T E R N AT I O N A L E X PA N S I O N Accelerating portfolio footprint and product penetration PERFORMANCE UPGRADES 2 Leveraging technology to deliver on fuel & emissions efficiency and reliability MAINTENANCE TECHOLOGIES 3 Asset management, material managemen
Slide 36: Services $3.1B
REVENUE BY END MARKET REVENUE BY GEOGRAPHY Services ACCELERATING CORE GROWTH ACROSS THE PORTFOLIO 5% $3.1B 9% North America 27% Services / Maintenance 9% APAC Modernizations (1) CIS, MENA, SSA 73% 77% South America 2025 Revenue KEY CUSTOMERS AFTERMARKET REVENUE RECURRING REVENUE 27% 27% (1) OE Non-R
Slide 37: Components – Primary Growth Drivers
Components – Primary Growth Drivers STRENGTHEN OUR CORE IN NORTH 1 AMERICA ▪ Market freight car product offerings with car builders & Class 1s ▪ Consolidate industrial go-to-market approach D R I V E I N N O VAT I O N I N T O N E W P R O D U C T S 2 & SOLUTIONS ▪ Sensing/digitalization to improve pr
Slide 38: Components $1.6B
REVENUE BY END MARKET REVENUE BY GEOGRAPHY Components DIVERSIFIED PORTFOLIO BRINGS NEW GROWTH 2% $1.6B 2% 11% North America Freight 11% Europe 42% 58% Industrial 74% APAC CIS, MENA, SSA South America 2025 Revenue KEY CUSTOMERS AFTERMARKET REVENUE RECURRING REVENUE 23% OE 44% Non-Recurring Aftermarke
Slide 39: Digital Intelligence – Primary Growth Drivers
Digital Intelligence – Primary Growth Drivers L A U N C H I N G I - E T M S (1) P R O T E C T 1 PTC 2.0, precision reference, moving block, vital stand-alone technology NE X T- G E N NE TWO RK S O LUTI O NS 2 Precision Dispatch 2.0, migrate to Cloud, Pacing & Service Design E X PA N D T R I P O P T
Slide 40: Digital Intelligence $1.0B
REVENUE BY REVENUE BY GEOGRAPHY Digital Intelligence END MARKET WELL-POSITIONED FOR 7% GROWTH $1.0B Onboard 5% North America 24% 38% Optimization, 19% Europe KinetiX (Inspection Technologies) APAC 63% Signaling 6% CIS, MENA, SSA 38% South America 2025 Revenue KEY CUSTOMERS RECURRING REVENUE 40% Non-
Slide 41: Transit – Primary Growth Drivers
Transit – Primary Growth Drivers INDUSTRY ORDERS MOMENTUM 1 ▪ Record backlog at Car builders – avg ~6 yrs of sales ▪ Passenger growth … Europe & India driven ▪ Public investment in rail continues ▪ Transit Segment’s quality of backlog (margin) increasing C O M P E T I T I V E N E S S & I N N O VAT I
Slide 42: Transit $3.1B
REVENUE BY END MARKET REVENUE BY GEOGRAPHY Transit SAFETY, EFFICIENCY & PASSENGER COMFORT 2% $3.1B Rolling Stock 4% 23% 18% Components 19% North America 19% Transit Services Europe APAC Brakes & Couplers 16% CIS, MENA, SSA 43% Power & Mobility 56% South America 2025 Revenue KEY CUSTOMERS AFTERMARKET
Slide 43: Disciplined Value Creation
Disciplined Value Creation 43
Slide 44: Path To The Future … Maximize Shareholder Value
Path To The Future … Maximize Shareholder DRIVERS Value ▪ Deploy proven strategies / accelerate growth drivers INVEST IN ▪ Execute on increasing backlog THE BUSINESS ▪ Mix headwinds driven by fleet renewal Driving long-term profitable ▪ Invest in innovative technologies that drive profitable growth
Slide 45: Capital Allocation Priorities
Capital Allocation Priorities PRIORITIES OBJECTIVES ACTIONS Maintain strong balance sheet to manage Net leverage(1) ratio of 2.0 to 2.5x. Net leverage ratio of 1.9x (1) at end of 4Q25 through economic cycles & world crises Maintain investment-grade ratings CAPEX ~2% of sales Appropriately invest in
Slide 46: Invest In The Future Through Strategic M&A
Invest In The Future Through Strategic M&A STRATEGIC MARKETS COMPELLING VALUATIONS ATTRACTIVE ASSETS Bolt-ons / adjacencies focused on: Accretive earnings within 2 years Complements Wabtec’s strategic plan o Highly engineered products ROIC enhancing (ROIC > WACC) Highly competitive market position o
Slide 47: Key Investment Highlights
Key Investment Highlights 1 Strong revenue growth, margin expansion, increased earnings and cash flow generation 2 Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0/3.0 savings and Portfolio Optimization Continued momentum across the portfolio a
Slide 48: Long-Term Guidance
Long-Term Guidance 48
Slide 49: Long-Term Guidance
Long-Term Guidance 5-YEAR OUTLOOK 2025 through 2029 C O N T I N U I N G VA L U E C R E AT I O N F R A M E W O R K Mid Single Digit 1 Accelerate innovation of scalable technologies Build high-margin, innovative and scalable products to increase ORGANIC SALES CAGR customer productivity, automation, ut
Slide 50: Future Revenue Growth & Margin Expansion
Future Revenue Growth & Margin Expansion ANNUAL REVENUE GROWTH ADJUSTED MARGIN IMPROVEMENT E X P E C TAT I O N S 2 0 2 5 – 2 0 2 9 : E X P E C TAT I O N S 2 0 2 5 – 2 0 2 9 : MID-SINGLE DIGITS 350+ BPS ACCELERATED GROWTH Technology-driven growth Pricing for value CAPITAL & TECHNOLOGY Portfolio optim
Slide 51: Integration 2.0, 3.0 & Portfolio Optimization Update
Integration 2.0, 3.0 & Portfolio Optimization Update Integration 3.0 Update Integration 2.0 Update Portfolio Optimization Update R U N - R AT E S AV I N G S R U N - R AT E S AV I N G S (2) $115M - $140M $103M ✓ Pruned $72M of low margin, non- $87M strategic revenue in 2025 Realized Realized ✓ 50% of
Slide 52: Appendix
Appendix 52
Slide 53: Cash Conversion Reconciliation
Cash Conversion Reconciliation 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 fin
Slide 54: Operating Margin Reconciliation
Operating Margin Reconciliation RECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS 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 an
Slide 55: Return On Invested Capital Reconciliation
Return On Invested Capital Reconciliation 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
Slide 56: Net Leverage Ratio
Net Leverage Ratio 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 financial measu
Slide 57: Earnings Per Share Reconciliation (1 of 2)
Earnings Per Share Reconciliation (1 of 2) 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 58: Earnings Per Share Reconciliation (2 of 2)
Earnings Per Share Reconciliation (2 of 2) 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.
Westinghouse Air Brake Technologies — Investor Presentation (2026) on 6ix