Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Investor Day (March 2026)
58 slides from Westinghouse Air Brake Technologies's investor day presentation, Mar 3, 2026
Slide 1: 2026 A Vision & Strategy Built on Performance
2026 A Vision & Strategy Built on Performance
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 4 Why Wabtec 11 Company Profile & Key Growth Drivers 16 Value Creation Framework 26 Drive Efficiencies Through Emerging Technologies 32 Strategies to Drive Profitable Growth 43 Disciplined Value Creation 48 Long-Term Guidance 52 Appendix Page 3
Slide 4: Why Wabtec
Why Wabtec 4
Slide 5: Wabtec Has Been a Partner In Rail Innovation For Over Years
Wabtec Has Been a Partner In Rail Innovation For Over 155 Years FREIGHT SEGMENT TRANSIT SEGMENT ~20% Of the world’s railfreight is moved by a Wabteclocomotive ~12M Messages monitoreddaily on Wabteclocomotives ~30% Of global freight cars have Wabtec products on them ~1B >85% Of every major transit sy
Slide 6: Wabtec's Financial Performance
6 Wabtec’s Financial Performance 5-YEAR OUTLOOK 2025 through 2029 Mid Single Digit ORGANIC SALES CAGR Double Digit ADJUSTED EPS CAGR >90%(2) CASH FROM OPS CONVERSION(1) 350+ bps ADJUSTED OPERATING MARGIN EXPANSION Cash from Operations conversion % is defined as GAAP Cash from Operations divided by G
Slide 7: Resilient Portfolio Through The Cycle
7 Resilient Portfolio Through The Cycle Demonstrated Execution Robust Backlog & Recurring Revenue Strong Cash Generation Expanded margins over the last 5 years despite significant headwinds Growing backlogs, aggressively managing costs, driving lean actions, and executing on Integration 2.0 and 3.0
Slide 8: Driving Continuous Operational Improvement
Driving Continuous Operational Improvement 2021 2023 FIXED ASSET PRODUCTIVITY 2024 2025 Total net sales/property, plant, and equipment, net 8 RETURN ON INVESTED CAPITAL(1) (1) Represents a non-GAAP financial measure. See Appendix for details and reconciliation CAPITAL EFFICIENCY METRICS 2022 2021 20
Slide 9: Disciplined Capital Deployment
Disciplined Capital Deployment RETURNING CAPITAL TO SHAREHOLDERS … 45% RETURNED Through DIVIDENDS AND SHARE REPURCHASES 9 1 2 3 4 5 Maintain Strong Balance SheetMaintain investment-grade rating Invest In Sustainable GrowthR&D and CapEx Increase Dividends Target dividend payout ratio of 10-15% of adj
Slide 10: Driving Long-Term Value Through Strategic Acquisitions
Driving Long-Term Value Through Strategic Acquisitions Accretive Adj. EBITDA Margins Accretive Adj. EPS Accretive ROIC over time Accretive Growth Profile Inspection Technologies Dellner Couplers Frauscher Sensor Technology 10 $3.5B in Strategic acquisitions enhancing Digital & Transit’s technology p
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 FREIGHT: 72% TRANSIT: 28% 12 50+ Countries ~31K Employees GLOBAL LEADER IN FREIGHT AND TRANSIT RAIL TECHNOLOGIES 28% Services $11.2B portfolio 2025 revenues 21% Equipment 28% Transit 14% Components 9% Digital Intelligence
Slide 13: Attractive Revenue Profile
Attractive Revenue Profile 13 STRONG GLOBAL INDUSTRIAL PORTFOLIO WITH TRACK RECORD OF INNOVATION AND SIGNIFICANT RECURRING REVENUE *2025 FY results 53% 50% 50% 45% Attractiveend markets Robust aftermarket portfolio Broad scale in global markets Strong mix of recurring revenues Freight Transit All Ot
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 15-20% SG&A 80-85% 66% of 2025 Revenue 15-20% FIXED MANUFACTURING 80-85% FIXED SG&A ~31% INCREMENTAL MARGIN COST OF GOODS SOLD 12% of 2025 Revenue Variable Costs Variable Costs 15-20% 80-85% Fixed Costs
Slide 15: Mix Dynamics Changing As Industry Renews Aging Locomotive Fleet
Mix Dynamics Changing As Industry Renews Aging Locomotive Fleet 15 EQUIPMENT TO GROW FASTER THAN AVERAGE ACROSS WABTEC PORTFOLIO 5 – YEAR GROWTH EXPECTATIONS(1) Sensitivity to the cycle Equipment High Components Medium Services Medium Digital Intelligence Medium Transit Low PRODUCT MIX Digital Intel
Slide 16: Value Creation Framework
Value Creation Framework 16
Slide 17: Growth Drivers
Growth Drivers 17 DIVERSE PORTFOLIO WITH UNIQUE STRATEGIES TO DRIVE GROWTH VALUE CREATION FRAMEWORK FOR DELIVERING THE FUTURE OF RAIL Extending our position as a leader in rail technology around the world 1 2 3 4 5 Drive efficiencies through emerging technologies Lead the industry in innovative, fue
Slide 18: Accelerate Innovation of Scalable Technologies
Accelerate Innovation of Scalable Technologies Growth Driver #1 ENHANCE EXISTING PRODUCTS INVENT, TEST AND SCALE FUTURE technologies ~6-7% target annual organic investment in technology as % of sales TECHNOLOGY 18
Slide 19: Grow and Refresh Expansive Global Installed Base
Grow and Refresh Expansive Global Installed Base Growth Driver #2 Opportunity for pantograph High-margin friction products transit Pull-through content of up to $250K per new loco Recurring software services DigitalIntelligence 120+ service events over loco life >2,500 Mod units in operation Strong
Slide 20: North America Fleet Replenishment
Wabtec North America Locomotives New & Modernizations deliveries ~ 525 units per year ~ 400 units per year 2008 2017 2027 - 2029 North America Fleet Replenishment Growth Driver #2 Current active main-line locomotive fleet size ~15K ~25 years ~600 locos North America long-term locomotive fleet renewa
Slide 21: North America Fleet Renewal Opportunity
North America Fleet RenewalOpportunity Growth Driver #2 21 T1 T4 DC fleet profile T3 Fleet renewal: A catalyst for ROI, Reliability & Productivity 21 ~14K+ Locomotives EVO FDL AC DC/AC Opportunity ~4,900 Failure Per Locomotive Year Maintenance Cost / Year Age of Locomotive Age of Locomotive WABTEC’S
Slide 22: International Momentum With A Higher Profit Margin Than North America
INTERNATIONAL MOMENTUM WITH A HIGHER PROFIT MARGIN THAN NORTH aMERICA International Revenue Growth(1) Growth Driver #2 22 REGIONAL Revenue Europe South America SSA / MENA CIS APAC Resilient Growth in the International INSTALLED BASE 4.8% CAGR 8.6% CAGR International Revenue growth International Reve
Slide 23: Driving Efficiency Improvements
ENABLE ANNUAL CO2 REDUCTION GLOBALLY Driving Efficiency Improvements Growth Driver #3 23 2x Global demand for transport growing fast…freight and passenger activity projected to grow more than double by 2050 GROWING DEMAND Source: ITF Transport Outlook (1) Estimated annual benefit by 2050 22x fewer d
Slide 24: Expand High-Margin Recurring Revenue Streams
Expand High-Margin Recurring Revenue Streams Growth Driver #4 24 56% OF COMPANY PROFIT IN 2025 DRIVEN BY RECURRING REVENUES Driven by expansive installed base of locomotives and significant content on transit / freight cars Includes such items as service businesses, replacement parts, software licen
Slide 25: Drive Continuous Operational Improvement
Manufacturing excellence Lean/continuous improvement and Industry 4.0, 90% On Time Delivery, Rooftop reductions, make vs. buy, local production, Working capital cycle improvement Cost competitiveness Material cost reduction ~145 manufacturing sites. . . Drive best cost footprint ~25% sites in best-c
Slide 26: Drive Efficiencies Through Emerging Technologies
Drive Efficiencies Through Emerging Technologies 26
Slide 27: We're Committed To Creating A More Sustainable Future
We’re Committed To Creating A More Sustainable Future SUSTAINABILITY PRINCIPLES INNOVATING WITH PURPOSE DRIVING RESPONSIBLE OPERATIONS EMPOWERING PEOPLE AND COMMUNITIES We are committed to developing responsible and sustainable products that minimize the impact on the planet We are committed to prov
Slide 28: Wabtec's Path To Lower Emission Locomotives
AS OFQ1 2024 TARGETED DATE ACHIEVED BIODIESEL 11% 20% Q4 2025 RENEWABLE 50% 100% Q4 2025 ICE HYDROGEN (T3/T4) 0% 50% Wabtec’s Path To Lower Emission Locomotives Up to 60% CO2 Up to 80% CO2 DEVELOP BEST-IN-CLASS ZERO EMISSIONS Technology FDL FLEET EVO FLEET Wabtec Advantage: Fleet replacement with Ti
Slide 29: Locomotive Technology Road Map For Sustainability
Locomotive Technology Road Map For Sustainability Engine Tier 4 76% NOx & 70% PM reductions1 8% CO2 reduction Modernization 8% CO2 reduction Biofuels >60% CO2 reduction Up to 80% CO2 reduction Alternative Power 100% CO2 and constituent emissions reduction Noise reduction Digital Solutions 30% CO2 re
Slide 30: Digital Technical Solutions
Digital Technical Solutions 30% UP TO Total savings* CAPABILITY EVOLUTION Fuel savings across the enterprise network 3% 4% Fuel savings on distributed power trains 4% 6% 15% 22% MOVEMENT PLANNER DISPATCH SYSTEM Optimizes the use of slack time to reduce overall fuel consumption LOCOTROL DISTRIB
Slide 31: Transit – Government Funding, Decarbonizing Passenger Transport
Transit – Government Funding, Decarbonizing Passenger Transport UNIQUELY POSITIONED TO CAPTURE GROWTH ACROSS VAST PORTFOLIO AND GEOGRAPHICAL REACH TAILWIND TO TRANSIT SYSTEMS PORTFOLIO U.S. $290B in 2022 -2032 for passenger rail EUROPEAN UNION $104B in 2021-2027 for rail INDIA $150B in 2024-2029 for
Slide 32: Strategies to Drive Profitable Growth
Strategies to Drive Profitable Growth 32
Slide 33: Equipment – Primary Growth Drivers
Equipment – Primary Growth Drivers 1 2 3 4 SURFACE MINING TRUCK ELECTRIFICATION & FLEET RENEWAL Continued shift from mechanical drives to electric drives Maintain strong position in Ultra Class segment Sustained copper & iron ore production growth NORTH AMERICA FLEET UPGRADE Higher haulage, asset re
Slide 34: Equipment
Equipment REVENUE BY END MARKET REVENUE BY GEOGRAPHY AFTERMARKET REVENUE RECURRING REVENUE 60% 17% 87% 13% 17% 83% OE Aftermarket Non-Recurring Recurring North America APAC CIS, MENA, SSA South America 7% 16% $2.4B 2025 Revenue Key customers DIVERSIFIED GLOBAL BASE TO DRIVE GROWTH 60% Locomotive Min
Slide 35: Services – Primary Growth Drivers
Services – Primary Growth Drivers 1 2 3 4 INTERNATIONAL EXPANSION Accelerating portfolio footprint and product penetration PERFORMANCE UPGRADESLeveraging technology to deliver on fuel & emissions efficiency and reliability MAINTENANCE TECHOLOGIES Asset management, material management, remote monitor
Slide 36: Services
Services REVENUE BY END MARKET REVENUE BY GEOGRAPHY AFTERMARKET REVENUE RECURRING REVENUE 77% 9% 73% 27% 27% 73% OE Aftermarket Non-Recurring Recurring North America APAC CIS, MENA, SSA South America 5% 9% $3.1B 2025 Revenue Key customers ACCELERATING core GROWTH ACROSS THE PORTFOLIO 73% Services /
Slide 37: Components – Primary Growth Drivers
Components – Primary Growth Drivers 1 2 3 4 STRENGTHEN OUR CORE IN NORTH AMERICA Market freight car product offerings with car builders & Class 1s Consolidate industrial go-to-market approach DRIVE INNOVATION INTO NEW PRODUCTS & SOLUTIONS Sensing/digitalization to improve product performance Health
Slide 38: Components
Components REVENUE BY END MARKET REVENUE BY GEOGRAPHY AFTERMARKET REVENUE RECURRING REVENUE 11% 74% 11% 77% 23% 44% 56% OE Aftermarket Non-Recurring Recurring North America Europe APAC CIS, MENA, SSA South America 2% 2% $1.6B 2025 Revenue Key customers DIVERSIFIED PORTFOLIO BRINGS NEW GROWTH Nationa
Slide 39: Digital Intelligence – Primary Growth Drivers
Digital Intelligence – Primary Growth Drivers 1 2 3 4 LAUNCHING I-ETMS(1) PROTECT PTC 2.0, precision reference, moving block, vital stand-alone technology NEXT-GEN NETWORK SOLUTIONSPrecision Dispatch 2.0, migrate to Cloud, Pacing & Service Design EXPAND TRIP OPTIMIZER SUITE Zero-to-Zero, TO Innovati
Slide 40: Digital Intelligence
Digital Intelligence REVENUE BY END MARKET REVENUE BY GEOGRAPHY RECURRING REVENUE 60% 40% Non-Recurring Recurring North America Europe APAC CIS, MENA, SSA South America $1.0B 2025 Revenue Key customers WELL-POSITIONED FOR GROWTH 38% 24% Onboard Optimization, KinetiX (Inspection Technologies) 38% Sig
Slide 41: Transit – Primary Growth Drivers
Transit – Primary Growth Drivers 1 2 3 INDUSTRY ORDERS MOMENTUM 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 COMPETITIVENESS & INNOVATION Excellence in tender
Slide 42: Transit
Transit REVENUE BY END MARKET REVENUE BY GEOGRAPHY AFTERMARKET REVENUE RECURRING REVENUE 56% 18% 43% 19% 19% 48% 52% 44% 56% OE Aftermarket Non-Recurring Recurring Rolling Stock Components Transit Services Brakes & Couplers 23% Power & Mobility 16% North America Europe APAC CIS, MENA, SSA South Amer
Slide 43: Disciplined Value Creation
Disciplined Value Creation 43
Slide 44: Path To The Future …Maximize Shareholder Value
Path To The Future …Maximize Shareholder Value INVEST INTHE BUSINESS Driving long-term profitable growth DRIVERS INVEST IN THE FUTURE Through M&A with strategic fit& accretive returns; Portfolio Optimization RETURN VALUE TO SHAREHOLDERS Through disciplined capital allocation M&A as core competency S
Slide 45: Capital Allocation Priorities
Capital Allocation Priorities PRIORITIES OBJECTIVES ACTIONS Maintain strong balance sheet to manage through economic cycles & world crises Net leverage(1) ratio of 2.0 to 2.5x. Maintain investment-grade ratings Net leverage ratio of 1.9x (1) at end of 4Q25 Appropriately invest in the business for re
Slide 46: Invest In The Future Through Strategic M&A
Invest In The Future Through Strategic M&A 46 FOCUSED ON ACQUISITIONS THAT ARE A STRATEGIC FIT AND DRIVE ATTRACTIVE RETURNS STRATEGIC MARKETS COMPELLING VALUATIONS ATTRACTIVE ASSETS Accretive earnings within 2 years ROIC enhancing (ROIC > WACC) Above-average synergies (as % of revenue) Similar capit
Slide 47: Key Investment Highlights
Key Investment Highlights 47 1 2 3 4 Continued momentum across the portfolio and strong orders, backlog, and pipeline … internationally and in North America Positive productivity driven by continuous cost improvement combined with realization of Integration 2.0/3.0 savings and Portfolio Optimization
Slide 48: Long-Term Guidance
Long-Term Guidance 48
Slide 49: Long-Term Guidance
49 Long-Term Guidance Drive efficiencies through emerging technologies Lead the industry in innovative, fuel efficient technologies and transformative solutions Grow and refresh expansive global installed base Increase share across asset lifecycle (Locos/Mining, Freight Cars & Transit) Expand high-m
Slide 50: Adjusted Margin Improvement Expectations 2025–2029
ADJUSTED MARGIN IMPROVEMENT EXPECTATIONS 2025 – 2029: 350+ BPS Future Revenue Growth & Margin Expansion +2.0 - 3.0% + 1.0% 1.0-2.0% + Innovation-Led Drivers 225 BPS + 85 BP + 40 BPS ANNUAL REVENUE GROWTH EXPECTATIONS 2025 – 2029: MID-SINGLE DIGITS ACCELERATED GROWTH Technology-driven growth Pricing
Slide 51: Integration 2.0, 3.0 & Portfolio Optimization Update
51 Integration 2.0, 3.0 & Portfolio Optimization Update Integration 2.0 Update Integration 3.0 Update $5M RUN-RATE SAVINGS(2) Unrealized Restructuring charges (1) $46M $3M $22M $49M $87M $28M $103M Realized Original expectations were for $75-$90M savings & $110-$135M in charges Restructuring expense
Slide 52: Appendix
Appendix 52
Slide 53: Cash Conversion Reconciliation
Cash Conversion Reconciliation 53
Slide 54: Operating Margin Reconciliation
Operating Margin Reconciliation 54
Slide 55: Return On Invested Capital Reconciliation
Return On Invested Capital Reconciliation 55
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) 57
Slide 58: Earnings Per Share Reconciliation (2 of 2)
Earnings Per Share Reconciliation (2 of 2) 58
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