Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q2 2026 Earnings Presentation
25 slides from Westinghouse Air Brake Technologies's earnings presentation, Jul 22, 2026
Slide 1: Wabtec Financial Results & Company Highlights
Wabtec Financial Results & Company Highlights S E C O N D 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 Chairman & Chief Executive Officer JOHN OLIN Executive Vice President & Chief Financial Officer KYRA YATES Vice President, Investor Relations 3
Slide 4: 2Q 2026 Overview
2Q 2026 Overview 2Q 2026 HIGHLIGHTS Increased sales driven by both Freight and Sales $3.18B 17.5% Transit segments, including acquisitions Operating 18.9% 1.5 pts 21.9% 0.8 pts Operating margin up despite tariff & mix headwinds Margin GAAP Adjusted Earnings $2.33 18.9% $2.76 21.6% EPS improvement dr
Slide 5: 2026 Key Metrics
2026 Key Metrics NORTH AMERICA INTERNATIONAL NA RAILCAR DELIVERIES Industry Freight Traffic Industry Freight Volumes YTD 44K HISTORICAL 45K 10-YEAR AVERAGE 41K 42K 3.1% 2.7% 2.6% 4.1% 1.5% 31K 25K 1.4% 1.8% 0.0% -1.8% 3Q25 4Q25 1Q26 2Q26 Brazil China India South Kazakhstan Africa 2022 2023 2024 2025
Slide 6: Executing On Our Value Creation Framework
Executing On Our Value Creation Framework RECENT WINS Accelerate innovation of scalable ▪ Secured $1.0 billion order with an Australian customer, technologies spanning new locomotives, services, components and digital solutions Grow and refresh expansive global installed base ▪ Signed $184 million P
Slide 7: 2Q 2026 Financial Summary
2Q 2026 Financial Summary SALES OP. INCOME / OP. MARGIN EARNINGS PER SHARE $3.18B $2.76 $697M $2.71B $600M $2.33 $572M 21.9% $2.27 21.6% 17.5% 18.9% $1.96 YOY YOY $472M 21.1% 0.8 pts 18.9% YOY YOY 17.4% 1.5 pts YOY 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 GAAP GAAP ADJ ADJ GAAP GAAP ADJ ADJ
Slide 8: 2Q 2026 Sales
2Q 2026 Sales PRODUCT LINE 2Q26 Y OY 2Q KEY DRIVERS (in millions) Equipment $ 737 35.0% Higher locomotive deliveries & increased mining sales Services $ 748 (4.2)% Sales growth in core services offset by lower modernization deliveries, as expected Lower North America rail car build and lower revenue
Slide 9: 2Q 2026 Consolidated Operating Income
2Q 2026 Consolidated 2 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 $938 $941 VOLUME % Gross Profit 34.7% 34.8% Higher Equipment & Transit sales, including acquisitions Volume MIX/PRICING Mix/Pricing Cost recovery through contract escala
Slide 10: 2Q 2026 Freight Segment Performance
2Q 2026 Freight Segment Performance SALES(2) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $6.64B $2.24B $579M $6.02B $1.92B $504M 25.8% $480M 16.9% $415M 22.5% 25.0% 0.8 10.2% YOY pts YOY 21.6% 0.9 YOY 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 11: 2Q 2026 Transit Segment Performance
2Q 2026 Transit Segment Performance SALES (1) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $936M $166M $146M 17.7% $2.50B $787M 15.6% $2.19B $120M 18.9% $109M 2.5 14.5% YOY 15.2% pts YOY YOY 13.9% 1.7 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 12: Resilient Business Allows For Execution On Financial Priorities
Resilient Business Allows For Execution On Financial Priorities DISCIPLINED CAPITAL ALLOCATION (1H26) FOCUSED ON CASH CONVERSION (1) $119M Use of Cash $457M Share repurchases CASH FROM OPS $106M Dividends $1,049M 1H 2026 $640M Net Debt 61% Cash Conv Proceeds 1H 2025 $1,059M Acquisitions/Dispositions
Slide 13: 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 $12.30B to $12.60B 9.2% - 11.8% 10.1% - 12.8% 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 $10.25 to $10.65 $10.60 to $10.90 14.3% - 18.7% 18.2% - 21.5%
Slide 14: 2026 Key Expectations
2026 Key Expectations (1) 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
Slide 15: Income Statement
Income Statement WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME Appendix A (1 of 2) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 202
Slide 16: Income Statement
Income Statement Appendix A (2 of 2) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 202
Slide 17: Balance Sheet
Balance Sheet Appendix B WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2026 December 31, 2025 In millions Cash, cash equivalents and restricted cash $ 670 $ 789 Receivables, net 2,169 1,897 Inventories, net 2,857 2,745 Other current assets
Slide 18: Cash Flow
Cash Flow Appendix C WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2026 2025 In millions Operating activities Net income $ 759 $ 666 Non-cash expense 310 219 Receivables (229) (243) Inventories (35) (180) Account
Slide 19: EPS and Non-GAAP Reconciliation
EPS and Non-GAAP Reconciliation Appendix D (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 com
Slide 20: EPS and Non-GAAP Reconciliation
EPS and Non-GAAP Reconciliation Appendix D (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 com
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 June 30, In millions 2026 2025 Freight Segment Equipment $ 737 $ 546 Components 398 401 Digital Intelligence 360 191 Services 748 781 Total Freight Segment $ 2,243 $
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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Income from Income from Income f
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 June 30, In millions Freight Transit Consolidated 2025 Net Sales $ 1,919 $ 787 $ 2,706 Acquisitions 163 69 232 Portfolio Optimiza
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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