Westinghouse Air Brake Technologies Corporation · NYSE:WAB
Westinghouse Air Brake Technologies — Q3 2026 Earnings Presentation
25 slides from Westinghouse Air Brake Technologies's earnings presentation, Oct 21, 2026
Slide 1: Third Quarter 2026 Wabtec Financial Results & Company Highlights
THIRD QUARTER 2026 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 Chairman & Chief Executive Officer JOHN OLIN Executive Vice President & Chief Financial Officer KYRA YATES Vice President, Investor Relations Today’s Participants
Slide 4: 3Q 2026 Overview
4 3Q 2026 Overview WAB T E C ’ S S T R O N G E X E C U T I O N AN D M O M E N T U M C O N T I N U E S Sales Increased sales driven by both Freight and Transit segments Operating margin benefits from sales growth and improved gross margins EPS improvement driven by strong revenue growth and margin ex
Slide 5: 2026 Key Metrics
0.0% 1.8% 4.1% 3.5% 5 2026 Key Metrics 4Q25 1Q26 2Q26 3Q26 Industry Active Locomotives 3Q23 3Q24 3Q25 3Q26 Source: Association of American Railroads Source: Wabtec Industry Freight Traffic Source: UIC & Operator Reports (U.S., Europe & India) 2022 2023 2024 2025 Wabtec Installed Base 2022 2023 2024
Slide 6: Executing On Our Value Creation Framework
6 RECENT WINS Accelerate innovation of scalable technologies Grow and refresh expansive global installed base Drive efficiencies through emerging technologies Expand high-margin recurring revenue streams Drive continuous operational improvement Executing On Our Value Creation Framework O R D E R S M
Slide 7: 3Q 2026 Financial Summary
$1.81 $2.42 $2.32 $2.83 7 3Q 2026 Financial Summary I N C R E AS E D S AL E S , O P E R AT I N G M AR G I N AN D E P S G R O W T H Note: Adjusted numbers represent non-GAAP financial measures. See Appendix for additional details and reconciliations 2 0 2 5 GAAP 2 0 2 6 GAAP 2 0 2 5 ADJ 2 0 2 6 ADJ $
Slide 8: 3Q 2026 Sales
3Q 2026 Sales P RO D U CT L I N E 3 Q 2 6 YOY 3Q K E Y DR IV E RS (in millions) Equipment $ 679 0.3% Services $ 794 6.7% Components $ 395 5.3% Digital Intelligence $ 369 24.2% Freight segment $ 2,237 6.9% Transit segment $ 883 11.3% TOTAL SALES $ 3,120 8.1% Increased core Services demand and higher
Slide 9: 3Q 2026 Consolidated Operating Income
9 3Q 2026 Consolidated Operating Income ($ in millions) $ 1 , 0 2 8$ 1 , 0 0 22 0 2 5 G R O S S P R O F I T 35.6%34.7%% Gross Profit Volume Mix/Pricing Raw Materials/Tariffs Currency Manufacturing/Other $ 1 , 1 6 6$ 1 , 1 6 42 0 2 6 G R O S S P R O F I T 37.4%37.3%% Gross Profit $ 6 0 7$ 4 9 12 0 2
Slide 10: 3Q 2026 Freight Segment Performance
10 3Q 2026 Freight Segment Performance 2 0 2 5 GAAP 2 0 2 6 GAAP 2 0 2 5 ADJ(1) 2 0 2 6 ADJ(1) $414M 23.0% 19.8% $513M 24.5% $591M 26.4%$515M 2 0 2 5 2 0 2 6 $2.24B $2.09B 6.9% YOY 2 0 2 5 2 0 2 6 $6.54B $6.09B 7.5% YOY Note: Adjusted numbers represent non-GAAP financial measures. See Appendix for a
Slide 11: 3Q 2026 Transit Segment Performance
11 3Q 2026 Transit Segment Performance 2 0 2 5 GAAP 2 0 2 6 GAAP 2 0 2 5 ADJ 2 0 2 6 ADJ 2 0 2 5 2 0 2 6 2 0 2 5 2 0 2 6 12-Month Backlog increased 14.1% year-over-year, ex-currency M u l t i - Y e a r B a c k l o g +21.4% YoY (+23.5%, ex-currency) 12.5% Ex-Currency OP. INCOME / OP. MARGIN 12-MONTH
Slide 12: Resilient Business Allows For Execution On Financial Priorities
12 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 3rd quarter cash from operations of $455M was up versus prior
Slide 13: 2026 Updated Financial Guidance
2026 Updated Financial Guidance PRIOR GUIDANCE REVENUES $12.30B to $12.60B ADJUSTED DIL UTED EPS $10.60 to $10.90 10.1% 12.8% 18.2% 21.5%- - 13 Assumes tariffs in effect as of Oct 21, 2026, and excludes IEEPA tariff refunds in 4Q26 UPDATED GUIDANCE REVENUES $12.30B to $12.60B ADJUSTED DIL UTED EPS
Slide 14: 2026 Key Expectations
14 2026 Key Expectations Continued momentum across the portfolio driven by strong orders, backlog, and pipeline Positive productivity driven by continuous cost improvement combined with realization of Integration 3.0 and Portfolio Optimization Wabtec is well-positioned to drive higher returns and cr
Slide 15: Income Statement Appendix A (1 of 2)
Income Statement Appendix A (1 of 2) 15 2026 2025 2026 2025 Net sales 3,120$ 2,886$ 9,249$ 8,202$ Cost of sales (1,956) (1,884) (5,863) (5,362) Gross profit 1,164 1,002 3,386 2,840 Gross profit as a % of Net Sales 37.3% 34.7% 36.6% 34.6% Selling, general and administrative expenses (383) (375) (1,18
Slide 16: Income Statement Appendix A (2 of 2)
Income Statement Appendix A (2 of 2) 16 Segment Information Freight Net Sales 2,237$ 2,093$ 6,595$ 5,913$ Freight Income from Operations 515$ 414$ 1,469$ 1,249$ Freight Operating Margin 23.0% 19.8% 22.3% 21.1% Transit Net Sales 883$ 793$ 2,654$ 2,289$ Transit Income from Operations 145$ 115$ 412$ 31
Slide 17: Balance Sheet Appendix B
Balance Sheet Appendix B 17 September 30, 2026 December 31, 2025 In millions Cash, cash equivalents and restricted cash 489$ 789$ Receivables, net 2,264 1,897 Inventories, net 2,946 2,745 Other current assets 352 263 Total current assets 6,051 5,694 Property, plant and equipment, net 1,672 1,616 Goo
Slide 18: Cash Flow Appendix C
Cash Flow Appendix C 18 2026 2025 In millions Operating activities Net income 1,170$ 979$ Non-cash expense 466 357 Receivables (342) (368) Inventories (100) (228) Accounts Payable 67 76 Other operating activities (166) (49) Net cash provided by operating activities 1,095 767 Net cash used for invest
Slide 19: EPS and Non-GAAP Reconciliation Appendix D (1 of 2)
EPS and Non-GAAP Reconciliation Appendix D (1 of 2) 19 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 20: EPS and Non-GAAP Reconciliation Appendix D (2 of 2)
EPS and Non-GAAP Reconciliation Appendix D (2 of 2) 20 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 21: EBITDA Reconciliation Appendix E
EBITDA Reconciliation Appendix E 21 Wabtec Corporation 2026 Q3 EBITDA Reconciliation (in millions) Reported Income Other Income Depreciation & Restructuring Adjusted from Operations (Expense) Amortization Costs EBITDA Consolidated Results $625 $12 $140 $777 $5 $782 Wabtec Corporation 2026 Q3 YTD EBI
Slide 22: Sales by Product Line Appendix F
Sales by Product Line Appendix F 22 In millions 2026 2025 Freight Segment Equipment 679$ 677$ Components 395 375 Digital Intelligence 369 297 Services 794 744 Total Freight Segment 2,237$ 2,093$ Transit Segment Original Equipment Manufacturer 408$ 367$ Aftermarket 475 426 Total Transit Segment 883$
Slide 23: Segment Gross Margin & Operating Margin Reconciliation Appendix G
Segment Gross Margin & Operating Margin Reconciliation Appendix G 23 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 861$ 515$ 750$ 414$ 2,503$ 1,469$ 2,132$ 1
Slide 24: Segment Sales Reconciliation Appendix H
Segment Sales Reconciliation Appendix H 24 In millions Freight Transit Consolidated 2025 Net Sales 2,093$ 793$ 2,886$ Acquisitions 49 65 114 Portfolio Optimization (Divestitures/Exits) (11) (1) (12) Foreign Exchange 4 (9) (5) Organic 102 35 137 2026 Net Sales 2,237$ 883$ 3,120$ Change ($) 144 90 234
Slide 25: Cash Conversion Reconciliation Appendix I
Cash Conversion Reconciliation Appendix I 25 Wabtec Corporation 2026 Q3 Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated Results $455 $411 $142 82% Wabtec Corporation 2026 Q3 YTD Cash Conversion Calculation (in millions) Reported Cash from Operations Consolidated
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