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: Wabtec Financial Results & Company Highlights
Wabtec Financial Results & Company Highlights T H I R 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: 3Q 2026 Overview
3Q 2026 Overview 3Q 2026 HIGHLIGHTS Increased sales driven by both Freight and Sales $3.12B 8.1% Transit segments Operating 20.0% 3.0 pts 22.9% 1.9 pts Operating margin benefits from sales growth and improved gross margins Margin GAAP Adjusted EPS improvement driven by strong revenue Earnings $2.42
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 5.3% 41K 42K 3.7% 4.1% 3.5% 0.7% 31K 0.1% 23K 1.8% 0.0% -1.8% 4Q25 1Q26 2Q26 3Q26 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 ▪ Secured $1 billion in international locomotive & service orders Accelerate innovation of scalable technologies ▪ ~$700 million locomotive service order for the Simandou mining project Grow and refresh expansive global ▪ $254 million order with
Slide 7: 3Q 2026 Financial Summary
3Q 2026 Financial Summary SALES OP. INCOME / OP. MARGIN EARNINGS PER SHARE $3.12B $2.83 $715M $2.89B $2.42 $625M $607M 22.9% $2.32 22.0% YOY 8.1% 20.0% 21.0% 1.9 33.7% YOY $491M pts $1.81 YOY 3.0 YOY 17.0% pts YOY 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 GAAP GAAP ADJ ADJ GAAP GAAP ADJ ADJ
Slide 8: 3Q 2026 Sales
3Q 2026 Sales PRODUCT LINE 3Q26 Y OY 3Q KEY DRIVERS (in millions) Equipment $ 679 0.3% Increased mining sales, mostly offset by lower locomotive deliveries Services $ 794 6.7% Increased core Services demand and higher modernization deliveries Strong industrial, maintenance of way, & international de
Slide 9: 3Q 2026 Consolidated Operating Income
3Q 2026 Consolidated 3 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 $1,002 $1,028 VOLUME % Gross Profit 34.7% 35.6% Higher Freight & Transit sales, including acquisitions Volume MIX/PRICING Mix/Pricing Favorable product mix, cost recover
Slide 10: 3Q 2026 Freight Segment Performance
3Q 2026 Freight Segment Performance SALES(2) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $6.54B $2.24B $591M $6.09B $2.09B $515M $513M 26.4% 6.9% 23.0% 24.5% YOY $414M 1.9 7.5% pts YOY 19.8% 3.2 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 og
Slide 11: 3Q 2026 Transit Segment Performance
3Q 2026 Transit Segment Performance SALES (1) OP. INCOME / OP. MARGIN 12-MONTH BACKLOG $883M $160M $145M $2.45B $793M 18.1% 16.4% $2.18B $123M 11.3% $115M 2.6 12.2% YOY 15.5% pts 14.5% 1.9 YOY YOY 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 (YTD26) FOCUSED ON CASH CONVERSION (1) $300M Use of Cash $762M CASH FROM OPS $855M Share repurchases Net Debt Proceeds $158M Dividends $1,095M YTD 2026 69% Cash Conv YTD 2025 $1,059M Acquisitions/Dispositi
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 $12.30B to $12.60B $12.30B to $12.60B 10.1% - 12.8% 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 $10.60 to $10.90 $10.85 to $11.05 18.2% - 21.5% 21.0% - 23.2
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 Appendix A (1 of 2) WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Three Months Ended Nine Months Ended September 30,
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 NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED) Segment Information Freight Net Sales $ 2,237 $ 2,0
Slide 17: Balance Sheet
Balance Sheet Appendix B WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 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 a
Slide 18: Cash Flow
Cash Flow Appendix C WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2026 2025 In millions Operating activities Net income $ 1,170 $ 979 Non-cash expense 466 357 Receivables (342) (368) Inventories (100) (228
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 September 30, In millions 2026 2025 Freight Segment Equipment $ 679 $ 677 Components 395 375 Digital Intelligence 369 297 Services 794 744 Total Freight Segment $ 2,2
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 September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Income from Income fr
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 September 30, In millions Freight Transit Consolidated 2025 Net Sales $ 2,093 $ 793 $ 2,886 Acquisitions 49 65 114 Portfolio Opti
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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