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Basis of Presentation The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America and the rules and regulations of the Securities and Exchange Commission and include the accounts of Wabtec and its subsidiaries in which Wabtec has a controlling interest. These condensed consolidated interim financial statements do not include all of the information and footnotes required for complete financial statements. In Management’s opinion, these financial statements reflect all adjustments of a normal, recurring nature necessary for a fair presentation of the results for the interim periods presented. Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation.

Results for these interim periods are not necessarily indicative of results to be expected for the full year, particularly in light of ongoing volatility in the macroeconomic environment caused by supply chain disruptions, labor availability, broad-based inflation, tariffs and trade negotiations, and the impacts from regional conflicts and war. These factors continue to impact our sales channels, supply chain, manufacturing operations, workforce, and other key aspects of our operations. We are unable to reasonably predict the full impact of these factors due to the high degree of uncertainty regarding their duration and severity, their potential impact on global economic activity, and the impact that current and new sanctions and tariffs may have on our business, global supply chain operations and our customers, suppliers, and end-markets.

The Company operates on a four-four-five week accounting quarter, and the quarters end on or about March 31, June 30, September 30, and December 31.

The notes included herein should be read in conjunction with the audited consolidated financial statements included in Wabtec’s Annual Report on Form 10-K for the year ended December 31, 2025. The December 31, 2025 information included herein has been derived from the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Use of Estimates The preparation of financial statements in conformity with GAAP in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates. On an ongoing basis, Management reviews its estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.

Revenue Recognition A majority of the Company’s revenues are derived from performance obligations that are satisfied at a point in time when control passes to the customer. The remaining revenues are earned over time. Generally, for performance obligations satisfied at a point in time, control passes at the time of shipment in accordance with agreed upon delivery terms.

The Company also has long-term customer agreements involving the design and production of highly engineered products that require revenue to be recognized over time because these products have no alternative use without significant economic loss, and the agreements contain an enforceable right to payment including a reasonable profit margin from the customer in the event of contract termination. Additionally, the Company has customer agreements involving the creation or enhancement of an asset that the customer controls which also require revenue to be recognized over time. Generally, the Company uses an input method for determining the amount of revenue, cost and gross margin to recognize over time for these customer agreements. The input methods used for these agreements include costs of material and labor, both of which give an accurate representation of the progress made toward complete satisfaction of a particular performance obligation. The Company may also use the output method which recognizes revenue based on direct measurements of the value transferred to the customer. Contract revenues and cost estimates are reviewed and revised periodically throughout the year and adjustments are reflected in the accounting period as such amounts are determined.

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Due to the nature of work required to be performed on the Company’s long-term projects, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Contract estimates related to long-term projects are based on various assumptions to project the outcome of future events that could span several years. These assumptions include cost of materials; labor availability and productivity; complexity of the work to be performed; and the performance of suppliers, customers and subcontractors that may be associated with the contract. We have a disciplined process where Management reviews the progress of long term-projects periodically throughout the year. As part of this process, Management reviews information including key contract matters, progress towards completion, identified risks and opportunities and any other information that could impact the Company’s estimates of revenue and costs. After completing this analysis, any adjustments to net sales, cost of goods sold, and the related impact to operating income are recognized as necessary in the period they become known.

Generally, the Company’s revenue contains a single performance obligation for each distinct good or service; however, a single contract may have multiple performance obligations comprising multiple promises to customers. When there are multiple performance obligations, revenue is allocated based on the relative stand-alone selling price. Pricing is defined in our contracts on a line item basis and includes an estimate of variable consideration when required by the terms of the individual customer contract. Types of variable consideration the Company typically has include volume discounts, prompt payment discounts, price escalation clauses, liquidating damages, and performance bonuses. Sales returns and allowances are also estimated and recognized in the same period the related revenue is recognized, based upon the Company’s experience and future expectations.

Remaining performance obligations represent the allocated transaction price of unsatisfied or partially unsatisfied performance obligations. As of June 30, 2026, the Company's remaining performance obligations were approximately $30.9 billion. The Company expects to recognize revenue of approximately 30% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter.

Revolving Receivables Program The Company utilizes its Revolving Receivables Program to request borrowings from a financial institution against certain collateralized receivables for up to $450 million. The Company and certain of its subsidiaries (the "Originators") contribute receivables to our bankruptcy-remote subsidiary, which can then be collateralized on a recurring basis. As customers pay their balances, we transfer additional receivables into the program. Borrowings and repayments under the Revolving Receivables Program are classified as Financing activities on our Condensed Consolidated Statement of Cash Flows, with any outstanding collateralized balance at period end classified as debt on our Condensed Consolidated Balance Sheets.

The bankruptcy remote subsidiary is a separate legal entity with its own creditors, and its assets are not available to pay creditors of the Company or any other affiliates of the Company. The receivables transferred to the program are fully guaranteed by our bankruptcy-remote subsidiary, which holds additional receivables that are pledged as collateral under this facility. The Company has agreed to guarantee the performance of the Originators' respective obligations under the revolving agreement. Neither the Company (except for the bankruptcy-remote consolidated subsidiary referenced above) nor the Originators guarantees the collectability of the receivables under the revolving agreements.

At June 30, 2026 and December 31, 2025, the bankruptcy-remote subsidiary held receivables of $683 million and $623 million, respectively, which are included in the Company's Condensed Consolidated Balance Sheets. The receivables held by the bankruptcy-remote subsidiary collateralize the outstanding borrowings. There were outstanding borrowings of $400 million at June 30, 2026 and no outstanding borrowings at December 31, 2025. The transfers are recorded at the fair value of the proceeds received and obligations assumed less derecognized receivables, if applicable. Our maximum exposure to losses related to these receivables transferred to the program is limited to the amount outstanding.

Restricted Cash At June 30, 2026 and December 31, 2025, the Company classified cash of $10 million and $25 million, respectively, as restricted, primarily for cash held in escrow related to acquisitions.

Depreciation Expense Depreciation of property, plant and equipment related to the manufacturing of products or services provided is included in Cost of goods or Cost of services. Depreciation of other property, plant and equipment that is not attributable to the manufacturing of products or services provided is included in Selling, general and administrative expenses or Engineering expenses to the extent the property, plant, and equipment is used for research and development purposes.

Goodwill and Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized. Other intangibles (with definite lives) are amortized on a straight-line basis over their estimated economic lives. Amortizable intangible assets are reviewed for impairment when indicators of impairment are present. The Company tests goodwill and indefinite-lived intangible assets for impairment at the reporting unit level at least annually. The Company performs its annual impairment test during the fourth quarter after the annual forecasting process is completed, and also tests for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company will perform either a qualitative or quantitative test for goodwill, performing a quantitative test for each identified reporting unit if

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the qualitative test indicates that it is more likely than not that the fair value of a reporting unit is less than the carrying amount and at least every three years. Periodically, Management of the Company assesses whether or not an indicator of impairment is present that would necessitate an impairment analysis be performed. No impairment indicators were identified during the current quarter.

Accounting Standards Recently Issued In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this update require entities to disclose disaggregated information about certain costs and expenses in commonly presented income statement expense captions. The amendments will require increased interim and annual footnote disclosures either prospectively or retrospectively for reporting periods presented in interim and annual company filings. The amendments in this update do not affect the recognition, measurement, or financial statement presentation of income statement expenses and will be effective for Wabtec's annual reporting periods beginning January 1, 2027 and interim reporting periods beginning January 1, 2028. The Company is assessing the extent of the impact of the amendments on its future filings.

Accumulated Other Comprehensive Loss Comprehensive income (loss) comprises both Net income and Other comprehensive income (loss) resulting from the change in equity from transactions and other events and circumstances from non-owner sources.

The changes in Accumulated other comprehensive loss by component, including any tax impacts, for the three months ended June 30, 2026 and 2025 are as follows:

			Foreign currency translation									Derivative contracts									Pension and postretirement benefit plans									Total
In millions			2026			2025						2026			2025						2026			2025						2026			2025
Balance at March 31			$	(663)		$	(702)					$	22		$	15					$	(48)		$	(46)					$	(689)		$	(733)
Other comprehensive (loss) income before reclassifications			(44)			166						3			8						—			(2)						(41)			172
Amounts reclassified from Accumulated other comprehensive loss			—			—						—			(1)						1			1						1			—
Other comprehensive (loss) income, net			(44)			166						3			7						1			(1)						(40)			172
Balance at June 30			$	(707)		$	(536)					$	25		$	22					$	(47)		$	(47)					$	(729)		$	(561)

The changes in Accumulated other comprehensive loss by component, including any tax impacts, for the six months ended June 30, 2026 and 2025 are as follows:

			Foreign currency translation									Derivative contracts									Pension and postretirement benefit plans									Total
In millions			2026			2025						2026			2025						2026			2025						2026			2025
Balance at beginning of year			$	(589)		$	(818)					$	21		$	17					$	(48)		$	(45)					$	(616)		$	(846)
Other comprehensive (loss) income before reclassifications			(118)			282						5			6						—			(3)						(113)			285
Amounts reclassified from Accumulated other comprehensive loss			—			—						(1)			(1)						1			1						—			—
Other comprehensive (loss) income, net of tax			(118)			282						4			5						1			(2)						(113)			285
Balance at end of period			$	(707)		$	(536)					$	25		$	22					$	(47)		$	(47)					$	(729)		$	(561)

Amounts included under Derivative contracts related to interest rate hedges reclassified from Accumulated other comprehensive loss are recognized in "Interest expense, net" with the tax impact recognized in "Income tax expense" on the Condensed Consolidated Statements of Income. All other amounts reclassified from Accumulated other comprehensive loss are recognized in "Other income (expense), net" with the tax impact recognized in "Income tax expense" on the Condensed Consolidated Statements of Income.

Treasury Stock During the first quarter of 2025, the Company retired 55 million shares of treasury stock. The retirement of treasury stock is recognized as a deduction from common stock for the shares' par value and any excess over par as a deduction from retained earnings.

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On February 10, 2026, Wabtec acquired Dellner Couplers, a global leader in highly engineered safety-critical train connection systems and services for passenger rail rolling stock, for approximately $1.053 billion. The acquisition brings highly attractive and complementary technologies to Wabtec and strengthens its portfolio of mission-critical passenger rail systems. Dellner Couplers reports within the Transit Segment. The acquisition was funded with a combination of cash on hand and borrowings under other sources of available liquidity.

The following table summarizes the preliminary fair value of the Dellner Couplers assets acquired and liabilities assumed:

In millions
Assets acquired
Cash and cash equivalents			$	17
Accounts receivable			58
Inventory			77
Other current assets			36
Property, plant and equipment			53
Goodwill			475
Other intangible assets			531
Other noncurrent assets			9
Total assets acquired			1,256
Liabilities assumed
Current liabilities			76
Noncurrent liabilities			127
Total liabilities assumed			203
Net assets acquired			$	1,053

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On December 1, 2025, Wabtec acquired Frauscher Sensor Technology Group GmbH ("Frauscher"), a global market leader in train detection, wayside object control solutions and axle counting systems for approximately $792 million. The acquisition strengthens the Company’s product portfolio by adding highly attractive and complementary railway signaling technologies. Frauscher reports within the Digital Intelligence product line of the Freight Segment. The acquisition was funded with a combination of cash on hand, proceeds from the 2025 Term Credit Agreement and borrowings under other sources of available liquidity.

The following table summarizes the preliminary fair value of the Frauscher assets acquired and liabilities assumed:

In millions
Assets acquired
Cash and cash equivalents			$	27
Accounts receivable			48
Inventory			49
Other current assets			6
Property, plant and equipment			14
Goodwill			372
Other intangible assets			405
Other noncurrent assets			24
Total assets acquired			945
Liabilities assumed
Current liabilities			35
Noncurrent liabilities			118
Total liabilities assumed			153
Net assets acquired			$	792

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On July 1, 2025, Wabtec acquired 100% ownership in Evident’s Inspection Technologies division ("Inspection Technologies") for approximately $1.797 billion. Inspection Technologies, formerly part of the Scientific Solutions Division of Olympus Corporation, is a global leader in Non-Destructive Testing, Remote Visual Inspection and Analytical Instruments solutions for mission critical assets. Inspection Technologies’ leading industry presence and innovative product portfolio is expected to significantly expand Wabtec's capabilities, adding advanced automated inspection capabilities, driving technology in a space where data acquisition, analytics and automation are critical. Inspection Technologies reports within the Digital Intelligence product line of the Freight Segment. The acquisition was funded with a combination of cash on hand, proceeds from the 2035 Notes and borrowings under other sources of available liquidity.

The following table summarizes the fair value of the Inspection Technologies assets acquired and liabilities assumed:

In millions
Assets acquired
Cash and cash equivalents			$	40
Accounts receivable			86
Inventory			148
Other current assets			7
Property, plant and equipment			59
Goodwill			940
Customer relationships			411
Trade names			142
Acquired technology			170
Other noncurrent assets			46
Total assets acquired			2,049
Liabilities assumed
Current liabilities			81
Noncurrent liabilities			171
Total liabilities assumed			252
Net assets acquired			$	1,797

As of June 30, 2026, the measurement period remains open for the Dellner Couplers and Frauscher acquisitions, and the Company has not finalized the respective purchase accounting. The fair values of the assets acquired and liabilities assumed were determined using the income, cost and market approaches. Discounted cash flow models were used to estimate the fair values of acquired intangible assets. The fair value measurements were primarily based on significant inputs that are not observable in the market and are considered Level 3 in the fair value hierarchy.

Intangible assets acquired for each of these acquisitions include customer relationships and acquired technology that are subject to amortization, and trade names that were assigned an indefinite life and are not subject to amortization. Additionally, the Dellner Couplers acquired intangible assets include backlog which is subject to amortization. Contingent liabilities assumed as part of each transaction were not material. These estimates are preliminary in nature and subject to adjustments, which could be material as the Company has not completed its valuation of acquired assets and liabilities. Certain information necessary to complete the valuations of assets acquired and liabilities assumed and final income tax computations is not yet available. Any necessary adjustments will be finalized within one year from the date of each respective acquisition, once the Company has received the necessary information.

Goodwill was calculated as the difference between the acquisition date fair value of the consideration transferred and the fair value of the net assets acquired, and represents the assembled workforce and the future economic benefits, including synergies, that are expected to be achieved as a result of the acquisition. The purchased goodwill is not expected to be deductible for tax purposes for Dellner Couplers or Frauscher, and approximately half of the purchased goodwill is expected to be deductible for tax purposes for Inspection Technologies. The pro forma impact on Wabtec’s sales and results of operations, including the pro forma effect of events that are directly attributable to these acquisitions, was not significant.

Also during 2025, the Freight Segment completed two additional acquisitions which were individually and collectively immaterial.

Transaction costs related to the completed acquisitions for the three and six months ended June 30, 2026 were approximately $1 million and $14 million, respectively, and for the three and six months ended June 30, 2025 were approximately $25 million and $35 million, respectively, and are included in Selling, general, and administrative expenses.

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The components of inventory, net of reserves, were:

In millions			June 30, 2026						December 31, 2025
Raw materials			$	1,313					$	1,194
Work-in-progress			672						698
Finished goods			872						853
Total inventories			$	2,857					$	2,745

The change in the carrying amount of goodwill by segment is as follows:

In millions			Freight Segment						Transit Segment						Total
Balance at December 31, 2025			$	8,567					$	1,649					$	10,216
Additions/adjustments			8						475						483
Foreign currency impact			(23)						(73)						(96)
Balance at June 30, 2026			$	8,552					$	2,051					$	10,603

As of June 30, 2026 and December 31, 2025, the Company’s trade names had a net carrying amount of $897 million and $851 million, respectively. The Company believes these intangibles have indefinite lives.

Intangible assets of the Company, other than goodwill and trade names, consist of the following:

						June 30, 2026																		December 31, 2025
In millions						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Backlog						$	1,367					$	(665)					$	702					$	1,311					$	(613)					$	698
Customer relationships						2,263						(592)						1,671						2,000						(550)						1,450
Acquired technology						1,664						(812)						852						1,570						(731)						839
Total						$	5,294					$	(2,069)					$	3,225					$	4,881					$	(1,894)					$	2,987

At June 30, 2026, the weighted average remaining useful lives of backlog, customer relationships and acquired technology were 7 years, 17 years and 7 years, respectively. The backlog intangible asset primarily consists of in-place long-term agreements acquired by the Company in conjunction with past acquisitions. Amortization expense for intangible assets was $91 million and $178 million for the three and six months ended June 30, 2026, respectively, and $69 million and $142 million for the three and six months ended June 30, 2025, respectively.

Amortization expense for the five succeeding years is estimated to be as follows:

In millions
Remainder of 2026			$	179
2027			$	356
2028			$	354
2029			$	352
2030			$	339

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Contract assets include unbilled amounts resulting from sales under long-term contracts where revenue is recognized over time and revenue exceeds the amount that can be billed to the customer based on the terms of the contract. The current portion of the contract assets are classified as current assets under the caption “Unbilled accounts receivable” while the noncurrent contract assets are classified as other assets under the caption "Other noncurrent assets" on the Condensed Consolidated Balance Sheets. Noncurrent contract assets were $138 million at June 30, 2026 and $121 million at December 31, 2025. The Company has elected to use the practical expedient and does not consider unbilled amounts anticipated to be paid within one year as significant financing components.

Contract liabilities include customer deposits that are made prior to the incurrence of costs related to a newly agreed upon contract and advanced customer payments that are in excess of revenue recognized. The current portion of contract liabilities are classified as current liabilities under the caption “Customer deposits” while the noncurrent contract liabilities are classified as noncurrent liabilities under the caption "Other long-term liabilities" on the Condensed Consolidated Balance Sheets. Noncurrent contract liabilities were $342 million at June 30, 2026 and $259 million at December 31, 2025. These contract liabilities are not considered a significant financing component because they are used to meet working capital demands that can be higher in the early stages of a contract or revenue associated with the contract liabilities is expected to be recognized within one year. Contract liabilities also include provisions for estimated losses from uncompleted contracts. Provisions for loss contracts were $55 million and $82 million at June 30, 2026 and December 31, 2025, respectively. These provisions for estimated losses are classified as current liabilities and included within the caption “Other accrued liabilities” on the Condensed Consolidated Balance Sheets.

The change in the carrying amount of contract assets and contract liabilities for the six months ended June 30, 2026 and 2025 is as follows:

			Contract Assets
In millions			2026						2025
Balance at beginning of year			$	609					$	720
Recognized in current year			452						375
Reclassified to accounts receivable			(474)						(368)
Acquisitions/adjustments			1						—
Foreign currency impact			(1)						22
Balance at June 30			$	587					$	749
			Contract Liabilities
In millions			2026						2025
Balance at beginning of year			$	1,356					$	1,173
Recognized in current year			681						732
Amounts in beginning balance reclassified to revenue			(535)						(340)
Current year amounts reclassified to revenue			(241)						(377)
Acquisitions			19						—
Foreign currency impact			(5)						36
Balance at June 30			$	1,275					$	1,224

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The Company leases certain property, buildings and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments. Many of the Company's leases include rental escalation clauses, renewal options, and/or termination options that are factored into our determination of lease payments when appropriate. The right-of-use assets are classified as noncurrent and included within the caption "Other noncurrent assets" on the Condensed Consolidated Balance Sheets. The current portion of lease liabilities are classified under the caption "Other accrued liabilities," while the noncurrent portion of lease liabilities are classified under the caption "Other long-term liabilities" on the Condensed Consolidated Balance Sheets. The Company does not separate lease and non-lease components. As most of the Company's leases do not provide a readily stated discount rate, the Company must estimate the rate to discount lease payments using its incremental borrowing rate.

Operating lease expense was $20 million and $41 million for the three and six months ended June 30, 2026, respectively, and $17 million and $33 million for the three and six months ended June 30, 2025, respectively. New operating leases of $4 million and $10 million were added during the three and six months ended June 30, 2026, respectively, and $27 million and $35 million for the three and six months ended June 30, 2025, respectively. Wabtec does not have material financing leases, short-term or variable leases or sublease income.

Scheduled payments of lease liabilities are as follows:

In millions			Operating Leases
Remaining 2026			$	39
2027			69
2028			58
2029			51
2030			44
Thereafter			155
Total lease payments			416
Less: Present value discount			(51)
Present value of lease liabilities			$	365

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of operating lease liabilities:

			June 30, 2026						December 31, 2025
Weighted-average remaining lease term (years)			7.6						7.9
Weighted-average discount rate			3.6		%				3.6		%

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Long-term debt consisted of the following:

			Effective Interest Rate						Face Value						June 30, 2026												December 31, 2025
In millions															Book Value						Fair Value1						Book Value						Fair Value1
2025 Credit Agreement:
Revolving Credit Facility			4.4		%				N/A						$	638					$	638					$	—					$	—
Term Loan Facility, due 2030			4.9		%				$	725					721						725						721						725
2025 Term Credit Agreement:
Term Loan, due 2026			4.8		%				$	500					500						500						500						500
Senior Notes:
3.45% Senior Notes, due 2026			3.5		%				$	750					750						748						750						746
1.25% Senior Notes (EUR), due 2027			1.5		%				€	500					568						555						583						575
4.70% Senior Notes, due 2028			4.8		%				$	1,250					1,248						1,252						1,247						1,266
4.90% Senior Notes, due 2030			5.1		%				$	500					496						505						496						512
5.611% Senior Notes, due 2034			5.7		%				$	500					496						516						496						526
5.50% Senior Notes, due 2035			5.6		%				$	750					743						769						743						783
Revolving Receivables Program			4.5		%				N/A						400						400						—						—
Other Borrowings															11						11						5						5
Total															6,571						6,619						5,541						5,638
Less: current portion															(1,656)						(1,654)						(1,250)						(1,246)
Long-term portion															$	4,915					$	4,965					$	4,291					$	4,392

1. See Note 13 for information on the fair value measurement of the Company's long-term debt.

Variances between Face Value and Book Value are the result of unamortized discounts and debt issuance fees as well as foreign exchange on the Euro Notes and euro denominated borrowings under the Revolving Credit Facility.

The Company has debt issuance costs related to certain financing transactions which are also amortized through interest expense. As of June 30, 2026 and December 31, 2025, the Company had total combined unamortized discount and debt issuance costs of $23 million and $26 million, respectively. Amortization of discounts and debt issuance fees are included in the calculation of Effective Interest Rate.

Credit Agreements

On November 28, 2025, the Company entered into a new stand-alone credit agreement (the "2025 Term Credit Agreement") for a term loan of $500 million. Borrowings under the 2025 Term Credit Agreement bear interest at a base rate plus an interest rate spread up to 1.50% based on the lower of the pricing corresponding to (i) the Company's Leverage Ratio or (ii) the Company's public credit rating. The frequency of interest payments varies based upon the Interest Election Request. The term loan issued under this agreement will mature on November 27, 2026. The obligations of the Company under this agreement are unsecured and have been guaranteed by certain of the Company's subsidiaries. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type. Under the 2025 Term Credit Agreement, the Company has agreed to maintain the same Interest Coverage Ratio and Leverage Ratio as the 2025 Credit Agreement. The borrowing rate for the agreement is a variable rate assessed periodically in accordance with the terms of the agreement. At June 30, 2026, the interest rate was 4.6%.

On April 23, 2025, the Company entered into a new unsecured credit agreement (the "2025 Credit Agreement"), which amended, restated, and refinanced certain prior credit agreements. The 2025 Credit Agreement provides for borrowings consisting of (i) a multi-currency revolving credit facility for a U.S. dollar equivalent of up to $2.0 billion (the “Revolving Credit Facility”) and (ii) a delayed draw term loan facility of $725 million (the “Term Loan Facility”), all pursuant to the terms and conditions of the 2025 Credit Agreement. The Term Loan Facility was utilized to refinance outstanding borrowings with the remaining amount utilized as part of funding for the Inspection Technologies acquisition. The 2025 Credit Agreement includes an incremental facility that allows the Company to request, at prevailing market rates, an aggregate amount not to exceed $1.0 billion, (a) increases to the borrowing commitments under the Revolving Credit Facility and/or (b) new incremental term loan commitments. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type.

Borrowings under the 2025 Credit Agreement mature on April 23, 2030. Amounts borrowed and repaid under the Term Loan Facility may not be reborrowed. The applicable interest rate for borrowings under the 2025 Credit Agreement includes a base rate (per the Interest Election terms of the agreement) plus an interest rate spread up to 1.75% based on the lower of the

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pricing corresponding to (i) the Company’s financial leverage or (ii) the Company’s public credit rating. At June 30, 2026, the interest rate on the Term Loan Facility and the Revolving Credit Facility were both 4.9%. Obligations under the 2025 Credit Agreement have been guaranteed by certain of the Company’s subsidiaries.

Under the 2025 Credit Agreement, the Company has agreed to maintain an Interest Coverage Ratio of at least 3.0 to 1.0, and a Leverage Ratio not to exceed 3.5 to 1.0. The Interest Coverage Ratio is calculated using an earnings metric as defined in the agreement compared to Interest Expense for the four quarters then ended. The Leverage Ratio is defined as net debt (total debt, net of up to $500 million of unrestricted cash) as of the last day of such fiscal quarter to the defined earnings metric for the four quarters then ended. Additionally, the Company may effect an increase in the maximum Leverage Ratio in contemplation of a Material Acquisition. All terms are as defined in the 2025 Credit Agreement.

The following table presents availability under the 2025 Credit Agreement at June 30, 2026:

In millions						Revolving Credit Facility						Term Loan Facility						Total
Maximum Availability						$	2,000					$	725					$	2,725
Outstanding Borrowings						(638)						(725)						(1,363)
Letters of Credit Under Credit Agreement						—						—						—
Current Availability						$	1,362					$	—					$	1,362

The Company was in compliance with all financial covenants in the 2025 Credit Agreement and the 2025 Term Credit Agreement as of June 30, 2026.

Uncommitted Money Market Line Credit Agreement

During the third quarter of 2024, the Company entered into an uncommitted bilateral money market line credit agreement which provides an aggregate borrowing capacity of $150 million, for general business purposes and working capital needs. At June 30, 2026, the interest rate was 4.2%. There were no borrowings outstanding under the uncommitted bilateral money market line credit agreement at June 30, 2026 and December 31, 2025.

Senior Notes

The Company or its subsidiaries may issue senior notes from time to time. These notes are comprised of our 3.45% Senior Notes due 2026 (the "2026 Notes"), 1.25% Senior Notes (EUR) due 2027 (the "Euro Notes"), 4.70% Senior Notes due 2028 (the "2028 Notes"), 4.90% Senior Notes due 2030 (the "2030 Notes"), 5.611% Senior Notes due 2034 (the "2034 Notes"), and 5.50% Senior Notes due 2035 (the "2035 Notes"). The 2026 Notes, 2028 Notes, 2030 Notes, 2034 Notes, and 2035 Notes are the “US Notes”, and collectively with the Euro Notes, the “Senior Notes.” Interest on the US Notes is payable semi-annually and interest on the Euro Notes is paid annually. Each series of the Senior Notes may be redeemed at any time in whole or from time to time in part in accordance with the provisions of the indenture, under which such series of notes was issued. Each of the Senior Notes may be redeemed at a redemption price of 100% of the principal amount plus a specified make-whole premium and accrued interest. The US Notes and the Company's guarantee of the Euro Notes are senior unsecured obligations of the Company and rank pari passu with all existing and future senior debt, and are senior to all existing and future subordinated indebtedness of the Company.

On May 29, 2025, the Company issued (i) $500 million of 4.90% Senior Notes due 2030 and (ii) $750 million of 5.50% Senior Notes due 2035. The 2030 Notes and 2035 Notes were issued at approximately 100% of face value, and the Company recognized approximately $12 million of total deferred financing costs. Interest on the 2030 Notes and 2035 Notes will accrue at a rate of 4.90% and 5.50%, respectively, per year, payable semi-annually on May 29 and November 29 of each year, commencing November 29, 2025. The 2030 Notes will mature on May 29, 2030, and the 2035 Notes will mature on May 29, 2035.

Proceeds from the 2030 Notes and cash on hand were utilized to repay the outstanding amount of notes due in 2025 at maturity. Proceeds from the 2035 Notes were utilized as part of funding for the Inspection Technologies acquisition, which closed July 1, 2025.

The indentures under which the Senior Notes were issued contain covenants and restrictions which limit, subject to certain exceptions, certain sale and leaseback transactions with respect to principal properties, the incurrence of secured debt without equally and ratably securing the Senior Notes, and certain merger and consolidation transactions. The covenants do not require the Company to maintain any financial ratios or specified levels of net worth or liquidity. The US Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's subsidiaries that is a guarantor under the 2025 Credit Agreement. The Euro Notes were issued by Wabtec Transportation Netherlands B.V. and are fully and unconditionally guaranteed by the Parent Company.

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The Company maintains employee stock-based compensation plans for stock options, restricted stock, and incentive stock units as governed by the 2011 Stock Incentive Compensation Plan, as amended and restated (the “2011 Plan”) and the 2000 Stock Incentive Plan, as amended (the “2000 Plan”). The 2011 Plan has a term through May 15, 2030, and as of June 30, 2026, the number of shares available for future grants under the 2011 Plan was approximately 3.3 million shares. The Company also maintains a 1995 Non-Employee Directors’ Fee and Stock Option Plan as amended and restated (the "Directors Plan”).

Stock-based compensation expense was $32 million and $62 million for the three and six months ended June 30, 2026, respectively, and $24 million and $44 million for the three and six months ended June 30, 2025, respectively. At June 30, 2026, unamortized compensation expense related to stock options, non-vested restricted shares and incentive stock units expected to vest was approximately $152 million.

Stock Options Stock options can be granted to eligible employees and directors at an exercise price equal to fair market value, which is the average of the high and low Wabtec stock price on the date of grant. Options become exercisable over a three-year vesting period and expire 10 years from the date of grant. There were no stock options granted in the periods presented. At June 30, 2026, there were 82,616 shares issuable pursuant to exercisable stock options.

Restricted Stock, Restricted Stock Units and Incentive Stock Units As provided for under the 2011 Plan and 2000 Plan, eligible employees are granted restricted stock and restricted stock units that generally vest over three years from the date of grant. Under the Directors Plan, restricted stock awards vest one year from the date of grant. The restricted stock units are liability-classified equity awards as they can be settled in cash.

Annually, the Company issues incentive stock units to eligible employees that vest upon attainment of certain cumulative three-year performance goals, including a Relative Total Stockholder Return ("RTSR") modifier. The RTSR modifier can increase or decrease the payment by up to 20%. Significant judgments and estimates are used in determining the estimated three-year performance, which is then used to estimate the total shares expected to vest over the three-year vesting cycle and corresponding expense based on the grant date fair value of the award. When determining the estimated three-year performance, the Company utilizes a combination of historical actual results, budgeted results and forecasts. Upon the initial grant of a performance cycle, the Company estimates the three-year performance at 100%. Based on the Company’s performance for each three-year period then ended, the incentive stock units can vest and be awarded ranging from 0% to 200% of the initial incentive stock units granted. As of June 30, 2026, the Company estimates that it will achieve 200%, 188% and 158% for the incentive stock awards expected to vest, inclusive of the RTSR modifier, based on the estimated performance for the three-year periods ending December 31, 2026, 2027, and 2028, respectively, and has recorded incentive compensation expense accordingly.

During the first quarter of 2026, the Company also issued an additional incentive stock unit grant for certain eligible employees. The grant has a one-year performance goal for 2026 and a three-year vesting period. Eligible employees vest from 0% to 100% of the initial incentive stock units granted based upon attainment of the 2026 performance goal. As of June 30, 2026, the Company estimates that it will achieve 100% of the one-year performance goal.

Quarterly, the Company reviews and updates performance estimates based on actual performance results and current projections. If the estimates of the number of these incentive stock units expected to vest changes in a future accounting period, cumulative compensation expense could increase or decrease and will be recognized in the current period for the elapsed portion of the vesting period and would change future expense for the remaining vesting period. The incentive stock units included in the table below represent the number of incentive stock units that are expected to vest based on the Company’s estimate for meeting those established performance targets.

Compensation expense for the non-vested restricted stock and incentive stock units is based on the closing price of the Company's common stock on the date of grant and recognized over the applicable vesting period. Expense for incentive stock units is updated as necessary based on the Company's performance.

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The following table summarizes the restricted stock, restricted stock unit and incentive stock unit activity and related information for the six months ended June 30, 2026:

			Restricted Stock and Units						Incentive Stock Units						Weighted Average Grant Date Fair Value
Outstanding at December 31, 2025			592,576						872,053						$	147.49
Granted			205,309						209,179						$	254.37
Vested			(272,126)						(348,127)						$	121.17
Adjustment for incentive stock awards expected to vest			—						138,513						$	168.69
Canceled			(6,437)						—						$	181.69
Outstanding at June 30, 2026			519,322						871,618						$	193.03

The following table presents the overall effective tax rate for the three and six months ended June 30, 2026 and 2025:

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Overall Effective Tax Rate			23.4		%				24.8%						23.1%						24.0%

The year over year decrease in the effective rate for the three months ended June 30, 2026 was primarily driven by prior period audit settlements. The year over year decrease in the effective tax rate for the six months ended June 30, 2026 was primarily driven by prior period audit settlements and higher discrete equity compensation tax deductions.

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The Company’s non-vested restricted stock contains rights to receive non-forfeitable dividends, and thus are participating securities requiring the two-class method of computing earnings per share. The calculation of earnings per share for common stock excludes the income attributable to the non-vested restricted stock from the numerator, which results in approximately 0.2% of Net income attributable to Wabtec shareholders being allocated to non-vested restricted stock for both the three and six months ended June 30, 2026, and approximately 0.3% of Net income attributable to Wabtec shareholders being allocated to non-vested restricted stock for both the three and six months ended June 30, 2025, respectively. Additionally, the dilutive impact of the assumed conversion of non-vested restricted stock is excluded from the denominator of the diluted weighted average shares outstanding. The computation of basic and diluted earnings per share for Net income attributable to Wabtec shareholders is as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
In millions, except per share data			2026						2025						2026						2025
Numerator
Net income attributable to Wabtec shareholders			$	395					$	336					$	757					$	658
Less: Net income allocated to non-vested restricted stock			(1)						(1)						(2)						(2)
Numerator for basic and diluted earnings per common share			$	394					$	335					$	755					$	656
Denominator
Weighted average shares outstanding - basic			169.1						170.6						169.5						170.6
Effect of dilutive securities:
Assumed conversion of dilutive stock-based compensation plans excluding non-vested restricted stock			0.3						0.3						0.4						0.3
Assumed conversion of dilutive non-vested restricted stock			0.2						0.3						0.2						0.3
Weighted average shares outstanding - diluted			169.6						171.2						170.1						171.2
Earnings per common share attributable to Wabtec shareholders
Basic			$	2.33					$	1.96					$	4.45					$	3.84
Diluted			$	2.33					$	1.96					$	4.44					$	3.84

The following table reconciles the changes in the Company’s product warranty reserve for the six months ended June 30, 2026 and 2025:

In millions			2026						2025
Balance at beginning of year			$	289					$	274
Warranty expense			58						63
Warranty claim payments			(52)						(59)
Acquisitions			6						—
Foreign currency impact			(3)						8
Balance at June 30			$	298					$	286

ASC 820 “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value and explains the related disclosure requirements. ASC 820 indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

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Valuation Hierarchy. ASC 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The Company’s cash, cash equivalents and restricted cash are highly liquid investments purchased with an original maturity of three months or less and are considered Level 1 on the fair value valuation hierarchy. The fair value of cash, cash equivalents and restricted cash approximated the carrying value at June 30, 2026 and December 31, 2025. The Senior Notes are considered Level 2 based on the fair value valuation hierarchy.

Hedging Activities In the normal course of business, the Company is exposed to market risk related to interest rates, commodity prices and foreign currency exchange rate fluctuations, which may adversely affect our operating results and financial position. At times, we limit these risks through the use of derivatives such as cross-currency swaps, foreign currency forward contracts, interest rate swaps, commodity swaps and options. These hedging contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. In accordance with our policy, derivatives are only used for hedging purposes. We do not use derivatives for trading or speculative purposes.

The Company uses forward contracts to hedge forecasted foreign currency denominated sales of finished goods and future settlement of foreign currency denominated assets and liabilities. The Company may use interest rate hedge contracts on certain investing and borrowing transactions to manage its net exposure to interest rate changes and to manage its overall cost of borrowing. During the second quarter of 2026, the Company entered into new interest rate hedge contracts to manage interest rate risk for a portion of future expected debt transactions. The Company may also use commodity forward swaps to manage its exposure to commodity price changes and to reduce its overall cost of manufacturing.

The Company has also established balance sheet risk management and net investment hedging programs to protect its balance sheet against foreign currency exchange rate volatility. We conduct our business worldwide in U.S. dollars and the functional currencies of our foreign subsidiaries, including euro, Indian rupee, British pound sterling, Australian dollars, Canadian dollars, Brazilian real, Kazakhstani tenge, and several other foreign currencies. Changes in these foreign currency exchange rates could have a material adverse impact on our financial results that are reported in U.S. dollars. We are also exposed to foreign currency exchange rate risk related to our foreign subsidiaries, including intercompany loans denominated in non-functional currencies. We hedge these exposures using foreign currency swap contracts and cross-currency swaps to offset the potential income statement effects on intercompany loans denominated in non-functional currencies. These programs reduce but do not eliminate foreign currency exchange rate risk entirely. Net gains and losses related to the Company's hedging activities, except as described below, were not material for the three and six months ended June 30, 2026 and 2025.

During 2025, in connection with the acquisitions of Frauscher and Dellner Couplers, the Company entered into foreign exchange contracts for a notional value of €1,290 million to mitigate foreign currency exposure of the purchase prices. As part of the acquisition of Frauscher in the fourth quarter of 2025, the Company utilized foreign exchange forward contracts with a notional value of €690 million. As part of the acquisition of Dellner Couplers in the first quarter of 2026, the Company utilized foreign exchange forward contracts with a notional value of €600 million. The contracts are not designated as accounting hedges under Topic 815 of ASC, and as such, the gains and losses are recorded as a component of Other (expense) income, net. For the six months ended June 30, 2026, these contracts resulted in a net gain of $2 million. For the three and six months ended June 30, 2025, these contracts resulted in a gain of $32 million.

At June 30, 2026, the Company had a total gross notional amount of designated and non-designated derivatives of $639 million and $466 million, respectively. At December 31, 2025, the Company had a total gross notional amount of designated and non-designated derivatives of $467 million and $1.355 billion, respectively. The related assets and liabilities at both June 30, 2026 and December 31, 2025 were not significant.

The Company is subject to a variety of environmental laws and regulations governing discharges to air and water, the handling, storage and disposal of hazardous or solid waste materials and the remediation of contamination associated with releases of hazardous substances. The Company believes its operations currently comply in all material respects with all of the various environmental laws and regulations applicable to our business; however, there can be no assurance that environmental requirements will not change in the future or that we will not incur significant costs to comply with such requirements.

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Claims have been filed against the Company and certain of its affiliates in various jurisdictions across the United States by persons alleging bodily injury as a result of exposure to asbestos-containing products. The vast majority of the claims are submitted to insurance carriers for defense and indemnity, or to non-affiliated companies that retain the liabilities for the asbestos-containing products at issue. We cannot, however, assure that all of these claims will be fully covered by insurance, or that the indemnitors or insurers will remain financially viable. Our ultimate legal and financial liability with respect to these claims, as is the case with other pending litigation, cannot be estimated. A limited number of claims are not covered by insurance, nor are they subject to indemnity from non-affiliated parties. Management believes that the costs of the Company’s asbestos-related cases will not be material to the Company’s overall financial position, results of operations and cash flows.

During the third quarter of 2023, a competitor of the Company, Progress Rail (“Progress”), which is a Caterpillar Inc. company, sued the Company in the U.S. District Court for the District of Delaware asserting antitrust, breach of contract, unfair competition law, defamation and false advertising claims. In February 2026, the Company and Progress Rail agreed to settle all of Progress Rail’s claims without admission of liability by the Company, and the settlement did not have any impact on the Company’s operating results or cash flows.

From time to time the Company is involved in litigation relating to claims arising out of its operations in the ordinary course of business. As of the date hereof, the Company is involved in no litigation that the Company believes will have a material adverse effect on its financial condition, results of operations or liquidity.

The Company has two reportable segments—the Freight Segment and the Transit Segment. The key factors used to identify these reportable segments are the organization and alignment of the Company’s internal operations, the nature of the products and services and customer type. The Company's business segments are:

Freight Segment builds, rebuilds, upgrades, and overhauls locomotives, services locomotives and freight cars, and provides a range of component and digital solutions for customers in the freight and transit rail, mining, and marine industries. It also manufactures and services components for new and existing freight cars and locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, maintenance of way, and provides heat exchange and cooling systems for locomotives and power generation equipment. Customers include large, publicly traded railroads, leasing companies, manufacturers of original equipment such as locomotives and freight cars, and utilities, and also serves companies in the mining, marine, and industrial markets and applications. We refer to sales of both goods, such as spare parts and equipment upgrades, and related services, such as monitoring, maintenance and repairs, as sales in our Services product line.

Transit Segment primarily manufactures and services components and train connection systems for new and existing passenger transit vehicles, typically regional trains, high speed trains, subway cars, light-rail vehicles and buses. It also refurbishes subway cars and provides heating, ventilation, and air conditioning equipment and doors for buses and subway cars. Customers include public transit authorities and municipalities, leasing companies and manufacturers of passenger transit vehicles and buses, and companies in the electrical generation, distribution, and charging industries.

Wabtec’s chief operating decision maker ("CODM") is the Company’s Chairman and Chief Executive Officer, Rafael Santana. Mr. Santana utilizes Income (loss) from operations as the primary reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources. For both of the Company’s segments, the CODM uses segment Income (loss) from operations to make operational and personnel related decisions across the business. The CODM considers actual, budgeted and forecasted Income (loss) from operations on a monthly basis for evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment. Additionally, Gross margin is used by the CODM as a secondary measure of segment profit or loss in assessing segment performance and deciding how to allocate resources. For both of the Company’s segments, the CODM uses segment Gross margin to make commercial and operational related decisions across the business.

Intersegment sales are accounted for at prices that are generally established by reference to similar transactions with unaffiliated customers. Corporate activities include general corporate expenses, elimination of certain intersegment transactions, interest income and expense and other unallocated charges. Segment assets for the Freight and Transit Segment include assets directly utilized for segment operations, as well as the related goodwill and intangible assets. Corporate segment assets include cash, cash equivalents, and restricted cash, equity method investment assets, certain tax assets, receivables held by our bankruptcy-remote facility, pension assets, corporate headquarters' assets and other asset balances that are managed outside of operating segments.

Cost of sales for both segments represents costs directly related to manufacturing products and providing services. Primary costs include raw materials, direct labor, overhead, shipping and handling, warehousing, and the depreciation of manufacturing, warehousing and distribution facilities. Selling, general and administrative expenses for both segments represent costs incurred in managing the business, including salary, benefits, professional fees and operating costs associated with each

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segment’s non-manufacturing activities. The amounts of depreciation and amortization disclosed by reportable segment are included within their respective segment expense captions, such as Cost of sales, Selling, general & administrative expenses and Amortization expense.

Segment financial information for the three months ended June 30, 2026 is as follows:

In millions			Freight Segment						Transit Segment						Corporate Activities and Elimination						Total
Sales to external customers			$	2,243					$	936					$	—					$	3,179
Cost of sales			(1,389)						(629)						—						(2,018)
Gross profit			$	854					$	307					$	—					$	1,161
Gross margin			38.1		%				32.8		%
Selling, general & administrative expenses			$	(219)					$	(131)					$	(50)					$	(400)
Engineering expenses			(55)						(15)						—						(70)
Amortization expense			(76)						(15)						—						(91)
Income (loss) from operations			504						146						(50)						600
Interest expense and other, net			—						—						(82)						(82)
Income (loss) before income taxes			$	504					$	146					$	(132)					$	518
Intersegment sales/(elimination)			$	11					$	10					$	(21)					$	—
Depreciation and amortization			$	112					$	27					$	4					$	143
Capital expenditures			$	34					$	26					$	2					$	62
Segment assets			$	15,917					$	5,578					$	1,633					$	23,128

Segment financial information for the three months ended June 30, 2025 is as follows:

In millions			Freight Segment						Transit Segment						Corporate Activities and Elimination						Total
Sales to external customers			$	1,919					$	787					$	—					$	2,706
Cost of sales			(1,222)						(546)						—						(1,768)
Gross profit			$	697					$	241					$	—					$	938
Gross margin			36.3		%				30.7		%
Selling, general & administrative expenses			$	(181)					$	(114)					$	(52)					$	(347)
Engineering expenses			(38)						(12)						—						(50)
Amortization expense			(63)						(6)						—						(69)
Income (loss) from operations			415						109						(52)						472
Interest expense and other, net			—						—						(22)						(22)
Income (loss) before income taxes			$	415					$	109					$	(74)					$	450
Intersegment sales/(elimination)			$	13					$	12					$	(25)					$	—
Depreciation and amortization			$	95					$	18					$	4					$	117
Capital expenditures			$	25					$	12					$	2					$	39
Segment assets			$	13,390					$	4,405					$	2,596					$	20,391

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Segment financial information for the six months ended June 30, 2026 is as follows:

In millions			Freight Segment						Transit Segment						Corporate Activities and Elimination						Total
Sales to external customers			$	4,358					$	1,771					$	—					$	6,129
Cost of sales			(2,716)						(1,191)						—						(3,907)
Gross profit			$	1,642					$	580					$	—					$	2,222
Gross margin			37.7		%				32.7		%
Selling, general & administrative expenses			$	(438)					$	(259)					$	(104)					$	(801)
Engineering expenses			(98)						(28)						—						(126)
Amortization expense			(152)						(26)						—						(178)
Income (loss) from operations			954						267						(104)						1,117
Interest expense and other, net			—						—						(130)						(130)
Income (loss) before income taxes			$	954					$	267					$	(234)					$	987
Intersegment sales/(elimination)			$	25					$	20					$	(45)					$	—
Depreciation and amortization			$	224					$	51					$	7					$	282
Capital expenditures			$	61					$	44					$	3					$	108

Segment financial information for the six months ended June 30, 2025 is as follows:

In millions			Freight Segment						Transit Segment						Corporate Activities and Elimination						Total
Sales to external customers			$	3,820					$	1,496					$	—					$	5,316
Cost of sales			(2,438)						(1,040)						—						(3,478)
Gross profit			$	1,382					$	456					$	—					$	1,838
Gross margin			36.2		%				30.5		%
Selling, general & administrative expenses			$	(345)					$	(221)					$	(88)					$	(654)
Engineering expenses			(74)						(22)						—						(96)
Amortization expense			(128)						(14)						—						(142)
Income (loss) from operations			835						199						(88)						946
Interest expense and other, net			—						—						(70)						(70)
Income (loss) before income taxes			$	835					$	199					$	(158)					$	876
Intersegment sales/(elimination)			$	24					$	21					$	(45)					$	—
Depreciation and amortization			$	192					$	38					$	7					$	237
Capital expenditures			$	56					$	22					$	5					$	83

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Sales to external customers by product line are as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In millions						2026						2025						2026						2025
Freight Segment:
Services						$	748					$	781					$	1,462					$	1,644
Equipment						737						546						1,463						1,022
Components						398						401						755						782
Digital Intelligence						360						191						678						372
Total Freight Segment						$	2,243					$	1,919					$	4,358					$	3,820
Transit Segment:
Original Equipment Manufacturer						$	411					$	353					$	792					$	675
Aftermarket						525						434						979						821
Total Transit Segment						$	936					$	787					$	1,771					$	1,496

The components of Other (expense) income, net are as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In millions						2026						2025						2026						2025
Foreign currency (loss) gain						$	(4)					$	(6)					$	12					$	(14)
Gain on mark-to-market derivatives						—						32						2						32
Equity income (expense)						1						(3)						3						—
Expected return on pension assets/amortization						2						3						4						5
Other miscellaneous expense, net						(1)						(2)						—						(1)
Total Other (expense) income, net						$	(2)					$	24					$	21					$	22

During 2025, in connection with the acquisitions of Frauscher and Dellner Couplers, the Company entered into foreign exchange contracts for a notional value of €1,290 million to mitigate foreign currency exposure of the purchase prices. As part of the acquisition of Frauscher in the fourth quarter of 2025, the Company utilized foreign exchange forward contracts with a notional value of €690 million. As part of the acquisition of Dellner Couplers in the first quarter of 2026, the Company utilized foreign exchange forward contracts with a notional value of €600 million. The contracts are not designated as accounting hedges under Topic 815 of ASC, and as such, the gains and losses are recorded as a component of Other income (expense), net. For the six months ended June 30, 2026, these contracts resulted in a net gain of $2 million. For the three and six months ended June 30, 2025, these contracts resulted in a net gain of $32 million.

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Wabtec is focused on driving operational efficiency and improving profitability while reducing manufacturing complexity. As a result, there are key strategic initiatives aimed at achieving these focus areas.

Integration 3.0

Integration 3.0 is a multi-year strategic initiative to further consolidate our footprint, reduce complexity and streamline manufacturing, engineering, administrative, and commercial activities. The Company anticipates that it will incur one-time restructuring charges related to Integration 3.0 of approximately $80 million to $100 million. Net charges to date of $43 million were primarily for employee-related costs.

A summary of restructuring charges related to the Integration 3.0 initiative is as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
In millions			2026						2025						2026						2025
Freight Segment:
Cost of goods sold			$	—					$	1					$	1					$	2
Selling, general and administrative expenses			—						1						1						1
Total Freight Segment			$	—					$	2					$	2					$	3
Transit Segment:
Cost of goods sold			$	2					$	1					$	3					$	3
Selling, general and administrative expenses			—						1						1						5
Total Transit Segment			$	2					$	2					$	4					$	8
Corporate:
Selling, general and administrative expenses			$	2					$	—					$	1					$	—
Total Integration 3.0 restructuring charges, net			$	4					$	4					$	7					$	11

Portfolio Optimization

Wabtec is focused on exiting various low margin product offerings through Portfolio Optimization to improve profitability while reducing manufacturing complexity. There were no material charges or cash payments during the three and six months ended June 30, 2026. Wabtec recorded net charges of approximately $3 million during the six months ended June 30, 2025, primarily for asset write downs related to Portfolio Optimization. Total one-time restructuring charges related to Portfolio Optimization to date are approximately $100 million.

Integration 2.0

Integration 2.0 is a multi-year strategic initiative to review and consolidate our operating footprint, reduce headcount, streamline the end-to-end manufacturing process, restructure the North America distribution channels, expand operations in low-cost countries, and simplify the business through systems enablement. The Company anticipates that it will incur one-time restructuring charges related to Integration 2.0 of up to approximately $170 million, of which approximately $147 million has been incurred to date. There were no material charges or cash payments during the three and six months ended June 30, 2026 and 2025.

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On May 18, 2026, Rafael Santana, Wabtec's Chairman and Chief Executive Officer, entered into a stock trading plan (the "Plan") designed to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. Under the terms of the plan, up to 13,053 shares jointly owned by Mr. Santana and his spouse may be sold from September 2026 to February 2027.

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ATTACHMENTS / EXHIBITS

EX-22.1

EX-31.1

EX-31.2

EX-32.1

XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

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