WAB Filings — Westinghouse Air Brake Technologies Corporation - FilingSpy
WAB
Westinghouse Air Brake Technologies Corporation
A maker of railway equipment and locomotives, Wabtec builds gear used by railroads, subway systems, and bus fleets around the world and is one of the largest locomotive manufacturers anywhere. It began when George Westinghouse, then 22, founded the Westinghouse Air Brake Company in 1869 to sell his compressed-air brake that let one engineer stop a whole train at once. The name Wabtec was stitched together from "Westinghouse Air Brake Technologies" after a 1999 merger.
Wabtec's Q2 gross margin reached 36.5% as organic sales grew 8.5% and acquisitions added $274M in revenue.
Wabtec's reached a record $30.9 billion, signaling demand that extends well beyond the quarter. rose 17.5% to $3.18 billion and widened 1.8 points to 36.5%, driven by in both segments and the contribution of recent acquisitions. The company is now integrating its new assets against a backdrop of record future work.
Key takeaways
Consolidated rose 17.5% to $3.18 billion, with organic sales growth of 8.5% and acquisitions contributing 8.6%, or approximately $274 million.
widened 1.8 points to 36.5%, as productivity gains, restructuring savings, and from acquisitions more than offset tariff-driven cost inflation.
Freight sales rose 16.9% on higher locomotive deliveries and mining equipment sales, while Transit segment sales increased 18.9% on stronger aftermarket and original equipment demand.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 17.5% to $3.18B with gross margin improving 180 bps, driven by organic growth and acquisitions.
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Consolidated grew 17.5% to $3.18B, with of 8.5% and acquisition contributions of 8.6%.
improved to 36.5% from 34.7%, helped by productivity, restructuring savings, and acquisition , partly offset by tariff-driven inflation.
rose 9.1% to $517 million, but narrowed 0.6 points to 17.5% as operating expenses grew 20.4%, driven by costs from acquired businesses and higher employee compensation.
Total reached a record $30.9 billion, supported by a multi-billion-dollar mining contract and a $1.0 billion order in Australia.
for the first half of 2026 was $640 million, up from $400 million in the prior-year period, as higher and lower needs boosted cash generation.
What changed
The Freight 's unfavorable mix shift, flagged in Q1 when it diluted consolidated , was offset this quarter by productivity and acquisition , allowing gross margin to expand to 36.5% from 36.0% in Q1.
improved markedly from the $199 million reported in Q1, with the first-half total of $640 million suggesting the persistent build that pressured 2025 cash flow is easing.
The $30.9 billion record , up from $22.3 billion at year-end 2024, was driven by a multi-billion-dollar mining contract and a $1.0 billion Australian order, settling the question of whether the $8.2 billion 12-month backlog would be replenished.
rose to $4.71 billion from $4.29 billion at year-end 2025, reflecting the financing of the Dellner Couplers acquisition, while the pace of deleveraging remains a key question as is now a more material factor.
What to watch
Whether the 36.5% can be sustained as the record $30.9 billion begins to convert, or if a shift toward lower-margin equipment deliveries compresses returns.
The pace of deleveraging from $4.71 billion in , and whether rising materially pressures in the second half of 2026.
Whether the $640 million in first-half signals a full-year return to the $1.8 billion level achieved in 2024, or if needs re-emerge.
Progress on Integration 3.0 restructuring charges and whether the program's $115 million to $140 million run-rate synergy target begins to materialize in margins.
Freight sales rose 16.9% on higher locomotive deliveries and mining sales, while Transit Segment sales increased 18.9% on strong aftermarket and OE demand.
Operating expenses rose 20.4% due to acquisition-related costs and higher compensation, while transaction costs fell to $1M from $25M.
was $640M for the first half, up from $400M, driven by higher and lower needs.
Total reached a record $30.9B, supported by a multi-billion-dollar mining contract and a $1.0B Australian order.
Quantitative and Qualitative Disclosures About Market Risk
See "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025. Our exposure to market risk has not changed materially since December 31, 2025. Refer to Note 13 - Fair Value Measuremen…
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See "Quantitative and Qualitative Disclosures About Market Risk" in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025. Our exposure to market risk has not changed materially since December 31, 2025. Refer to Note 13 - Fair Value Measurement and Derivative Instruments of "Notes to Condensed Consolidated Financial Statements" included in Part I, Item 1 of this report for additional information regarding interest rate and foreign currency exchange risk.
Additional information with respect to legal proceedings is included in Note 14 of “Notes to Condensed Consolidated Financial Statements” included in Part I, Item 1 of this report.
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Additional information with respect to legal proceedings is included in Note 14 of “Notes to Condensed Consolidated Financial Statements” included in Part I, Item 1 of this report.