Wabtec Reports Strong Third Quarter 2026 Results, Raised and Tightened Adjusted EPS Guidance

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Postmedia has not reviewed the content. by Business Wire Wabtec Reports Strong Third Quarter 2026 Results, Raised and Tightened Adjusted EPS GuidanceAuthor of the article:THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSales Growth of 8.1% to $3.12 Billion Driven by Both the Freight and Transit SegmentsGAAP Operating Margin at 20.0%; Adjusted Operating Margin Up 1.9 pts to 22.9%GAAP Earnings Per Share of $2.42, Up 33.7%; Adjusted Earnings Per Share of $2.83, Up 22.0%Raised and Tightened 2026 Adjusted Earnings Per Share Guidance; up 22% at the midpointPITTSBURGH — Wabtec Corporation (NYSE: WAB) today reported third quarter 2026 GAAP earnings per diluted share of $2.42, up 33.7% versus the third quarter of 2025. Adjusted earnings per diluted share were $2.83, up 22.0% versus the same quarter a year ago. Third quarter sales were $3.12 billion and cash from operations was $455 million.This advertisement has not loaded yet, but your article continues below.“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS,” said Rafael Santana, Wabtec’s Chairman and CEO.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“The strength of our performance reflects our momentum across the portfolio, disciplined execution by our teams, and the continued success of our strategic actions. These actions enhance our growth profile, expand margins, and increase the earnings power of the company.“Our teams continue to translate healthy customer demand into profitable growth while investing in technologies that will advance the future of transportation. These investments are strengthening our competitive position and reinforcing Wabtec as a leading Industrial Technology Company.”2026 Third Quarter Consolidated ResultsWabtec Corporation Consolidated Financial Results$ in millions except earnings per share and percentages; margin change in percentage points (pts)Third Quarter20262025ChangeNet Sales$3,120$2,8868.1 %GAAP Gross Margin37.3 %34.7 %2.6 ptsAdjusted Gross Margin37.4 %35.6 %1.8 ptsGAAP Operating Margin20.0 %17.0 %3.0 ptsAdjusted Operating Margin22.9 %21.0 %1.9 ptsGAAP Diluted EPS$2.42$1.8133.7 %Adjusted Diluted EPS$2.83$2.3222.0 %Cash Flow from Operations$455$367$88Operating Cash Flow Conversion82 %83 %Sales increased 8.1% compared to the year-ago quarter driven by higher sales in the Freight and Transit segments, which includes the acquisitions of Frauscher Sensor Technologies and Dellner Couplers.GAAP operating margin was higher than the prior year at 20.0%, and adjusted operating margin was higher than the prior year at 22.9%. Both GAAP and adjusted operating margins benefited from sales growth and improved gross margins in the quarter.GAAP EPS and adjusted EPS increased from the year-ago quarter primarily due to higher sales, operating margin expansion, and non-operational benefits primarily related to currency fluctuations.2026 Third Quarter Freight Segment ResultsWabtec Corporation Freight Segment Financial ResultsNet sales $ in millions; margin change in percentage points (pts)Third Quarter20262025ChangeNet Sales$2,237$2,0936.9 %GAAP Gross Margin38.5 %35.8 %2.7 ptsAdjusted Gross Margin38.5 %37.0 %1.5 ptsGAAP Operating Margin23.0 %19.8 %3.2 ptsAdjusted Operating Margin26.4 %24.5 %1.9 ptsFreight segment sales for the third quarter were up 6.9%. Services sales were up 6.7% driven by core services demand and higher modernization deliveries, while Equipment sales were up 0.3% due to increased mining sales, which were partially offset by lower locomotive deliveries. Digital sales were up 24.2% driven by the acquisition of Frauscher Sensor Technologies and strong core digital demand. Components sales were up 5.3% driven by industrial, maintenance of way, and international demand which offset lower North America rail build and portfolio optimization efforts.GAAP and adjusted operating margin benefited from gross margin improvements and lower operating expenses as a percentage of revenue.This advertisement has not loaded yet, but your article continues below.2026 Third Quarter Transit Segment ResultsWabtec Corporation Transit Segment Financial ResultsNet sales $ in millions; margin change in percentage points (pts)Third Quarter20262025ChangeNet Sales$883$79311.3 %GAAP Gross Margin34.5 %31.7 %2.8 ptsAdjusted Gross Margin34.6 %31.8 %2.8 ptsGAAP Operating Margin16.4 %14.5 %1.9 ptsAdjusted Operating Margin18.1 %15.5 %2.6 ptsTransit segment sales for the third quarter were up 11.3% driven by the acquisition of Dellner Couplers, and higher OE and aftermarket sales which was partially offset by unfavorable foreign currency exchange. Sales were up 12.5% on a constant currency basis.GAAP and adjusted operating margins were up as a result of improved gross margins which were partially offset by higher operating expenses as a percentage of revenue.Wabtec Corporation Consolidated Backlog ComparisonBacklog $ in millionsSeptember 30,20262025Change12-Month Backlog$8,992$8,2678.8 %Total Backlog$31,435$25,57722.9 %The Company’s multi-year backlog continues to provide strong visibility. At September 30, 2026, the 12-month backlog was $0.73 billion higher than the prior year period. At September 30, 2026, the multi-year backlog was $5.86 billion higher than the prior year period, and excluding foreign currency exchange, the multi-year backlog was $5.46 billion higher, up 21.4%.Cash Flow and Liquidity SummaryDuring the third quarter, the Company generated cash from operations of $455 million versus $367 million in the year ago period. The increase in cash was driven by higher net income.At the end of the quarter, the Company had cash, cash equivalents and restricted cash of $0.49 billion and total debt of $6.38 billion. At September 30, 2026, the Company’s total available liquidity was $2.09 billion, which includes $0.48 billion in cash and cash equivalents plus $1.61 billion available under current credit facilities.During the quarter, the Company repurchased $305 million of Wabtec shares and paid $52 million in dividends.Wabtec raised and tightened its 2026 adjusted EPS guidance range to $10.85 – $11.05, raising it $0.20 at the midpoint, or up 22.0% versus prior year.For the full year 2026, Wabtec continues to expect revenues to be between $12.30 billion to $12.60 billion, up 11.5% at the midpoint versus prior year.Forecasted GAAP Earnings ReconciliationThis advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Wabtec is not presenting a quantitative reconciliation of our forecasted GAAP earnings per diluted share to forecasted adjusted earnings per diluted share because it is unable to predict with reasonable certainty and without unreasonable effort the impact and timing of restructuring-related and other charges, including acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.Conference Call InformationWabtec will host a call with analysts and investors at 8:30 a.m. ET, today. To listen via webcast, go to Wabtec’s website at www.WabtecCorp.com and click on “Events & Presentations” in the “Investor Relations” section. Also, an audio replay of the call will be available by calling 1-855-669-9658 or 1-412-317-0088 (access code: 9897430).Wabtec Corporation (NYSE: WAB) is revolutionizing the way the world moves for future generations. The company is a leading global provider of equipment, systems, digital solutions and value-added services for the freight and transit rail industries, as well as the mining, marine and industrial markets. Wabtec has been a leader in the rail industry for over 155 years and has a vision to achieve a sustainable rail system in the U.S. and worldwide. Visit Wabtec’s website at www.wabteccorp.com.Information about non-GAAP Financial Information and Forward-Looking StatementsWabtec’s earnings release and 2026 financial guidance mentions certain non-GAAP financial performance measures, including adjusted gross profit, adjusted operating expenses, adjusted operating margin, adjusted gross margin, EBITDA, adjusted EBITDA, adjusted income tax expense, adjusted income from operations, adjusted interest and other expense, adjusted net income, adjusted earnings per diluted share and operating cash flow conversion. Wabtec defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is further adjusted by restructuring costs. Wabtec defines operating cash flow conversion as net cash provided by operating activities divided by net income plus depreciation and amortization including deferred debt cost amortization. While Wabtec believes these are useful supplemental measures for investors, they are not presented in accordance with GAAP. Investors should not consider non-GAAP measures in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. In addition, the non-GAAP financial measures included in this release have inherent material limitations as performance measures because they add back certain expenses incurred by the Company to GAAP financial measures, resulting in those expenses not being taken into account in the applicable non-GAAP financial measure. Because not all companies use identical calculations, Wabtec’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Included in this release are reconciliation tables that provide details about how adjusted results relate to GAAP results.This advertisement has not loaded yet, but your article continues below.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 of 1995. All statements, other than historical facts, including statements regarding Wabtec’s plans, objectives, expectations and intentions; Wabtec’s expectations about future sales, earnings and cash conversion; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) changes in general economic and/or industry specific conditions, including the impacts of significant recent shifts in trade policies (including the actual or threatened imposition of tariffs and retaliatory tariff measures) as well as tax programs, inflation, supply chain disruptions, foreign currency exchange and industry consolidation and market reactions to these factors; (2) changes in the financial condition or operating strategies of Wabtec’s customers; (3) unexpected costs, charges or expenses resulting from acquisitions and potential failure to realize synergies and other anticipated benefits of acquisitions, including as a result of integrating acquired targets into Wabtec; (4) inability to retain and hire key personnel; (5) evolving legal, regulatory and tax regimes; (6) changes in the expected timing of projects; (7) a decrease in freight or passenger rail traffic; (8) an increase in manufacturing costs; (9) actions by third parties, including government agencies; (10) the impacts of epidemics, pandemics or similar public health crises on the global economy and, in particular, our customers, suppliers and end-markets, (11) potential disruptions, instability and volatility in global markets as a result of global military action, acts of terrorism or armed conflict, including Russia’s invasion of Ukraine and ongoing military conflicts in the Middle East; (12) cybersecurity and data protection risks and (13) other risk factors as detailed from time to time in Wabtec’s reports filed with the SEC, including Wabtec’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Wabtec does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.This advertisement has not loaded yet, but your article continues below.WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOMEFOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025(AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA)(UNAUDITED)Three Months EndedNine Months EndedSeptember 30,September 30,2026202520262025Net sales$3,120$2,886$9,249$8,202Cost of sales(1,956)(1,884)(5,863)(5,362)Gross profit1,1641,0023,3862,840Gross profit as a % of Net Sales37.3%34.7%36.6%34.6%Selling, general and administrative expenses(383)(375)(1,184)(1,029)Engineering expenses(67)(59)(193)(155)Amortization expense(89)(77)(267)(219)Total operating expenses(539)(511)(1,644)(1,403)Operating expenses as a % of Net Sales17.3%17.7%17.8%17.1%Income from operations6254911,7421,437Income from operations as a % of Net Sales20.0%17.0%18.8%17.5%Interest expense, net(80)(65)(231)(157)Other income (expense), net12(1)3321Income before income taxes5574251,5441,301Income tax expense(146)(112)(374)(322)Effective tax rate26.3%26.4%24.2%24.8%Net income4113131,170979Less: Net income attributable to noncontrolling interest(2)(3)(4)(11)Net income attributable to Wabtec shareholders$409$310$1,166$968Earnings Per Common ShareBasicNet income attributable to Wabtec shareholders$2.43$1.81$6.88$5.66DilutedNet income attributable to Wabtec shareholders$2.42$1.81$6.86$5.64Basic168.2170.5169.1170.5Diluted168.8171.1169.7171.2Segment InformationFreight Net Sales$2,237$2,093$6,595$5,913Freight Income from Operations$515$414$1,469$1,249Freight Operating Margin23.0%19.8%22.3%21.1%Transit Net Sales$883$793$2,654$2,289Transit Income from Operations$145$115$412$314Transit Operating Margin16.4%14.5%15.5%13.7%Backlog Information (Note: 12-month is a sub-set of total) September 30, 2026 June 30, 2026 September 30, 2025Freight Total$25,765$25,332$20,907Transit Total5,6705,6004,670Wabtec Total$31,435$30,932$25,577Freight 12-Month$6,544$6,638$6,085Transit 12-Month2,4482,5022,182Wabtec 12-Month$8,992$9,140$8,267WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED) September 30, 2026 December 31, 2025 In millionsCash, cash equivalents and restricted cash$489$789Receivables, net2,2641,897Inventories, net2,9462,745Other current assets352263Total current assets6,0515,694Property, plant and equipment, net1,6721,616Goodwill10,62110,216Other intangible assets, net4,0323,838Other noncurrent assets765705Total assets$23,141$22,069Current liabilities$5,500$5,150Long-term debt4,6654,291Long-term liabilities – other1,6121,438Total liabilities11,77710,879Shareholders’ equity11,33311,142Noncontrolling interest3148Total shareholders’ equity11,36411,190Total Liabilities and Shareholders’ Equity$23,141$22,069This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)Nine Months Ended September 30,20262025 In millionsOperating activitiesNet income$1,170$979Non-cash expense466357Receivables(342)(368)Inventories(100)(228)Accounts Payable6776Other operating activities(166)(49)Net cash provided by operating activities1,095767Net cash used for investing activities(1,243)(1,887)Net cash (used for) provided by financing activities(147)907Effect of changes in currency exchange rates(5)26Decrease in cash(300)(187)Cash, cash equivalents and restricted cash, beginning of period789715Cash, cash equivalents and restricted cash, end of period$489$528Set 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 financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.Wabtec CorporationReconciliation of Reported Results to Adjusted Results(in millions)Third Quarter 2026 Actual ResultsGrossOperatingIncome fromInterest &NoncontrollingWabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPSReported Results$3,120$1,164$(539)$625$(68)$(146)$411$(2)$409$2.42Restructuring and Portfolio Optimization costs–2(1)14(1)4–4$0.02Non-cash Amortization expense––8989–(24)65–65$0.39Adjusted Results$3,120$1,166$(451)$715$(64)$(171)$480$(2)$478$2.83Fully Diluted Shares Outstanding168.8Wabtec CorporationReconciliation of Reported Results to Adjusted Results(in millions)Third Quarter Year-to-Date 2026 Actual ResultsGrossOperatingIncome fromInterest &NoncontrollingWabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPSReported Results$9,249$3,386$(1,644)$1,742$(198)$(374)$1,170$(4)$1,166$6.86Restructuring and Portfolio Optimization costs–5164(2)8–8$0.04Inventory Purchase Accounting charge–28–28–(7)21–21$0.13Transaction costs––1414(2)–12–12$0.07Non-cash Amortization expense––267267–(65)202–202$1.19Adjusted Results$9,249$3,419$(1,362)$2,057$(196)$(448)$1,413$(4)$1,409$8.29Fully Diluted Shares Outstanding169.7Wabtec CorporationReconciliation of Reported Results to Adjusted Results(in millions)Third Quarter 2025 Actual ResultsGrossOperatingIncome fromInterest &NoncontrollingWabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPSReported Results$2,886$1,002$(511)$491$(66)$(112)$313$(3)$310$1.81Restructuring and Portfolio Optimization costs–246–(1)5–5$0.02Inventory Purchase Accounting charge–24–24–(6)18–18$0.11Transaction costs––992(3)8–8$0.05Non-cash Amortization expense––7777–(20)57–57$0.33Adjusted Results$2,886$1,028$(421)$607$(64)$(142)$401$(3)$398$2.32Fully Diluted Shares Outstanding171.1Wabtec CorporationReconciliation of Reported Results to Adjusted Results(in millions)Third Quarter Year-to-Date 2025 Actual ResultsGrossOperatingIncome fromInterest &NoncontrollingWabtec Net Sales Profit Expenses Operations Other Exp Tax Net Income Interest Net Income EPSReported Results$8,202$2,840$(1,403)$1,437$(136)$(322)$979$(11)$968$5.64Restructuring and Portfolio Optimization costs–81321–(5)16–16$0.09Inventory Purchase Accounting charge–24–24–(6)18–18$0.11Transaction costs––4444(30)(1)13–13$0.08Non-cash Amortization expense––218218–(54)164–164$0.96Adjusted Results$8,202$2,872$(1,128)$1,744$(166)$(388)$1,190$(11)$1,179$6.88Fully Diluted Shares Outstanding171.2This advertisement has not loaded yet, but your article continues below.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 financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.Wabtec Corporation 2026 Q3 EBITDA Reconciliation(in millions)Reported Income+Other Income+Depreciation &= EBITDA+Restructuring =Adjusted from Operations (Expense) Amortization Costs EBITDAConsolidated Results$625 $12 $140 $777 $5 $782 Wabtec Corporation 2026 Q3 YTD EBITDA Reconciliation(in millions)Reported Income+Other Income+Depreciation &= EBITDA+Restructuring & =Adjusted from Operations (Expense) Amortization Transaction Costs EBITDAConsolidated Results$1,742 $33 $419 $2,194 $50 $2,244 Wabtec Corporation 2025 Q3 EBITDA Reconciliation(in millions)Reported Income+Other Income+Depreciation &= EBITDA+Restructuring & =Adjusted from Operations (Expense) Amortization Transaction Costs EBITDAConsolidated Results$491 ($1) $127 $617 $41 $658 Wabtec Corporation 2025 Q3 YTD EBITDA Reconciliation(in millions) Reported Income+Other Income+Depreciation &= EBITDA+Restructuring & =Adjusted from Operations (Expense) Amortization Transaction Costs EBITDAConsolidated Results$1,437 $21 $361 $1,819 $55 $1,874 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONSALES BY PRODUCT LINE(UNAUDITED)Three Months Ended September 30, In millions 2026 2025Freight SegmentEquipment$679$677Components395375Digital Intelligence369297Services794744Total Freight Segment$2,237$2,093Transit SegmentOriginal Equipment Manufacturer$408$367Aftermarket475426Total Transit Segment$883$793Nine Months Ended September 30, In millions 2026 2025Freight SegmentEquipment$2,142$1,699Components1,1501,157Digital Intelligence1,047669Services2,2562,388Total Freight Segment$6,595$5,913Transit SegmentOriginal Equipment Manufacturer$1,200$1,042Aftermarket1,4541,247Total Transit Segment$2,654$2,289WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONRECONCILIATION OF REPORTED RESULTS TO ADJUSTED RESULTS – BY SEGMENT(UNAUDITED)Three Months Ended September 30, Nine Months Ended September 30, 2026202520262025 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 $ 1,249Freight Segment Reported Margin38.5%23.0%35.8%19.8%37.9%22.3%36.1%21.1%Restructuring and Portfolio Optimization costs–1122256Inventory Purchase Accounting charge––242420202424Transaction costs–––1–2–2Non-cash Amortization expense–75–72–227–200Freight Segment Adjusted Results $ 861 $ 591 $ 775 $ 513 $ 2,525 $ 1,720 $ 2,161 $ 1,481Freight Segment Adjusted Margin38.5%26.4%37.0%24.5%38.3%26.1%36.5%25.0%Transit Segment Reported Results $ 303 $ 145 $ 252 $ 115 $ 883 $ 412 $ 708 $ 314Transit Segment Reported Margin34.5%16.4%31.7%14.5%33.3%15.5%30.9%13.7%Restructuring and Portfolio Optimization costs211334314Inventory Purchase Accounting charge––––88––Non-cash Amortization expense–14–5–40–18Transit Segment Adjusted Results $ 305 $ 160 $ 253 $ 123 $ 894 $ 464 $ 711 $ 346Transit Segment Adjusted Margin34.6%18.1%31.8%15.5%33.7%17.5%31.0%15.1%This advertisement has not loaded yet, but your article continues below.WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATIONRECONCILIATION 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 Acquisitions4965114Portfolio Optimization (Divestitures/Exits)(11)(1)(12)Foreign Exchange4(9)(5)Organic102351372026 Net Sales $ 2,237 $ 883 $ 3,120 Change ($) 144 90 234Change (%)6.9%11.3%8.1%Nine Months Ended September 30, Freight Transit Consolidated2025 Net Sales $ 5,913 $ 2,289 $ 8,202 Acquisitions396175571Portfolio Optimization (Divestitures/Exits)(32)(5)(37)Foreign Exchange384987Organic2801464262026 Net Sales $ 6,595 $ 2,654 $ 9,249 Change ($) 682 365 1,047Change (%)11.5%15.9%12.8%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 financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with GAAP.Wabtec Corporation 2026 Q3 Cash Conversion Calculation(in millions)Reported Cash÷ (Net Income+ Depreciation & Amortization)= Cash Conversion from OperationsConsolidated Results$455 $411 $142 82%Wabtec Corporation 2026 Q3 YTD Cash Conversion Calculation(in millions)Reported Cash÷ (Net Income+ Depreciation & Amortization)= Cash Conversion from OperationsConsolidated Results$1,095 $1,170 $424 69%Wabtec Corporation 2025 Q3 Cash Conversion Calculation(in millions)Reported Cash÷ (Net Income+ Depreciation & Amortization)= Cash Conversion from OperationsConsolidated Results$367 $313 $128 83%Wabtec Corporation 2025 Q3 YTD Cash Conversion Calculation(in millions)Reported Cash÷ (Net Income+ Depreciation & Amortization)= Cash Conversion from OperationsConsolidated Results$767 $979 $365 57%View source version on businesswire.com: This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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