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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
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. 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 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 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 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.
During the first quarter of 2025, Company Management determined that certain businesses within the Services product line would be better aligned with Management oversight in the Components product line. As such, Sales by product line for 2024 and 2023 have been recast to conform to the current period presentation. These changes were within the Freight Segment and had no impact on Total Freight Segment Sales, Gross profit, or Income from operations.
Segment financial information for the three months ended March 31, 2025 is as follows:
In millionsFreight
Segment		Transit
Segment		Corporate
Activities and
Elimination		Total
Sales to external customers$1,901 $709 $— $2,610 
Cost of sales(1,216)(494)— (1,710)
Gross profit$685 $215 $— $900 
Gross margin36.0 %30.3 %
Selling, general & administrative expenses$(164)$(107)$(36)$(307)
Engineering expenses(36)(10)— (46)
Amortization expense(65)(8)— (73)
Income (loss) from operations420 90 (36)474 
Interest expense and other, net— — (48)(48)
Income (loss) before income taxes$420 $90 $(84)$426 
Intersegment sales/(elimination)$11 $9 $(20)$— 
Depreciation and amortization$97 $20 $3 $120 
Capital expenditures$31 $10 $3 $44 
Segment assets$13,224 $4,145 $1,727 $19,096 
Segment financial information for the three months ended March 31, 2024 is as follows:
In millionsFreight
Segment		Transit
Segment		Corporate
Activities and
Elimination		Total
Sales to external customers$1,824 $673 $— $2,497 
Cost of sales(1,199)(483)— (1,682)
Gross profit$625 $190 $— $815 
Gross margin34.3 %28.2 %
Selling, general & administrative expenses$(150)$(101)$(30)$(281)
Engineering expenses(39)(9)— (48)
Amortization expense(68)(6)— (74)
Income (loss) from operations368 74 (30)412 
Interest expense and other, net— — (49)(49)
Income (loss) before income taxes$368 $74 $(79)$363 
Intersegment sales/(elimination)$13 $11 $(24)$— 
Depreciation and amortization$103 $16 $4 $123 
Capital expenditures$17 $13 $1 $31 
Segment assets$13,316 $3,938 $1,493 $18,747 
Sales to external customers by product line are as follows:
Three Months Ended
March 31,
In millions20252024
Freight Segment:
Services$863 $738 
Equipment476 526 
Components381 384 
Digital Intelligence181 176 
Total Freight Segment$1,901 $1,824 
Transit Segment:
Original Equipment Manufacturer$322 $310 
Aftermarket387 363 
Total Transit Segment$709 $673