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RESTRUCTURING
 3 Months Ended
Mar. 31, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
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. Amounts recorded to date are approximately $16 million, including amounts recorded during the fourth quarter of 2024, and are primarily for employee-related costs. Cash payments made during the three months ended March 31, 2025 were not material.
A summary of restructuring charges related to the Integration 3.0 initiative is as follows:
Three Months Ended
March 31,
In millions2025
Freight Segment:
Cost of goods sold$1 
Transit Segment:
Cost of goods sold$2 
Selling, general and administrative expenses4 
Total Transit Segment$6 
Total Integration 3.0 restructuring charges$7 
Portfolio Optimization
Wabtec is focused on exiting various low margin product offerings through Portfolio Optimization to improve profitability while reducing manufacturing complexity. Wabtec recorded charges of approximately $3 million in each of the three months ended March 31, 2025 and 2024, primarily for asset write downs related to Portfolio Optimization. Total one-time restructuring charges related to Portfolio Optimization to date are approximately $59 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 $145 million has been incurred to date. There were no material charges or cash payments during the three months ended March 31, 2025. During the three months ended March 31, 2024, charges and cash payments of approximately $8 million and approximately $22 million, respectively, were recognized.