RESTRUCTURING

9 Months Ended

Sep. 30, 2025

Restructuring and Related Activities [Abstract]

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 $24 million, including amounts recorded during the fourth quarter 2024, and are primarily for employee-related costs. Cash payments for the three and nine months ended September 30, 2025 were not material.

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


In millions	Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
Freight Segment:
Cost of goods sold	$	—	$	2
Selling, general and administrative expenses	1		2
Total Freight Segment	$	1	$	4

Transit Segment:
Cost of goods sold	$	—	$	3
Selling, general and administrative expenses	1		6
Total Transit Segment	$	1	$	9

Corporate:
Selling, general and administrative expenses	$	2	$	2
Total Integration 3.0 restructuring charges	$	4	$	15

Portfolio Optimization

Wabtec is focused on exiting various low margin product offerings through Portfolio Optimization to improve profitability while reducing manufacturing complexity. Wabtec recorded net charges of approximately $3 million during the nine months ended September 30, 2025, and $8 million and $13 million during the three and nine months ended September 30, 2024, respectively, 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 $147 million has been incurred to date. There were no material charges or cash payments during the three and nine months ended September 30, 2025. Wabtec recorded charges of $10 million and $22 million for the three and nine months ended September 30, 2024, respectively. Cash payments made during the three and nine months ended September 30, 2024 were approximately $5 million and $35 million, respectively.