Westinghouse Air Brake Technologies (WAB) Goldman Sachs Industrials and Materials Conference summary

Strategic achievements and integration

• Achieved five-year performance targets two years early by leveraging opportunities from recent acquisitions and integration efforts.

• Portfolio optimization led to divestiture of $110 million in low-margin businesses, with similar further actions expected.

• Integration 2.0 delivered $250 million in synergies ahead of schedule, with an additional $75–$90 million in ongoing annual savings targeted by 2025.

• Focus remains on reducing complexity and optimizing the global footprint of 153 plants to drive margins.

Operational improvements and cost management

• Major cost savings achieved through facility consolidation, especially in the transit group, including relocating production from Germany to India.

• Ongoing efforts to further reduce excess capacity and focus on higher-margin products.

• Lean manufacturing adoption has increased, with 60% of revenue now from plants following lean practices, up from 40% three years ago.

Product innovation and modernization

• Locomotive modernization programs (FDL and EVO Advantage) deliver 5–7% fuel efficiency improvements, with thousands of units still eligible for upgrades.

• About 80% of customers have opted for modernization over new purchases in the last five years.

• New battery and fuel cell technologies are being commercialized, including the first heavy-haul battery locomotive.

• Engines are compatible with biofuels, LNG, and liquid hydrogen, supporting decarbonization strategies.