WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPWAB
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP Segments Disclosure
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 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 and applications. 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.
The 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, 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 Segments 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 2025 is as follows: | ||||||||||||||||||||||||||
| In millions | Freight Segment | Transit Segment | Corporate Activities and Elimination | Total | ||||||||||||||||||||||
| Sales to external customers | $ | 8,036 | $ | 3,131 | $ | — | $ | 11,167 | ||||||||||||||||||
| Cost of sales | (5,201) | (2,160) | — | (7,361) | ||||||||||||||||||||||
| Gross profit | $ | 2,835 | $ | 971 | $ | — | $ | 3,806 | ||||||||||||||||||
| Gross margin | 35.3 | % | 31.0 | % | ||||||||||||||||||||||
| Selling, general & administrative expenses | $ | (823) | $ | (471) | $ | (196) | $ | (1,490) | ||||||||||||||||||
| Engineering expenses | (170) | (53) | — | (223) | ||||||||||||||||||||||
| Amortization expense | (275) | (25) | — | (300) | ||||||||||||||||||||||
| Income (loss) from operations | 1,567 | 422 | (196) | 1,793 | ||||||||||||||||||||||
| Interest expense and other, net | — | — | (201) | (201) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 1,567 | $ | 422 | $ | (397) | $ | 1,592 | ||||||||||||||||||
| Intersegment sales/(elimination) | $ | 48 | $ | 48 | $ | (96) | $ | — | ||||||||||||||||||
| Depreciation and amortization | $ | 413 | $ | 74 | $ | 14 | $ | 501 | ||||||||||||||||||
| Capital expenditures | $ | 166 | $ | 78 | $ | 16 | $ | 260 | ||||||||||||||||||
| Segment assets | $ | 16,049 | $ | 4,344 | $ | 1,676 | $ | 22,069 | ||||||||||||||||||
| Segment financial information for 2024 is as follows: | ||||||||||||||||||||||||||
| In millions | Freight Segment | Transit Segment | Corporate Activities and Elimination | Total | ||||||||||||||||||||||
| Sales to external customers | $ | 7,468 | $ | 2,919 | $ | — | $ | 10,387 | ||||||||||||||||||
| Cost of sales | (4,945) | (2,076) | — | (7,021) | ||||||||||||||||||||||
| Gross profit | $ | 2,523 | $ | 843 | $ | — | $ | 3,366 | ||||||||||||||||||
| Gross margin | 33.8 | % | 28.9 | % | ||||||||||||||||||||||
| Selling, general & administrative expenses | $ | (664) | $ | (433) | $ | (151) | $ | (1,248) | ||||||||||||||||||
| Engineering expenses | (164) | (42) | — | (206) | ||||||||||||||||||||||
| Amortization expense | (273) | (30) | — | (303) | ||||||||||||||||||||||
| Income (loss) from operations | 1,422 | 338 | (151) | 1,609 | ||||||||||||||||||||||
| Interest expense and other, net | — | — | (199) | (199) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 1,422 | $ | 338 | $ | (350) | $ | 1,410 | ||||||||||||||||||
| Intersegment sales/(elimination) | $ | 48 | $ | 59 | $ | (107) | $ | — | ||||||||||||||||||
| Depreciation and amortization | $ | 413 | $ | 73 | $ | 17 | $ | 503 | ||||||||||||||||||
| Capital expenditures | $ | 140 | $ | 62 | $ | 5 | $ | 207 | ||||||||||||||||||
| Segment assets | $ | 13,176 | $ | 3,861 | $ | 1,665 | $ | 18,702 | ||||||||||||||||||
| Segment financial information for 2023 is as follows: | ||||||||||||||||||||||||||
| In millions | Freight Segment | Transit Segment | Corporate Activities and Elimination | Total | ||||||||||||||||||||||
| Sales to external customers | $ | 6,923 | $ | 2,754 | $ | — | $ | 9,677 | ||||||||||||||||||
| Cost of sales | (4,742) | (1,991) | — | (6,733) | ||||||||||||||||||||||
| Gross profit | $ | 2,181 | $ | 763 | $ | — | $ | 2,944 | ||||||||||||||||||
| Gross margin | 31.5 | % | 27.7 | % | ||||||||||||||||||||||
| Selling, general & administrative expenses | $ | (637) | $ | (408) | $ | (94) | $ | (1,139) | ||||||||||||||||||
| Engineering expenses | (180) | (38) | — | (218) | ||||||||||||||||||||||
| Amortization expense | (299) | (22) | — | (321) | ||||||||||||||||||||||
| Income (loss) from operations | 1,065 | 295 | (94) | 1,266 | ||||||||||||||||||||||
| Interest expense and other, net | — | — | (174) | (174) | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | 1,065 | $ | 295 | $ | (268) | $ | 1,092 | ||||||||||||||||||
| Intersegment sales/(elimination) | $ | 58 | $ | 42 | $ | (100) | $ | — | ||||||||||||||||||
| Depreciation and amortization | $ | 442 | $ | 72 | $ | 17 | $ | 531 | ||||||||||||||||||
| Capital expenditures | $ | 119 | $ | 58 | $ | 9 | $ | 186 | ||||||||||||||||||
The following geographic area data as of and for the years ended December 31, 2025, 2024 and 2023, respectively, includes net sales based on product shipment destination and long-lived assets, which consist of property, plant and equipment, net of depreciation, resident in their respective countries:
| Net Sales | Long-Lived Assets | |||||||||||||||||||||||||||||||
| In millions | 2025 | 2024 | 2023 | 2025 | 2024 | |||||||||||||||||||||||||||
| United States | $ | 5,367 | $ | 4,924 | $ | 4,553 | $ | 935 | $ | 927 | ||||||||||||||||||||||
| Canada | 555 | 616 | 531 | 43 | 7 | |||||||||||||||||||||||||||
| Mexico | 270 | 275 | 347 | 56 | 34 | |||||||||||||||||||||||||||
| North America | 6,192 | 5,815 | 5,431 | 1,034 | 968 | |||||||||||||||||||||||||||
| South America | 513 | 445 | 346 | 54 | 40 | |||||||||||||||||||||||||||
| France | 419 | 369 | 346 | 72 | 59 | |||||||||||||||||||||||||||
| Germany | 379 | 371 | 347 | 73 | 54 | |||||||||||||||||||||||||||
| United Kingdom | 313 | 296 | 248 | 43 | 33 | |||||||||||||||||||||||||||
| Italy | 182 | 166 | 183 | 44 | 38 | |||||||||||||||||||||||||||
| Other Europe | 663 | 612 | 520 | 82 | 58 | |||||||||||||||||||||||||||
| Europe | 1,956 | 1,814 | 1,644 | 314 | 242 | |||||||||||||||||||||||||||
| India | 699 | 579 | 593 | 125 | 119 | |||||||||||||||||||||||||||
| Australia / New Zealand | 453 | 481 | 451 | 18 | 16 | |||||||||||||||||||||||||||
| Kazakhstan / CIS | 431 | 559 | 457 | 37 | 34 | |||||||||||||||||||||||||||
| China | 297 | 242 | 286 | 25 | 25 | |||||||||||||||||||||||||||
| Other Asia / Middle East | 300 | 258 | 240 | 6 | — | |||||||||||||||||||||||||||
| Africa | 326 | 194 | 229 | 3 | 3 | |||||||||||||||||||||||||||
| Total | $ | 11,167 | $ | 10,387 | $ | 9,677 | $ | 1,616 | $ | 1,447 | ||||||||||||||||||||||
Net sales to external customers by product line are as follows:
| In millions | 2025 | 2024 | 2023 | |||||||||||||||||
| Freight Segment: | ||||||||||||||||||||
| Services | $ | 3,055 | $ | 3,019 | $ | 2,877 | ||||||||||||||
| Equipment | 2,365 | 2,108 | 1,794 | |||||||||||||||||
| Components | 1,586 | 1,555 | 1,479 | |||||||||||||||||
| Digital Intelligence | 1,030 | 786 | 773 | |||||||||||||||||
| Total Freight Segment | $ | 8,036 | $ | 7,468 | $ | 6,923 | ||||||||||||||
| Transit Segment: | ||||||||||||||||||||
| Original Equipment Manufacturer | $ | 1,393 | $ | 1,308 | $ | 1,264 | ||||||||||||||
| Aftermarket | 1,738 | 1,611 | 1,490 | |||||||||||||||||
| Total Transit Segment | $ | 3,131 | $ | 2,919 | $ | 2,754 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.