Union Pacific and Wabtec signed a landmark agreement totaling $1.2 billion to modernize the railroad's AC4400 locomotives. This agreement represents the largest locomotive modernization investment in rail industry history, building on Union Pacific's previous 2022 order which is scheduled to be completed in 2026. The upgraded fleet will help enhance the railroad's operational efficiency, service reliability and network performance.
Wabtec's modernization program will extend each locomotive's useful life, improve fleet standardization and equip Union Pacific to take advantage of next-generation control and diagnostics technologies. The upgraded locomotives are expected to deliver over 5% reduction in fuel consumption, a 14% increase in tractive effort and an 80% improvement in reliability. The modernized locomotives will feature a suite of Wabtec hardware and digital innovations.
Each unit will receive the FDL Advantage (FDLA) engine upgrade for enhanced fuel savings; LOCOTROL Expanded Architecture to support safe, efficient operation of longer trains; and the new Modular Control Architecture, which unlocks the next-generation data, diagnostics and software capabilities. This agreement, signed in the fourth quarter of 2025, marks Union Pacific's fourth major modernization order from Wabtec since 2018. Once completed, the railroad will have more than 1,700 modernized locomotives in its fleet.
Production will occur at Wabtec's U.S. facilities, with deliveries beginning in 2027.
Westinghouse Air Brake Technologies Corporation is one of the world's leading suppliers of value-added technological equipment, systems and services for the transportation sector. The activity is aorganized primarily around 5 groups of products and services:
- equipment: diesel-electric and liquefied natural gas locomotives, electric motors, propulsion systems, marine and mining equipment, etc.;
- electronics and special products: including electronic positive train control and pneumatic braking systems, event recorders, monitoring equipment, couplings, gears, couplers, air compressors and heat exchangers;
- transit products: heating, ventilation and air conditioning equipment, doors for buses and metro cars, pantographs, window assemblies, couplers, traction motors, etc.;
- brake components and friction products;
- refurbishment, overhaul and construction services: suburban locomotive construction and switching, overhaul and refurbishment of buses, subway cars and locomotives.
Revenue by market breaks down between rail freight transport (72%) and rail passenger transport and buses (28%).
Net sales are distributed geographically as follows: the United States (48%), Canada (5%), Mexico (2.4%), America (4.6%), France (3.7%), Germany (3.4%), the United Kingdom (2.8%), Italy (1.6%), Europe (5.9%), India (6.3%), Australia and New Zealand (4.1%), Africa (2.9%), China (2.7%), and other (6.6%).
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Investor
Investor
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Global
Global
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ESG MSCI
ESG MSCI
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