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 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 $20 million, including amounts recorded during the fourth quarter 2024, and are primarily for employee-related costs. Cash payments for the three and six months ended June 30, 2025 were not material.


In millions	Three Months Ended June 30,		Six Months Ended June 30, 2025
Freight Segment:
Cost of goods sold	$	1	$	2
Selling, general and administrative expenses	1		1
Total Freight Segment	$	2	$	3

Transit Segment:
Cost of goods sold	$	1	$	3
Selling, general and administrative expenses	1		5
Total Transit Segment	$	2	$	8
Total Integration 3.0 restructuring charges	$	4	$	11

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 six months ended June 30, 2025, and $2 million and $5 million during the three and six months ended June 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 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 and six months ended June 30, 2025. Wabtec recorded charges of $4 million and $12 million for the three and six months ended June 30, 2024, respectively. Cash payments made during the three and six months ended June 30, 2024 were $8 million and $30 million, respectively.