| Schedule of Segment Financial Information |
Segment financial information for the three months ended June 30, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 2,243 | | | $ | 936 | | | $ | — | | | $ | 3,179 | | | Cost of sales | (1,389) | | | (629) | | | — | | | (2,018) | | | Gross profit | $ | 854 | | | $ | 307 | | | $ | — | | | $ | 1,161 | | | Gross margin | 38.1 | % | | 32.8 | % | | | | | | Selling, general & administrative expenses | $ | (219) | | | $ | (131) | | | $ | (50) | | | $ | (400) | | | Engineering expenses | (55) | | | (15) | | | — | | | (70) | | | Amortization expense | (76) | | | (15) | | | — | | | (91) | | | Income (loss) from operations | 504 | | | 146 | | | (50) | | | 600 | | | Interest expense and other, net | — | | | — | | | (82) | | | (82) | | | Income (loss) before income taxes | $ | 504 | | | $ | 146 | | | $ | (132) | | | $ | 518 | | | Intersegment sales/(elimination) | $ | 11 | | | $ | 10 | | | $ | (21) | | | $ | — | | | Depreciation and amortization | $ | 112 | | | $ | 27 | | | $ | 4 | | | $ | 143 | | | Capital expenditures | $ | 34 | | | $ | 26 | | | $ | 2 | | | $ | 62 | | | Segment assets | $ | 15,917 | | | $ | 5,578 | | | $ | 1,633 | | | $ | 23,128 | |
Segment financial information for the three months ended June 30, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 1,919 | | | $ | 787 | | | $ | — | | | $ | 2,706 | | | Cost of sales | (1,222) | | | (546) | | | — | | | (1,768) | | | Gross profit | $ | 697 | | | $ | 241 | | | $ | — | | | $ | 938 | | | Gross margin | 36.3 | % | | 30.7 | % | | | | | | Selling, general & administrative expenses | $ | (181) | | | $ | (114) | | | $ | (52) | | | $ | (347) | | | Engineering expenses | (38) | | | (12) | | | — | | | (50) | | | Amortization expense | (63) | | | (6) | | | — | | | (69) | | | Income (loss) from operations | 415 | | | 109 | | | (52) | | | 472 | | | Interest expense and other, net | — | | | — | | | (22) | | | (22) | | | Income (loss) before income taxes | $ | 415 | | | $ | 109 | | | $ | (74) | | | $ | 450 | | | Intersegment sales/(elimination) | $ | 13 | | | $ | 12 | | | $ | (25) | | | $ | — | | | Depreciation and amortization | $ | 95 | | | $ | 18 | | | $ | 4 | | | $ | 117 | | | Capital expenditures | $ | 25 | | | $ | 12 | | | $ | 2 | | | $ | 39 | | | Segment assets | $ | 13,390 | | | $ | 4,405 | | | $ | 2,596 | | | $ | 20,391 | |
Segment financial information for the six months ended June 30, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 4,358 | | | $ | 1,771 | | | $ | — | | | $ | 6,129 | | | Cost of sales | (2,716) | | | (1,191) | | | — | | | (3,907) | | | Gross profit | $ | 1,642 | | | $ | 580 | | | $ | — | | | $ | 2,222 | | | Gross margin | 37.7 | % | | 32.7 | % | | | | | | Selling, general & administrative expenses | $ | (438) | | | $ | (259) | | | $ | (104) | | | $ | (801) | | | Engineering expenses | (98) | | | (28) | | | — | | | (126) | | | Amortization expense | (152) | | | (26) | | | — | | | (178) | | | Income (loss) from operations | 954 | | | 267 | | | (104) | | | 1,117 | | | Interest expense and other, net | — | | | — | | | (130) | | | (130) | | | Income (loss) before income taxes | $ | 954 | | | $ | 267 | | | $ | (234) | | | $ | 987 | | | Intersegment sales/(elimination) | $ | 25 | | | $ | 20 | | | $ | (45) | | | $ | — | | | Depreciation and amortization | $ | 224 | | | $ | 51 | | | $ | 7 | | | $ | 282 | | | Capital expenditures | $ | 61 | | | $ | 44 | | | $ | 3 | | | $ | 108 | | | | | | | | | |
Segment financial information for the six months ended June 30, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 3,820 | | | $ | 1,496 | | | $ | — | | | $ | 5,316 | | | Cost of sales | (2,438) | | | (1,040) | | | — | | | (3,478) | | | Gross profit | $ | 1,382 | | | $ | 456 | | | $ | — | | | $ | 1,838 | | | Gross margin | 36.2 | % | | 30.5 | % | | | | | | Selling, general & administrative expenses | $ | (345) | | | $ | (221) | | | $ | (88) | | | $ | (654) | | | Engineering expenses | (74) | | | (22) | | | — | | | (96) | | | Amortization expense | (128) | | | (14) | | | — | | | (142) | | | Income (loss) from operations | 835 | | | 199 | | | (88) | | | 946 | | | Interest expense and other, net | — | | | — | | | (70) | | | (70) | | | Income (loss) before income taxes | $ | 835 | | | $ | 199 | | | $ | (158) | | | $ | 876 | | | Intersegment sales/(elimination) | $ | 24 | | | $ | 21 | | | $ | (45) | | | $ | — | | | Depreciation and amortization | $ | 192 | | | $ | 38 | | | $ | 7 | | | $ | 237 | | | Capital expenditures | $ | 56 | | | $ | 22 | | | $ | 5 | | | $ | 83 | | | | | | | | | |
|
| Schedule of Sales by Product |
Sales to external customers by product line are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | In millions | | 2026 | | 2025 | | 2026 | | 2025 | | Freight Segment: | | | | | | | | | | Services | | $ | 748 | | | $ | 781 | | | $ | 1,462 | | | $ | 1,644 | | | Equipment | | 737 | | | 546 | | | 1,463 | | | 1,022 | | | Components | | 398 | | | 401 | | | 755 | | | 782 | | | Digital Intelligence | | 360 | | | 191 | | | 678 | | | 372 | | | Total Freight Segment | | $ | 2,243 | | | $ | 1,919 | | | $ | 4,358 | | | $ | 3,820 | | | | | | | | | | | | Transit Segment: | | | | | | | | | | Original Equipment Manufacturer | | $ | 411 | | | $ | 353 | | | $ | 792 | | | $ | 675 | | | Aftermarket | | 525 | | | 434 | | | 979 | | | 821 | | | Total Transit Segment | | $ | 936 | | | $ | 787 | | | $ | 1,771 | | | $ | 1,496 | |
|