| Schedule of Segment Financial Information |
Segment financial information for the three months ended September 30, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 2,237 | | | $ | 883 | | | $ | — | | | $ | 3,120 | | | Cost of sales | (1,376) | | | (580) | | | — | | | (1,956) | | | Gross profit | $ | 861 | | | $ | 303 | | | $ | — | | | $ | 1,164 | | | Gross margin | 38.5 | % | | 34.5 | % | | | | | | Selling, general & administrative expenses | $ | (216) | | | $ | (132) | | | $ | (35) | | | $ | (383) | | | Engineering expenses | (55) | | | (12) | | | — | | | (67) | | | Amortization expense | (75) | | | (14) | | | — | | | (89) | | | Income (loss) from operations | 515 | | | 145 | | | (35) | | | 625 | | | Interest expense and other, net | — | | | — | | | (68) | | | (68) | | | Income (loss) before income taxes | $ | 515 | | | $ | 145 | | | $ | (103) | | | $ | 557 | | | Intersegment sales/(elimination) | $ | 15 | | | $ | 11 | | | $ | (26) | | | $ | — | | | Depreciation and amortization | $ | 111 | | | $ | 27 | | | $ | 4 | | | $ | 142 | | | Capital expenditures | $ | 45 | | | $ | 28 | | | $ | 1 | | | $ | 74 | | | Segment assets | $ | 15,985 | | | $ | 5,618 | | | $ | 1,538 | | | $ | 23,141 | |
Segment financial information for the three months ended September 30, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 2,093 | | | $ | 793 | | | $ | — | | | $ | 2,886 | | | Cost of sales | (1,343) | | | (541) | | | — | | | (1,884) | | | Gross profit | $ | 750 | | | $ | 252 | | | $ | — | | | $ | 1,002 | | | Gross margin | 35.8 | % | | 31.7 | % | | | | | | Selling, general & administrative expenses | $ | (219) | | | $ | (118) | | | $ | (38) | | | $ | (375) | | | Engineering expenses | (45) | | | (14) | | | — | | | (59) | | | Amortization expense | (72) | | | (5) | | | — | | | (77) | | | Income (loss) from operations | 414 | | | 115 | | | (38) | | | 491 | | | Interest expense and other, net | — | | | — | | | (66) | | | (66) | | | Income (loss) before income taxes | $ | 414 | | | $ | 115 | | | $ | (104) | | | $ | 425 | | | Intersegment sales/(elimination) | $ | 13 | | | $ | 14 | | | $ | (27) | | | $ | — | | | Depreciation and amortization | $ | 107 | | | $ | 17 | | | $ | 4 | | | $ | 128 | | | Capital expenditures | $ | 36 | | | $ | 14 | | | $ | 5 | | | $ | 55 | | | Segment assets | $ | 15,471 | | | $ | 4,454 | | | $ | 1,602 | | | $ | 21,527 | |
Segment financial information for the nine months ended September 30, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 6,595 | | | $ | 2,654 | | | $ | — | | | $ | 9,249 | | | Cost of sales | (4,092) | | | (1,771) | | | — | | | (5,863) | | | Gross profit | $ | 2,503 | | | $ | 883 | | | $ | — | | | $ | 3,386 | | | Gross margin | 37.9 | % | | 33.3 | % | | | | | | Selling, general & administrative expenses | $ | (654) | | | $ | (391) | | | $ | (139) | | | $ | (1,184) | | | Engineering expenses | (153) | | | (40) | | | — | | | (193) | | | Amortization expense | (227) | | | (40) | | | — | | | (267) | | | Income (loss) from operations | 1,469 | | | 412 | | | (139) | | | 1,742 | | | Interest expense and other, net | — | | | | | (198) | | | (198) | | | Income (loss) before income taxes | $ | 1,469 | | | $ | 412 | | | $ | (337) | | | $ | 1,544 | | | Intersegment sales/(elimination) | $ | 40 | | | $ | 31 | | | $ | (71) | | | $ | — | | | Depreciation and amortization | $ | 335 | | | $ | 78 | | | $ | 11 | | | $ | 424 | | | Capital expenditures | $ | 106 | | | $ | 72 | | | $ | 4 | | | $ | 182 | | | | | | | | | |
Segment financial information for the nine months ended September 30, 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | In millions | Freight
Segment | | Transit
Segment | | Corporate
Activities and
Elimination | | Total | | Sales to external customers | $ | 5,913 | | | $ | 2,289 | | | $ | — | | | $ | 8,202 | | | Cost of sales | (3,781) | | | (1,581) | | | — | | | (5,362) | | | Gross profit | $ | 2,132 | | | $ | 708 | | | $ | — | | | $ | 2,840 | | | Gross margin | 36.1 | % | | 30.9 | % | | | | | | Selling, general & administrative expenses | $ | (564) | | | $ | (339) | | | $ | (126) | | | $ | (1,029) | | | Engineering expenses | (119) | | | (36) | | | — | | | (155) | | | Amortization expense | (200) | | | (19) | | | — | | | (219) | | | Income (loss) from operations | 1,249 | | | 314 | | | (126) | | | 1,437 | | | Interest expense and other, net | — | | | — | | | (136) | | | (136) | | | Income (loss) before income taxes | $ | 1,249 | | | $ | 314 | | | $ | (262) | | | $ | 1,301 | | | Intersegment sales/(elimination) | $ | 37 | | | $ | 35 | | | $ | (72) | | | $ | — | | | Depreciation and amortization | $ | 299 | | | $ | 55 | | | $ | 11 | | | $ | 365 | | | Capital expenditures | $ | 92 | | | $ | 36 | | | $ | 10 | | | $ | 138 | | | | | | | | | |
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| Schedule of Sales by Product |
Sales to external customers by product line are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | In millions | | 2026 | | 2025 | | 2026 | | 2025 | | Freight Segment: | | | | | | | | | | Services | | $ | 794 | | | $ | 744 | | | $ | 2,256 | | | $ | 2,388 | | | Equipment | | 679 | | | 677 | | | 2,142 | | | 1,699 | | | Components | | 395 | | | 375 | | | 1,150 | | | 1,157 | | | Digital Intelligence | | 369 | | | 297 | | | 1,047 | | | 669 | | | Total Freight Segment | | $ | 2,237 | | | $ | 2,093 | | | $ | 6,595 | | | $ | 5,913 | | | | | | | | | | | | Transit Segment: | | | | | | | | | | Original Equipment Manufacturer | | $ | 408 | | | $ | 367 | | | $ | 1,200 | | | $ | 1,042 | | | Aftermarket | | 475 | | | 426 | | | 1,454 | | | 1,247 | | | Total Transit Segment | | $ | 883 | | | $ | 793 | | | $ | 2,654 | | | $ | 2,289 | |
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