Wabtec and Progress Rail, a Caterpillar subsidiary, announced on February 26, 2026 that they have reached a settlement in an antitrust case that had been pending over the supply of locomotives and cab components to Class I railroads. The agreement resolves the regulatory dispute that Progress Rail had filed in 2023, alleging that Wabtec’s 2019 acquisition of GE Transportation had created an anticompetitive advantage and sought the divestiture of GE Transportation’s locomotive business.
The settlement allows the two companies to continue their business relationship without further legal challenge. By resolving the dispute, Wabtec eliminates a potential regulatory hurdle that could have restricted its ability to supply critical components to major rail customers, thereby preserving its market position and avoiding the uncertainty and costs associated with ongoing litigation.
Wabtec’s financial performance in the most recent quarter underscores the strategic importance of the settlement. In Q4 2025, the company reported revenue of $2.97 billion, a 14.8% year‑over‑year increase, and adjusted earnings per share of $2.10. Full‑year 2025 revenue reached $11.17 billion, with adjusted EPS of $8.97, and the company has raised its 2026 guidance to an adjusted EPS range of $10.05 to $10.45. Wabtec’s Freight segment accounted for roughly 72% of total net sales in 2024, while the Transit segment represented about 28%. The company dominates the North American locomotive market, manufacturing approximately 75% of active long‑haul freight locomotives and about 90% of new Tier 4‑compliant locomotives.
CEO Rafael Santana highlighted the company’s strong performance, noting that Wabtec delivered a very strong quarter evidenced by continued growth in its backlog, sales, margin, and earnings. He added that the company is encouraged by the underlying momentum of its business and the continued strength of its pipeline of opportunities worldwide.
Additional context shows that Wabtec has been securing large orders in the rail sector, including a $670 million deal with CSX for new and modernized locomotives, a $1.2 billion agreement with Union Pacific, and the acquisition of Dellner Couplers for nearly $1 billion in February 2026. The settlement removes legal uncertainty and supports Wabtec’s ability to maintain and expand these relationships.
The settlement is expected to stabilize Wabtec’s regulatory environment and reinforce its dominant position in the locomotive and rail component market.
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