Wabtec announced a $670 million contract with CSX to deliver 100 new Evolution Series locomotives, modernize 50 existing units, and supply digital solutions that improve fuel efficiency and reliability.
The deal is a major multi‑year revenue opportunity that reinforces Wabtec’s strategy to shift from cyclical equipment sales to high‑margin, recurring revenue streams. The contract’s digital component—Trip Optimizer and Smart Horsepower per Ton—positions Wabtec as a technology partner in the rail industry.
Wabtec’s 2024 guidance already reflected strong momentum, with a full‑year adjusted EPS of $7.56 and sales of $10.39 billion. The CSX contract adds a predictable stream of revenue that will be recognized over several years, supporting the company’s upward guidance for 2025 and beyond.
The freight segment, which accounts for the bulk of Wabtec’s revenue, will benefit from the modernization of CSX’s fleet. Digital solutions embedded in the new locomotives are expected to cut fuel consumption by up to 10 % and reduce maintenance downtime, translating into higher operating margins for both companies.
The agreement comes amid a broader trend of Class I railroads investing in fleet upgrades. Union Pacific, Norfolk Southern, and CPKC have announced similar modernization programs, indicating that rail operators are prioritizing technology and sustainability to extend asset life and improve performance.
"We are confident in profitable growth driven by new locomotive sales, modernizations, digital solutions, and transit systems," said Rafael Santana, Wabtec’s President and CEO. "This contract with CSX exemplifies the value we bring to customers through technology‑driven solutions.",
The deal strengthens Wabtec’s order backlog, which has expanded with high‑profile contracts such as this one and others with Union Pacific and Norfolk Southern. The company’s focus on digitalization and modernization is expected to sustain its high‑margin growth trajectory.
With the CSX contract, Wabtec is positioned to capture a larger share of the rail modernization market while reinforcing its recurring revenue model, setting the stage for continued growth in the coming years.
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