Westinghouse Air Brake Technologies Corporation

Good day and welcome to the WAPTEC Third Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone telephone. To withdraw your question, please press star, then two. Please note, today's event is being recorded. I would now like to turn the conference over to Ms. Kaya Yates, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Wabtec's third quarter 2025 earnings call. With us today are President and CEO Rafael Santana, CFO John Olin, and Senior Vice President of Finance John Mastelers. Today's slide presentation, along with our earnings release and financial disclosures, were posted to our website earlier today and can be accessed on the Investor Relations tab. Some statements we are making are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and presentation. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics. I will now turn the call over to Rafael.

Thanks, Kyra, and good morning, everyone. Let's move to slide four. I'll start with an update on our business, my perspectives on the quarter, and progress against our long-term value creation framework, and then John will cover the financials. We delivered a very strong quarter, evidenced by continued growth in our backlog, sales, margin, and earnings. Sales in the third quarter were $2.9 billion, which was up 8% versus prior year. Revenue growth was driven by both the freight and transit segments, including the acquisition of inspection technologies, which we closed at the beginning of the third quarter. And adjusted EPS was up 16%, driven by increased sales and margin expansion. Total cash flow from operations for the quarter was $367 million. The 12-month backlog was $8.3 billion, representing an increase of 8.4%, while the multi-year backlog achieved an all-time high. These results demonstrate sustained revenue and earnings momentum and provide enhanced visibility for the fourth quarter and into the future. Shifting our focus to slide five, Let's talk about our 2025 end market expectations in more detail. While key metrics across our freight business remain mixed, we are encouraged by the underlying momentum of our business and the continued strength of our pipeline of opportunities across the globe. Despite the strong momentum that we're experiencing, we're continuing to exercise caution to navigate a volatile and uncertain economic landscape as we move into the final quarter of the year. North American traffic was up 1.4% in the quarter. Despite this traffic growth, WAPTAC's active locomotive fleets were down slightly when compared to last year's third quarter. However, obsequentially, During the quarter, WAPTEC outperformed the industry in terms of share of active locomotives running. Looking at the North America railcar builds, last quarter we discussed the industry outlook for 2025, which was for approximately 29,000 cars to be delivered, and which has again been reduced by the industry sources to approximately 28,000 cars. This forecast represents a 34% reduction from last year's car build. Internationally, activity is strong across core markets such as Asia, India, Brazil, and CIS. Significant investments to expand and upgrade infrastructure are supporting a robust international locomotive backlog and orders pipeline. In mining, An aging fleet continues to support activity to refresh and to upgrade the truck fleet. Finally, moving to the transit sector, we continue to see underlying indicators for growth. Ridership levels are increasing in key geographies along with fleet expansion and renewals. Next, let's turn to slide six to discuss a few business highlights. International demand for our products and services remains strong, highlighted in the quarter by the $4.2 billion order secured with Kazakhstan's National Railway, the largest single rail order in history. This historic agreement embodies KTZ's visionary approach for the country's rail network as the primary link between Europe and Asia, which is supporting the global momentum that we're continuing to see in the region. By delivering advanced locomotives and long-term service solutions, Wabtec is a proud partner in Kazakhstan's progress, helping to unlock the region's enormous potential and developing engineering competencies in the country's rail industry. Moving to mining, we secured a $125 million multi-year agreement for ultra-class dry systems. In transit, we secured $140 million break orders driven by increased activity in India. Also in the quarter, the first four Simandou locomotives arrived in Guinea. This event marked the first order of heavy haul locomotives assembled and exported at our best cost facility, the Marora India Locomotive Plant. This milestone is a tribute to a global team that designed and built this locomotive specifically tailored to meet the customer demand of the largest untapped iron ore reserve in the world. All of this demonstrates the underlying strength across our businesses and the strong pipeline of opportunities which we continue to execute on. Moving to slide seven. Before turning it over to John, I want to take a few minutes here to highlight the transit segment's attractive value creation framework. Transit sustained orders growth is supported by unprecedented backlogs of car builders, rising passenger growth in key markets like Europe and India, and ongoing public investment in rail infrastructure around the world. Similar To the car builders, our transit backlog has been growing, and along with the consistent growth, we are experiencing increased quality and margin expansion with our backlog, reflecting our commitment to deliver value and innovation. The team also remains focused on enhancing competitiveness and driving innovation. Through our integration initiatives, we are streamlining operations and achieving significant cost efficiencies, all while maintaining excellence in execution of our orders. We target leadership positions in segments where we offer clear differentiation, which positions us for long-term success. This is not only an organic story. Our ongoing efforts in portfolio optimization, alongside the creative, bolt-on acquisitions, are further strengthening our business and expanding our capabilities. This disciplined strategy is delivering tangible financial results. We are executing on our commitments with our value creation framework driving both top-line growth and margin expansion. Year to date, our revenue is up 7.5% and our operating margins have grown to the mid-teens. Given this momentum, We're confident that we will continue to expand our margins into the high teams of our planning horizon. And with that, I'll turn the call over to John to review the quarter segment results and our overall financial performance. John?