Westinghouse Air Brake Technologies Corporation

Good day and welcome to the Wabtec first quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Kyra Yates, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Wabtec's first quarter 2026 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. At Wabtec, we are focused on advancing mission critical transportation and industrial technologies. We are committed to building a more efficient, high-performing global platform that drives and compounds long-term value for our customers, shareholders, and for our employees. We are inspired by the progress we are making, and we remain dedicated to executing this strategy as we report out our first quarter results. With that, 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. The team delivered a strong first quarter with operational results ahead of our expectations. EPS also benefited from non-operational benefits driven by currency fluctuations and taxes. The momentum that we had as we exited 2025 was clearly evident in our first quarter operational execution, pipeline conversion, and our overall financial results. Sales were $3 billion, which was up 13%, and adjusted EPS was up 19% from the year-ago quarter. Total cash flow from operations for the quarter was $199 million. Backlog remains a key strength. Twelve-month backlog was up 13% from the prior year, while the multi-year backlog exceeded $30 billion, up 38%. These backlog results provide strong visibility and reflect continued momentum across our businesses, positioning us well as we execute against our strategy. Our financial position remains strong. We continue to execute against our capital allocation framework and expect to continue to compound long-term value for our shareholders. Shifting our focus to slide five, Let's talk about our 2026 and market expectations in more detail. While key metrics across our freight markets remain mixed, we continue to be encouraged by the overall strength and resilience of our business. We are seeing solid momentum in our international markets and the pipeline of opportunities across geographies remain strong. In North America, carload traffic was up 2% in the quarter. Despite this traffic growth, the industry's active locomotive fleet was down slightly, while WAPTEC's active fleet trended up when compared to last year's first quarter. Internationally, carloads continue to grow at a robust pace across core markets, such as Kazakhstan, Latin America, Africa, and India. Significant investments to expand and upgrade infrastructure are supporting our international orders pipeline. Looking at the North American railcar build, demand for new railcars is down compared to the prior year and is projected to be approximately 24,000 cars for 2026, which is down 22% from 2025. The industry forecast remained unchanged from last quarter. Finally, turning to the transit sector, we continue to see positive underlying indicators for growth. Ridership continues to increase in key markets such as Europe and India, and we are seeing strong backlogs of car builders supported by higher levels of public investments for fleet expansions and renewals. Next, let's turn to slide six and highlight several recent business wins. During the quarter, we secured a multi-billion dollar multi-year mining order for drive systems and aftermarket parts. This win reflects our close collaboration with our customers and the strength of our differentiated technology and life cycle support offerings. In North America, we secured a $210 million multi-year modernization with MBTA that highlights our ability to innovate and deliver fleet-scale upgrades that improve reliability, efficiency, and lifecycle value for our customers. We also continue to make progress on innovation as we are executing the first EVO modernization build to support our commercial rollout of this new product. This represents an important milestone as we transition from development to commercialization and begin to scale this technology across our install base for years to come. Moving to our transit segment, we signed a $54 million break and couplers order with Kawasaki for the New York City Transit, further validating the positive impact of the recent donor acquisition in enhancing our transit portfolio. Overall, these successes continue to demonstrate our leadership in the markets we serve, the strength of our pipeline, and the commitment of the WAPTAC team to deliver meaningful results for our customers and for our business. Moving to slide seven, before turning it over to John, I want to briefly discuss our acquisition strategy and history. Our strategy remains disciplined, targeted and focused on driving long-term value creation. Since 2020, we have deployed over $4.5 billion of capital across 20 acquisitions, largely centered on bolt-on and year-end adjacent opportunities that enhance our portfolio and further strengthens Watex's position as a leading industrial technology company. These transactions are highly strategic, they expand our capabilities, they deepen customer relationships, and they deliver strong synergy potential while meeting our financial objectives. Capital deployment has been highly focused on the quality of assets purchased and on their investment returns for our shareholders. We have remained patient and selective in an effort to improve portfolio resiliency and position us for profitable growth over time. With regard to our most recent acquisition of inspection technologies, Frauscher and Delner, these businesses are off to a great start with Wattac. While still early, they are delivering ahead of our acquisition plan. Our integration of these acquisitions, we continue to execute very well. Currently, our teams are making solid progress where our integration plan is firmly in place and early synergy realization is also tracking as expected. We're already seeing early benefits and expect synergy run rate savings to scale meaningfully over the coming years. Overall, our approach to M&A is to execute targeted high ROIC Acquisition supported by repeatable integration model aimed at delivering sustained profitable growth as we accelerate the compounding of value for all of our stakeholders. With that, I'll turn the call over to John to review the quarter segment results and our overall financial performance.