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Feb 4, 2026 4:00 PM

Union Pacific, WAB Pens Largest Locomotive Modernization Deal

Union Pacific (NYSE: UNP) and Westinghouse Air Brake Technologies Corporation (NYSE:WAB) shares are surging on Wednesday after the companies penned a deal for the largest locomotive modernization investment in rail industry history.

The companies inked a deal for $1.2 billion to modernize the railroad’s AC4400 locomotives.

Details

Signed in the fourth quarter of 2025, this deal represents Union Pacific's fourth major modernization order with WAB since 2018.

Once complete, the railroad's fleet will include over 1,700 modernized locomotives. The production will take place at Wabtec's U.S. facilities, with deliveries starting in 2027.

This landmark deal builds ...