Union Pacific and Wabtec Sign $1.2B Deal to Modernize Locomotives

“We are committed to delivering the service we sold to our customers and one way we do that is having great American-made locomotives that can get the job done,” said Jim Vena, Union Pacific CEO. “These redesigned locomotives will be just like new, providing the improved fuel efficiency and enhanced reliability that we need to grow with our customers and to win new business.”

Wabtec’s modernization program will extend each locomotive’s useful life, improve fleet standardization and equip Union Pacific to take advantage of next‑generation control and diagnostics technologies. The upgraded locomotives are expected to deliver over 5% reduction in fuel consumption, a 14% increase in tractive effort and an 80% improvement in reliability.

“Our continued partnership with Union Pacific reflects a steady, forward-looking investment that positions the railroad and its customers for continued success," said Rafael Santana, President and CEO of Wabtec. "By enhancing our proven locomotive platforms with advanced propulsion, controls and diagnostics, this program delivers substantial gains in performance, reliability and lifecycle value — allowing the railroad to unlock maximum efficiency and capability for its existing fleet.”

The modernized locomotives will feature a suite of Wabtec hardware and digital innovations. Each unit will receive the FDL Advantage (FDLA) engine upgrade for enhanced fuel savings; LOCOTROL® Expanded Architecture to support safe, efficient operation of longer trains; and the new Modular Control Architecture, which unlocks the next‑generation data, diagnostics and software capabilities.

This agreement, signed in the fourth quarter of 2025, marks Union Pacific’s fourth major modernization order from Wabtec since 2018. Once completed, the railroad will have more than 1,700 modernized locomotives in its fleet. Production will occur at Wabtec’s U.S. facilities, with deliveries beginning in 2027.