Wabtec Finalizes Frauscher Sensor Technology Group Acquisition

PITTSBURGH, December 1, 2025 -- Wabtec Corporation (NYSE: WAB) announced today that it has finalized the acquisition of Frauscher Sensor Technology Group GmbH (“Frauscher”), a global market leader in train detection, wayside object control solutions, and axle counting systems. The addition further strengthens Wabtec’s Digital Intelligence business by adding highly attractive and complementary railway signaling technologies, which will facilitate accelerated and profitable growth.

“This strategic acquisition is another step in executing Wabtec’s long-term growth strategy, which will provide enhanced value for our customers, shareholders, and employees,” said Wabtec President and CEO Rafael Santana. “The rare combination of our Digital Intelligence portfolio and Frauscher’s industry leading suite of products opens opportunities in a high-potential market for sustained growth, and strong and resilient profitability.”

The Austrian-based company was founded in 1987 and has grown to more than 700 employees located in 15 countries. Frauscher specializes in train detection and wayside object control solutions that provide the information rail operators need to maximize the safety, efficiency, and capacity of their networks. The company has installations in more than 100 countries under a wide range of technical, mechanical, and environmental conditions. Frauscher also has a significant presence in Europe and India, which enables Wabtec to advance its international growth strategy in these key markets.

“As the world’s rail network looks to meet the ever-growing transportation demands, the combination of our digital portfolio with Frauscher’s technology will provide operators innovative solutions to optimize their operations,” said Nalin Jain, President of Wabtec’s Digital Intelligence Group. “By combining our businesses, we will further strengthen Wabtec as an innovator in the rail industry’s digital transformation driving improved efficiency, reliability, and safety.”

This strategic acquisition strengthens Wabtec's Digital Intelligence portfolio and further advances its penetration into the high growth railway signaling market. It also aligns with the Company's long-term vision of driving innovation, productivity, safety and reliability for its customers, while ensuring the integrity of mission critical assets, infrastructure, and supply chains on a global scale.

TRANSACTION DETAILS

Wabtec acquired Frauscher for an enterprise value of €675 million in cash. The acquisition is anticipated to provide immediate shareholder value with an accretive growth profile, accretive Adjusted EBIT margins, slightly accretive Adjusted EPS in the first year of ownership, and accretive return on invested capital (ROIC) over time. The purchase price reflects an estimated multiple of 12.4x projected 2025 EBITDA adjusted for projected run-rate cost synergies which Wabtec expects to be realized over a three-year period. Frauscher is expected to generate approximately €145 million of revenue in 2025.