Union Pacific Railroad

and

Wabtec Corp.

today announced an agreement totaling $1.2 billion to modernize the railroad’s AC4400 locomotives.

The agreement represents the largest locomotive modernization investment in rail industry history, building on UP’s previous 2022 order which is scheduled to be completed in 2026, UP and Wabtec officials said in a press release.

The upgraded fleet will help improve the railroad’s operational efficiency, service reliability and network performance. Production will occur at Wabtec’s U.S. facilities, with deliveries beginning in 2027, they said.

“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 UP CEO Jim Vena. “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.”

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, UP and Wabtec officials said. Signed in fourth-quarter 2025, the agreement is UP's fourth major modernization order from Wabtec since 2018.

The UP-Wabtec deal is the third major locomotive agreement announced by a Class I in the past few weeks. In mid-January,

CPKC announced

plans to buy 65 new locomotives from Progress Rail and

Norfolk Southern Railway announced

it would acquire 40 new Wabtec locomotives.

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