Union Pacific and Wabtec inked a $1.2 billion deal to modernize the railroad’s AC4400 locomotives.
Officials said the agreement represents the largest locomotive modernization investment in the rail industry’s history, building on Union Pacific’s 2022 order, which is scheduled for completion in 2026. The upgraded fleet will help enhance the railroad’s operational efficiency, service reliability and network performance.
Wabtec’s modernization program will extend each locomotive’s useful life, improve fleet standardization, and equip Union Pacific to leverage 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.
The modernized locomotives will feature a suite of Wabtec hardware and digital innovations. Each unit will receive the FDL Advantage engine upgrade for enhanced fuel savings; the LOCOTROL Expanded Architecture to support safe, efficient operation of longer trains; and the new Modular Control Architecture, which unlocks 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.
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