Question · Q3 2025
James Read asked for color on the strong pipeline in North America, specifically regarding customer activity, order trends, and key drivers. He also inquired about the details included in the $4.2 billion Kazakhstan contract win and when it is expected to begin converting into revenue.
Answer
President and CEO Rafael Santana highlighted that North American fleets are aged (over 25% over 20 years old, excluding modernizations) and a significant portion are still DC locomotives, presenting opportunities for modernization to AC, control system upgrades, and fleet size reduction. He views fleet renewal as a non-discretionary lever for improving operating ratios, service quality, and competitiveness. Regarding Kazakhstan, Santana stated the contract provides coverage for a growing region driven by volume growth, new rail lines, and fleet renewal. CFO John Olin specified that the deal includes 300 locomotives over 10 years and extended service agreements for existing and new locomotives, averaging over 15 years.