New Heritage Capital backs the locomotive parts supplier as it looks to expand its products, operations, and aftermarket services
Exeter, Pennsylvania, 12 August 2026 – The railway industry depends on more than trains, tracks, and stations. A strong supply network is also needed to keep locomotives operating safely and efficiently. PowerRail, a supplier of aftermarket locomotive parts and services, is now preparing for its next stage of growth after receiving an investment from New Heritage Capital.
The Boston-based private equity firm has invested in PowerRail, which is headquartered in Exeter, Pennsylvania. The company provides new and rebuilt locomotive components, along with remanufacturing and engineering services. The financial terms of the investment were not disclosed.
PowerRail was founded in 2003 and has developed a broad portfolio of products for the locomotive aftermarket. Its offerings include engine components, bearings, electrical rotating parts, compressors, pumps, motors, and other replacement components. The company also serves customers through its remanufacturing and engineering capabilities.
Aftermarket suppliers play an important role in the railway sector because locomotives can remain in service for many years. Regular maintenance and access to replacement parts help operators extend the useful life of their equipment without having to replace entire fleets.
PowerRail’s combination of new components, rebuilt parts, and technical services allows it to support customers across different stages of locomotive maintenance. Its capabilities also extend beyond rail, with the company serving sectors such as passenger transit, marine, and power generation.
The new investment is expected to give PowerRail additional resources to expand its operations and product portfolio. The company also plans to explore strategic acquisitions as it looks for new ways to grow its presence in the market.
New Heritage Capital’s investment provides PowerRail with additional financial support while allowing its management team to maintain operational control. This structure is intended to give the company the resources needed to pursue growth while retaining continuity in its day-to-day operations.
The investment comes at an important point in PowerRail’s development. Demand for dependable locomotive components remains closely connected to the need for efficient maintenance and long equipment lifecycles. Suppliers that can provide reliable parts and specialized services can help rail operators reduce downtime and manage maintenance costs.
The investment also brings a leadership transition. PowerRail founder Paul Foster will step away from his operating role after more than two decades with the company but will continue as Chairman of the Board.
Kevin Wright will continue serving as CEO and will lead PowerRail through its next phase of expansion. Foster’s continued involvement at the board level is expected to provide experience and continuity as the company works toward its growth plans.
PowerRail’s new partnership reflects the growing importance of the railway aftermarket. As operators focus on maintaining existing assets, suppliers of replacement, rebuilt, and engineered components can play a key role in keeping locomotives productive.
With fresh investment behind it, PowerRail plans to expand its capabilities, strengthen its product offering, and explore new opportunities. The move could help the company build on more than two decades of experience while strengthening its position within the global rail supply chain.
