The Lionel Hudson Type 4-6-4 Locomotive No. 2046 boiler is derived from a modification of the No. 726 Berkshire locomotive and it shares this same boiler with No. 646 and No. 2056. It was available in 1950, and 1951, and again in 1953. This locomotive was replaced in 1952 by the No. 2056 which does not have Magnetraction. This engine was equipped with Magnetraction, smoke, drive rod connecting rod valve gear, three position direction unit that is adjustable from the top of the boiler, and there is a whistle in the tender. It came with both rubber and heat-stamped numbering on the cab. There are three variations:

Variation A: The number is rubber-stamped in SILVER on the cab that typically has a three window configuration like the early Berkshires. This variation came with a metal trailing truck, and a No. 2046W tender that had staple-end trucks with one magnetic coupler. 1950 production.

Variation B: Same as Variation A except the number "2046" is heat-stamped in WHITE on the cab. 1951 Production.

Variation C: Number is heat-stamped on the cab in WHITE that has a four windows. The trailing truck is sometimes die cast as the other two variations, but is sometimes found with a sheet metal plastic sided frame. The tender has bar-end trucks with one magnetic coupler. 1953 Production.

Although this engine was sold with O27 Gauge sets, it will run equally well on the larger radius curves of O Gauge track.