FreightCar America's 15-minute chart triggers KDJ Golden Cross, bullish Marubozu signal.
ByAinvest
Friday, Aug 15, 2025 12:31 pm ET1min read
RAIL--
On August 6, 2025, FreightCar America reported its second-quarter earnings, which included revenues of $118.6 million and 939 railcar deliveries. This marked a 20% year-over-year decline in revenues and a 19% drop in shipments [1]. Despite these declines, the company maintained a gross margin of 15%, up 250 basis points from the previous year, thanks to a favorable product mix and operational efficiencies [1]. Additionally, FreightCar America secured new orders for 1,226 railcars valued at $106.9 million, boosting its backlog to 3,624 units worth $316.9 million [1].
Chief Executive Nick Randall attributed the volume decline to customer delivery schedules rather than production constraints, noting that some railcars built during the quarter will ship in the second half of the year [1]. He also emphasized the company's ability to remain agile in rebuilds and conversions, which has become a competitive advantage in capturing incremental demand [1].
However, the company's management acknowledged that industry-wide demand for new railcars is cooling, with U.S. railcar orders expected to fall below 30,000 units for the second straight year [1]. They remain bullish on the tank car retrofit opportunity, which is expected to add approximately $6 million in EBITDA over two years [1].
Despite the challenges, FreightCar America's technical indicators suggest that the stock's momentum is shifting towards the upside. The KDJ Golden Cross and Bullish Marubozu patterns observed on August 15, 2025, at 12:15, indicate that the price is poised to continue increasing [2]. The company has maintained its full-year guidance, projecting deliveries of 4,500-4,900 railcars and revenue of $530-$595 million [1]. The company's strategic focus on margin improvement, operational flexibility, and investment in tank car capabilities positions it well for the anticipated replacement cycle in the industry.
References:
[1] https://www.ainvest.com/news/freightcar-america-15min-chart-triggers-rsi-oversold-kdj-golden-cross-alert-2508-8/
[2] https://www.stocktitan.net/news/RAIL/freight-car-america-inc-reports-second-quarter-2025-3vdpbenspb6c.html
FreightCar America's 15-minute chart has exhibited a bullish trend, as indicated by the KDJ Golden Cross and Bullish Marubozu at 08/15/2025 12:15. This suggests a shift in momentum towards an upward trajectory, with potential for further price appreciation. The presence of buyers controlling the market indicates a likely continuation of bullish momentum.
FreightCar America's (RAIL) 15-minute chart has shown a bullish trend, as indicated by the KDJ Golden Cross and Bullish Marubozu patterns observed on August 15, 2025, at 12:15. These technical indicators suggest a shift in momentum towards an upward trajectory, with potential for further price appreciation. The presence of buyers controlling the market indicates a likely continuation of bullish momentum.On August 6, 2025, FreightCar America reported its second-quarter earnings, which included revenues of $118.6 million and 939 railcar deliveries. This marked a 20% year-over-year decline in revenues and a 19% drop in shipments [1]. Despite these declines, the company maintained a gross margin of 15%, up 250 basis points from the previous year, thanks to a favorable product mix and operational efficiencies [1]. Additionally, FreightCar America secured new orders for 1,226 railcars valued at $106.9 million, boosting its backlog to 3,624 units worth $316.9 million [1].
Chief Executive Nick Randall attributed the volume decline to customer delivery schedules rather than production constraints, noting that some railcars built during the quarter will ship in the second half of the year [1]. He also emphasized the company's ability to remain agile in rebuilds and conversions, which has become a competitive advantage in capturing incremental demand [1].
However, the company's management acknowledged that industry-wide demand for new railcars is cooling, with U.S. railcar orders expected to fall below 30,000 units for the second straight year [1]. They remain bullish on the tank car retrofit opportunity, which is expected to add approximately $6 million in EBITDA over two years [1].
Despite the challenges, FreightCar America's technical indicators suggest that the stock's momentum is shifting towards the upside. The KDJ Golden Cross and Bullish Marubozu patterns observed on August 15, 2025, at 12:15, indicate that the price is poised to continue increasing [2]. The company has maintained its full-year guidance, projecting deliveries of 4,500-4,900 railcars and revenue of $530-$595 million [1]. The company's strategic focus on margin improvement, operational flexibility, and investment in tank car capabilities positions it well for the anticipated replacement cycle in the industry.
References:
[1] https://www.ainvest.com/news/freightcar-america-15min-chart-triggers-rsi-oversold-kdj-golden-cross-alert-2508-8/
[2] https://www.stocktitan.net/news/RAIL/freight-car-america-inc-reports-second-quarter-2025-3vdpbenspb6c.html
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