The Greenbrier 2025 Q4 Earnings Mixed Performance as Net Income Falls 38.3%

The Greenbrier (GBX) reported fiscal 2025 Q4 earnings on October 28, 2025, delivering adjusted EPS of $1.26, exceeding estimates of $1.18 but trailing its prior-year result. Revenue totaled $759.5 million, below the $764.1 million consensus. Guidance for fiscal 2026, however, fell short of expectations, with projected EPS of $3.75–$4.75 well below the $6.47 analyst consensus.

Revenue

The Greenbrier’s Q4 revenue declined 27.9% year-over-year to $759.5 million, reflecting a challenging market environment.

Earnings/Net Income

The company’s EPS fell 39.8% to $1.19 in Q4, while net income dropped 38.3% to $40.30 million. Despite a strong full-year performance, the fourth quarter underscored operational pressures impacting profitability.

Price Action

The stock edged down 0.68% in the latest trading day, 1.09% for the week, and 2.08% month-to-date, reflecting mixed investor sentiment.

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Post-Earnings Price Action Review

Despite beating earnings estimates, Greenbrier’s shares fell 6.9% in after-hours trading as fiscal 2026 guidance disappointed investors. The company cited European facility rationalization costs and a challenging freight rail market as headwinds. While the fourth quarter delivered record operating cash flow of over $265 million, the outlook for 2026—projecting revenue of $2.7B–$3.2B and EPS of $3.75–$4.75—fell short of expectations, contributing to the post-earnings decline.

CEO Commentary

CEO Lorie Tekorius highlighted fiscal 2025’s record performance, driven by operational excellence and a growing lease fleet. She expressed confidence in fiscal 2026, emphasizing strategic investments in manufacturing and cost discipline to sustain profitability.

Guidance

Greenbrier guided to fiscal 2026 deliveries of 17,500–20,500 units, revenue of $2.7B–$3.2B, and diluted EPS of $3.75–$4.75. Capital expenditures are projected at $320 million, with net outlays of $205 million after equipment sales.

Additional News

Greenbrier announced a quarterly dividend of $0.32 per share, marking its 46th consecutive payout, and repurchased $22 million of shares in fiscal 2025. The company also closed two European facilities, targeting $20 million in annual savings while maintaining production capacity. These actions align with its strategy to enhance margins amid fluctuating demand.