What were the key takeaways from FreightCar America’s earnings call?

What does FreightCar America do and what are its main business segments?

What guidance did FreightCar America's management provide for the next earnings period?

What is the revenue and EPS growth rate for FreightCar America year over year?

What factors drove the changes in FreightCar America's revenue and profit?

What were the key takeaways from FreightCar America's earnings call?

What is FreightCar America's latest dividend and current dividend yield?

Did FreightCar America beat or miss consensus estimates last quarter?

- **Record Q3 Performance**: 42% revenue growth to $160.5M, $17M EBITDA (10.6% margin), 15.1% gross margin.
- **Backlog Strength**: 2,750 units ($222M) with 15-20% market share in new builds.
- **Tank Car Growth**: 2026 retrofit deliveries and 2027+ new tank car production pipeline.
- **2026 Industry Recovery**: Expected 40,000-unit run rate, driven by replacement cycle gap closure.
- **Cash Position**: $62.7M cash, no debt; 2025 free cash flow on track to be positive.

**【CEO Opening Remarks】**
- Q3 2025 revenue grew 42% YoY to $160.5M, driven by higher production and deliveries (1,304 railcars vs. 961 in Q3 2024).
- Record adjusted EBITDA of $17M (10.6% margin), highest since Mexico relocation.
- Gross margin improved to 15.1% vs. 14.3% prior year, aided by specialty cars and conversions.
- Castanos facility efficiency gains: safety, quality, throughput improvements.
- TruTrack digital process enhances traceability, on-time deliveries, and quality.
- Backlog of 2,750 units ($222M) reflects diversified demand across conversions, new builds, and aftermarket.
- 20%+ addressable market share for new car orders, 15% of total market.

**【CFO Financial Highlights】**
- Q3 GAAP revenue: $160.5M; gross profit: $24.2M (15.1% margin).
- SG&A: $9.6M (+28% YoY), but 50bps better as % of revenue due scale.
- Operating cash flow: $3.4M; adjusted cash flow: $2.2M (vs. $1.0M prior year).
- Cash balance: $62.7M; no debt; 2025 CapEx now $4-5M vs. prior $9-10M guidance.
- 2025 EBITDA guidance reaffirmed; revenue revised down to $500-530M due mix shift to lower-margin conversions.

**【CCO Market & Order Update】**
- Q3 orders: 430 railcars, maintaining 15-20% market share in new builds.
- Conversion and retrofit capabilities drive 56% EBITDA growth vs. prior year.
- 2026 inquiry momentum strong across chemical, agricultural, and industrial sectors.
- Aftermarket coal car repair demand sustained by aging fleet and coal power plant extensions.

**【Q&A Key Themes】**
- **Tank Car Conversion Readiness**: AAR certifications complete; 2026 deliveries expected. Retrofit program positions for new tank car production post-2027.
- **2026 Industry Recovery**: 40,000-unit run rate expected, with order placement likely back-half loaded.
- **Q4 Margin Outlook**: 8% EBITDA margin due annual plant shutdown and higher commoditized car mix.
- **Government Shutdown Impact**: Minimal disruption to operations or supply chain.
- **Free Cash Flow**: On track for positive 2025, with $17M EBITDA and $3.4M operating cash flow in Q3.


FreightCar America, Inc. (RAIL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RAIL

RAIL fundamentals

You can ask Aime