Through its wholly owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars in North America, Europe and Brazil. It also provides freight railcar wheel services, parts, maintenance and retrofitting services in North America; owns a lease fleet of approximately 14,600 railcars that originate primarily from Greenbrier’s manufacturing operations; and offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America.
“Greenbrier continued positive momentum in the fourth quarter of fiscal 2024,” Tekorius continued on July 8.
Following are highlights of Greenbrier’s third fiscal quarter 2024:
- Grew lease fleet by 600 units to 15,200 units with lease fleet utilization of nearly 99%.
- Generated Operating cash flow of $84 million.
- Diverse new railcar orders for 6,300 units valued at $830 million and delivered 5,400 units, resulting in new railcar backlog of 29,400 units with an estimated value of $3.7 billion.
- Net earnings attributable to Greenbrier for the quarter were $34 million, or $1.06 per diluted share, on revenue of $820 million.
- EBITDA for the quarter of $104 million, reached its highest level in over 4.5 years, equaling 13% of revenue.
- Board declared a quarterly dividend of $0.30 per share, payable on August 13, 2024 to shareholders of record as of July 23, 2024, representing Greenbrier’s 41st consecutive quarterly dividend.
“Results reflect our continued focus on efficiencies gained over the last several quarters and execution by the team that extends across the full reach of Greenbrier’s business, Tekorius summed up on July 8. “Our outlook is optimistic as we expect revenues to grow based on the pace of our delivery schedule. Greenbrier’s leading market position, robust new railcar backlog and a steadily growing recurring revenue stream from the leasing business provide a strong foundation for the future. We continue to create long-term shareholder value across varying market conditions.”
2024 Outlook
Based on current trends and production schedules, Greenbrier said it is updating guidance for fiscal 2024:
- Deliveries of 23,500-24,000 units, including approximately 1,400 units in Brazil.
- Revenue of $3.5-$3.6 billion.
- Consolidated gross margin percentage increased to the mid-teens.
- Capital expenditures of approximately $150 million in Manufacturing and $15 million in Maintenance Services.
- Gross leasing investment of approximately $340 million in Leasing & Management Services, which includes 2024 capital expenditures and transfers of railcars into the lease fleet that were manufactured and subsequently held on the balance sheet in 2023.
- Proceeds from equipment sales are expected to be approximately $75 million.
More earnings report details can be found on the Greenbrier website.
