Greenbrier Achieves ‘Strong Financial Performance’ in 3Q25
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.
“Our aggregate gross margin percent continues to surpass our mid-teens long-term target,” Tekorius continued on July 1. “These results reflect our continued progress on operational initiatives across the business, including footprint optimization in Europe, insourcing expansion in Mexico, and disciplined execution in our Leasing & Fleet Management segment, which is steadily building recurring revenue.”
Following are highlights of Greenbrier’s third fiscal quarter 2025:
- Net earnings attributable to Greenbrier of $60 million, or $1.86 per diluted share, on revenue of $843 million.
- Aggregate gross margin of 18%; Seventh consecutive quarter meeting or exceeding mid-teens gross margin goal.
- Operating margin of $93 million or 11% of revenue.
- EBITDA of $129 million, or 15% of revenue.
- Operating cash flow of nearly $140 million reflecting increased earnings and working capital efficiencies.
- Strong lease fleet utilization of 98%.
- New railcar orders for 3,900 units valued at more than $500 million and deliveries of 5,600 units, resulting in a new railcar backlog of 18,900 units with an estimated value of $2.5 billion.
- During the quarter, renewed and extended $850 million of bank facilities into 2030.
- Repurchased 507 thousand shares for nearly $22 million in the quarter. $78 million remaining under current share repurchase program.
- Closed one manufacturing facility in our European joint venture as announced in Q2. Upon completion of plant closure and consolidation activities, annual savings of at least $10 million are expected.
- Board approves quarterly dividend of $0.32 per share, payable on August 7, 2025, to shareholders of record as of July 17, 2025, representing Greenbrier’s 45th consecutive quarterly dividend.
- Subsequent to quarter end, Greenbrier added two new independent directors with more than 50 years of combined rail industry operations experience.
“In a dynamic trade and economic environment, our focus on efficiency, agility, and strategic investment is yielding positive results. The renewal and extension of two key North American credit facilities during the quarter further strengthened our balance sheet and enhanced financial flexibility. As a market leader with a healthy backlog, refreshed liquidity, and consistent margin performance, Greenbrier is well-positioned to deliver resilient results and long-term shareholder value,” Tekorius concluded.
2025 Outlook
Based on current trends and production schedules, Greenbrier is updating its guidance for fiscal 2025:
