FreightCar America, Inc. on May 5 reported first-quarter 2025 results that included gross profit up 26% and gross margin expanding 780 basis points. The company generated operating cash flow of $12.8 million and adjusted free cash flow of $12.5 million. For 2025, FreightCar America said that its “strong order intake supports reaffirmed full-year guidance.”
First-Quarter 2025 Highlights:
- Revenues of $96.3 million, “consistent with expectations,” decreased 40.2% from $161.1 million in first-quarter 2024, “with planned railcar deliveries of 710 units compared to 1,223 units in the prior-year period,” according to the designer, producer, and supplier of railroad freight cars, railcar parts and components that also specializes in railcar repairs, complete railcar rebody services, and railcar conversions.
- Gross margin of 14.9% with gross profit of $14.4 million, compared with gross margin of 7.1% with gross profit of $11.4 million in first-quarter 2024.
- Net income of $50.4 million, or $1.52 per share, and adjusted net income of $1.6 million, or $0.05 per share, “primarily reflecting a $52.9 million non-cash adjustment due to change in warrant liability,” according to FreightCar America.
- Adjusted EBITDA of $7.3 million vs. adjusted EBITDA of $6.1 million in first-quarter 2024, up 20.5%.
- Generated Operating Cash Flow of $12.8 million, compared with $25.3 million of cash used in first-quarter 2024, a $38.1 million increase year-over-year.
- Generated Adjusted Free Cash Flow of $12.5 million, compared with $30.5 million of cash used in first-quarter 2024, up $43.0 million year-over-year.
- Ended the quarter with a backlog of 3,337 units valued at $318 million.
“We continued to solidify our position as the fastest-growing railcar manufacturer in North America, driven by strong commercial execution and operational discipline,” President and CEO Nick Randall said. “In line with our expectations for the first quarter, we achieved robust margins, once again outperforming our industry peers, reflecting our commitment to differentiated product offerings and exceptional commercial discipline. Order activity remained strong, with 1,250 railcars ordered during the quarter valued at approximately $141 million, underscoring our ongoing momentum and expanding market share.”
Added FreightCar America Chief Financial Officer Mike Riordan: “We remain in a strong financial position, generating consistent operating and free cash flow, marking our fourth consecutive quarter of positive operating cash flow, while ending the quarter with over $50 million in cash on hand. Our disciplined approach continues to drive margin strength and consistent cash generation, reinforcing our balance sheet and providing significant financial flexibility.”
Fiscal Year 2025 Outlook:
“Looking forward, our healthy backlog and growing inquiry pipeline position us for a meaningful ramp up in deliveries for the remainder of the year,” Randall reported. “While the industry has experienced some delays in order placements, we have continued to capture significant market share through our agility and superior responsiveness to customer needs. We reaffirm our previously announced full-year guidance [see above] and remain confident in our ability to deliver profitable growth and increased market share, further strengthening our long-term competitive position.”
“We are firmly on track to achieve our full year guidance targets and remain committed to sustainable value creation through continued operational efficiency, commercial execution and delivering positive free cash flow for the year,” Riordan noted.
For more financial information, visit the FreightCar America Investor Relations webpage.
Further Reading:
- For FreightCar America, 1,250 Railcars Ordered in 1Q25
- For FreightCar America, ‘Strong Operational Performance’
- High Expectations, Hot Market
- FreightCar America Completes New Term Loan Facility
- FCA Delivers ‘Another Solid Quarter’
