FreightCar America in the second quarter of 2025 reported a 15% gross margin, $17.8 million gross profit, expansion of 250 basis points, operating cash flow of $8.5 million and adjusted free cash flow of $7.9 million, based on “a strong order intake driven by operational flexibility. The company also reaffirmed its full-year 2025 guidance.
2Q25 highlights:
- Revenues of $118.6 million, compared to $147.4 million in 2Q4, with railcar deliveries of 939 units compared to 1,159 units in the prior-year period.
- Gross margin of 15.0% with gross profit of $17.8 million, compared to gross margin of 12.5% with gross profit of $18.4 million in 2Q24.
- Net income of $11.7 million, or $0.34 per share, and adjusted net income of $3.8 million, or $0.11 per share, “reflecting a $51.9 million benefit from a valuation allowance release, partially offset by a $47.6 million non-cash adjustment from the change in warrant liability due to share price appreciation.”
- Adjusted EBITDA was $10.0 million, representing a margin of 8.4%, compared to $12.1 million and a margin of 8.2% in 2Q24
- New orders for 1,226 railcars within the quarter valued at $106.9 million.
- Quarter-end backlog of 3,624 units valued at $316.9 million, up approximately 300 units from 1Q25, r”eflecting strong order activity and healthy demand”
“In the second fiscal quarter, we delivered on our commercial excellence initiatives across the business, supported by strong order intake and healthy customer demand,” said President and CEO Nick Randall. “We increased utilization across our four production lines, delivered improved productivity and benefited from a richer product mix from disciplined pricing. Our ability to remain agile and responsive to customer needs continues to be a key differentiator, particularly in rebuilds and conversions, enabling us to capture meaningful opportunities in a dynamic market. While broader market uncertainty earlier in the year delayed some order activity, we believe the underlying fundamentals point to a meaningful replacement cycle ahead. As that takes shape, our agile manufacturing presence positions us well to capture incremental demand and grow our share. At the same time, we continue to advance our growth strategy by investing in our tank car capabilities, which we expect will strengthen our cost position and support long-term value creation.”
FreightCar America reaffirmed its outlook for Fiscal Year 2025:
“We’re pleased to reaffirm our full-year guidance, supported by strong margin performance and continued commercial execution across the business, with order activity supporting our healthy backlog,” said Chief Financial Officer Mike Riordan. “In addition, this quarter marked our fifth consecutive quarter of positive operating cash flow, reflecting the consistency and sustainability of our cash generation engine. Our focus on working capital discipline and operational efficiency has positioned us well to maintain momentum and invest in growth opportunities as we deliver strong performance in the second half of the year.”
