Record EBITDA and strong…

• Quarterly EBITDA: $159 million, the second highest amount in company history.

• Total gross margin: 18.2% in the fourth quarter, 15.8% for the full fiscal year 2024.

• Operating cash flow: $192 million for the quarter, $330 million for fiscal 2024.

• Liquidity: Improved to $698 million in the fourth quarter, consisting of $352 million of cash and $346 million of available credit capacity.

• Leasing fleet growth: Increase of 300 units in the quarter with a stable fleet utilization of around 99%.

• Orders for new railcars: 4,400 units worth $575 million in the quarter.

• Residue: 26,700 units worth $3.4 billion.

• Wagon deliveries: 7,000 units in the fourth quarter, compared to 5,400 in the previous quarter.

• Gross margin in manufacturing: 14.8% in the fourth quarter, the highest in over 6 years.

• Sales forecast for the 2025 financial year: $3.35 billion to $3.65 billion.

• Forecast for the delivery of new railcars in the 2025 financial year: 22,500 to 25,000 units.

• Aggregate gross margin forecast for fiscal year 2025: 16% to 16.5%.

• Operating margin forecast for fiscal year 2025: 9.2% to 9.7%.

• Capital expenditure for fiscal year 2025: $110 million for manufacturing, $10 million for maintenance services.

Release date: October 23, 2024

For the full transcript of the conference call, please see the full conference call minutes.

• Greenbrier Companies Inc (NYSE:GBX) achieved its second-highest quarterly EBITDA of $159 million as gross margin increased to 18.2%.

• The company has successfully increased recurring revenue from leasing activities by 25% and is on track to double this within the next four years.

• Greenbrier Companies Inc (NYSE:GBX) has a strong backlog worth $3.4 billion, providing significant revenue visibility.

• The company has improved operational efficiency and is advancing key initiatives such as insourcing and leasing fleet expansion.

• Greenbrier Companies Inc (NYSE:GBX) generated operating cash flow of $192 million in the quarter and $330 million in fiscal 2024, indicating strong liquidity and financial health.

• The North American railcar market is experiencing a supply-driven replacement market, which may result in more stable, but potentially lower, demand over time.

• Only 10% of leases are up for renewal in fiscal year 2025, which could limit opportunities for rent increases.

• The company faces the challenge of maintaining its manufacturing leadership position across all regions in the face of changing market conditions.

• Greenbrier Companies Inc (NYSE:GBX) must continue to work on initiatives to maintain efficiencies and complete in-sourcing projects.

• The market’s move away from long-term speculative orders from leasing companies could impact future demand dynamics.

The story continues