440k+ Newsrooms & Influencers About Greenbrier 9k+ Digital Media Outlets Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through o ...

Core Viewpoint - The Zacks Transportation - Equipment and Leasing industry is facing a challenging macroeconomic environment characterized by persistent inflation, tariff-related tensions, and supply-chain disruptions, alongside geopolitical issues [1][5]. Industry Overview - The industry encompasses companies that provide equipment financing, leasing, and supply-chain management services, including aircraft, railcar, and intermodal container lessors. It also includes logistics and transportation solutions for a diverse customer base, primarily in automotive, electronics, transportation, grocery, lumber, food service, and home furnishing sectors [3]. Financial Performance and Shareholder Returns - Companies like Wabtec Corporation and Ryder System are noted for their shareholder-friendly initiatives, such as dividend payouts and share buybacks, indicating strong financial health. Ryder recently approved a 12% dividend increase, raising its quarterly cash dividend to 91 cents per share, while Wabtec announced a 25% increase, raising its quarterly cash dividend from 20 cents to 25 cents [2][4]. Economic Challenges - The industry is grappling with ongoing tariff tensions and inflation, which contribute to economic uncertainty and may hinder stock performance. Supply-chain disruptions and rising operating costs are also limiting growth potential [5][6]. Industry Ranking and Performance - The Zacks Transportation - Equipment and Leasing industry holds a Zacks Industry Rank of 75, placing it in the top 31% of over 250 Zacks industries. However, it has underperformed compared to the S&P 500 and the broader sector over the past year, declining 18.4% against the S&P 500's increase of 18.7% [7][9][10]. Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 13.99X, which is lower than the S&P 500's 23.52X and the sector's 13.84X. Historically, the industry has traded between 8.42X and 15.65X over the past five years [13]. Notable Companies to Watch - **Wabtec Corporation**: Focused on technology-based locomotives and services, Wabtec has shown strong earnings performance, with a 17.6% expected earnings growth rate for 2025 [17][19]. - **Ryder System**: A logistics and transportation company with a long history of dividend payments, Ryder has an expected earnings growth rate of 9.3% for 2025 [22][23]. - **The Greenbrier Companies**: Specializing in railroad freight car equipment, Greenbrier has a notable earnings surprise history and an expected earnings growth rate of 33.1% for 2025 [26][28].

Industry Overview - The Zacks Transportation - Equipment and Leasing industry is facing a challenging macroeconomic environment characterized by persistent inflation, tariff-related tensions, and supply-chain disruptions, along with geopolitical issues [1] - The industry has underperformed compared to the Zacks S&P 500 Composite and the broader Zacks Transportation sector, gaining only 1.8% over the past three months, while the S&P 500 increased by 10.1% and the broader sector rose by 3.3% [2] Company Highlights - Companies like The Greenbrier Companies, Ryder Corporation, and Air Lease Corporation are noted for their solid investor-friendly initiatives, including consistent dividend payouts and share buybacks, indicating strong financial health [3][7] - Dividend growth stocks are typically mature companies that provide downside protection against market volatility, supported by strong fundamentals such as sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [4] Stock Selection Criteria - A dividend payout ratio of less than 60% is considered sustainable, indicating a healthy balance between earnings and dividends [8] - A dividend yield greater than 1% is preferred, with selected stocks showing dividend growth over the past five years and carrying a Zacks Rank of 3 (Hold) or better [9] Company Specifics Greenbrier Companies (GBX) - Headquartered in Lake Oswego, OR, Greenbrier has a market capitalization of $1.50 billion and pays a quarterly dividend of $0.32, yielding 2.72% [10] - The company's payout ratio is 18%, with a five-year dividend growth rate of 3.47% [10] - In 2022, Greenbrier paid $35.8 million in dividends and repurchased no shares; in 2023, it paid $36.1 million in dividends and repurchased $56.9 million; in 2024, dividends were $38.4 million with $1.3 million in share repurchases [12] Ryder Corporation (R) - Based in Coral Gables, FL, Ryder has a market capitalization of $7.64 billion and pays a quarterly dividend of $0.91, yielding 1.94% [13] - The payout ratio is 26%, with a five-year dividend growth rate of 9.47% [13] - Ryder returned $123 million in dividends and $557 million in share repurchases in 2022; in 2023, it paid $128 million in dividends and repurchased $337 million; in 2024, it returned $456 million to shareholders [14] Air Lease Corporation (AL) - Headquartered in Los Angeles, CA, Air Lease has a market capitalization of $6.76 billion and pays a quarterly dividend of $0.22, yielding 1.45% [15][16] - The payout ratio is 17%, with a five-year dividend growth rate of 8.34% [16]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage growth companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7][8] Investment Opportunities - Companies such as Precision Drilling (PDS), The Greenbrier Companies, Inc. (GBX), Green Dot (GDOT), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) exhibit low P/S ratios and potential for higher returns [4][10] - Low P/S stocks can reveal hidden strengths when earnings are volatile or growth is in early stages [10] Company Profiles - **Precision Drilling (PDS)**: Focuses on optimizing operational performance in the oil and gas sector, with a positive long-term outlook supported by upcoming LNG facilities and pipeline expansions. Currently holds a Value Score of A and Zacks Rank 1 [12][13] - **The Greenbrier Companies, Inc. (GBX)**: A leading supplier in global freight transportation, benefiting from strong market demand and a profitable leasing business. Holds a Value Score of A and Zacks Rank 2 [14][15] - **Green Dot (GDOT)**: A pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service (BaaS). It has low debt and significant cash reserves, currently holding a Value Score of A and Zacks Rank 1 [16][17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, experiencing strong demand in agriculture. The company is focused on cost-cutting and maintaining a strong operating cost structure, with a Value Score of A and Zacks Rank 1 [18][20] - **PagSeguro Digital (PAGS)**: Offers a range of financial solutions in Brazil, focusing on digital banking and payment services. The company is well-positioned for growth with a disciplined strategy, holding a Value Score of A and Zacks Rank 2 [21][22]

Core Insights - The Greenbrier Companies (GBX) is experiencing strong operational efficiency and shareholder-friendly initiatives, leading to impressive stock performance [1] Earnings Estimates - The Zacks Consensus Estimate for GBX's earnings per share has been revised upward by 28.16% for the current year and by 2.78% for 2026, indicating broker confidence [2] - Estimates for GBX's 2025 earnings have risen by 28%, further reflecting brokers' confidence in growth [7] Price Performance - GBX shares have increased by 3.2% over the past 90 days, outperforming the Zacks Transportation - Equipment and Leasing industry's decline of 0.2% [3][7] Earnings Surprise History - Greenbrier has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in each of the last three quarters with an average surprise of 70% [5] Industry Rank - The industry to which Greenbrier belongs has a Zacks Industry Rank of 51 out of 246, placing it in the top 21% of Zacks Industries, which is crucial for stock performance [6] Growth Factors - Greenbrier's operational efficiency initiatives have led to a strong third quarter with an 18% gross margin and nearly $140 million in operating cash flow, supported by disciplined cost controls and improved working capital [8] - The company has a lease fleet utilization rate of 98% and a railcar backlog of $2.5 billion, positioning it well for future growth [8] Strategic Moves - Greenbrier is closing a European facility, expected to save $10 million annually, and has extended $850 million in credit facilities, enhancing operational efficiency and financial flexibility [9] - The company has repurchased 507,000 shares and is focusing on recurring revenues through its Leasing & Fleet Management segment, signaling confidence in future performance [9]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities for growth at a discount, especially when combined with strong fundamentals and positive business momentum [3][10] - Companies such as Janus Henderson Group plc (JHG), The Greenbrier Companies, Inc. (GBX), Precision Drilling (PDS), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Janus Henderson Group plc (JHG)**: A global asset management firm with a strong balance sheet and positive net inflows, positioned for long-term value creation [13] - **The Greenbrier Companies, Inc. (GBX)**: A leading supplier in freight transportation markets, benefiting from strong market demand and a profitable leasing business [15] - **Precision Drilling (PDS)**: An oilfield services company with a positive outlook supported by U.S. drilling activity and strategic expansions [17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, experiencing strong demand and improving cost structures [20] - **PagSeguro Digital (PAGS)**: A financial services provider in Brazil, enhancing its digital banking platform and focusing on sustainable growth [22]

Group 1 - Greenbrier Companies (GBX) has recently reached a key level of support and has overtaken the 200-day moving average, indicating a long-term bullish trend [1] - GBX shares have increased by 20% over the past four weeks, and the company holds a Zacks Rank 2 (Buy), suggesting potential for continued growth [2] - Positive earnings estimate revisions for GBX further strengthen the bullish outlook, with no estimates decreasing in the past two months and one estimate increasing [3] Group 2 - The 200-day simple moving average is a useful tool for determining long-term market trends and serves as a support or resistance level [2] - The combination of positive earnings estimate revisions and technical indicators positions GBX as a stock to watch for potential gains [3]

Core Insights - Greenbrier Companies (GBX) is experiencing strong operational efficiency and demand, positively impacting its revenue growth [1] - The company has demonstrated robust liquidity, with a current ratio of 1.48, indicating financial flexibility [10] - GBX shares have appreciated significantly, outperforming the industry average [1][3] Financial Performance - The Zacks Consensus Estimate for GBX's earnings per share has been revised upward by 28.2% for the current year and 2.8% for 2026, reflecting broker confidence [2] - GBX's shares have increased by 23% over the past year, while the Zacks Transportation - Equipment and Leasing industry has seen a decline of 9.8% [3] Operational Highlights - In Q3 2025, GBX secured 3,900 new railcar orders valued at $500 million and delivered 5,600 units, showcasing strong market activity [4][8] - The lease fleet utilization rate reached 98%, indicating efficient asset use and robust demand [8] - The backlog stands at 18,900 units, valued at $2.5 billion, providing solid revenue visibility [4][8] Financial Flexibility - GBX renewed and extended $850 million in bank facilities through 2030, enhancing its financial flexibility for long-term growth [9] - The company's strong liquidity position supports its ability to invest in operations and navigate market fluctuations [10] Industry Position - GBX holds a Zacks Rank of 2 (Buy), indicating a favorable outlook within its industry [6] - The industry rank for GBX is 25 out of 246, placing it in the top 10% of Zacks Industries, which is crucial for stock performance [6][7]

Group 1 - Greenbrier Companies (GBX) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2] - The Zacks rating system is beneficial for investors as it focuses on earnings estimate revisions, which are more objective compared to subjective Wall Street analyst ratings [2][5] - The correlation between changes in earnings estimates and stock price movements is strong, largely due to institutional investors using these estimates to determine fair value [3][4] Group 2 - Greenbrier's rising earnings estimates indicate an improvement in its underlying business, which is expected to positively influence its stock price [4][9] - The Zacks Consensus Estimate for Greenbrier is projected at $6.60 per share for the fiscal year ending August 2025, with a notable increase of 11.9% in estimates over the past three months [7] - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, highlighting Greenbrier's strong position in earnings estimate revisions [8][9]

Financial Performance - Revenue for the three months ended May 31, 2025, was $842.7 million, a 2.9% increase from $820.2 million in the same period of 2024[17]. - Net earnings for the three months ended May 31, 2025, were $67.5 million, compared to $40.6 million for the same period in 2024, representing a 66.3% increase[18]. - Basic earnings per common share for the three months ended May 31, 2025, were $1.92, up from $1.09 in the same period of 2024, reflecting a 76.1% increase[17]. - Comprehensive income for the three months ended May 31, 2025, was $78.7 million, compared to $41.5 million for the same period in 2024, representing an increase of 89.5%[18]. - Net earnings for the nine months ended May 31, 2025, were $172.8 million, compared to $107.4 million for the same period in 2024, representing a 60.8% increase[21]. - Earnings from operations for the three months ended May 31, 2025, were $92.6 million, compared to $72.3 million in the same period of 2024, a 28.0% increase[17]. - Earnings from operations for the nine months ended May 31, 2025, were $288.0 million, an increase from $200.7 million in the same period of 2024, representing a growth of approximately 43.5%[73]. - Net earnings attributable to Greenbrier increased by $68.8 million or 69.8% year-over-year, primarily due to higher margins[98]. Assets and Equity - Total assets as of May 31, 2025, were $4,353.2 million, compared to $4,254.5 million as of August 31, 2024, indicating a growth of 2.3%[16]. - Total equity attributable to Greenbrier increased to $1,504.0 million as of May 31, 2025, from $1,376.1 million as of August 31, 2024, marking a 9.3% increase[16]. - The balance of retained earnings as of May 31, 2025, was $1,172.5 million, an increase from $966.9 million as of May 31, 2024[21]. - The company’s total equity attributable to Greenbrier increased to $1,669.8 million as of May 31, 2025, from $1,410.2 million as of May 31, 2024, reflecting a growth of 18.4%[21]. Cash Flow and Capital Expenditures - Cash flows from operating activities provided $167.7 million for the nine months ended May 31, 2025, up from $138.4 million in the prior year[21]. - Capital expenditures for the nine months ended May 31, 2025, were $209.1 million, down from $324.7 million in the same period of 2024, indicating a decrease of 35.6%[21]. - Total cash and cash equivalents and restricted cash at the end of the period was $342.0 million, compared to $291.8 million at the end of May 31, 2024, reflecting an increase of 17.1%[21]. - As of May 31, 2025, cash and cash equivalents were $296.8 million, with available borrowings totaling $472.3 million[180]. Debt and Financing - Senior secured credit facilities totaled $1.3 billion as of May 31, 2025, with $472.3 million available to draw down[40]. - The principal balance of nonrecourse senior term debt was $311.3 million, and asset-backed term notes secured by leased railcars totaled $459.9 million[51]. - The company has $100.0 million authorized for share repurchase, with $78.2 million remaining as of May 31, 2025[213]. - The company was in compliance with all restrictive covenants related to its credit facilities as of May 31, 2025[186]. - The company expects existing funds and cash generated from operations to be sufficient to fund expected debt repayments and working capital needs over the next twelve months[190]. Revenue Segments - Manufacturing revenue for the nine months ended May 31, 2025, was $2,298.9 million, slightly down from $2,325.7 million in the same period of 2024, a decrease of 1.1%[17]. - The Manufacturing segment generated revenue of $2,370.2 million for the nine months ended May 31, 2025, compared to $2,522.6 million in 2024, indicating a decline of about 6.0%[73]. - Leasing & Fleet Management segment revenue increased by $15.8 million or 9.5% to $181.8 million for the nine months ended May 31, 2025, driven by higher rents associated with a larger fleet[150]. - Operating lease rental revenues for the nine months ended May 31, 2025, were $103.1 million, up from $88.5 million in the same period of 2024, marking an increase of approximately 16.0%[74]. Operational Efficiency - Margin percentage improved to 18.7%, a 4.0% increase compared to the same period last year, driven by operating efficiencies in the Manufacturing segment[98]. - The margin percentage for the Manufacturing segment increased by 3.8% to 14.8% for the nine months ended May 31, 2025, compared to 11.0% for the same period in 2024, reflecting improved operational efficiency[145]. - Selling and administrative expenses rose to $192.5 million for the nine months ended May 31, 2025, an increase of 7.4% from $179.2 million in the prior year, mainly due to higher employee-related costs[155]. Shareholder Returns - The company declared cash dividends of $29.7 million for the nine months ended May 31, 2025, compared to $29.1 million in the same period of 2024[21]. - A quarterly dividend of $0.32 per share was declared on June 26, 2025, and the company authorized a share repurchase program of up to $100.0 million[177][178]. Risk Management - The company utilized foreign exchange contracts totaling $141.2 million to hedge against currency risks, with a fair value of $3.2 million recorded as an asset[59]. - Interest rate swap agreements with notional amounts of $694.9 million were in place as of May 31, 2025, with an expected reclassification of approximately $8.6 million to interest expense in the next year[60]. - The company plans to continue utilizing cash flow hedges to manage market risks associated with foreign currency and interest rates[58].