Revenue Performance - Revenue for the three months ended February 28, 2025, was $762.1 million, a decrease of 11.6% compared to $862.7 million for the same period in 2024[17]. - Revenue for the six months ended February 28, 2025 decreased by 2.0% to $1,638.0 million, primarily due to a $30.4 million reduction in railcar maintenance services revenue[134]. - Manufacturing segment revenue decreased by $110.7 million or 13.6%, totaling $700.3 million for the three months ended February 28, 2025, primarily due to a 5.7% decrease in railcar deliveries[107]. - Leasing & Fleet Management segment revenue increased by $10.1 million or 19.5%, reaching $61.8 million for the three months ended February 28, 2025, driven by higher rents and improved lease rates[115]. - Manufacturing revenue for the six months ended February 28, 2025, was $1,520.7 million, down 3.2% from $1,570.7 million in the same period of 2024[17]. Earnings and Profitability - Net earnings attributable to Greenbrier for the three months ended February 28, 2025, were $51.9 million, up 55.1% from $33.4 million in the prior year[17]. - Basic earnings per common share increased to $1.66 for the three months ended February 28, 2025, compared to $1.08 for the same period in 2024, representing a 53.7% increase[17]. - Net earnings for the six months ended February 28, 2025, were $105.3 million, compared to $66.8 million for the same period in 2024, representing a 57.5% increase[21]. - Earnings from operations for the six months ended February 28, 2025, were $195.4 million, up from $128.4 million for the same period in 2024, representing an increase of approximately 52.2%[73]. - The company reported a margin of $138.6 million for the three months ended February 28, 2025, compared to $122.2 million in the prior year, indicating a margin increase of 13.1%[17]. Assets and Equity - Total assets as of February 28, 2025, were $4,267.0 million, slightly up from $4,254.5 million as of August 31, 2024[16]. - Total equity increased to $1,620.5 million as of February 28, 2025, compared to $1,536.6 million as of August 31, 2024, marking a growth of 5.5%[16]. - Total equity attributable to Greenbrier increased to $1,460.2 million as of February 28, 2025, up from $1,299.9 million as of February 29, 2024, reflecting a growth of 12.4%[20]. - The company's accounts receivable increased to $535.4 million as of February 28, 2025, from $523.8 million as of August 31, 2024, showing a growth of 2.9%[16]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $263.5 million from $351.8 million as of August 31, 2024, reflecting a decline of 25.0%[16]. - Cash flows from operating activities provided $28.5 million, a decrease from $54.4 million in the prior year[21]. - Capital expenditures for the six months ended February 28, 2025, were $126.4 million, down from $190.5 million in the prior year[21]. - The net cash used in investing activities was $65.0 million, a decrease from $163.1 million in the prior year[21]. Segment Performance - The Company operates in two reportable segments: Manufacturing and Leasing & Fleet Management, with segment results recast to reflect the new reportable segments effective September 1, 2024[70]. - The Manufacturing segment generated revenue of $1,520.7 million for the six months ended February 28, 2025, compared to $1,570.7 million for the same period in 2024, a decrease of about 3.2%[73]. - The Leasing & Fleet Management segment reported revenue of $117.3 million for the six months ended February 28, 2025, compared to $100.8 million for the same period in 2024, an increase of approximately 16.5%[73]. Debt and Financing - As of February 28, 2025, the Company had $1.3 billion in senior secured credit facilities, with $488.0 million available to draw down[39]. - The company has effectively converted $701.9 million of variable rate debt to fixed rate debt as of February 28, 2025[180]. - As of February 28, 2025, 87% of the company's outstanding debt had fixed rates, while 13% remained at variable rates[196]. - 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[181]. Other Financial Metrics - The Company declared cash dividends of $19.8 million during the six months ended February 28, 2025, compared to $19.7 million in the same period of 2024[21]. - The accumulated other comprehensive loss (AOCL) balance as of February 28, 2025, was $(40.8) million, compared to $(34.0) million as of August 31, 2024[50]. - Interest and foreign exchange expenses decreased by $2.7 million to $45.1 million for the six months ended February 28, 2025, due to higher interest income, despite a $2.6 million increase in foreign exchange losses[152]. Operational Changes and Future Outlook - The Company combined the former Maintenance Services and Manufacturing segments into a single reportable segment, Manufacturing, effective September 1, 2024[25]. - The Company is consolidating its European operations and has approved the closure of a manufacturing facility in Romania, expected to be completed in 2025[95]. - The railcar backlog was 20,400 units with an estimated value of $2.6 billion as of February 28, 2025, with deliveries extending into 2026 and beyond[93].

Group 1 - The Greenbrier Companies, Inc. (NYSE: GBX) stock has been a long-term position for the company, initially purchased in the $26-$28 range and later rising to over $50 [1] - The company has successfully navigated the current market selloff, providing high-conviction picks and strategies to help members hedge their investments [1] - The company emphasizes a blended trading and income approach to enhance savings and retirement timelines, encouraging timely action for potential investors [1] Group 2 - A money-back guarantee is offered to ensure satisfaction with the investment ideas provided by the company, highlighting a commitment to client success [2]

Financial Data and Key Metrics Changes - Core net earnings for Q2 2025 reached $56 million or $1.73 per share, higher sequentially than Q1 despite $100 million less in revenue, reflecting improved operating efficiency with an aggregate gross margin of 18.2% [9][10][35] - Revenue for the quarter was $762 million, aligning with expectations, while operating income was nearly $84 million, representing 11% of revenue [36][38] - Core EBITDA was $124 million or 16.3% of revenue, with a return on invested capital (ROIC) of 12.4%, marking a 120 basis point sequential increase [39][40] Business Line Data and Key Metrics Changes - The company delivered 5,500 new railcars in Q2 with a manufacturing gross margin of 13.6%, reflecting a sequential decrease due to production changes and facility closures in Europe [21][36] - Recurring revenue reached $157 million over the last four quarters, representing a 39% growth from two years ago, with strong lease renewals and rate increases [23] - The leasing fleet size remained effectively unchanged from the prior quarter, with over 10% of leases up for renewal, successfully renewing more than half in the first two quarters [22][24] Market Data and Key Metrics Changes - The global backlog remains robust at over 20,000 units, valued at approximately $2.6 billion, providing significant revenue visibility [16][28] - In Brazil, demand is increasing as customers finalize infrastructure investments, benefiting from U.S. tariff activity [32] - The average age of the North American railcar fleet is over 20 years, indicating a need for maintenance services and potential demand for new railcars [30] Company Strategy and Development Direction - The company is focused on improving operating efficiency, reducing costs, and creating shareholder value, with a long-term strategy that includes rationalizing production capacity in Europe [8][15] - The insourcing initiatives in Mexico are progressing well, providing benefits across various demand environments [18] - The company plans to invest up to $300 million annually in its lease fleet, maintaining a disciplined approach to growth [23][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a noisy macroeconomic landscape influenced by trade policies and tariffs, but emphasized that their products have not been targeted by tariffs [11][12] - The company expects a slight reduction in aggregate gross margin in the second half of fiscal 2025 but anticipates remaining solidly in the mid-teens [17] - Management remains optimistic about future performance, citing strong leasing fundamentals and a disciplined approach to production and syndication [24][33] Other Important Information - The quarterly dividend was increased by nearly 7% to $0.32 per share, reflecting confidence in the long-term strategy [19][42] - The company has $100 million remaining in its share repurchase authorization, demonstrating a commitment to returning capital to shareholders [43] Q&A Session Summary Question: Can you talk about the downshift in production? - Management clarified that the downshift is due to short-term impacts from European deliveries and adjustments in North America based on customer needs [50][51] Question: Is there any impact on tariffs and leasing rates? - Management confirmed that they do not expect negative tariff implications on pricing and that lease rates remain stable [55][60] Question: How are customers reacting to the syndication channel? - Management indicated that the syndication market remains robust, with strong interest from investors in long-term assets [71][72] Question: Can you discuss the secondary market for lease attached cars? - Management reported that the secondary market is strong, with good renewal interest and no significant degradation in rates [75] Question: Can you elaborate on the CapEx adjustments? - Management explained that the adjustments reflect better visibility into production schedules and syndication, with continued investment in the lease fleet [80][84]

NYSE: GBX 2Q25 Earnings Slides & Supplemental Information InvestorRelations@gbrx.com www.gbrx.com Forward Looking Statements This presentation and the accompanying oral presentation contain forward-looking statements, including statements that are not purely statements of historical fact. The Greenbrier Companies, Inc. (the "Company," "we," "us" or "our") uses words, and variations of words, such as "backlog," "believe," "capacity," "commit," "continue," "drive," "estimate," "expect," "focus," "future," "gr ...

Financial Performance - GAAP diluted EPS for Q2 FY25 was $1.56, including $0.13 per share of European facility rationalization costs, while core diluted EPS was $1.69[3] - Net earnings attributable to Greenbrier reached $52 million on revenue of $762 million, with a gross margin of 18%[3] - Revenue for the three months ended February 28, 2025, was $762.1 million, a decrease of 11.6% compared to $862.7 million for the same period in 2024[14] - Net earnings attributable to Greenbrier for the six months ended February 28, 2025, were $107.2 million, up 66.0% from $64.6 million in the same period of 2024[14] - Basic earnings per common share increased to $1.66 for the three months ended February 28, 2025, compared to $1.08 for the same period in 2024, representing a 53.7% increase[14] - The diluted earnings per share for the three months ended February 28, 2025, was $1.56, compared to $1.72 for the three months ended November 30, 2024[30] - The earnings from operations for fiscal 2024 totaled $324.5 million, with a margin of $558.5 million[22] - The net earnings attributable to Greenbrier for fiscal 2024 were $160.1 million, translating to a basic earnings per share of $5.15[22] Revenue and Orders - New railcar orders totaled 3,100 units valued at nearly $400 million, with deliveries of 5,500 units, resulting in a backlog of 20,400 units worth an estimated $2.6 billion[3] - Deliveries for FY25 are now projected to be between 21,500 and 23,500 units, revised from the initial guidance of 22,500 to 25,000 units[6] - The company delivered a total of 5,500 units in the three months ended February 28, 2025, including 4,700 direct sales and 800 leased railcars for syndication[26] - Total revenue for fiscal 2024 reached $3,544.7 million, with manufacturing contributing $3,312.4 million and leasing & fleet management contributing $232.3 million[22] Guidance and Projections - The updated guidance for FY25 includes revenue expectations of $3.15 billion to $3.35 billion, down from the initial guidance of $3.35 billion to $3.65 billion[6] - Aggregate gross margin percentage for FY25 is updated to a range of 17.0% to 17.5%, up from the initial guidance of 16.0% to 16.5%[6] - The company anticipates continued growth in leasing performance and backlog management, despite potential economic uncertainties[32] Dividends and Shareholder Returns - Greenbrier's board increased the quarterly dividend by 7% to $0.32 per share, marking the 44th consecutive quarterly dividend[3] - Dividends per common share remained stable at $0.30 for both the three months ended February 28, 2025, and February 29, 2024[14] Operational Metrics - The company reported a strong lease fleet utilization rate of 98% and a core EBITDA of nearly $124 million, representing 16% of revenue[3] - Core EBITDA for the three months ended February 28, 2025, was $123.9 million, compared to $145.1 million for the three months ended November 30, 2024[27] - The Leasing & Fleet Management segment reported revenue of $61.8 million for the three months ended February 28, 2025, up 19.6% from $51.7 million in the same period of 2024[14] Debt and Cash Position - Total consolidated debt was $1,756.9 million as of February 28, 2025, down from $1,839.4 million on November 30, 2024[31] - Total Leasing non-recourse debt was $1,011.1 million as of February 28, 2025, compared to $978.7 million in the previous quarter, indicating an increase in leverage[19] - Greenbrier's total cash and cash equivalents and restricted cash at the end of the period was $301.9 million, compared to $272.0 million at the end of the same period in 2024[16] - Net cash provided by operating activities for the six months ended February 28, 2025, was $28.5 million, down from $54.4 million in the same period of 2024[16] Facility and Cost Management - The company plans to close a manufacturing facility in Romania, incurring $6 million in rationalization costs, which includes $2 million in gross margin impact[3] - The effective tax rate for Q2 FY25 decreased to 32.3% from 37.8% in Q1 FY25, attributed to a decrease in discrete items in foreign jurisdictions[8] - The ending backlog as of February 28, 2025, was 20,400 units, down from a beginning backlog of 23,400 units[26] - The Greenbrier Lease Fleet had an ending balance of 16,600 units as of February 28, 2025, a decrease from 16,700 units at the end of the previous quarter[19]

Group 1 - The Greenbrier Companies, Inc. announced its fiscal second quarter 2025 financial results, which will be available through a Form 8-K filing with the SEC and on its investor website [1] - A live audio webcast is scheduled for today at 2:00 p.m. Pacific Time to discuss the financial results [1] Group 2 - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, headquartered in Lake Oswego, Oregon [2] - The company designs, builds, and markets freight railcars in North America, Europe, and Brazil, and is a major provider of freight railcar wheel services, parts, maintenance, and retrofitting services in North America [2] - Greenbrier owns a lease fleet of approximately 16,700 railcars, primarily originating from its manufacturing operations, and offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [2]

Company Overview - Greenbrier Companies is a leading international supplier of equipment and services to global freight transportation markets, headquartered in Lake Oswego, Oregon [2] - The company designs, builds, and markets freight railcars in North America, Europe, and Brazil, and provides freight railcar wheel services, parts, maintenance, and retrofitting services primarily in North America [2] - Greenbrier owns a lease fleet of approximately 16,700 railcars, mainly originating from its manufacturing operations, and offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [2] Financial Performance - Greenbrier announced a quarterly cash dividend of $0.32 per share, which is a 7% increase from the previous dividend of $0.30 per share [1] - This marks Greenbrier's 44th consecutive quarterly dividend, reflecting the company's commitment to returning capital to shareholders [1][2] Strategic Direction - The CEO, Lorie L. Tekorius, emphasized the company's balanced approach to capital allocation and the success of its strategic plan, which is evidenced by the dividend increase [2]

Core Viewpoint - Greenbrier Companies, Inc. (GBX) is set to release its second-quarter fiscal 2025 results on April 7, with expectations of mixed performance influenced by various market factors [1][2]. Financial Performance - GBX has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 31.9% [2]. - The company reported fiscal first-quarter 2025 earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.16, and total revenues of $875.9 million, reflecting a year-over-year increase of 28.3% [6]. Market Influences - Tariff-related uncertainties and supply-chain disruptions are anticipated to negatively impact GBX's second-quarter results, alongside increased operating costs [3]. - Conversely, low fuel costs due to declining oil prices are expected to positively influence the bottom line, as fuel expenses are a significant cost for transportation companies [4]. Industry Context - Crude oil prices are experiencing downward pressure in 2025, attributed to tariff concerns, weakening consumer confidence, and increased production by OPEC+ [5]. - Other transportation companies, such as Delta Air Lines and J.B. Hunt Transport Services, have reported varying earnings results, with Delta benefiting from low fuel costs and strong demand, while J.B. Hunt faced challenges due to lower fuel surcharge revenues [7][9].

Group 1 - The core investment thesis for Greenbrier (NYSE: GBX) highlights favorable external trends and solid internal metrics, indicating the company has transitioned into a growth phase regarding earnings [1] - Despite the positive earnings growth, revenue growth for Greenbrier is described as less impressive, suggesting potential concerns about overall sales performance [1]

Core Viewpoint - Greenbrier Companies (GBX) is currently positioned as a better value opportunity compared to Herc Holdings (HRI) based on various financial metrics and analyst outlooks [1]. Valuation Metrics - GBX has a forward P/E ratio of 10.34, while HRI's forward P/E is 12.95, indicating that GBX is more attractively priced [5]. - The PEG ratio for GBX is 0.88, suggesting it is undervalued relative to its expected earnings growth, whereas HRI has a PEG ratio of 1.01 [5]. - GBX's P/B ratio stands at 1.21, significantly lower than HRI's P/B of 3.76, further supporting GBX's valuation advantage [6]. Analyst Outlook - GBX holds a Zacks Rank of 1 (Strong Buy), reflecting a positive earnings estimate revision trend, while HRI has a Zacks Rank of 5 (Strong Sell), indicating a less favorable outlook [3]. - The strong earnings outlook for GBX, combined with its superior valuation metrics, positions it as the preferred choice for value investors [6].