Core Insights - The Greenbrier Companies, Inc. (NYSE:GBX) is identified as a strong dividend stock, with a current average price target suggesting an 11% downside, while the highest target indicates a potential 13% upside [1][2] - Goldman Sachs previously assigned a Sell rating with a price target of $38 on GBX [1] - The company reported net earnings of $37 million for the fourth quarter of fiscal 2025, translating to $1.16 per diluted share [2] - Lease fleet growth for GBX was approximately 10%, equating to 17,000 units, with a high utilization rate of 98% [2] - GBX secured 2,400 new railcar orders valued at over $300 million and completed deliveries of 4,900 units, resulting in a backlog of 16,600 railcars worth nearly $2.2 billion [3] - The company repurchased 10,000 shares for $470,000 in the fourth quarter [3] - GBX made its 46th quarterly dividend payout of $0.32 per share on December 3, 2025 [3] - The company designs and builds freight railcars across North America, Europe, and South America for various transportation entities [4]

PresentationOkay. Awesome. It's good to get started here. We have Greenbrier to kick off the railcar manufacturing and leasing portion of the Industrials Conference this year. My name is Andrzej Tomczyk, and I'm pleased to introduce CEO, Lorie Tekorius; CFO, Michael Donfris; as well as Justin Roberts, VP of Financial Operations. Thanks for being here.Maybe just to kick off before we get too much into Q&A, are you guys able to provide an overview of Greenbrier to the audience? And maybe just for those less f ...

Summary of The Greenbrier Companies Conference Call Company Overview - **Company**: The Greenbrier Companies (NYSE:GBX) - **Industry**: Railcar manufacturing and leasing - **Geographical Focus**: North America, Europe, Brazil - **Manufacturing Facilities**: Arkansas, Mexico, Poland, Romania, Brazil - **Business Strategy**: Focus on manufacturing excellence and growth of leasing fleet to generate recurring revenue [4][5][10] Key Points Business Model and Strategy - Greenbrier manufactures freight railcars and has a leasing fleet of 17,000 cars, aiming to double recurring revenue over five years [4][6] - The company emphasizes disciplined growth in its leasing fleet, targeting a composition similar to the broader North American fleet of 1.6 million railcars, excluding coal [6][10] - The leasing strategy is seen as a way to provide predictability and steady cash flow, which is favored by investors [5][13] Financial Performance - The company has invested approximately $300 million annually into its leasing fleet, translating to about 2,000 railcars per year [6][9] - Aggregate gross margins were reported at 19% for FY25, above the mid-teens target, with expectations of moderation in FY26 [15][22] - A $100 million share repurchase program was approved, with $78 million remaining for the current fiscal year [12] Market Dynamics - The company is experiencing increased costs due to tariffs on steel, which have raised the price of new railcars [30] - Demand for leasing is expected to rise as new car prices increase, making leasing a more attractive option for customers [32] - The backlog of orders is currently just under 17,000 cars, with a target of around 20,000 being considered normal [33][34] Regional Insights - **Brazil**: The government is promoting a shift from highway to rail transport, which is expected to drive demand for railcars. Greenbrier has gained market share due to improved efficiency in production [35][36] - **Europe**: The market has faced challenges due to economic and geopolitical uncertainties, but there are signs of recovery, particularly in military logistics [40][41] Operational Improvements - The company has implemented insourcing initiatives to reduce costs and improve efficiency, particularly in its North American operations [16][19] - Fixed costs have been reduced through footprint optimization, with a focus on maintaining production capacity while lowering overhead [21][22] Industry Trends - Specialty railcars, particularly tank cars, are performing well, while more commoditized cars face pressure [48] - The potential for rail mergers could lead to increased efficiency, which may impact the demand for railcars, but overall, it is expected to benefit the industry [52][54] Conclusion - Greenbrier is positioned for growth through its leasing strategy and operational efficiencies, with a focus on maintaining strong financial performance despite market challenges. The company remains optimistic about future demand, particularly in Brazil and specialty railcars [55]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating The Greenbrier Companies, Inc. to determine if its directors breached fiduciary duties related to recent corporate actions [1] Group 1: Investigation Details - The investigation is on behalf of shareholders of The Greenbrier Companies, Inc. [1] - Shareholders interested in their rights and options are encouraged to visit the law firm's website for more information [1] Group 2: Law Firm Background - Purcell & Lefkowitz LLP specializes in representing shareholders affected by securities fraud, breaches of fiduciary duty, and corporate misconduct [1] - The firm offers consultations at no cost or obligation to potential clients [1]

Summary of Greenbrier Companies FY Conference Call Company Overview - **Company**: Greenbrier Companies (NYSE: GBX) - **Industry**: Railcar manufacturing and leasing - **Business Segments**: - Freight car manufacturing - Railcar maintenance services - Leasing and fleet management - Wheels and parts business - **Strategic Focus**: Growth in recurring revenue, improvement in gross margins, and return on invested capital [4][5][6] Financial Performance - **Revenue**: Exited the year with approximately $3.2 billion in revenue, marking a record year for earnings per share and EBITDA [6][7] - **Leasing Revenue**: Achieved $170 million in leasing revenue, with a target to double this amount [5] - **Gross Margin**: Achieved an aggregate gross margin of just under 19% in Q4, with a target in the mid-teens [5] - **Return on Invested Capital**: Exited the year at just under 12%, within the target range of 10%-14% [6] Strategic Changes and Initiatives - **Leasing Strategy**: Transitioned to bundling leases into the balance sheet, allowing for better management of railcar leases and reducing volatility [10][11] - **Manufacturing Efficiency**: Increased in-house manufacturing to improve margins and reduce reliance on outsourced manufacturing [12] - **Facility Rationalization**: Conducted facility rationalization in Europe to optimize capacity and improve margins [13] - **Recurring Revenue Growth**: Focused on growing the leasing business as a stable revenue source, which is less cyclical [15][41] Market Dynamics and Demand Outlook - **2025 Market Conditions**: Experienced a weaker demand environment, attributed to uncertainty in the market and rising steel prices impacting customer orders [16][17] - **2026 Demand Forecast**: Anticipated replacement demand for railcars in North America is estimated between 35,000 and 45,000 units annually, with current projections falling below replacement levels [25][26] - **Customer Sentiment**: Customers are beginning to move forward with orders after a period of hesitation due to market uncertainties [20][21] Leasing Fleet and Growth Strategy - **Current Lease Fleet**: Approximately 17,000 cars in the lease fleet, with plans for growth [34] - **Recurring Revenue Growth**: Leasing revenue has grown by 50% over two years, with opportunities in both originating leases and participating in the secondary market [41][44] - **Syndication Strategy**: Bundling leases as financial instruments to sell to institutions, providing additional revenue streams [45][46] Capital Allocation and Financial Strategy - **Investment in Lease Fleet**: Guided to invest up to $300 million annually in the lease fleet, balancing this with other capital priorities [56][68] - **Debt Structure**: Maintains a mix of recourse and non-recourse debt, with a focus on leveraging non-recourse debt for leasing operations [10][72] - **Shareholder Returns**: Committed to dividends and share buybacks, with a board-approved $100 million for buybacks [69] Industry Context and Future Outlook - **Consolidation Trends**: Observed consolidation in the leasing industry, with more railcars being owned by lessors, indicating potential growth opportunities [40][41] - **Investor Perception**: Emphasized the importance of understanding the company's transition and growth in leasing, which has led to improved profitability [72][74] Key Takeaways - Greenbrier is positioned for growth in the railcar leasing market, with a strong focus on recurring revenue and operational efficiency - The company has successfully navigated recent market challenges and is optimistic about future demand and profitability - Strategic investments in the leasing fleet and manufacturing capabilities are expected to drive long-term value for shareholders [5][6][7][72]

Core Insights - Greenbrier Companies, Inc. will present at the 2025 Stephens Annual Investment Conference on November 19, 2025, in Nashville, Tennessee [1] - The presentation will be available via a live audio webcast starting at 1:00 pm CT on the same day [2] - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, focusing on freight railcars and related services [3] Company Overview - Greenbrier is headquartered in Lake Oswego, Oregon, and operates in North America, Europe, and Brazil [3] - The company designs, builds, and markets freight railcars and provides wheel services, parts, maintenance, and retrofitting services primarily in North America [3] - Greenbrier owns a lease fleet of approximately 17,000 railcars, mainly from its manufacturing operations, and offers railcar management and regulatory compliance services [3] Financial Information - Greenbrier has declared a quarterly cash dividend of $0.32 per share, payable on December 3, 2025 [5]

Core Viewpoint - Greenbrier (GBX) is positioned as a strong long-term buy and hold investment due to its internal performance and favorable external factors impacting its outlook [1] Group 1: Internal Performance - The company's internal results indicate a healthy overall situation, suggesting robust operational efficiency and financial stability [1] Group 2: External Factors - External factors are contributing positively to the company's outlook, enhancing its attractiveness as an investment opportunity [1]

Financial Data and Key Metrics Changes - Greenbrier achieved record full-year diluted earnings per share and record core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow [4][16] - The company reported a return on invested capital of nearly 11%, within its long-term target range [4][17] - Fourth quarter revenue was nearly $760 million, with an operating income of $72 million, representing nearly 10% of revenue [16][17] - Core diluted earnings per share for the quarter was $1.26, and core EBITDA was $115 million, or 15% of revenue [17] Business Line Data and Key Metrics Changes - The leasing and fleet management business saw recurring revenue reach nearly $170 million, representing almost 50% growth from $113 million over two years [12][13] - The lease fleet grew by about 10% in fiscal 2025 to just over 17,000 units, with high fleet utilization at 98% [13] - New railcar orders in Q4 totaled approximately 2,400 units valued at over $300 million, bringing full-year orders to more than 13,000 units [10][11] Market Data and Key Metrics Changes - The backlog at the end of the year stood at 16,600 units valued at $2.2 billion, reflecting a healthy mix of product types and customers [11] - In North America, freight trends and tariff dynamics are moderating new railcar demand, leading many fleet owners to extend acquisition timelines [11] Company Strategy and Development Direction - Greenbrier is focused on operational excellence, innovation, and responsible growth, with a goal to double recurring revenues by fiscal 2028 [7][9] - The company is undergoing footprint rationalization in Europe, expecting annualized savings of $20 million from the closure of two additional facilities [7][20] - The integration of manufacturing and leasing is a defining feature of Greenbrier's model, providing stability and efficiency [8][14] Management's Comments on Operating Environment and Future Outlook - Management views the current market conditions as an opportunity to enhance production efficiency and reduce costs [10][11] - The company anticipates a stronger back half of fiscal 2026, driven by backlog orders and customer needs [41][50] - Management expressed confidence in the company's ability to generate cash flow and shareholder value for years to come [9][20] Other Important Information - Greenbrier's liquidity level was the highest in 10 quarters at over $800 million, consisting of more than $305 million in cash and almost $500 million in available borrowing capacity [17][18] - The board declared a dividend of $0.32 per share, marking the 46th consecutive quarterly dividend [18][19] Q&A Session Summary Question: Outlook on new railcar deliveries - Management indicated that they believe they are at the low point of the cycle and expect inquiries to increase, forecasting a production ramp-up in the back half of the year [24][25] Question: Impact of tariffs and cost inputs - Management stated that they are well-protected in their contracts regarding tariffs and can pivot if necessary [31] Question: Details on European facility closures - Management confirmed that they will be down to three facilities in Europe, maintaining the same production capacity [32][36] Question: First quarter outlook - Management is not inclined to provide quarterly guidance but expects stronger performance in the back half of the year [41][42] Question: Competitive landscape in new car builds - Management noted mixed pricing pressures, with more commoditized markets facing pricing pressure while specialty cars maintain discipline [63]

Financial Data and Key Metrics Changes - Greenbrier achieved record full-year diluted earnings per share and record core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow [4][16] - Operating income for Q4 was $72 million, representing nearly 10% of revenue, with core diluted earnings per share at $1.26 and core EBITDA at $115 million, or 15% of revenue [17] - The company generated nearly $98 million in operating cash flow for Q4, marking the highest liquidity level in 10 quarters at over $800 million [18] Business Line Data and Key Metrics Changes - The leasing and fleet management business saw recurring revenue reach nearly $170 million, representing almost 50% growth from $113 million two years ago [12] - The lease fleet grew by about 10% in Fiscal 2025 to just over 17,000 units, with high fleet utilization at 98% [13] Market Data and Key Metrics Changes - In Q4, Greenbrier received approximately 2,400 new railcar orders valued at over $300 million, bringing full-year orders to more than 13,000 units and closing the year with a backlog of 16,600 units valued at $2.2 billion [10][11] - The company noted that freight trends and tariff dynamics in North America are moderating new railcar demand, leading many fleet owners to extend acquisition timelines [11] Company Strategy and Development Direction - Greenbrier is focused on operational excellence, innovation, and responsible growth, with a goal to double recurring revenues by Fiscal 2028 [7][9] - The company is undergoing footprint rationalization in Europe, expecting annualized savings of $20 million while maintaining production capacity [7][32] - The integration of manufacturing and leasing is a key feature of Greenbrier's model, providing stability and efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management views the current market conditions as an opportunity to enhance production efficiency and cost reduction initiatives [10] - The company anticipates a stronger back half of Fiscal 2026, driven by backlog orders and customer needs [41] Other Important Information - Greenbrier's capital allocation framework remains focused and disciplined, with a commitment to returning capital to shareholders through dividends and stock buybacks [18][19] - The company declared a dividend of $0.32 per share, marking its 46th consecutive quarterly dividend [18] Q&A Session Summary Question: Outlook on new railcar deliveries - Management indicated that they believe they are at the low point of the cycle and expect inquiries to increase, forecasting a production ramp-up in the latter half of the year [24][25] Question: Impact of tariffs and cost inputs - Management stated that they are well-protected in their contracts regarding tariffs and have the ability to pivot if necessary [31] Question: Details on European facility closures - The company will be down to three facilities in Europe, maintaining the same production capacity while reducing overhead [32][36] Question: First quarter outlook - Management is not inclined to provide quarterly guidance but expects a stronger back half of the year compared to the first half [41] Question: Balance sheet and leasing business funding - Management confirmed a consistent strategy of adding about $300 million net each year to the lease fleet, with a robust secondary market for leasing [56]

Financial Data and Key Metrics Changes - Greenbrier achieved record full-year diluted earnings per share and record core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow [4][10] - Core diluted earnings per share for Q4 was $1.26, with core EBITDA at $115 million, representing 15% of revenue [17] - Operating income for Q4 was $72 million, nearly 10% of revenue, with an effective tax rate of 36.4% [17] - Return on invested capital was nearly 11%, within the long-term target range of 10% to 14% [17] Business Line Data and Key Metrics Changes - The leasing and fleet management business saw recurring revenue reach nearly $170 million, a 50% increase from $113 million two years ago [12] - The lease fleet grew by about 10% in Fiscal 2025 to just over 17,000 units, with high utilization rates at 98% [12] - New railcar orders in Q4 totaled approximately 2,400 units valued at over $300 million, bringing full-year orders to more than 13,000 units [10] Market Data and Key Metrics Changes - The backlog at the end of the year stood at 16,600 units valued at $2.2 billion, reflecting a healthy mix of product types and customers [11] - In North America, freight trends and tariff dynamics are moderating new railcar demand, leading fleet owners to extend acquisition timelines [11] Company Strategy and Development Direction - Greenbrier is focused on operational excellence, innovation, and responsible growth, with a goal of doubling recurring revenues by Fiscal 2028 [7][9] - The company is undergoing footprint rationalization in Europe, expecting annualized savings of $20 million without impacting production capacity [6][12] - The integration of manufacturing and leasing is a key feature of Greenbrier's model, providing stability and efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management views the current market conditions as an opportunity to enhance production efficiency and reduce costs [10] - The company anticipates a stronger second half of Fiscal 2026, driven by backlog orders and customer needs [41] - Management expressed confidence in the near-term performance and long-term outlook, emphasizing the resilience of the business model [15] Other Important Information - Greenbrier's liquidity level was over $800 million, the highest in 10 quarters, with more than $305 million in cash [17] - The board declared a dividend of $0.32 per share, marking the 46th consecutive quarterly dividend [18] - Capital expenditures for Fiscal 2026 are expected to be approximately $80 million for manufacturing and roughly $240 million for leasing and fleet management [20] Q&A Session Summary Question: Outlook on car builds and market conditions - Management believes they are at the low point of the cycle, with inquiries increasing and a forecast for production ramp-up in the latter half of the year [24][25] Question: Impact of changes in Mexico - The insourcing project in Mexico has been completed, providing benefits to financial results and manufacturing margins [28][29] Question: Facility rationalization in Europe - Greenbrier will consolidate production into fewer facilities while maintaining the same production capacity [32][36] Question: First quarter outlook - Management expects Q1 and Q2 of Fiscal 2026 to have similar production rates as Q4 of Fiscal 2025, with a ramp-up anticipated in the second half [41][47] Question: Balance sheet and leasing business funding - The strategy remains to add about $300 million net each year to the lease fleet, with a robust secondary market for opportunities [54][55] Question: Competitive landscape in new car builds - Pricing pressure exists in commoditized markets, while specialty cars maintain good discipline in pricing [62]