Financial Data and Key Metrics Changes - Net earnings for Q3 2025 were $60.1 million or $1.86 per share, showing an increase both sequentially and year-over-year [4] - Revenue reached $843 million, improving by 11% sequentially [21] - Aggregate gross margin remained robust at 18%, marking the seventh consecutive quarter at or above the mid-teens long-term target [4][22] - Return on invested capital (ROIC) was 12.9%, within the target range of 10% to 14% [23] Business Line Data and Key Metrics Changes - The manufacturing gross margin for Q3 was 13.6%, steady from Q2 [11] - Leasing and Fleet Management achieved nearly $165 million in recurring revenue over the last four quarters, representing nearly 50% growth from two years ago [12] - Fleet utilization remained high at 98%, with modest growth in the leased fleet [12] Market Data and Key Metrics Changes - Greenbrier secured orders for 3,900 new railcars worth over $500 million in the quarter, with a global new railcar backlog of nearly 19,000 units [15][16] - The average age of the North American railcar fleet exceeds 20 years, driving steady growth in the railcar maintenance market [17] - In Europe, railcar orders are driven by necessity, but overall activity is muted until economic conditions improve [18] Company Strategy and Development Direction - The company is focused on doubling recurring revenues by fiscal 2028 and has renewed two bank facilities totaling $850 million [7] - Greenbrier is investing in manufacturing and leasing, with expected investments of around $145 million in manufacturing and $270 million in leasing and fleet management [26] - The company is positioned to navigate various market conditions and capitalize on opportunities as they arise [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong finish to the fiscal year and medium to long-term market conditions [10] - The Senate's passage of a budget bill is expected to energize markets for capital goods like railcars [9] - Management is confident in the ability to manage production rates in response to market demand and backlog visibility [38][40] Other Important Information - The company repurchased approximately $22 million in shares during the quarter, reflecting confidence in its long-term strategy [10][25] - Liquidity reached nearly $770 million, the highest level since 2023, consisting of almost $300 million in cash and over $470 million in available borrowing capacity [23][24] Q&A Session Summary Question: Clarification on interest and FX line items - Management expects interest expense to be in the 22% to 25% range for the quarter, with FX having a significant impact [31][32] Question: Production rates and order levels - Management has been adjusting production rates based on market demand and has a strong backlog of 19,000 cars, indicating optimism for future orders [38][40] Question: Confidence in backlog and order conversion - Management expressed confidence in the commercial team and anticipates that clarity around tariffs and trade policy will lead to increased orders [50][51] Question: Mix of deliveries and leased cars - Management noted that while leased fleet growth has been modest, they are becoming more active in the used car market to balance fleet growth [59]

Financial Data and Key Metrics Changes - Net earnings for Q3 2025 were $60.1 million or $1.86 per share, showing an increase both sequentially and year-over-year [5] - Revenue reached $843 million, improving by 11% sequentially [22] - Aggregate gross margin remained robust at 18%, marking the seventh consecutive quarter at or above the mid-teens long-term target [5][22] - Return on invested capital (ROIC) was 12.9%, within the target range of 10% to 14% [24] Business Line Data and Key Metrics Changes - The company delivered 5,600 new railcars in Q3, with a manufacturing gross margin of 13.6% remaining steady from Q2 [13] - Recurring revenue from leasing and fleet management reached nearly $165 million over the last four quarters, representing nearly 50% growth from two years ago [14] - Fleet utilization remained high at 98%, with modest growth in the leased fleet [14] Market Data and Key Metrics Changes - The global new railcar backlog stood at nearly 19,000 units, providing strong visibility in new railcar markets [18] - In Europe, railcar orders are driven by necessity, but activity is expected to be muted until economic conditions improve [19] - Demand in Brazil is modestly increasing as customers complete infrastructure investments [20] Company Strategy and Development Direction - The company is focused on doubling recurring revenues by fiscal 2028 and has renewed two bank facilities totaling $850 million [8] - Strategic initiatives include European footprint rationalization and North American insourcing projects, expected to yield annual savings of at least $10 million [6][7] - The company aims to maintain a disciplined approach to growing its lease fleet, ensuring predictable revenue and cash flow [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions in the medium to long term, anticipating a strong finish to the fiscal year [12] - The company is well-positioned to navigate various market conditions and capitalize on opportunities as liquidity is at its highest level since 2023 [9][11] - Management noted that the aging North American railcar fleet is a key driver for steady growth in the railcar maintenance market [18] Other Important Information - The company repurchased approximately $22 million of shares during the quarter, reflecting confidence in its long-term strategy [12] - The tax rate for the quarter was 23%, better than expected due to the strengthening Mexican peso [24] - The company updated its guidance, raising aggregate gross margin percent and operating margin percent for the remainder of fiscal 2025 [27] Q&A Session Summary Question: Guidance on interest and FX line items - Management expects interest expense to be in the 22% to 25% range for the quarter, with FX having a significant impact [31][32] Question: Production rates and order levels - Management has been adjusting production rates based on market demand and has a strong backlog of 19,000 cars, indicating future demand [38][40] Question: Confidence in order levels given low backlog - Management expressed confidence in converting demand into orders once trade policies stabilize, with several catalysts expected to drive demand [49][51] Question: Mix of deliveries and leased cars - The company is becoming more active in the used car market to balance its leasing business and is committed to growing the leasing fleet [58]

Financial Performance - Greenbrier's net earnings attributable reached $60 million, or $1.86 per diluted share, with revenue of $843 million[5] - The company achieved an aggregate gross margin of 18%[5] - Greenbrier's EBITDA was $129 million, representing 15% of revenue[5] - Operating cash flow was nearly $140 million[5] Orders and Backlog - New railcar orders totaled 3,900 units, valued at over $500 million[5] - Railcar deliveries amounted to 5,600 units[5] - The new railcar backlog stands at 18,900 units, with an estimated value of $2.5 billion[5] Capital Allocation and Liquidity - Greenbrier renewed and extended $850 million of bank facilities into 2030[5] - The company repurchased 507 thousand shares for nearly $22 million[5] - Available liquidity is approximately $770 million[6] Leasing and Fleet Management - Lease fleet utilization remained strong at 98%[5] - The company has a lease fleet of approximately 16,800 railcars[6, 11] - Recurring revenue grew by 45%[6] Operational Efficiency - Closure of one manufacturing facility in the European joint venture is expected to yield annual savings of at least $10 million[5]

Financial Performance - Net earnings attributable to Greenbrier were $60 million, or $1.86 per diluted share, on revenue of $843 million[3]. - Revenue for the three months ended May 31, 2025, was $842.7 million, a 2% increase from $820.2 million in the same period of 2024[14]. - Net earnings attributable to Greenbrier for the three months ended May 31, 2025, were $60.1 million, up 77% from $33.9 million in the same period of 2024[14]. - Basic earnings per common share increased to $1.92 for the three months ended May 31, 2025, compared to $1.09 for the same period in 2024, representing a 76% increase[14]. - The net earnings attributable to Greenbrier for the fiscal year were $160.1 million, resulting in a diluted earnings per share of $4.96[23]. Revenue and Orders - New railcar orders totaled 3,900 units valued at over $500 million, with a backlog of 18,900 units estimated at $2.5 billion[3]. - The company reported a total backlog of 18,900 units as of May 31, 2025, down from 20,400 units at the beginning of the period[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[23]. Cash Flow and Capital Expenditures - Operating cash flow reached nearly $140 million, reflecting increased earnings and working capital efficiencies[3]. - Cash flows from operating activities for the nine months ended May 31, 2025, were $167.7 million, an increase from $138.4 million in the same period of 2024[15]. - Capital expenditures for manufacturing are updated to $145 million, while net capital expenditures are projected at $340 million[5]. Margins and Earnings - Aggregate gross margin was 18%, marking the seventh consecutive quarter meeting or exceeding the mid-teens gross margin goal[3]. - The company updated its fiscal 2025 guidance, maintaining revenue guidance of $3.15 billion to $3.35 billion and raising aggregate gross margin guidance to 17.7% - 18.3%[5]. - Core EBITDA for the three months ended May 31, 2025, was $128.5 million, compared to $123.9 million for the previous quarter[27]. Leasing and Fleet Management - The lease fleet utilization rate was strong at 98%[3]. - Greenbrier's leasing strategy aims to double recurring revenue from leasing and management fees by investing up to $300 million net annually over the next five years[18]. - The Greenbrier Lease Fleet increased to 16,800 units as of May 31, 2025, up from 16,600 units at the end of February 2025[19]. - Total Leasing non-recourse debt was $1,002.6 million as of May 31, 2025, with a fleet leverage of 77%[19]. - The leasing & fleet management segment generated external revenue of $64.5 million with earnings from operations of $45.3 million for the same period[25]. Dividends and Shareholder Returns - Greenbrier's board approved a quarterly dividend of $0.32 per share, representing the 45th consecutive quarterly dividend[3]. - Dividends per common share increased to $0.32 for the three months ended May 31, 2025, compared to $0.30 in the same period of 2024[14]. - The company maintained a dividend of $0.30 per common share throughout the fiscal year, totaling $1.20 per share[23]. Financial Flexibility and Debt - The company renewed and extended $850 million of bank facilities into 2030, enhancing financial flexibility[3]. - Total consolidated debt as of May 31, 2025, was $1,762.7 million, slightly up from $1,756.9 million at the end of February 2025[31]. - The effective tax rate decreased to 22.8% from 32.3%, attributed to a favorable geographic mix of earnings[7]. Future Outlook - The company anticipates continued growth in leasing performance and backlog orders, despite potential economic uncertainties[32].

Group 1 - Greenbrier Companies, Inc. announced its fiscal third 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, accessible via Greenbrier's Investor Relations website [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 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] Financial Performance - Greenbrier announced a quarterly cash dividend of $0.32 per share, marking its 45th consecutive quarterly dividend [1]

Earnings Results - Greenbrier Companies, Inc. is set to release its third-quarter earnings results on July 1, with analysts expecting earnings of 99 cents per share, a decrease from $1.06 per share in the same period last year [1] - The projected quarterly revenue is $785.72 million, down from $820.2 million a year earlier [1] Board of Directors - On June 23, Greenbrier elected Stevan Bobb and Jeffrey Songer to its Board of Directors [2] - Following this announcement, Greenbrier shares increased by 2.2%, closing at $46.25 [2] Analyst Ratings - Susquehanna analyst Bascome Majors maintained a Positive rating but reduced the price target from $75 to $52 [4] - B of A Securities analyst Ken Hoexter kept an Underperform rating and raised the price target from $60 to $62 [4] - Stephens & Co. analyst Justin Long maintained an Overweight rating and increased the price target from $62 to $65 [4]

Core Insights - Greenbrier has appointed Steve Bobb and Jeffrey Songer to its Board, both bringing extensive experience from the rail industry, which will enhance the company's strategic initiatives and operational efficiencies [1][7][12] Group 1: Steve Bobb's Background - Bobb has 36 years of experience at BNSF Railway, including roles in strategic commercial and operational leadership [1] - He served as Executive Vice President and Chief Marketing Officer from 2013 to 2024, overseeing sales, marketing, customer service, and economic development [2] - His previous roles include Group VP Coal and General Manager of Division Operations, focusing on safe and efficient freight train movement and customer satisfaction [3][4] - Bobb holds two B.S. degrees in animal and plant science and has pursued graduate studies in agricultural economics [5] Group 2: Jeffrey Songer's Background - Songer has 30 years of expertise in operations, engineering, and finance, with 18 years in leadership roles at Kansas City Southern [7] - He played a key role in the $31 billion merger that created Canadian Pacific Kansas City, serving as EVP of Strategic Merger and Planning [8] - His experience includes managing operations across the U.S. and Mexico, with a focus on international labor management and risk management [9] - Songer holds a bachelor's degree in architectural engineering and a master's degree in business administration [11] Group 3: Strategic Implications for Greenbrier - Bobb's extensive rail industry experience will support Greenbrier's customer experience model and strategic planning [6] - Songer's insights into U.S.-Mexico relations and supply chain integration will be crucial for enhancing profitability and streamlining business structures [12] - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, with a significant presence in railcar manufacturing and leasing [13]

Core Insights - Greenbrier Companies, Inc. announced the renewal and extension of two bank facilities totaling $850 million, which includes a $600 million domestic revolving facility and a $250 million term loan, both extended by five years until 2030 [1][2] - The company has strategically realigned its debt profile to feature more non-recourse borrowing, following two successful Asset Backed Security offerings in 2022 and 2023, and has repaid $180 million of recourse debt [2] - Greenbrier maintains a lease fleet of approximately 16,600 railcars and is a leading provider of freight railcar wheel services, parts, maintenance, and retrofitting services in North America [3] Financial Strategy - The renewal and extension of bank facilities demonstrate Greenbrier's purposeful approach to debt management and capital deployment, aimed at maximizing shareholder returns [2] - The company emphasizes the importance of a healthy liquidity position as a cornerstone of its strategy to navigate various market conditions [2] Company Overview - Greenbrier is headquartered in Lake Oswego, Oregon, and is a leading international supplier of equipment and services to global freight transportation markets [3] - The company designs, builds, and markets freight railcars in North America, Europe, and Brazil, and offers railcar management and regulatory compliance services [3]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving The Greenbrier Companies, Inc. and its officers or directors [1]. Financial Performance - On April 7, 2025, Greenbrier reported fiscal Q2 2025 results, with non-GAAP earnings per share of $1.69, missing consensus estimates by $0.09 [3]. - The company reported revenues of $762.1 million, which fell short of consensus estimates by $136.43 million and represented a year-over-year decline of 11.7% [3]. - Following the financial report, Greenbrier's stock price dropped by $5.11 per share, or 11.42%, closing at $39.63 per share on April 8, 2025 [3]. Operational Changes - Greenbrier announced the closure of a facility in Romania, attributing the decision to market conditions and a comprehensive analysis in Europe [3].