Financial Data and Key Metrics Changes - Revenue for Q1 was $706 million, in line with expectations, with an aggregate gross margin of 15% reflecting lower production rates and deliveries compared to Q4 [15][18] - Operating income was $61 million, approximately 9% of revenue, with diluted EPS at $1.14 and EBITDA for the quarter at $98 million, or 14% of revenue [15][18] - Liquidity reached over $895 million, the highest in 20 quarters, consisting of more than $300 million in cash and $535 million in available borrowing capacity [16] Business Line Data and Key Metrics Changes - Global orders for approximately 3,700 railcars valued at roughly $550 million were received, with a backlog of approximately 16,300 units valued at about $2.2 billion [11][12] - The leasing and fleet management business showed high utilization at nearly 98%, with strong retention and improving economics on renewals [13][14] - The size of the fleet remained stable, with capital recycled through opportunistic asset sales in a strong secondary market [14] Market Data and Key Metrics Changes - Customers in North America and Europe are cautious about capital investments due to current freight volumes and trade policy considerations, impacting the timing of new railcar orders [6][7] - Market conditions in Europe remain complex, with performance affected by operational inefficiencies during restructuring initiatives [8] - Brazil's economic conditions remain stable, with consistent performance and customer engagement [8] Company Strategy and Development Direction - The company is focused on aligning manufacturing with current demand while investing in efficiency and cost discipline [8][9] - Capital allocation priorities include maintaining balance sheet strength, returning capital to shareholders, and deploying capital where returns are strongest [9][17] - The company reiterated its Fiscal 2026 guidance, projecting new railcar deliveries of 17,500-20,500 units and revenue between $2.7-$3.2 billion [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market conditions and emphasized the importance of execution in securing high-quality orders despite intense competition [7][10] - The company remains engaged with customers and industry stakeholders, adapting to evolving market conditions while focusing on operational excellence [8][10] - Management acknowledged that trade and tariff policies influence customer decisions but do not alter the long-term fundamentals of the railcar replacement cycle [7][38] Other Important Information - The company declared a dividend of $0.32 per share, marking the 47th consecutive quarterly dividend [17] - The methodology for allocating syndication activity was changed, reflecting syndication in the manufacturing segment instead of leasing and fleet management, with no impact on consolidated results [16] Q&A Session Summary Question: Visibility into second half delivery growth - Management indicated good visibility into the second half, expecting year-over-year growth as production ramps up [22] Question: Impact of Venezuela on manufacturing - Management stated there are no expected impacts from Venezuela on their business [23] Question: Customer ordering behavior and delivery expectations - Management noted an increase in order activity and diverse deliveries, with expectations for sequential growth in deliveries [25][26] Question: Lease rates and renewal rates - Lease rates for specialty cars have remained stable, with double-digit increases in renewal rates year-over-year [28][30] Question: Tariff impacts on business - Management indicated tariffs have been neutral to financial performance but create uncertainty affecting customer capital commitments [37][39] Question: Engagement in USMCA - Management expressed strong support for USMCA, emphasizing the importance of free flow of rail cars across borders [45][46] Question: Production cadence and visibility - Management confirmed that order inquiries are translating into orders, with plans to ramp production in the back half of the year [49][50] Question: EPS guidance and asset sales - Management clarified that the EPS guidance remains unchanged despite opportunistic gains from asset sales [58][63]

Financial Data and Key Metrics Changes - Revenue for Q1 was $706 million, in line with expectations, with an aggregate gross margin of 15% reflecting lower production rates and deliveries compared to Q4 [15][18] - Operating income was $61 million, approximately 9% of revenue, with diluted EPS at $1.14 and EBITDA for the quarter at $98 million, or 14% of revenue [15][18] - Liquidity reached over $895 million, the highest in 20 quarters, consisting of more than $300 million in cash and $535 million in available borrowing capacity [16] Business Line Data and Key Metrics Changes - Global orders for approximately 3,700 railcars valued at roughly $550 million were received, with a backlog of approximately 16,300 units valued at about $2.2 billion [11][12] - The leasing and fleet management business maintained high utilization at nearly 98%, with strong retention and improving economics on renewals [12][13] - The size of the fleet remained stable, with capital recycled through opportunistic asset sales in a strong secondary market [13] Market Data and Key Metrics Changes - Customers in North America and Europe are cautious about capital investments due to current freight volumes and trade policy considerations, impacting the timing of new railcar orders [6][8] - Market conditions in Europe remain complex, affecting performance due to operational inefficiencies, while Brazil's economic conditions are stable with steady customer engagement [8] Company Strategy and Development Direction - The company is focused on aligning manufacturing with current demand levels while investing in efficiency and cost discipline [7][9] - Capital allocation priorities include maintaining balance sheet strength, returning capital to shareholders, and deploying capital where returns are strongest [9][17] - The company reiterated its Fiscal 2026 guidance, projecting new railcar deliveries of 17,500-20,500 units and revenue between $2.7-$3.2 billion [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market conditions and positioning for long-term value creation, emphasizing the importance of execution [5][10] - The uncertainty surrounding trade and tariff policies has created a cautious environment for customers, but pent-up demand is beginning to release [6][38] - Management remains optimistic about the durability of customer demand and the company's competitive position despite intense competition [6][11] Other Important Information - The company declared a dividend of $0.32 per share, marking the 47th consecutive quarterly dividend [17] - The methodology for allocating syndication activity was changed, reflecting syndication in the manufacturing segment instead of leasing and fleet management, with no impact on consolidated results [16] Q&A Session Summary Question: Visibility into second half delivery growth - Management indicated good visibility into the second half of the year, expecting year-over-year growth due to ramping up production [22] Question: Impact of Venezuela on manufacturing - Management stated there are no expected impacts from Venezuela on their business, as there is no overlap with operations in Brazil [23] Question: Customer ordering behavior in December and January - Management noted an increase in order activity towards the end of Q3 and continuing into Q1, with December showing unusually high deliveries [25] Question: Lease rates and renewal expectations - Lease rates for specialty cars have remained stable, with double-digit increases in renewal rates year-over-year [27][29] Question: Tariff impacts on business - Management described tariffs as neutral to financial performance but noted that uncertainty has caused customers to pause on capital commitments [36][38] Question: Engagement in USMCA review - Management expressed strong support for USMCA and emphasized the importance of the free flow of rail cars across borders for the economy [44] Question: Production cadence and visibility for the year - Management confirmed that order activity is improving, and they are planning to ramp up production in the back half of the year [49]

NYSE: GBX 1Q26 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 - Total revenue for the three months ended November 30, 2025, was $706.1 million, a decrease of 19.3% compared to $875.9 million for the same period in 2024[16] - Manufacturing revenue decreased to $657.0 million from $830.9 million, reflecting a decline of 20.8% year-over-year[16] - Net earnings attributable to Greenbrier for the three months ended November 30, 2025, were $36.4 million, down 34.2% from $55.3 million in the prior year[16] - Basic earnings per common share decreased to $1.18 from $1.77, representing a decline of 33.3% year-over-year[16] - For the three months ended November 30, 2025, net earnings were $37.3 million, a decrease of 36.9% compared to $59.1 million in the same period of 2024[21] - Total revenue for the three months ended November 30, 2025, was $706.1 million, down 19.3% from $875.9 million in the prior year[33] - Railcar sales revenue decreased to $566.6 million from $728.0 million, representing a decline of 22.1% year-over-year[33] - Segment earnings from operations for Manufacturing were $48.6 million in Q4 2025, down from $121.6 million in Q4 2024, representing a decline of 60%[67] - Revenue for the three months ended November 30, 2025, decreased by $169.8 million or 19.4% compared to the same period in 2024, primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix[104] - Manufacturing segment revenue decreased by $173.9 million or 20.9% for the three months ended November 30, 2025, primarily due to a 26.8% decrease in deliveries[107] - Leasing & Fleet Management segment revenue increased by $4.1 million or 9.1% for the three months ended November 30, 2025, attributed to a $4.9 million increase in rents from growth of the lease fleet[113] Assets and Liabilities - Total assets as of November 30, 2025, were $4,295.6 million, a decrease from $4,360.6 million as of August 31, 2025[15] - Accounts payable and accrued liabilities decreased to $577.5 million from $651.7 million, a reduction of 11.3%[15] - Total debt, net as of November 30, 2025, was $1,766.2 million, an increase from $1,750.9 million as of August 31, 2025[43] - Recourse debt totaled $794.8 million as of November 30, 2025, up from $771.2 million at the end of August 2025[43] - Non-recourse debt was $971.4 million as of November 30, 2025, slightly down from $979.7 million as of August 31, 2025[43] - The company had $435.2 million available for borrowing under its North American revolving credit facility as of November 30, 2025[44] - The European credit facilities had $14.2 million available for borrowing as of November 30, 2025[46] - The Mexican credit facilities had $86.0 million available for borrowing as of November 30, 2025[47] - Contract liabilities decreased to $22.3 million from $40.1 million, a reduction of 44.5%[34] Cash Flow and Investments - Cash and cash equivalents increased to $361.8 million from $306.1 million, an increase of 18.2%[15] - Operating cash flows provided $76.2 million, a significant improvement compared to cash used in operating activities of $(65.1) million in the prior year[21] - The company reported a net cash used in investing activities of $(15.0) million, compared to $(53.7) million in the same period last year[21] - Net cash provided by operating activities for the three months ended November 30, 2025, was $76.2 million, a significant increase from a cash outflow of $65.1 million in the same period of 2024[130] - Total capital expenditures (net of proceeds) for the three months ended November 30, 2025, were $15.0 million, a decrease from $58.5 million in the same period of 2024[133] - Gross capital expenditures for 2026 are expected to be approximately $205 million for Leasing & Fleet Management and $80 million for Manufacturing[134] Shareholder Actions - The company declared cash dividends of $0.32 per share during the period[20] - The company repurchased 303 thousand shares for $12.9 million during the three months ended November 30, 2025, with $64.9 million remaining under the share repurchase program[28] - The Board of Directors has authorized a share repurchase program of up to $100.0 million, extended to January 31, 2027[137] - The Board of Directors has authorized a share repurchase program, extending it to January 31, 2027, with $64.9 million remaining for repurchase as of November 30, 2025[172] - During the three months ended November 30, 2025, the company repurchased 303 thousand shares at an average price of $42.55 per share[172] Operational Highlights - The company reported a comprehensive income of $38.6 million for the three months ended November 30, 2025, compared to $51.5 million in the same period of 2024[17] - The company incurred total lease obligations of $81.2 million as of November 30, 2025, after accounting for imputed interest[73] - Capital expenditures for the Manufacturing segment were $20.7 million in Q4 2025, significantly down from $57.9 million in Q4 2024[69] - The company reported a net loss on disposition of equipment of $17.8 million in the Leasing & Fleet Management segment for the three months ended November 30, 2025[67] - Net gain on disposition of equipment was $17.7 million for the three months ended November 30, 2025, compared to $0.2 million for the prior comparable period, attributed to higher sales of assets from the lease fleet[120] - Earnings from operations for the Manufacturing segment decreased by $73.0 million for the three months ended November 30, 2025, primarily due to a 26.8% decrease in deliveries[110] - Earnings from operations for the Leasing & Fleet Management segment increased by $22.1 million for the three months ended November 30, 2025, primarily due to a $17.6 million increase in net gain on disposition of equipment[116] Tax and Compliance - Income tax expense for the three months ended November 30, 2025, was $12.3 million on pre-tax income of $45.6 million, resulting in an effective tax rate of 27.0%[122] - The company recognizes tax benefits from uncertain tax positions only when it is more likely than not that the position will be sustained upon examination by tax authorities[157] - The annual tax rate is influenced by statutory tax rates and tax planning opportunities across various jurisdictions, with potential impacts from foreign earnings taxation[158] - There have been no changes in internal control over financial reporting that materially affected the company's controls during the quarter ended November 30, 2025[167] Legal and Environmental Matters - The estimated undiscounted cost for the EPA's cleanup remedy at the Portland Harbor Superfund Site is $1.7 billion, expected to take 13 years of active remediation followed by 30 years of monitoring[76] - The Company's aggregate expenditure related to the Portland Harbor Superfund Site investigation over a 17-year period was not material, with costs exceeding $110 million incurred by the Lower Willamette Group[75] - The Company is involved in ongoing litigation related to the Portland Harbor Superfund Site, with potential liabilities still being assessed[84] - The Company has signed a Voluntary Cleanup Agreement with the Oregon DEQ to investigate potential hazardous substance releases at the Portland Property[83] - The Company believes it did not materially contribute to contaminants of concern at the Portland Harbor Superfund Site, and its liability remains uncertain pending ongoing investigations[81] - The Company is participating in a non-judicial allocation process with approximately 100 parties to determine costs associated with the remediation of the Portland Harbor Superfund Site[77] Strategic Initiatives - The Company is executing a strategic plan focused on increasing recurring revenue and expanding gross margin, despite macroeconomic uncertainties[93] - The company expects proceeds from sales of assets to be approximately $165 million for 2026[133] Currency and Interest Rate Management - The company utilized foreign exchange contracts with notional amounts aggregating to $369.9 million to hedge against market risks from changes in foreign currency exchange rates[55] - A 10% strengthening of the U.S. Dollar relative to foreign currencies would decrease equity by $14.7 million, representing 1.0% of total equity[164] - The company has converted $680.6 million of variable rate debt to fixed rate debt through interest rate swap agreements, with 85% of outstanding debt at fixed rates[165] - A uniform increase of 10% in variable interest rates would result in approximately $1.0 million of additional annual interest expense[165]

Financial Performance - Q1 diluted EPS was $1.14, with net earnings attributable to Greenbrier of $36 million[5] - Revenue for Q1 was $706.1 million, down from $759.5 million in Q4 FY25, primarily due to fewer deliveries as planned[8] - Aggregate gross margin for Q1 was $103.3 million, representing 14.6% of revenue, compared to 18.9% in Q4 FY25[8] - Net earnings for the three months ended November 30, 2025, were $37.3 million, a decrease of 36.9% compared to $59.1 million in the same period of 2024[19] - Total revenue for the first quarter of 2025 was $875.9 million, up from $762.1 million in the previous quarter, representing a 14.9% increase[25] - Core EBITDA for the same period was $97.6 million, down from $114.8 million in the prior quarter, reflecting a decline of approximately 15%[30] - Core net earnings attributable to Greenbrier were $36.4 million for the quarter, compared to $40.2 million in the previous quarter, indicating a decrease of about 9.5%[32] - Diluted earnings per share (EPS) for the quarter was $1.14, down from $1.26 in the previous quarter, representing a decline of approximately 9.5%[33] Orders and Deliveries - New railcar orders totaled 3,700 units valued at $550 million, with deliveries of 4,400 units, resulting in a backlog of 16,300 units worth an estimated $2.2 billion[5] - The backlog at the end of November 2025 was 16,300 units, down from 16,600 units at the beginning of the period, with 3,700 new orders received[29] - Total deliveries for the period included 3,400 railcars sold directly to third parties and 1,000 leased railcars for syndication, totaling 4,400 deliveries[29] Cash Flow and Capital Expenditures - Operating cash flow for Q1 was $76 million, supporting liquidity and balance sheet strength[5] - Capital expenditures for fiscal 2026 are projected at $285 million, with net capital expenditures of $120 million after equipment sales proceeds of $165 million[6] - The total cash used in investing activities for the quarter was $15.0 million, compared to $53.7 million in the previous quarter[19] - The company’s cash and cash equivalents increased to $375.4 million at the end of the period, up from $312.9 million at the end of the previous year[19] Dividends and Shareholder Returns - The board approved a quarterly dividend of $0.32 per share, marking Greenbrier's 47th consecutive quarterly dividend[5] Debt and Financial Position - Total consolidated debt as of November 30, 2025, was $1,766.2 million, an increase from $1,750.9 million at the end of the previous quarter[34] - The company’s total leasing non-recourse debt was $978.2 million, a decrease from $986.7 million in the previous quarter[23] - Basic shares outstanding increased to 30,953 thousand from 30,880 thousand in the prior quarter, while diluted weighted average shares outstanding remained relatively stable at 31,865 thousand[31] Risks and Future Outlook - The company expects deliveries of 17,500 to 20,500 units and revenue guidance of $2.7 billion to $3.2 billion for fiscal 2026[6] - The company highlighted that certain orders in backlog are subject to customary documentation, which may not occur, indicating potential risks to future performance[35] - The company faces risks including economic downturns, changes in tariffs, and geopolitical unrest, which could impact future performance[35] - Greenbrier's financial metrics such as Core EBITDA and Core net earnings are not GAAP measures and may differ from similar metrics used by other companies, emphasizing the need for careful interpretation[36][37]

Financial Data and Key Metrics Changes - The company will release its quarter one results and host an earnings call with analysts on January 8, 2026, providing insights into financial performance [5] - The meeting included a vote on the advisory compensation of named executive officers, which was approved, indicating shareholder support for executive pay practices [7][12] Business Line Data and Key Metrics Changes - No specific data on business line performance was provided during the meeting [2][3] Market Data and Key Metrics Changes - No specific market data or metrics were discussed in the meeting [2][3] Company Strategy and Development Direction - The board emphasized the importance of aligning executive compensation with financial and business goals to attract and retain top executives, which is part of the overall strategy to generate shareholder value [7][8] - An amendment to the 2021 Stock Incentive Plan was proposed to add one million shares to the pool, aimed at motivating officers and aligning their interests with shareholders [8][9] Management Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [2][3] Other Important Information - The company’s board recommended increasing the number of authorized shares of common stock from 50 million to 100 million, which was approved by shareholders [9][12] - KPMG was ratified as the company's independent auditor for fiscal year 2026 [10][12] Q&A Session Summary - No questions were received from shareholders during the Q&A session, leading to the conclusion of the meeting without any inquiries being addressed [13][15]

Financial Data and Key Metrics Changes - The company will release its quarter one results and host an earnings call with analysts on January 8, 2026, which may provide insights into financial performance [5] - The preliminary voting results indicated that all director nominees were elected, and the advisory vote on compensation was approved, reflecting shareholder support [12] Business Line Data and Key Metrics Changes - No specific data on business line performance was provided during the meeting [13] Market Data and Key Metrics Changes - No specific market data or metrics were discussed in the meeting [13] Company Strategy and Development Direction - The company aims to attract and retain top executives through its executive compensation program, which links a significant portion of pay to financial and business goals [8] - An amendment to the 2021 Stock Incentive Plan was proposed to add one million shares to the pool available for issuance, aligning interests with long-term shareholder value [9][10] Management Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [13] Other Important Information - The company’s board recommended an increase in the number of authorized shares for common stock from 50 million to 100 million, allowing for future issuances without requiring further shareholder action [10] Q&A Session Summary - No questions were submitted in the web portal, leading to the conclusion of the Q&A session [13][14]

Group 1 - The Greenbrier Companies, Inc. is set to release its first-quarter earnings results on January 8, 2025, with analysts expecting earnings of 79 cents per share, a decrease from $1.72 per share in the same period last year [1] - The consensus estimate for Greenbrier's quarterly revenue is $655.53 million, which is a decline from $875.9 million a year earlier [1] - On October 28, Greenbrier reported mixed fourth-quarter financial results and provided FY26 sales guidance that fell below estimates [2] Group 2 - Following the mixed financial results, Greenbrier shares increased by 4.3%, closing at $49.09 [2] - Analyst Bascome Majors from Susquehanna maintained a Positive rating on Greenbrier but reduced the price target from $57 to $52 [3] - Analyst Ken Hoexter from B of A Securities maintained an Underperform rating while raising the price target from $60 to $62 [3]

Group 1 - The Greenbrier Companies, Inc. will release earnings results for Q1 on January 8, 2025, with expected earnings of 79 cents per share, a decrease from $1.72 per share in the same period last year [1] - The consensus estimate for Greenbrier's quarterly revenue is $655.53 million, down from $875.9 million a year earlier [1] - On October 28, Greenbrier reported mixed Q4 financial results and issued FY26 sales guidance below estimates [2] Group 2 - Greenbrier shares rose 4.3% to close at $49.09 on Tuesday following the earnings report [2] - Susquehanna analyst Bascome Majors maintained a Positive rating and cut the price target from $57 to $52 [3] - B of A Securities analyst Ken Hoexter maintained an Underperform rating and increased the price target from $60 to $62 [3]

Group 1 - The Greenbrier Companies will have its President and CEO, Lorie Tekorius, as a featured speaker at the Midwest Association of Rail Shippers (MARS) 2026 Winter Meeting on January 14, 2026 [1][2] - Tekorius will discuss railcar manufacturing, supply chain trends, and the evolving needs of shippers in North America, emphasizing Greenbrier's commitment to policy advocacy and enhancing services in the freight rail industry [2][3] - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, with operations in North America, Europe, and Brazil, and a lease fleet of approximately 17,000 railcars [3]