InvestorRelations@gbrx.com www.gbrx.com NYSE: GBX 4Q25 Earnings Slides & Supplemental Information 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 ...

Railcar Operations - The railcar backlog as of August 31, 2025, includes 16,600 new railcar units with an estimated future revenue value of $2.2 billion[34] - Approximately 12% of the backlog units and estimated value as of August 31, 2025, are associated with Brazilian railcar manufacturing operations[35] - The company operates a lease fleet of approximately 17,000 railcars, with 98.2% of owned units on lease[27] - The company has a 60% ownership interest in Greenbrier-Maxion, a leading railcar manufacturer in South America[31] - The company has demonstrated high market shares in many of the freight railcar types produced for the North American market[18] Financial Performance - Revenue from two customers accounted for approximately 26% of consolidated revenue in 2025, representing 28% of manufacturing revenue[39] - As of August 31, 2025, the company held $688.3 million in inventory[287] - The company has $412.0 million in foreign currency forward exchange contracts to mitigate currency risk[278] - A 10% strengthening of the U.S. Dollar would decrease equity by $15.4 million, or 1.0% of total equity[279] - The company has converted $687.8 million of variable rate debt to fixed rate debt through interest rate swap agreements[280] - At August 31, 2025, 86% of the company's outstanding debt had fixed rates, while 14% had variable rates[280] - A uniform 10% increase in variable interest rates would result in approximately $1.0 million of additional annual interest expense[280] Research and Development - Research and development costs incurred were $5.5 million, $5.2 million, and $4.0 million for the years ended August 31, 2025, 2024, and 2023, respectively[49] Employee and Workplace Culture - The company employs approximately 11,000 individuals, with about 50% located in Mexico, and 5,400 employees are represented by unions, primarily in Mexico and Europe[51] - In 2025, the company completed a safety culture reset across all locations, implementing new safety metrics to enhance workplace safety[53] - The company maintains eight Employee Resource Groups (ERGs) to foster an inclusive environment and launched mentorship opportunities in 2025 to promote professional growth[56] - The company has developed the GBX RailDepot platform to enhance workplace culture and recognition, hosting quarterly town halls for business updates and employee recognition[57] - The company focuses on customized learning and training programs to enhance talent retention and empower employees in their professional development[58] - The company regularly evaluates its compensation programs to remain competitive globally, ensuring equity in base pay levels and assessing incentive program effectiveness[61] - The company believes benefits programs are crucial for attracting and retaining talent, offering competitive health, wellness, and financial protection benefits[62] Environmental Matters - The EPA estimates that the cleanup remedy for the Portland Harbor Superfund Site will take 13 years of active remediation, followed by 30 years of monitoring, with an estimated cost of $1.7 billion[67] - The company sold the Portland Property in May 2023 but remains potentially liable for environmental matters related to the site[74] - The company is participating in a non-judicial, mediated allocation process involving approximately 100 parties to address costs associated with the Portland Harbor Superfund Site remediation[68] Financial Reporting and Audit - The company's internal control over financial reporting was found effective as of August 31, 2025[283] - The company has been audited by KPMG LLP since 2011[291] - The consolidated financial statements present fairly the financial position of the company as of August 31, 2025, in conformity with U.S. GAAP[282]

Financial Performance - Greenbrier reported Q4 diluted EPS of $1.16, with core diluted EPS of $1.26, and full-year diluted EPS of $6.35, reflecting a strong fiscal 2025 performance[1][5] - Fiscal 2025 net earnings attributable to Greenbrier reached $204 million, with core net earnings of $212 million, marking significant growth[5][9] - The company achieved a record core EBITDA of $512 million for fiscal 2025, representing 16% of revenue[9] - Total revenue for the year ended August 31, 2025, was $3,240.2 million, a decrease of 8.6% from $3,544.7 million in 2024[20] - Net earnings attributable to Greenbrier for 2025 were $204.1 million, up 27.5% from $160.1 million in 2024[20] - Basic earnings per common share increased to $6.55 in 2025, compared to $5.15 in 2024, representing a growth of 27.1%[20] - The company reported a margin of $607.5 million for the year, an increase from $558.5 million in 2024[20] - The company reported a core EBITDA of $512.3 million for the year ended August 31, 2025, with a core diluted earnings per share of $6.59[35][38] Revenue and Orders - New railcar orders in Q4 totaled 2,400 units valued at over $300 million, contributing to a backlog of 16,600 units worth an estimated $2.2 billion[9] - 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[30] - The Leasing & Fleet Management segment generated recurring revenue of $168.8 million for the year ended August 31, 2025[24] - The company delivered a total of 22,000 units for the year ended August 31, 2025, including 17,500 units from direct sales[33] Operational Metrics - Greenbrier's lease fleet grew nearly 10% to 17,000 units, maintaining a robust utilization rate of 98%[9] - Greenbrier's lease fleet increased to 17,000 units by the end of August 2025, with 6,500 railcars added during the year[24] - Core return on invested capital (ROIC) improved to 10.9% for the year ended August 31, 2025, up from 8.3%[41] Future Guidance and Investments - For fiscal 2026, Greenbrier provided guidance of revenue between $2.7 billion and $3.2 billion, with EPS expected to range from $3.75 to $4.75[10] - The company plans to invest up to $300 million annually over the next five years to double recurring revenue from leasing and management fees[23] Shareholder Returns - The company repurchased 517,000 shares for $22 million in fiscal 2025, with $78 million remaining under the current share repurchase program[9] - Greenbrier's quarterly dividend of $0.32 per share was approved, marking the 46th consecutive quarterly dividend[9] - Dividends per common share increased to $1.24 in 2025, compared to $1.20 in 2024[20] Cash Flow and Debt - Cash flows from operating activities for 2025 were $265.7 million, a decrease from $329.6 million in 2024[21] - Total cash and cash equivalents at the end of the period were $306.1 million, down from $351.8 million at the end of 2024[21] - Total funded debt increased to $1,773.1 million as of August 31, 2025, compared to $1,560.5 million as of February 28, 2023[41] Cost Management - The company expects annualized savings of $20 million from ongoing European facility rationalization efforts, which included the closure of two additional facilities[5][9] - The company incurred facility-related rationalization costs of $12.4 million for the year ended August 31, 2025[35] Backlog and Assets - The ending backlog as of August 31, 2025, was 16,600 units, down from 18,900 units at the beginning of the period[33] - The total assets as of August 31, 2025, were $4,360.6 million, reflecting a slight increase from $4,353.2 million as of May 31, 2025[32]

Core Insights - Greenbrier Companies is a significant player in the global freight transportation market, focusing on the design, construction, and marketing of freight railcars across North America, Europe, and Brazil [1] - The company is set to release its quarterly earnings on October 28, 2025, with analysts expecting earnings per share (EPS) of $1.18 and projected revenue of approximately $764.1 million [2][6] - Greenbrier has announced a quarterly cash dividend of $0.32 per share, marking its 46th consecutive quarterly dividend, reflecting its commitment to shareholder value [3][6] Financial Metrics - The company maintains a price-to-earnings (P/E) ratio of 6.23, indicating a relatively low valuation compared to its earnings [3][6] - Greenbrier's price-to-sales ratio is 0.40, meaning the market values its sales at 40 cents for every dollar of sales [4] - The enterprise value to sales ratio is 0.84, showing the company's total valuation relative to its sales [4] - The enterprise value to operating cash flow ratio stands at 8.26, indicating the company's ability to cover its enterprise value with operating cash flow [4] - The debt-to-equity ratio is 1.23, suggesting a moderate level of debt compared to equity [5] - A current ratio of 1.61 indicates good liquidity to cover short-term liabilities [5] - An earnings yield of 16.06% demonstrates a solid financial foundation and potential for continued growth in the freight transportation industry [5]

Core Viewpoint - Greenbrier Companies, Inc. will report its Fourth Quarter and Fiscal Year 2025 results on October 28, 2025, after market close, with a conference call scheduled for 2:00 p.m. PDT [1]. Company Overview - Greenbrier, based in Lake Oswego, Oregon, is a prominent international supplier of equipment and services for global freight transportation markets [3]. - The company designs, builds, and markets freight railcars across North America, Europe, and Brazil through its subsidiaries and joint ventures [3]. - Greenbrier provides freight railcar wheel services, parts, maintenance, and retrofitting services primarily in North America [3]. - The company owns a lease fleet of approximately 16,800 railcars, mainly originating from its manufacturing operations [3]. - Greenbrier also offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [3].

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]