The Greenbrier panies(GBX) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 Diluted EPS of $1.72 and aggregate gross margin of 19.8%[1] - Net earnings of $55 million on revenue of $876 million, with EBITDA of $145 million (16.6% of revenue)[6] - Revenue for the first quarter of 2024 increased to $875.9 million, up from $808.8 million in the same period last year, driven by growth in both Manufacturing and Leasing & Fleet Management segments[19] - Net earnings attributable to Greenbrier for the first quarter of 2024 were $55.3 million, compared to $31.2 million in the same period last year, reflecting a significant improvement in profitability[19] - The company's earnings from operations for the first quarter of 2024 were $111.8 million, up from $64.9 million in the same period last year, reflecting improved operational efficiency and higher margins[19] - Net earnings for the three months ended November 30, 2024, were $59.1 million, compared to $65.3 million for the three months ended August 31, 2024[33] - EBITDA for the three months ended November 30, 2024, was $145.1 million, compared to $158.9 million for the three months ended August 31, 2024[33] Segment Performance - Manufacturing segment revenue of $820.4M with a gross margin of 17.1%, and Leasing & Fleet Management revenue of $55.5M with a gross margin of 60.5%[12] - Greenbrier's Manufacturing segment revenue for the first quarter of 2024 was $820.4 million, up from $759.7 million in the same period last year, driven by higher production and sales[19] - The company's Leasing & Fleet Management segment revenue for the first quarter of 2024 was $55.5 million, up from $49.1 million in the same period last year, reflecting growth in leasing activities[19] Leasing & Fleet Management - Lease fleet grew by 1,200 units to 16,700 units, maintaining high utilization of nearly 99%[6] - Greenbrier's Leasing & Fleet Management segment added 1,800 railcars to its lease fleet in the first quarter of 2024, bringing the total to 16,700 units, up from 15,500 at the beginning of the quarter[24] - Greenbrier's total leasing non-recourse debt stood at $978.7 million at the end of the first quarter of 2024, with a fleet leverage percentage of 79%, consistent with the previous quarter[24] - Total leasing non-recourse debt as of November 30, 2024, was $978.7 million, compared to $987.0 million as of August 31, 2024[34] Backlog and Orders - Quarterly new railcar orders for 3,800 units valued at $520 million, with deliveries of 6,000 units, resulting in a backlog of 23,400 units valued at $3.0 billion[6] - The company's backlog decreased to 23,400 units at the end of the first quarter of 2024, down from 26,700 units at the beginning of the quarter, due to production sold to third parties and production held on the balance sheet[31] - The company's backlog of railcar units and other orders are not necessarily indicative of future results of operations[35] Capital and Debt - Capital expenditures for FY 2025 are guided at $480M, with net capital expenditures expected to be $420M[8] - The company's cash and cash equivalents and restricted cash decreased to $312.9 million at the end of the first quarter of 2024, down from $368.6 million at the beginning of the period, primarily due to net cash used in operating and investing activities[21] - Total consolidated debt as of November 30, 2024, was $1,839.4 million, compared to $1,755.8 million as of August 31, 2024[34] - Total other debt as of November 30, 2024, was $876.5 million, compared to $785.5 million as of August 31, 2024[34] - Debt discount and issuance costs as of November 30, 2024, were $15.8 million, compared to $16.7 million as of August 31, 2024[34] Dividends and Share Repurchases - Board declared a quarterly dividend of $0.30 per share, marking the 43rd consecutive quarterly dividend[6] - Renewed $100 million share repurchase authorization through January 31, 2027[6] Guidance and Outlook - FY 2025 guidance affirmed with revenue expected between $3.35B and $3.65B, and aggregate gross margin between 16.0% and 16.5%[8] - The company's forward-looking statements include guidance and outlook, backlog and other orders, leasing performance, leasing strategy, financing, cash flow, and tax treatment[35] Operational Metrics - Operating margin for Q1 FY25 was 12.8%, up from 11.8% in Q4 FY24[11] - The company uses EBITDA as a performance measurement tool, defined as Net earnings before Interest and foreign exchange, Income tax expense, Depreciation and amortization[37] - ROIC is calculated by dividing the trailing four quarters of net operating profit after tax by the average trailing five quarters of total invested capital[38] Assets and Liabilities - Greenbrier's total assets increased to $4,287.5 million at the end of the first quarter of 2024, up from $4,254.5 million at the end of the previous quarter, driven by growth in both Manufacturing and Leasing & Fleet Management segments[30]