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

Financial Performance - Revenue increased from $808.8 million to $875.9 million, a growth of 8.3%[16] - Net earnings attributable to Greenbrier rose from $31.2 million to $55.3 million, an increase of 77.2%[16] - Revenue increased by $67.1 million (8.3%) compared to the same period last year, driven by higher railcar deliveries[98][104] - Margin percentage reached 19.8%, the highest in over seven years, representing a 4.8% improvement year-over-year[98] - Earnings from operations increased by 72.3% to $111.8 million, attributed to higher revenue and improved margin percentage[98] - Manufacturing segment revenue increased by $60.7 million (8.0%) to $820.4 million for the three months ended November 30, 2024, driven by a 7.7% increase in railcar deliveries to 5,600 units[108][109] - Earnings from operations in the Manufacturing segment rose by $51.2 million (78.9%) to $116.1 million, with operating margin improving to 14.2% from 8.5%[108] - Leasing & Fleet Management revenue increased by 13.0% to $55.5 million, driven by higher rents and railcar sales[115] - Leasing & Fleet Management earnings from operations increased by $0.4 million, driven by higher rents and improved lease rates[118] - Earnings from unconsolidated affiliates increased by $2.6 million to $4.1 million for the three months ended November 30, 2024, primarily due to higher earnings at Brazil operations[130] Cash and Liquidity - Cash and cash equivalents decreased from $351.8 million to $300.0 million, a decline of 14.7%[15] - The company has $300.0 million in cash and cash equivalents and $248.7 million in available borrowings as of November 30, 2024[145] - Net cash used in operating activities increased by $20.4 million to $65.1 million for the three months ended November 30, 2024, primarily due to a $63.3 million change in leased railcars for syndication[133][134] - The company expects existing funds, cash generated from operations, and proceeds from financing activities to be sufficient to fund expected debt repayments, working capital needs, planned capital expenditures, additional investments, and dividends over the next twelve months[155] Expenses and Costs - Selling and administrative expense increased by 10.1% to $62.0 million, primarily due to higher employee-related costs[120] - Selling and administrative expenses increased by $5.7 million, primarily due to higher employee-related costs[107] - Interest and foreign exchange expense increased by $0.2 million, driven by a $2.0 million rise in foreign exchange loss[123] - Income tax expense for the three months ended November 30, 2024, was $33.4 million, with an effective tax rate of 37.8%[125] - The effective tax rate may fluctuate due to changes in the mix of foreign and domestic pre-tax earnings, including the impact of the Mexican railcar manufacturing joint venture[127] Debt and Financing - Senior secured credit facilities aggregated to $1.3 billion as of November 30, 2024, including a $450.0 million non-recourse warehouse credit facility for GBX Leasing[146] - 81% of the company's outstanding debt had fixed rates and 19% had variable rates as of November 30, 2024, with a 10% increase in variable rates potentially adding $1.6 million in annual interest expense[172] - The company has converted $667.8 million of variable rate debt to fixed rate debt using interest rate swap agreements as of November 30, 2024[154] Share Repurchase Program - The share repurchase program was extended to January 31, 2027, with $100.0 million remaining for repurchase[28] - The company's share repurchase program was extended to January 31, 2027, with $100.0 million authorized for repurchases[144] - The share repurchase program had $45.1 million remaining for purchase as of November 30, 2024, and was extended to January 31, 2027 with a renewed amount of $100.0 million[179][180] Manufacturing and Leasing Operations - Manufacturing margin percentage increased by 5.6% due to operating efficiencies and favorable product mix[111] - Leasing & Fleet Management margin percentage decreased by 9.0% due to lower syndication activity and higher sales of lower-margin railcars[117] - Railcar backlog as of November 30, 2024, was 23,400 units with an estimated value of $3.0 billion, with deliveries extending into 2026[94] - The company purchased $3.1 million of railcar components from Axis, LLC, a joint venture in which it holds a 41.9% interest[90] - Capital expenditures for 2025 are expected to be approximately $360 million for Leasing & Fleet Management and $120 million for Manufacturing, totaling $480 million[137] Foreign Exchange and International Operations - The notional amounts of foreign exchange contracts for the purchase of Polish Zlotys and the sale of Euros, and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $214.0 million as of November 30, 2024[170] - Net assets of foreign subsidiaries aggregated to $162.5 million as of November 30, 2024, and a 10% strengthening of the U.S. Dollar would result in a decrease in equity of $16.3 million, or 1.2% of total equity[171] Contract Liabilities and Guarantees - Contract liabilities decreased by $12.4 million to $42.2 million, reflecting lower customer prepayments[33] - The company had outstanding letters of credit aggregating to $6.6 million as of November 30, 2024, related to performance guarantees and leases[87] Assets and Investments - Assets measured at fair value on a recurring basis as of November 30, 2024, totaled $244.4 million, including $151.2 million in cash equivalents[89]