The Greenbrier panies(GBX) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended February 28, 2025, was $762.1 million, a decrease of 11.6$862.7 million for the same period in 2024[17]. - Revenue for the six months ended February 28, 2025 decreased by 2.0% to $1,638.0 million, primarily due to a$30.4 million reduction in railcar maintenance services revenue[134]. - Manufacturing segment revenue decreased by $110.7 million or 13.6$700.3 million for the three months ended February 28, 2025, primarily due to a 5.7% decrease in railcar deliveries[107]. - Leasing & Fleet Management segment revenue increased by $10.1 million or 19.5$61.8 million for the three months ended February 28, 2025, driven by higher rents and improved lease rates[115]. - Manufacturing revenue for the six months ended February 28, 2025, was $1,520.7 million, down 3.2$1,570.7 million in the same period of 2024[17]. Earnings and Profitability - Net earnings attributable to Greenbrier for the three months ended February 28, 2025, were $51.9 million, up 55.1$33.4 million in the prior year[17]. - Basic earnings per common share increased to $1.66 for the three months ended February 28, 2025, compared to$1.08 for the same period in 2024, representing a 53.7% increase[17]. - Net earnings for the six months ended February 28, 2025, were $105.3 million, compared to$66.8 million for the same period in 2024, representing a 57.5% increase[21]. - Earnings from operations for the six months ended February 28, 2025, were $195.4 million, up from$128.4 million for the same period in 2024, representing an increase of approximately 52.2%[73]. - The company reported a margin of $138.6 million for the three months ended February 28, 2025, compared to$122.2 million in the prior year, indicating a margin increase of 13.1%[17]. Assets and Equity - Total assets as of February 28, 2025, were $4,267.0 million, slightly up from$4,254.5 million as of August 31, 2024[16]. - Total equity increased to $1,620.5 million as of February 28, 2025, compared to$1,536.6 million as of August 31, 2024, marking a growth of 5.5%[16]. - Total equity attributable to Greenbrier increased to $1,460.2 million as of February 28, 2025, up from$1,299.9 million as of February 29, 2024, reflecting a growth of 12.4%[20]. - The company's accounts receivable increased to $535.4 million as of February 28, 2025, from$523.8 million as of August 31, 2024, showing a growth of 2.9%[16]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $263.5 million from$351.8 million as of August 31, 2024, reflecting a decline of 25.0%[16]. - Cash flows from operating activities provided $28.5 million, a decrease from$54.4 million in the prior year[21]. - Capital expenditures for the six months ended February 28, 2025, were $126.4 million, down from$190.5 million in the prior year[21]. - The net cash used in investing activities was $65.0 million, a decrease from$163.1 million in the prior year[21]. Segment Performance - The Company operates in two reportable segments: Manufacturing and Leasing & Fleet Management, with segment results recast to reflect the new reportable segments effective September 1, 2024[70]. - The Manufacturing segment generated revenue of $1,520.7 million for the six months ended February 28, 2025, compared to$1,570.7 million for the same period in 2024, a decrease of about 3.2%[73]. - The Leasing & Fleet Management segment reported revenue of $117.3 million for the six months ended February 28, 2025, compared to$100.8 million for the same period in 2024, an increase of approximately 16.5%[73]. Debt and Financing - As of February 28, 2025, the Company had $1.3 billion in senior secured credit facilities, with$488.0 million available to draw down[39]. - The company has effectively converted $701.9 million of variable rate debt to fixed rate debt as of February 28, 2025[180]. - As of February 28, 2025, 87$19.8 million during the six months ended February 28, 2025, compared to $19.7 million in the same period of 2024[21]. - The accumulated other comprehensive loss (AOCL) balance as of February 28, 2025, was$(40.8) million, compared to $(34.0) million as of August 31, 2024[50]. - Interest and foreign exchange expenses decreased by$2.7 million to $45.1 million for the six months ended February 28, 2025, due to higher interest income, despite a$2.6 million increase in foreign exchange losses[152]. Operational Changes and Future Outlook - The Company combined the former Maintenance Services and Manufacturing segments into a single reportable segment, Manufacturing, effective September 1, 2024[25]. - The Company is consolidating its European operations and has approved the closure of a manufacturing facility in Romania, expected to be completed in 2025[95]. - The railcar backlog was 20,400 units with an estimated value of $2.6 billion as of February 28, 2025, with deliveries extending into 2026 and beyond[93].