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

Financial Performance - GAAP diluted EPS for Q2 FY25 was $1.56, including $0.13 per share of European facility rationalization costs, while core diluted EPS was $1.69[3] - Net earnings attributable to Greenbrier reached $52 million on revenue of $762 million, with a gross margin of 18%[3] - Revenue for the three months ended February 28, 2025, was $762.1 million, a decrease of 11.6% compared to $862.7 million for the same period in 2024[14] - Net earnings attributable to Greenbrier for the six months ended February 28, 2025, were $107.2 million, up 66.0% from $64.6 million in the same period of 2024[14] - 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[14] - The diluted earnings per share for the three months ended February 28, 2025, was $1.56, compared to $1.72 for the three months ended November 30, 2024[30] - The earnings from operations for fiscal 2024 totaled $324.5 million, with a margin of $558.5 million[22] - The net earnings attributable to Greenbrier for fiscal 2024 were $160.1 million, translating to a basic earnings per share of $5.15[22] Revenue and Orders - New railcar orders totaled 3,100 units valued at nearly $400 million, with deliveries of 5,500 units, resulting in a backlog of 20,400 units worth an estimated $2.6 billion[3] - Deliveries for FY25 are now projected to be between 21,500 and 23,500 units, revised from the initial guidance of 22,500 to 25,000 units[6] - The company delivered a total of 5,500 units in the three months ended February 28, 2025, including 4,700 direct sales and 800 leased railcars for syndication[26] - 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[22] Guidance and Projections - The updated guidance for FY25 includes revenue expectations of $3.15 billion to $3.35 billion, down from the initial guidance of $3.35 billion to $3.65 billion[6] - Aggregate gross margin percentage for FY25 is updated to a range of 17.0% to 17.5%, up from the initial guidance of 16.0% to 16.5%[6] - The company anticipates continued growth in leasing performance and backlog management, despite potential economic uncertainties[32] Dividends and Shareholder Returns - Greenbrier's board increased the quarterly dividend by 7% to $0.32 per share, marking the 44th consecutive quarterly dividend[3] - Dividends per common share remained stable at $0.30 for both the three months ended February 28, 2025, and February 29, 2024[14] Operational Metrics - The company reported a strong lease fleet utilization rate of 98% and a core EBITDA of nearly $124 million, representing 16% of revenue[3] - Core EBITDA for the three months ended February 28, 2025, was $123.9 million, compared to $145.1 million for the three months ended November 30, 2024[27] - The Leasing & Fleet Management segment reported revenue of $61.8 million for the three months ended February 28, 2025, up 19.6% from $51.7 million in the same period of 2024[14] Debt and Cash Position - Total consolidated debt was $1,756.9 million as of February 28, 2025, down from $1,839.4 million on November 30, 2024[31] - Total Leasing non-recourse debt was $1,011.1 million as of February 28, 2025, compared to $978.7 million in the previous quarter, indicating an increase in leverage[19] - Greenbrier's total cash and cash equivalents and restricted cash at the end of the period was $301.9 million, compared to $272.0 million at the end of the same period in 2024[16] - Net cash provided by operating activities for the six months ended February 28, 2025, was $28.5 million, down from $54.4 million in the same period of 2024[16] Facility and Cost Management - The company plans to close a manufacturing facility in Romania, incurring $6 million in rationalization costs, which includes $2 million in gross margin impact[3] - The effective tax rate for Q2 FY25 decreased to 32.3% from 37.8% in Q1 FY25, attributed to a decrease in discrete items in foreign jurisdictions[8] - The ending backlog as of February 28, 2025, was 20,400 units, down from a beginning backlog of 23,400 units[26] - The Greenbrier Lease Fleet had an ending balance of 16,600 units as of February 28, 2025, a decrease from 16,700 units at the end of the previous quarter[19]