The Greenbrier panies(US:GBX)2025-07-02 20:05Financial Performance - Revenue for the three months ended May 31, 2025, was $842.7 million, a 2.9% increase from $820.2 million in the same period of 2024[17]. - Net earnings for the three months ended May 31, 2025, were $67.5 million, compared to $40.6 million for the same period in 2024, representing a 66.3% increase[18]. - Basic earnings per common share for the three months ended May 31, 2025, were $1.92, up from $1.09 in the same period of 2024, reflecting a 76.1% increase[17]. - Comprehensive income for the three months ended May 31, 2025, was $78.7 million, compared to $41.5 million for the same period in 2024, representing an increase of 89.5%[18]. - Net earnings for the nine months ended May 31, 2025, were $172.8 million, compared to $107.4 million for the same period in 2024, representing a 60.8% increase[21]. - Earnings from operations for the three months ended May 31, 2025, were $92.6 million, compared to $72.3 million in the same period of 2024, a 28.0% increase[17]. - Earnings from operations for the nine months ended May 31, 2025, were $288.0 million, an increase from $200.7 million in the same period of 2024, representing a growth of approximately 43.5%[73]. - Net earnings attributable to Greenbrier increased by $68.8 million or 69.8% year-over-year, primarily due to higher margins[98]. Assets and Equity - Total assets as of May 31, 2025, were $4,353.2 million, compared to $4,254.5 million as of August 31, 2024, indicating a growth of 2.3%[16]. - Total equity attributable to Greenbrier increased to $1,504.0 million as of May 31, 2025, from $1,376.1 million as of August 31, 2024, marking a 9.3% increase[16]. - The balance of retained earnings as of May 31, 2025, was $1,172.5 million, an increase from $966.9 million as of May 31, 2024[21]. - The company’s total equity attributable to Greenbrier increased to $1,669.8 million as of May 31, 2025, from $1,410.2 million as of May 31, 2024, reflecting a growth of 18.4%[21]. Cash Flow and Capital Expenditures - Cash flows from operating activities provided $167.7 million for the nine months ended May 31, 2025, up from $138.4 million in the prior year[21]. - Capital expenditures for the nine months ended May 31, 2025, were $209.1 million, down from $324.7 million in the same period of 2024, indicating a decrease of 35.6%[21]. - Total cash and cash equivalents and restricted cash at the end of the period was $342.0 million, compared to $291.8 million at the end of May 31, 2024, reflecting an increase of 17.1%[21]. - As of May 31, 2025, cash and cash equivalents were $296.8 million, with available borrowings totaling $472.3 million[180]. Debt and Financing - Senior secured credit facilities totaled $1.3 billion as of May 31, 2025, with $472.3 million available to draw down[40]. - The principal balance of nonrecourse senior term debt was $311.3 million, and asset-backed term notes secured by leased railcars totaled $459.9 million[51]. - The company has $100.0 million authorized for share repurchase, with $78.2 million remaining as of May 31, 2025[213]. - The company was in compliance with all restrictive covenants related to its credit facilities as of May 31, 2025[186]. - The company expects existing funds and cash generated from operations to be sufficient to fund expected debt repayments and working capital needs over the next twelve months[190]. Revenue Segments - Manufacturing revenue for the nine months ended May 31, 2025, was $2,298.9 million, slightly down from $2,325.7 million in the same period of 2024, a decrease of 1.1%[17]. - The Manufacturing segment generated revenue of $2,370.2 million for the nine months ended May 31, 2025, compared to $2,522.6 million in 2024, indicating a decline of about 6.0%[73]. - Leasing & Fleet Management segment revenue increased by $15.8 million or 9.5% to $181.8 million for the nine months ended May 31, 2025, driven by higher rents associated with a larger fleet[150]. - Operating lease rental revenues for the nine months ended May 31, 2025, were $103.1 million, up from $88.5 million in the same period of 2024, marking an increase of approximately 16.0%[74]. Operational Efficiency - Margin percentage improved to 18.7%, a 4.0% increase compared to the same period last year, driven by operating efficiencies in the Manufacturing segment[98]. - The margin percentage for the Manufacturing segment increased by 3.8% to 14.8% for the nine months ended May 31, 2025, compared to 11.0% for the same period in 2024, reflecting improved operational efficiency[145]. - Selling and administrative expenses rose to $192.5 million for the nine months ended May 31, 2025, an increase of 7.4% from $179.2 million in the prior year, mainly due to higher employee-related costs[155]. Shareholder Returns - The company declared cash dividends of $29.7 million for the nine months ended May 31, 2025, compared to $29.1 million in the same period of 2024[21]. - A quarterly dividend of $0.32 per share was declared on June 26, 2025, and the company authorized a share repurchase program of up to $100.0 million[177][178]. Risk Management - The company utilized foreign exchange contracts totaling $141.2 million to hedge against currency risks, with a fair value of $3.2 million recorded as an asset[59]. - Interest rate swap agreements with notional amounts of $694.9 million were in place as of May 31, 2025, with an expected reclassification of approximately $8.6 million to interest expense in the next year[60]. - The company plans to continue utilizing cash flow hedges to manage market risks associated with foreign currency and interest rates[58].