The Greenbrier panies(US:GBX)2025-10-28 20:31Railcar Operations - The railcar backlog as of August 31, 2025, includes 16,600 new railcar units with an estimated future revenue value of $2.2 billion[34] - Approximately 12% of the backlog units and estimated value as of August 31, 2025, are associated with Brazilian railcar manufacturing operations[35] - The company operates a lease fleet of approximately 17,000 railcars, with 98.2% of owned units on lease[27] - The company has a 60% ownership interest in Greenbrier-Maxion, a leading railcar manufacturer in South America[31] - The company has demonstrated high market shares in many of the freight railcar types produced for the North American market[18] Financial Performance - Revenue from two customers accounted for approximately 26% of consolidated revenue in 2025, representing 28% of manufacturing revenue[39] - As of August 31, 2025, the company held $688.3 million in inventory[287] - The company has $412.0 million in foreign currency forward exchange contracts to mitigate currency risk[278] - A 10% strengthening of the U.S. Dollar would decrease equity by $15.4 million, or 1.0% of total equity[279] - The company has converted $687.8 million of variable rate debt to fixed rate debt through interest rate swap agreements[280] - At August 31, 2025, 86% of the company's outstanding debt had fixed rates, while 14% had variable rates[280] - A uniform 10% increase in variable interest rates would result in approximately $1.0 million of additional annual interest expense[280] Research and Development - Research and development costs incurred were $5.5 million, $5.2 million, and $4.0 million for the years ended August 31, 2025, 2024, and 2023, respectively[49] Employee and Workplace Culture - The company employs approximately 11,000 individuals, with about 50% located in Mexico, and 5,400 employees are represented by unions, primarily in Mexico and Europe[51] - In 2025, the company completed a safety culture reset across all locations, implementing new safety metrics to enhance workplace safety[53] - The company maintains eight Employee Resource Groups (ERGs) to foster an inclusive environment and launched mentorship opportunities in 2025 to promote professional growth[56] - The company has developed the GBX RailDepot platform to enhance workplace culture and recognition, hosting quarterly town halls for business updates and employee recognition[57] - The company focuses on customized learning and training programs to enhance talent retention and empower employees in their professional development[58] - The company regularly evaluates its compensation programs to remain competitive globally, ensuring equity in base pay levels and assessing incentive program effectiveness[61] - The company believes benefits programs are crucial for attracting and retaining talent, offering competitive health, wellness, and financial protection benefits[62] Environmental Matters - The EPA estimates that the cleanup remedy for the Portland Harbor Superfund Site will take 13 years of active remediation, followed by 30 years of monitoring, with an estimated cost of $1.7 billion[67] - The company sold the Portland Property in May 2023 but remains potentially liable for environmental matters related to the site[74] - The company is participating in a non-judicial, mediated allocation process involving approximately 100 parties to address costs associated with the Portland Harbor Superfund Site remediation[68] Financial Reporting and Audit - The company's internal control over financial reporting was found effective as of August 31, 2025[283] - The company has been audited by KPMG LLP since 2011[291] - The consolidated financial statements present fairly the financial position of the company as of August 31, 2025, in conformity with U.S. GAAP[282]