FreightCar America(RAIL) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $160.5 million, a 42% increase from $113.3 million in Q3 2024[4] - Gross margin improved to 15.1%, up 80 basis points from 14.3% in the same quarter last year[4] - Adjusted EBITDA reached $17.0 million, representing a margin of 10.6%, compared to $10.9 million and a margin of 9.6% in Q3 2024[4] - The company reported a net loss of $(7.4) million, or $(0.23) per share, due to a $17.6 million non-cash adjustment[4] - For the nine months ended September 30, 2025, the net income was $54,682, compared to a net loss of $(110,440) for the same period in 2024, representing a significant turnaround[18] - Adjusted EBITDA for the nine months ended September 30, 2025, was $34,345, an increase from $29,070 in 2024, reflecting a growth of about 18.3%[19] - The diluted EPS for the nine months ended September 30, 2025, was $1.57, compared to $(4.07) in 2024, showing a substantial improvement[27] Cash Flow and Liquidity - Cash and equivalents at the end of the quarter totaled $62.7 million, with no borrowings under the revolving credit facility[4] - The company reported cash flows provided by operating activities of $24,732 for the nine months ended September 30, 2025, down from $39,047 in 2024, indicating a decrease of approximately 36.7%[18] - The company achieved free cash flow of $22,630 for the nine months ended September 30, 2025, compared to $35,316 in 2024, a decrease of approximately 35.9%[30] - The cash, cash equivalents, and restricted cash equivalents at the end of the period were $62,743, up from $44,830 at the end of the same period in 2024, marking an increase of about 39.9%[18] Guidance and Future Outlook - Fiscal year 2025 revenue guidance is set at $500 - $530 million, reflecting a year-over-year decrease of 7.9%[5] - Adjusted EBITDA guidance for fiscal 2025 is projected between $43 - $49 million, a 7.0% increase year-over-year[5] - The company ended the quarter with a backlog of 2,750 units valued at $222.0 million, indicating strong future demand[4] Operational Metrics - Railcar deliveries for Q3 2025 were 1,304 units, up from 961 units in Q3 2024[4] - The company is focused on leveraging expertise in railcar conversions and customized solutions to enhance customer value despite subdued industry demand[3] Non-GAAP Measures and Adjustments - The total non-GAAP adjustments for the nine months ended September 30, 2025, amounted to $(39,165), compared to $126,116 in 2024, indicating a significant reduction in adjustments[23] - The company incurred interest expense of $13,356 for the nine months ended September 30, 2025, compared to $5,815 in 2024, representing an increase of approximately 129.5%[19] - The company recognized a loss on the change in fair market value for warrant liability of $12,331 for the nine months ended September 30, 2025, compared to $125,581 in 2024, indicating a decrease of approximately 90.2%[18] - The company reported stock-based compensation recognized of $3,134 for the nine months ended September 30, 2025, compared to $2,330 in 2024, reflecting an increase of about 34.5%[19] Free Cash Flow Metrics - Adjusted free cash flow is defined as the amount by which Free cash flow exceeds Series C Preferred stock dividends accrued during the period[31] - All accrued preferred share dividends were paid concurrent with the redemption of the preferred shares outstanding on December 31, 2024[31] - Free cash flow and Adjusted free cash flow are considered useful metrics for investors to evaluate operating performance compared to other companies in the industry[31] - These metrics provide key insights into the potential for growth and the ability to generate returns for investors[31] - Free cash flow and Adjusted free cash flow are not financial measures presented in accordance with U.S. GAAP[31] - Investors should not consider Free cash flow or Adjusted free cash flow in isolation or as a substitute for Cash flows from operating activities[31] - The calculation of Free cash flow and Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies[31]