The Greenbrier panies(GBX) - 2026 Q1 - Quarterly Results

Financial Performance - Q1 diluted EPS was $1.14, with net earnings attributable to Greenbrier of $36 million[5] - Revenue for Q1 was $706.1 million, down from $759.5 million in Q4 FY25, primarily due to fewer deliveries as planned[8] - Aggregate gross margin for Q1 was $103.3 million, representing 14.6% of revenue, compared to 18.9% in Q4 FY25[8] - Net earnings for the three months ended November 30, 2025, were $37.3 million, a decrease of 36.9% compared to $59.1 million in the same period of 2024[19] - Total revenue for the first quarter of 2025 was $875.9 million, up from $762.1 million in the previous quarter, representing a 14.9% increase[25] - Core EBITDA for the same period was $97.6 million, down from $114.8 million in the prior quarter, reflecting a decline of approximately 15%[30] - Core net earnings attributable to Greenbrier were $36.4 million for the quarter, compared to $40.2 million in the previous quarter, indicating a decrease of about 9.5%[32] - Diluted earnings per share (EPS) for the quarter was $1.14, down from $1.26 in the previous quarter, representing a decline of approximately 9.5%[33] Orders and Deliveries - New railcar orders totaled 3,700 units valued at $550 million, with deliveries of 4,400 units, resulting in a backlog of 16,300 units worth an estimated $2.2 billion[5] - The backlog at the end of November 2025 was 16,300 units, down from 16,600 units at the beginning of the period, with 3,700 new orders received[29] - Total deliveries for the period included 3,400 railcars sold directly to third parties and 1,000 leased railcars for syndication, totaling 4,400 deliveries[29] Cash Flow and Capital Expenditures - Operating cash flow for Q1 was $76 million, supporting liquidity and balance sheet strength[5] - Capital expenditures for fiscal 2026 are projected at $285 million, with net capital expenditures of $120 million after equipment sales proceeds of $165 million[6] - The total cash used in investing activities for the quarter was $15.0 million, compared to $53.7 million in the previous quarter[19] - The company’s cash and cash equivalents increased to $375.4 million at the end of the period, up from $312.9 million at the end of the previous year[19] Dividends and Shareholder Returns - The board approved a quarterly dividend of $0.32 per share, marking Greenbrier's 47th consecutive quarterly dividend[5] Debt and Financial Position - Total consolidated debt as of November 30, 2025, was $1,766.2 million, an increase from $1,750.9 million at the end of the previous quarter[34] - The company’s total leasing non-recourse debt was $978.2 million, a decrease from $986.7 million in the previous quarter[23] - Basic shares outstanding increased to 30,953 thousand from 30,880 thousand in the prior quarter, while diluted weighted average shares outstanding remained relatively stable at 31,865 thousand[31] Risks and Future Outlook - The company expects deliveries of 17,500 to 20,500 units and revenue guidance of $2.7 billion to $3.2 billion for fiscal 2026[6] - The company highlighted that certain orders in backlog are subject to customary documentation, which may not occur, indicating potential risks to future performance[35] - The company faces risks including economic downturns, changes in tariffs, and geopolitical unrest, which could impact future performance[35] - Greenbrier's financial metrics such as Core EBITDA and Core net earnings are not GAAP measures and may differ from similar metrics used by other companies, emphasizing the need for careful interpretation[36][37]