The Greenbrier panies(US:GBX)2026-01-08 21:30Financial Performance - Total revenue for the three months ended November 30, 2025, was $706.1 million, a decrease of 19.3% compared to $875.9 million for the same period in 2024[16] - Manufacturing revenue decreased to $657.0 million from $830.9 million, reflecting a decline of 20.8% year-over-year[16] - Net earnings attributable to Greenbrier for the three months ended November 30, 2025, were $36.4 million, down 34.2% from $55.3 million in the prior year[16] - Basic earnings per common share decreased to $1.18 from $1.77, representing a decline of 33.3% year-over-year[16] - For the three months ended November 30, 2025, net earnings were $37.3 million, a decrease of 36.9% compared to $59.1 million in the same period of 2024[21] - Total revenue for the three months ended November 30, 2025, was $706.1 million, down 19.3% from $875.9 million in the prior year[33] - Railcar sales revenue decreased to $566.6 million from $728.0 million, representing a decline of 22.1% year-over-year[33] - Segment earnings from operations for Manufacturing were $48.6 million in Q4 2025, down from $121.6 million in Q4 2024, representing a decline of 60%[67] - Revenue for the three months ended November 30, 2025, decreased by $169.8 million or 19.4% compared to the same period in 2024, primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix[104] - Manufacturing segment revenue decreased by $173.9 million or 20.9% for the three months ended November 30, 2025, primarily due to a 26.8% decrease in deliveries[107] - Leasing & Fleet Management segment revenue increased by $4.1 million or 9.1% for the three months ended November 30, 2025, attributed to a $4.9 million increase in rents from growth of the lease fleet[113] Assets and Liabilities - Total assets as of November 30, 2025, were $4,295.6 million, a decrease from $4,360.6 million as of August 31, 2025[15] - Accounts payable and accrued liabilities decreased to $577.5 million from $651.7 million, a reduction of 11.3%[15] - Total debt, net as of November 30, 2025, was $1,766.2 million, an increase from $1,750.9 million as of August 31, 2025[43] - Recourse debt totaled $794.8 million as of November 30, 2025, up from $771.2 million at the end of August 2025[43] - Non-recourse debt was $971.4 million as of November 30, 2025, slightly down from $979.7 million as of August 31, 2025[43] - The company had $435.2 million available for borrowing under its North American revolving credit facility as of November 30, 2025[44] - The European credit facilities had $14.2 million available for borrowing as of November 30, 2025[46] - The Mexican credit facilities had $86.0 million available for borrowing as of November 30, 2025[47] - Contract liabilities decreased to $22.3 million from $40.1 million, a reduction of 44.5%[34] Cash Flow and Investments - Cash and cash equivalents increased to $361.8 million from $306.1 million, an increase of 18.2%[15] - Operating cash flows provided $76.2 million, a significant improvement compared to cash used in operating activities of $(65.1) million in the prior year[21] - The company reported a net cash used in investing activities of $(15.0) million, compared to $(53.7) million in the same period last year[21] - Net cash provided by operating activities for the three months ended November 30, 2025, was $76.2 million, a significant increase from a cash outflow of $65.1 million in the same period of 2024[130] - Total capital expenditures (net of proceeds) for the three months ended November 30, 2025, were $15.0 million, a decrease from $58.5 million in the same period of 2024[133] - Gross capital expenditures for 2026 are expected to be approximately $205 million for Leasing & Fleet Management and $80 million for Manufacturing[134] Shareholder Actions - The company declared cash dividends of $0.32 per share during the period[20] - The company repurchased 303 thousand shares for $12.9 million during the three months ended November 30, 2025, with $64.9 million remaining under the share repurchase program[28] - The Board of Directors has authorized a share repurchase program of up to $100.0 million, extended to January 31, 2027[137] - The Board of Directors has authorized a share repurchase program, extending it to January 31, 2027, with $64.9 million remaining for repurchase as of November 30, 2025[172] - During the three months ended November 30, 2025, the company repurchased 303 thousand shares at an average price of $42.55 per share[172] Operational Highlights - The company reported a comprehensive income of $38.6 million for the three months ended November 30, 2025, compared to $51.5 million in the same period of 2024[17] - The company incurred total lease obligations of $81.2 million as of November 30, 2025, after accounting for imputed interest[73] - Capital expenditures for the Manufacturing segment were $20.7 million in Q4 2025, significantly down from $57.9 million in Q4 2024[69] - The company reported a net loss on disposition of equipment of $17.8 million in the Leasing & Fleet Management segment for the three months ended November 30, 2025[67] - Net gain on disposition of equipment was $17.7 million for the three months ended November 30, 2025, compared to $0.2 million for the prior comparable period, attributed to higher sales of assets from the lease fleet[120] - Earnings from operations for the Manufacturing segment decreased by $73.0 million for the three months ended November 30, 2025, primarily due to a 26.8% decrease in deliveries[110] - Earnings from operations for the Leasing & Fleet Management segment increased by $22.1 million for the three months ended November 30, 2025, primarily due to a $17.6 million increase in net gain on disposition of equipment[116] Tax and Compliance - Income tax expense for the three months ended November 30, 2025, was $12.3 million on pre-tax income of $45.6 million, resulting in an effective tax rate of 27.0%[122] - The company recognizes tax benefits from uncertain tax positions only when it is more likely than not that the position will be sustained upon examination by tax authorities[157] - The annual tax rate is influenced by statutory tax rates and tax planning opportunities across various jurisdictions, with potential impacts from foreign earnings taxation[158] - There have been no changes in internal control over financial reporting that materially affected the company's controls during the quarter ended November 30, 2025[167] Legal and Environmental Matters - The estimated undiscounted cost for the EPA's cleanup remedy at the Portland Harbor Superfund Site is $1.7 billion, expected to take 13 years of active remediation followed by 30 years of monitoring[76] - The Company's aggregate expenditure related to the Portland Harbor Superfund Site investigation over a 17-year period was not material, with costs exceeding $110 million incurred by the Lower Willamette Group[75] - The Company is involved in ongoing litigation related to the Portland Harbor Superfund Site, with potential liabilities still being assessed[84] - The Company has signed a Voluntary Cleanup Agreement with the Oregon DEQ to investigate potential hazardous substance releases at the Portland Property[83] - The Company believes it did not materially contribute to contaminants of concern at the Portland Harbor Superfund Site, and its liability remains uncertain pending ongoing investigations[81] - The Company is participating in a non-judicial allocation process with approximately 100 parties to determine costs associated with the remediation of the Portland Harbor Superfund Site[77] Strategic Initiatives - The Company is executing a strategic plan focused on increasing recurring revenue and expanding gross margin, despite macroeconomic uncertainties[93] - The company expects proceeds from sales of assets to be approximately $165 million for 2026[133] Currency and Interest Rate Management - The company utilized foreign exchange contracts with notional amounts aggregating to $369.9 million to hedge against market risks from changes in foreign currency exchange rates[55] - A 10% strengthening of the U.S. Dollar relative to foreign currencies would decrease equity by $14.7 million, representing 1.0% of total equity[164] - The company has converted $680.6 million of variable rate debt to fixed rate debt through interest rate swap agreements, with 85% of outstanding debt at fixed rates[165] - A uniform increase of 10% in variable interest rates would result in approximately $1.0 million of additional annual interest expense[165]