Here's Why Investors Should Give Greenbrier Stock a Miss Now

Group 1: Company Challenges - Greenbrier Companies (GBX) is facing significant challenges that are negatively impacting its operational efficiency and liquidity, making it less attractive for investors [1] - The company's revenues decreased from $875.9 million in Q1 2025 to $762.1 million in Q2 2025, primarily due to fewer deliveries in North America and Europe [6] - The gross margin fell from 19.8% to 18.2% during the same period, influenced by lower revenues and $2.4 million in European rationalization costs [6] Group 2: Earnings Estimates and Performance - The Zacks Consensus Estimate for current-year earnings has been revised downward by 12.7% to $5.15 per share, with a 13.6% decline in the 2026 earnings estimate to $5.40 per share [2] - GBX has a mixed earnings surprise history, surpassing the Zacks Consensus Estimate in two of the last three quarters, but with an average negative surprise of 42.5% [4] - The company's stock price has decreased by 29.7% over the past year, compared to an 18.5% decline in the Transportation - Equipment and Leasing industry [3] Group 3: Financial Ratios and Industry Context - GBX's current ratio has deteriorated from 1.88 in 2022 to 1.50 in 2025, indicating growing liquidity concerns and a declining ability to cover short-term liabilities [9] - The industry to which Greenbrier belongs has a Zacks Industry Rank of 212 out of 247, placing it in the bottom 14% of Zacks Industries, which could impact GBX's stock performance [5] - The company's selling and administrative expenses rose from $62 million in Q1 2025 to $64.6 million in Q2 2025, including $4.2 million in restructuring costs, highlighting cost pressures amid declining sales [8]