Financial Data and Key Metrics Changes - Greenbrier achieved record full-year diluted earnings per share and record core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow [4][10] - Core diluted earnings per share for Q4 was $1.26, with core EBITDA at $115 million, representing 15% of revenue [17] - Operating income for Q4 was $72 million, nearly 10% of revenue, with an effective tax rate of 36.4% [17] - Return on invested capital was nearly 11%, within the long-term target range of 10% to 14% [17] Business Line Data and Key Metrics Changes - The leasing and fleet management business saw recurring revenue reach nearly $170 million, a 50% increase from $113 million two years ago [12] - The lease fleet grew by about 10% in Fiscal 2025 to just over 17,000 units, with high utilization rates at 98% [12] - New railcar orders in Q4 totaled approximately 2,400 units valued at over $300 million, bringing full-year orders to more than 13,000 units [10] Market Data and Key Metrics Changes - The backlog at the end of the year stood at 16,600 units valued at $2.2 billion, reflecting a healthy mix of product types and customers [11] - In North America, freight trends and tariff dynamics are moderating new railcar demand, leading fleet owners to extend acquisition timelines [11] Company Strategy and Development Direction - Greenbrier is focused on operational excellence, innovation, and responsible growth, with a goal of doubling recurring revenues by Fiscal 2028 [7][9] - The company is undergoing footprint rationalization in Europe, expecting annualized savings of $20 million without impacting production capacity [6][12] - The integration of manufacturing and leasing is a key feature of Greenbrier's model, providing stability and efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management views the current market conditions as an opportunity to enhance production efficiency and reduce costs [10] - The company anticipates a stronger second half of Fiscal 2026, driven by backlog orders and customer needs [41] - Management expressed confidence in the near-term performance and long-term outlook, emphasizing the resilience of the business model [15] Other Important Information - Greenbrier's liquidity level was over $800 million, the highest in 10 quarters, with more than $305 million in cash [17] - The board declared a dividend of $0.32 per share, marking the 46th consecutive quarterly dividend [18] - Capital expenditures for Fiscal 2026 are expected to be approximately $80 million for manufacturing and roughly $240 million for leasing and fleet management [20] Q&A Session Summary Question: Outlook on car builds and market conditions - Management believes they are at the low point of the cycle, with inquiries increasing and a forecast for production ramp-up in the latter half of the year [24][25] Question: Impact of changes in Mexico - The insourcing project in Mexico has been completed, providing benefits to financial results and manufacturing margins [28][29] Question: Facility rationalization in Europe - Greenbrier will consolidate production into fewer facilities while maintaining the same production capacity [32][36] Question: First quarter outlook - Management expects Q1 and Q2 of Fiscal 2026 to have similar production rates as Q4 of Fiscal 2025, with a ramp-up anticipated in the second half [41][47] Question: Balance sheet and leasing business funding - The strategy remains to add about $300 million net each year to the lease fleet, with a robust secondary market for opportunities [54][55] Question: Competitive landscape in new car builds - Pricing pressure exists in commoditized markets, while specialty cars maintain good discipline in pricing [62]

Core Insights - Wabtec Corporation reported strong third-quarter adjusted earnings, exceeding analyst expectations with adjusted earnings per share of $2.32 compared to estimates of $2.28, and revenue of $2.89 billion, slightly above the expected $2.88 billion [1][2] Financial Performance - Adjusted operating margin expanded by 130 basis points to 21.0%, driven by higher volumes and improved cost efficiency [2] - Total backlog reached $25.6 billion, with a 12-month backlog up 8.4% year-over-year [2] - Freight sales increased 8.4% to $2.09 billion, with equipment sales surging 32% due to stronger locomotive deliveries [2] - Transit segment revenue grew 8.2% to $793 million [2] Future Outlook - Wabtec raised its 2025 adjusted earnings guidance to a range of $8.85–$9.05 per share, an increase of $0.10 at the midpoint [3] - The company maintained its revenue outlook of $10.925–$11.225 billion, implying approximately 6.6% growth at the midpoint [3]

Core Insights - Westinghouse Air Brake Technologies Corporation (WAB) reported strong third-quarter 2025 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [1][9]. Financial Performance - Quarterly earnings per share (EPS) reached $2.32, surpassing the Zacks Consensus Estimate of $2.23, and reflecting a 16% increase year-over-year due to higher sales, operating margin expansion, and share repurchase benefits [2][9]. - Revenues totaled $2.88 billion, exceeding the Zacks Consensus Estimate of $2.86 billion, and grew 8.4% year-over-year, driven by increased sales in both the Freight and Transit segments [2][9]. Segment Performance - The Freight segment reported net sales of $2.09 billion, an 8.4% year-over-year increase, supported by a 32% rise in Equipment sales and a 45.6% increase in Digital sales due to the acquisition of Inspection Technologies [4]. - The Transit segment's net sales grew 8.2% year-over-year to $793 million, bolstered by strong aftermarket and original equipment sales [5]. Operational Metrics - Total operating expenses rose by $64 million year-over-year to $511 million, with the operating ratio increasing to 17.7% from 16.8% [6]. - Cash, cash equivalents, and restricted cash at the end of the quarter stood at $528 million, down from $1.49 billion at the previous quarter-end, while long-term debt increased to $5.03 billion from $4.78 billion [6]. Dividend and Guidance - WAB paid $43 million in dividends during the quarter [7]. - The company raised its 2025 adjusted EPS guidance to a range of $8.85 to $9.05, tightening from the previous range of $8.55 to $9.15, with the Zacks Consensus Estimate of $8.90 falling within this guidance [8][10]. - Revenue guidance for 2025 remains between $10.925 billion and $11.225 billion, with the Zacks Consensus Estimate of $11.08 billion also within this range [10].

Core Insights - Wabtec reported stronger earnings with revenue and profits growing in both freight and transit segments, highlighting a strong quarter with growth in backlog, sales, margin, and earnings [1][4] Revenue and Earnings - Operating income increased by 17% to $491 million, while revenue grew by 8.4% to $2.89 billion, and earnings per share rose by 11% to $1.81 [1] - Freight segment revenue was up 8.4%, with equipment sales increasing by 32% due to higher locomotive deliveries, and digital sales rising by 46% following the acquisition of Inspection Technologies [2] Backlog and Orders - The freight segment's 12-month backlog increased by 9% year-over-year, and its multi-year backlog rose by 18%, supported by a record $4.2 billion locomotive order from Kazakhstan's national railway [3] - Transit segment's 12-month backlog rose by 7%, while the multi-year backlog grew by 4%, driven by unprecedented backlogs at car builders and passenger growth in key markets [3][4] Financial Outlook - Wabtec raised its full-year financial outlook, estimating earnings per share to rise by 18.4% at the midpoint of its range of $8.85 to $9.05 [4] - Despite strong momentum, executives expressed caution regarding the broader economic landscape as they approach the final quarter of the year [5]

Financial Data and Key Metrics Changes - Sales in the third quarter were $2.9 billion, an increase of 8% compared to the prior year [4] - Adjusted EPS rose by 16%, driven by increased sales and margin expansion [5] - Total cash flow from operations for the quarter was $367 million [5] - The twelve-month backlog was $8.3 billion, representing an increase of 8.4% [5] - GAAP operating income was $491 million, with an adjusted operating margin of 21%, up 1.3 percentage points from the prior year [16][23] Business Line Data and Key Metrics Changes - Equipment sales increased by 32% year-over-year, driven by higher new locomotive deliveries [19] - Services revenue decreased by 11.6% due to planned lower modernization deliveries [18] - Digital Intelligence sales grew by 45.6%, primarily due to the Inspection Technologies acquisition [20] - Transit segment sales were up 8.2%, with adjusted operating income as a percentage of revenue increasing to 15.5% [26] Market Data and Key Metrics Changes - North America traffic was up 1.4%, but active locomotive fleets were slightly down compared to last year [6] - Railcar builds in North America were revised down to approximately 28,000 cars, a 34% reduction from the previous year [7] - Internationally, strong activity was noted in markets such as Asia, India, Brazil, and CIS, with significant investments in infrastructure [7] Company Strategy and Development Direction - The company is focused on enhancing competitiveness and driving innovation through integration initiatives and cost efficiencies [12] - The strategy includes portfolio optimization and accretive bolt-on acquisitions to strengthen the business [13] - The company aims for leadership positions in segments with clear differentiation for long-term success [13] Management's Comments on Operating Environment and Future Outlook - Management expressed caution in navigating a volatile economic landscape while remaining optimistic about the strong pipeline of opportunities [6][31] - The company raised its full-year adjusted EPS guidance to between $8.85 to $9.05, reflecting confidence in future growth [32] - Management highlighted the importance of product innovation and disciplined cost management in driving ongoing success [31] Other Important Information - The company secured a historic $4.2 billion order with Kazakhstan's National Railway, the largest single rail order in history [8] - The integration of Inspection Technologies is progressing positively, with expectations for cross-selling opportunities [94] Q&A Session Summary Question: Concerns about organic growth being in low single digits - Management noted that the twelve-month backlog growth has outpaced last year, indicating a stronger coverage for future growth [37] Question: Expectations for services growth in 2026 - Core services are expected to grow in the 5% to 7% range, driven by fleet age and innovation [41] Question: Thoughts on backlog and upcoming acquisitions - Management indicated stronger coverage for 2026 and expects acquisitions to be accretive to margins and EPS [48] Question: Impact of tariffs on cash flow and P&L - Tariffs are impacting cash flow, with a lag in their effect on the P&L expected to be two to four quarters [57] Question: Update on regulatory environment and advanced technologies - Management sees positive momentum in regulatory support for advanced technologies, which will contribute to digital business growth [92] Question: Details on the Kazakhstan contract - The contract includes 300 locomotives over ten years, along with service agreements for existing locomotives [87]

Financial Data and Key Metrics Changes - Sales in Q3 2025 were $2.9 billion, an increase of 8% compared to the previous year, driven by growth in both freight and transit segments [3][10] - Adjusted EPS rose by 16%, attributed to increased sales and margin expansion [3][11] - Total cash flow from operations for the quarter was $367 million, reflecting a decrease year-over-year due to higher tariffs and increased working capital [20][21] - The 12-month backlog reached $8.3 billion, up 8.4%, while the multi-year backlog hit an all-time high [3][10] Business Line Data and Key Metrics Changes - Equipment sales increased by 32% year-over-year, driven by higher new locomotive deliveries [12][14] - Digital intelligence sales surged by 45.6%, primarily due to the acquisition of Inspection Technologies [14] - Services revenue declined by 11.6% from the previous year, expected to continue decreasing in Q4 due to lower modernization deliveries [12][14] Market Data and Key Metrics Changes - North American traffic rose by 1.4%, although Wabtec's active locomotive fleets were slightly down compared to last year [4][5] - The North American railcar build forecast was reduced to approximately 28,000 cars, a 34% decrease from the previous year [5] - Internationally, strong activity was noted in markets such as Asia, India, Brazil, and CIS, with significant investments in infrastructure [5][6] Company Strategy and Development Direction - The company is focused on enhancing competitiveness and driving innovation through integration initiatives and portfolio optimization [9][10] - Wabtec aims to maintain leadership positions in segments with clear differentiation, targeting long-term success [9] - The strategy includes disciplined capital allocation to maximize shareholder returns while pursuing bolt-on acquisitions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution in navigating a volatile economic landscape while remaining optimistic about the underlying business momentum [4][22] - The company raised its full-year adjusted EPS guidance to between $8.85 and $9.05, reflecting confidence in continued profitable growth [22][23] - Management highlighted a strong pipeline of opportunities and a commitment to product innovation and cost management [22][23] Other Important Information - The company secured a historic $4.2 billion order with Kazakhstan's National Railway, marking the largest single rail order in history [6][7] - The integration of Inspection Technologies is progressing positively, with expectations for cross-selling opportunities [66] Q&A Session Summary Question: Concerns about organic growth being in low single digits - Management noted that the 12-month backlog growth has outpaced last year, indicating stronger coverage for 2026 and a positive pipeline of opportunities, particularly in international markets [28][30] Question: Insights on services and modernization expectations - Management expects core services to grow in the 5% to 7% range, with variations tied to capital expenditure allocations between new locomotives and modernization [31] Question: Backlog and upcoming acquisitions - Management confirmed that the backlog is stronger for 2026 than the previous year, with acquisitions expected to provide inorganic growth [34][36] Question: Impact of tariffs on cash flow and P&L - Management explained that tariffs impact cash flow first, with a lag before affecting the P&L, and outlined a four-pronged approach to mitigate tariff impacts [41][43] Question: Digital product penetration and international growth - Management indicated that there are opportunities for digital product penetration in international markets, particularly in Kazakhstan and CIS countries [83]

Financial Performance - Wabtec's Q3 2025 sales reached $2.89 billion, an increase of 8.4% year-over-year[7] - GAAP earnings per share (EPS) increased by 11.0% year-over-year to $1.81, while adjusted EPS increased by 16.0% year-over-year to $2.32[7] - Operating margin was 17.0% on a GAAP basis and 21.0% on an adjusted basis, benefiting from sales growth and improved gross margin[7] - Cash flow from operations was $367 million, impacted by increased tariffs and higher working capital[7] - The company's 12-month backlog increased by 8.4% to $8.27 billion, providing strong visibility for 2025 and beyond[7] Segment Performance - Freight segment sales were $2.093 billion, up 8.4% year-over-year[35] - Transit segment sales were $793 million, up 8.2% year-over-year (5.2% on a constant currency basis)[35] - Freight segment operating margin was 19.8% on a GAAP basis and 24.5% on an adjusted basis[45] - Transit segment operating margin was 14.5% on a GAAP basis and 15.5% on an adjusted basis[48] Financial Outlook - Wabtec updated its 2025 financial guidance, projecting revenues between $10.925 billion and $11.225 billion and adjusted diluted EPS between $8.55 and $9.15[57] - The company expects a cash conversion rate of over 90%[57]

Core Insights - Wabtec Corporation reported third quarter 2025 GAAP earnings per diluted share of $1.81, reflecting an 11.0% increase compared to the third quarter of 2024 [1] - Adjusted earnings per diluted share were $2.32, marking a 16.0% rise year-over-year [1] - The company's third quarter sales reached $2.89 billion, with cash from operations amounting to $367 million [1] - The CEO, Rafael Santana, highlighted the strong performance of the company, noting growth in backlog, sales, margin, and earnings [1]

Core Viewpoint - Greenbrier Companies, Inc. will report its Fourth Quarter and Fiscal Year 2025 results on October 28, 2025, after market close, with a conference call scheduled for 2:00 p.m. PDT [1]. Company Overview - Greenbrier, based in Lake Oswego, Oregon, is a prominent international supplier of equipment and services for global freight transportation markets [3]. - The company designs, builds, and markets freight railcars across North America, Europe, and Brazil through its subsidiaries and joint ventures [3]. - Greenbrier provides freight railcar wheel services, parts, maintenance, and retrofitting services primarily in North America [3]. - The company owns a lease fleet of approximately 16,800 railcars, mainly originating from its manufacturing operations [3]. - Greenbrier also offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [3].

Core Insights - TX Rail Products, Inc. is projecting a revenue growth of at least 50% for fiscal year 2026 compared to fiscal year 2025, following successful management of inventory levels amidst changes in U.S. trade policy [2][5] - The company is preparing for an uplist to the OTCQB within the next six months, which is expected to enhance visibility and access to a broader investor base [3][5] - TX Rail Products has engaged Forvis Mazars, LLP, a top 10 public accounting firm, to bolster shareholder confidence in its financial reporting [3][5] Company Developments - The company has made significant operational and financial progress recently, focusing on strengthening its foundation for future growth [2] - The CEO emphasized the importance of navigating recent challenges effectively, which has positioned the company for meaningful growth and long-term value [2][3] Industry Context - TX Rail Products supplies rail and rail products primarily to the U.S. coal mining industry, short line railroads, and tunneling contractors, indicating its niche within the broader rail and mining sectors [1]