Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 totaled $96.3 million with deliveries of 710 railcars, compared to $161.1 million and 1,223 railcars in Q1 2024, reflecting planned lower production [16] - Gross margin expanded to 14.9%, up 780 basis points year over year, nearly doubling from the same period last year [6][16] - Adjusted EBITDA for Q1 2025 was $7.3 million, an increase from $6.1 million in Q1 2024, driven by favorable product mix and operational efficiencies [17] - Adjusted net income for Q1 2025 was $1.6 million or $0.05 per diluted share, compared to $1.4 million or a loss of $0.10 per share in the same quarter last year [17] Business Line Data and Key Metrics Changes - The company booked 1,250 new railcar orders valued at approximately $141 million in Q1 2025, representing 25% of all new railcars ordered in the quarter [13] - The backlog increased to 3,337 railcars valued at approximately $318 million, marking a near 20% sequential increase from year-end [13][14] Market Data and Key Metrics Changes - FreightCar America expanded its addressable market share from 8% to 27% over the last twelve months, becoming the fastest growing railcar manufacturer in North America [8] - Total industry orders over the trailing twelve months were around 24,000 units, approximately 15,000 units below historical replacement levels, indicating pent-up demand [14] Company Strategy and Development Direction - The company is focused on maintaining operational flexibility and the ability to manufacture large-scale complex fabrications tailored to customer needs [5] - The strategic advantages include operating from a purpose-built facility that reduces supply chain delays and aligns with USMCA guidelines, providing a competitive edge [9] - The company anticipates industry-wide deliveries will pick up momentum throughout the remainder of the year, supported by a robust backlog [11] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about railcar equipment demand over the next 24 months, supported by consistent rail traffic levels and ongoing railcar replacement cycles [10] - The company reaffirmed its full-year 2025 guidance, expecting deliveries of between 4,500 to 4,900 railcars and revenue of $530 million to $590 million [11] Other Important Information - The company generated $12.8 million in operating cash flow, marking the fourth consecutive quarter of positive cash flow from operations [18] - Capital expenditures for Q1 totaled $300,000, with expectations for full-year capital expenditures in the range of $5 million to $6 million [19] Q&A Session Summary Question: Which segments of your product suite are driving sales growth? - Management indicated that orders are being received across all segments, including covered hoppers and open-top hoppers, with a healthy mix allowing for multiple product lines to be utilized [23][24] Question: What are your considerations for putting a fifth production line into service? - Management stated that a fifth line could be activated in under 90 days with less than a million dollars of CapEx, contingent on sustained customer demand exceeding 5,200 units per year [26][27] Question: Can you differentiate your order flow from the broader industry? - Management noted that while there is some hesitancy in the industry, their order intake was the highest in 15 years, indicating strong demand for their products [38][42] Question: What is the expected quarterly delivery cadence for the rest of the year? - Management expects a step-up in Q2 deliveries, with significant increases anticipated in Q3 and Q4 to meet guidance [49][50] Question: Can you provide insight on gross margins and product mix? - Management explained that gross margins have expanded due to a favorable product mix, with no boxcars in the current pipeline, which typically have lower margins [52][60] Question: What is the timeline for the tank car retrofit program? - Management indicated that shipments for the tank car retrofit program are expected to start in the first half of 2026, with preparations ongoing [63][64]

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 totaled $96.3 million with deliveries of 710 railcars compared to $161.1 million and 1,223 railcars in Q1 2024, reflecting a planned reduction in production capacity [17][18] - Gross margin expanded to 14.9%, up 780 basis points year over year, nearly doubling from the same period last year [6][18] - Adjusted EBITDAR for Q1 2025 was $7.3 million, exceeding last year's performance despite lower revenue and deliveries [7][19] - Adjusted net income for Q1 2025 was $1.6 million or $0.05 per diluted share, compared to $1.4 million or a loss of $0.10 per share in Q1 2024 [19] Business Line Data and Key Metrics Changes - The company booked 1,250 new railcar orders valued at approximately $141 million in Q1 2025, marking a strong start to the year [7][14] - The backlog increased to 3,337 railcars valued at approximately $318 million, indicating strong visibility into future revenue [8][14] Market Data and Key Metrics Changes - FreightCar America achieved a market share of 27% within its addressable market, up from 8% over the last twelve months, despite lower industry-wide orders [8][15] - Total industry orders over the trailing twelve months were around 24,000 units, approximately 15,000 units below historical replacement levels, creating pent-up demand [14][15] Company Strategy and Development Direction - The company remains cautiously optimistic about railcar equipment demand over the next 24 months, supported by consistent rail traffic levels and ongoing railcar replacement cycles [11] - The operational flexibility and ability to manufacture large-scale complex fabrications tailored to customer needs are key strategic advantages [5][10] - The company plans to ramp up production significantly in the second half of 2025, converting backlog into sales [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for 2025, expecting deliveries between 4,500 to 4,900 railcars and revenue of $530 million to $590 million [12] - The commercial pipeline remains robust, with ongoing discussions for additional railcar orders [11][12] Other Important Information - The company generated $12.8 million in operating cash flow, marking the fourth consecutive quarter of positive cash flow from operations [20] - Capital expenditures for Q1 totaled $300,000, with expectations for full-year capital expenditures in the range of $5 million to $6 million [21] Q&A Session Summary Question: Which segments of your product suite are driving sales growth? - Management indicated that orders are being received across all segments, including covered hoppers and open-top hoppers, with a healthy mix allowing for multiple production lines to be utilized [24][25] Question: What are your considerations for putting a fifth production line into service? - The company can activate a fifth line in under 90 days with less than a million dollars in CapEx, contingent on sustained customer demand exceeding 5,200 units per year [27][28] Question: Can you differentiate your order flow from the broader industry? - Management noted that while there is some hesitancy in the industry, their order intake was the highest in 15 years, indicating strong demand for their products [37][39] Question: What is the expected quarterly delivery cadence for the rest of the year? - Q2 is expected to see a step-up from Q1, with significant increases anticipated in Q3 and Q4 to meet guidance [48] Question: Can you provide insight on gross margins and product mix? - Management confirmed that gross margins are expected to continue expanding, with fluctuations possible on a quarterly basis but normalizing over a twelve-month period [75][78]