FreightCar America (RAIL) FY Conference Summary Company Overview - **Company Name**: FreightCar America Inc. - **Ticker**: RAIL - **Industry**: Railcar manufacturing in North America - **Established**: 120 years ago, evolved significantly over time [2][3] Core Business and Operations - **Manufacturing Capabilities**: - Fastest growing Original Equipment Manufacturer (OEM) in the railcar industry - Vertically integrated manufacturing facility in Coahuila, Mexico - Capabilities include building new cars, converting existing railcars, rebodying, and retrofitting tank cars [3][4] - **Production Capacity**: - Approximately 5,000 units of capacity, varying based on car mix - Delivered 3,600 railcars in the trailing twelve months through June 30, with an adjusted EBITDA of $11,000 per railcar [4][5] - **Financial Performance**: - Generated $466 million in revenue and $21.5 million in adjusted free cash flow [5] - Achieved a compound annual growth rate (CAGR) of 55% in deliveries and 51% in revenue from 2020 to 2024 [6] Market Position and Strategy - **Market Share**: - Third largest railcar manufacturer in North America, consistently increasing market share [4][6] - Leading position in open top hoppers and primary position in gondolas and flat cars [7] - **Future Growth Plans**: - Plans to enter the tank car market, which has a higher average selling price and gross margin profile [9] - Significant contract for retrofitting 1,300 tank cars, expected to enhance capabilities and market presence [13] Competitive Landscape - **Leasing Market**: - 60% of railcars are leased; FreightCar America does not offer leasing, targeting private car owners instead [14][36] - Competitors primarily include leasing companies, which dominate the market [14][36] - **Customization and Relationships**: - Focus on customization for private car owners and collaboration with leasing companies to avoid competition [15][14] Financial Strategy and Capital Structure - **Capital Optimization**: - Transitioned from preferred shares to a lower-cost term loan facility, enhancing financial flexibility [17] - Consistently generating free cash flow, with plans to refinance and lower capital costs by 2026 [17][51] - **Investment in Growth**: - Low maintenance capital expenditure (CapEx) at 0.5% to 0.75% of revenue, allowing for organic growth and potential acquisitions [25] Industry Dynamics - **Railcar Retirement**: - Class one railroads must retire railcars after 50 years, creating a consistent demand for new cars [28][32] - Estimated need for 40,000 new railcars annually due to retirements and industry changes [32] - **Order Fulfillment**: - Industry-leading order to fulfillment time of 3 to 5 months, compared to 8 to 9 months for competitors [20][52] - Ability to respond quickly to customer needs, especially during periods of uncertainty [54] Conclusion - FreightCar America is well-positioned in the railcar manufacturing industry with strong growth prospects, a focus on customization, and a strategic approach to capital management. The company aims to expand its market share and product offerings, particularly in the tank car segment, while maintaining operational efficiency and financial stability.

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 totaled $118.6 million, down from $147.4 million in Q2 2024, with deliveries of 939 railcars compared to 1,159 railcars a year ago [15][19] - Gross profit for Q2 2025 was $17.8 million with a gross margin of 15%, compared to a gross profit of $18.4 million and a gross margin of 12.5% in Q2 2024 [15][19] - Adjusted net income for Q2 2025 was $3.8 million or $0.11 per share, compared to $3.5 million or $0.10 per share in the same quarter last year [18][19] - Adjusted EBITDA for Q2 2025 was $10 million, down from $12.1 million in Q2 2024, but adjusted EBITDA margin expanded by 20 basis points [17][19] Business Line Data and Key Metrics Changes - The company secured 1,226 new orders in Q2 2025, valued at $107 million, contributing to a backlog of 3,624 units, up approximately 300 units from the prior quarter [7][12] - The backlog reflects a higher proportion of rebuild and conversion work, indicating strong demand for these services [8][12] - The aftermarket sales increased by almost 61%, while railcar sales fell about 26% compared to the prior year [24] Market Data and Key Metrics Changes - The industry forecast for new railcar deliveries has been revised downward for 2025, with total industry deliveries expected to fall below the previously anticipated 40,000 units per year average [9][14] - The company expects overall industry annual demand to fall within the 35,000 to 40,000 range due to over 160,000 railcars projected to reach their mandated retirement in the next four and a half years [14] Company Strategy and Development Direction - The company is investing in a tank car retrofit program to enhance manufacturing capabilities and vertical integration, expected to contribute an additional $6 million of EBITDA over the next two years [10][20] - The company aims to maintain a diversified order book and prioritize margin performance and manufacturing flexibility to navigate the moderating demand environment [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market share and respond to evolving customer needs despite a challenging industry backdrop [9][10] - The company anticipates a steady increase in order volume in the second half of the year, supported by a healthy backlog and ongoing inquiries [12][63] Other Important Information - The company generated $8.5 million in operating cash flow, marking the fifth consecutive quarter of positive cash flow from operations [19][21] - Capital expenditures for Q2 totaled $600,000, with expectations for full-year capital expenditures in the range of $9 million to $10 million [20] Q&A Session Summary Question: Impact of productive capacity on railcar sales and expectations for Q3 and Q4 - Management clarified that production was higher than shipments in Q2 due to timing, and they expect higher deliveries in Q3 and Q4 [24][27] Question: Manufacturing segment gross margins and future expectations - Management indicated that current margins are influenced by product mix and operational productivity, with expectations for similar margins in the second half of the year [29][50] Question: Tank car retrofit program and its impact on revenue and margin - Management confirmed that the tank car retrofit program is expected to add $6 million in EBITDA over two years, with production starting in mid-2026 [36][57] Question: Effects of mergers among Class 1 rail carriers - Management noted that while it is too early to determine specific impacts, improvements in productivity and customer service in the rail industry would benefit builders [39][40] Question: Potential demand for coal-related railcars - Management acknowledged increased inquiries for extending the life of existing coal railcars, but noted it is too early to predict new car builds [44][45] Question: Long-term gross margin expectations - Management stated that gross margins are dependent on product mix and operational productivity, with no immediate concerns for a decline from current levels [48][51] Question: Tank car conversion pipeline and customer conversations - Management highlighted ongoing discussions with customers regarding conversions and new car orders, preparing for increased demand as deadlines approach [56][58]

Financial Data and Key Metrics Changes - Revenues for the second quarter were $506 million, with GAAP EPS of $0.19, consistent with expectations due to a slower delivery pace [13] - The effective tax rate for the quarter was 15.8%, benefiting from the purchase of $40 million in transferable tax credits [14] - Year-to-date cash flow from continuing operations reached $142 million, demonstrating strong cash generation potential [15] Business Line Data and Key Metrics Changes - The Railcar Leasing and Services segment saw revenues increase year-over-year, primarily due to higher lease rates, with a 21% increase in quarterly maintenance services revenue [8] - The future lease rate differential (FLRD) was 18.3%, with a renewal success rate of 89% and fleet utilization at 96.8% [9] - The Rail Products segment delivered 1,815 railcars, achieving a book-to-bill ratio above one for the first time in ten quarters, with an operating margin of 3% [10] Market Data and Key Metrics Changes - The industry is on pace for full-year deliveries in the range of 28,000 to 33,000 railcars, with a modest contraction in the overall fleet due to higher scrapping rates [7] - Inquiry levels remain healthy, translating into increased order activity, although at a slower rate than anticipated [6] Company Strategy and Development Direction - The company aims to capitalize on favorable conditions in the secondary market and anticipates increased quarterly deliveries benefiting revenues and margins [12] - Strategic initiatives include optimizing manufacturing operations and investing in automation to lower the business breakeven point [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving order volumes and the overall operating environment for the second half of the year [59] - The company remains confident in its ability to deliver strong performance despite macroeconomic uncertainties [20] Other Important Information - The company expects full-year severance expenses of $15 million, with anticipated savings of $50 million across the enterprise in 2025 [14] - The company is maintaining its full-year EPS guidance at a range of $1.40 to $1.60, indicating stronger performance in the second half of the year [19] Q&A Session Summary Question: Production plans for the second half and alignment with orders - Management indicated that the second quarter was the bottom of the cycle, expecting volume to increase in the second half, aligning with positive customer sentiment [25][26] Question: Tax management and cash tax savings from full expensing - Management discussed the benefits of recent tax legislation, which significantly reduces the tax burden and improves cash flow from operations [32] Question: Margins for the full year and delivery expectations - Management maintained that full-year guidance for margins should be in the 5% to 6% range, with expectations for improved volumes through the year [42] Question: Competitive environment and lease rates - The leasing market remains tight, with positive indicators for lease fleet performance, including a high renewal success rate [48] Question: Impact of higher steel prices and potential rail merger - Higher steel prices may limit customer demand in the short term, but increased scrapping rates could lead to future orders [52] - A potential rail merger could improve efficiencies and lead to better market share opportunities for the company [53]

Financial Data and Key Metrics Changes - Revenues for the second quarter were $506 million, with GAAP EPS of $0.19, consistent with expectations due to a slower delivery pace [14] - The effective tax rate for the quarter was 15.8%, benefiting from the purchase of $40 million in transferable tax credits [15] - Year-to-date cash flow from continuing operations reached $142 million, demonstrating strong cash generation potential [16] Business Segment Performance - The Railcar Leasing and Services segment saw increased revenues both sequentially and year-over-year, driven by higher lease rates and a 21% year-over-year increase in maintenance services revenue [8][9] - The Rail Products segment delivered 1,815 railcars, resulting in a segment operating margin of 3%, with a book-to-bill ratio above one for the first time in ten quarters [11][12] Market Data and Key Metrics Changes - The industry is on pace for full-year deliveries in the range of 28,000 to 33,000 railcars, with a modest contraction in the fleet due to lower year-to-date deliveries and scrapping [7][18] - Inquiry levels remain healthy, translating into increased order activity, although at a slower rate than initially anticipated [6] Company Strategy and Industry Competition - The company is focused on repricing its lease fleet and capitalizing on favorable conditions in the secondary market, with an expectation of increased quarterly deliveries benefiting revenues and margins [13][19] - The company maintains its full-year operating margin guidance for the Rail Products segment in the 5% to 6% range, supported by stronger deliveries in the latter part of the year [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving order volumes and the overall operating environment, despite challenges in the delivery landscape [59] - The company anticipates that clarity on recent tax legislation and trade developments will positively impact business decisions and demand [33] Other Important Information - The company expects to realize about $50 million in savings across the enterprise in 2025 due to workforce reductions and lower incentive-based compensation [15] - The company is maintaining its full-year EPS guidance at a range of $1.40 to $1.60, indicating stronger performance in the second half of the year [19] Q&A Session Summary Question: Production plans for the second half and alignment with orders - Management indicated that the second quarter was the bottom of the cycle, expecting volume to increase in the second half, aligning with positive customer sentiment [24] Question: Stability of margins and deliveries in the next two quarters - Management expects improvements in both margins and deliveries through the year [26][27] Question: Tax management and cash tax savings from full expensing deduction - Management explained that the new tax bill significantly reduces the tax burden and improves cash flow from operations, aiding investment decisions [32] Question: Delivery picture in the back half relative to total industry delivery guidance - Management confirmed expectations of maintaining normal market share and improving business through the year [47] Question: Current competitive environment and lease rates - Management noted that the leasing market remains tight, with positive metrics for the lease fleet and expectations for continued strength [50] Question: Impact of higher steel prices on customer demand - Management acknowledged that higher steel prices could limit demand but also lead to increased scrapping, which may eventually necessitate new orders [53] Question: Potential impact of a transcontinental rail merger - Management suggested that the merger could improve efficiencies and lead to better market share, benefiting the company in the long term [55]

Q2 2025 Investor Presentation Exhibit 99.3 July 31, 2025 – based on financial results as of June 30, 2025 Forward Looking Statements Some statements in this presentation, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, includ ...

Financial Data and Key Metrics Changes - GATX reported Q2 2025 net income of $75.5 million or $2.6 per diluted share, compared to $44.4 million or $1.21 per diluted share in Q2 2024, reflecting a significant increase [4] - Year-to-date 2025 net income was $154.1 million or $4.21 per diluted share, up from $118.7 million or $3.25 per diluted share for the same period in 2024 [5] Business Segment Data and Key Metrics Changes - GATX Rail North America experienced stable demand with fleet utilization at 99.2% and a renewal success rate of 84.2%. The renewal lease rate increased by 24.2% for the quarter [6] - GATX Rail Europe reported a utilization rate of 93.3%, facing challenges due to macroeconomic headwinds and slower GDP in Germany, impacting fleet utilization [8] - GATX Rail India maintained high fleet utilization at 99.6%, benefiting from ongoing infrastructure investments in the country [9] - The engine leasing segment, particularly the joint venture with Rolls Royce, showed strong demand driven by global air passenger volume [9] Market Data and Key Metrics Changes - The secondary market for railcars in North America remains robust, generating over $34 million in remarketing income during the quarter, totaling approximately $65 million year-to-date [7] - The European business environment is described as challenging, with some customers delaying fleet planning decisions [8] Company Strategy and Development Direction - GATX is optimistic about the long-term outlook for the European railcar leasing market despite current challenges and is actively seeking attractive investment opportunities [8] - The company is increasing its 2025 full-year earnings guidance to a range of $8.5 to $8.9 per diluted share, excluding tax adjustments and the Wells Fargo transaction impact [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the merger announcement's impact on the leasing business is difficult to assess at this stage, but long-term efficiency improvements in rail transport are expected to benefit railcar lessors [13] - The management team indicated that the current pricing environment for railcars remains strong, with expectations of flattish lease rates unless external catalysts emerge [14][15] Other Important Information - The pending Wells Fargo Rail transaction is undergoing regulatory reviews, and management is optimistic about the opportunities it presents [10][51] - The company expects to see healthy investment activity in the second half of the year, with a target of approximately $200 million in investment volume [28] Q&A Session Summary Question: Impact of potential transcontinental merger on leasing business - Management stated it is difficult to assess the immediate impact due to timing and uncertainty but noted long-term benefits for railcar lessors [13] Question: Continuation of high lease price renewal rates - Management indicated that the market remains strong, and lease rates are expected to remain flattish without external catalysts [14][15] Question: Update on Wells Fargo merger approval timeline - Management confirmed that everything is tracking as planned with no unusual developments in the regulatory review process [18] Question: Profit mix in engine leasing business - Management reported that operating income constituted about 85% of total income in Q2, with expectations for strong performance in the engine leasing business [22] Question: Investment volume in wholly owned portfolio - Management expects to see some investment volume in the second half of the year, with a target of around $200 million [28] Question: Changes in secondary market dynamics due to merger speculation - Management noted no slowdown in the secondary market, driven by strong capital demand for railcars [38][39] Question: Strong international performance and segment profit - Management explained that segment profit was impacted by exchange rates, with challenges in the intermodal market affecting overall expectations [46]

Financial Data and Key Metrics Changes - For Q2 2025, GATX reported net income of $75.5 million or $2.6 per diluted share, an increase from $44.4 million or $1.21 per diluted share in Q2 2024, which included a net negative impact of $8 million or $0.22 per diluted share from tax adjustments and other items [3][4] - Year-to-date 2025 net income was $154.1 million or $4.21 per diluted share, compared to $118.7 million or $3.25 per diluted share for the same period in 2024, which also included a net negative impact of $7.4 million or $0.20 per diluted share from tax adjustments and other items [4] Business Segment Data and Key Metrics Changes - In Rail North America, fleet utilization was 99.2% at quarter end, with a renewal success rate of 84.2% and a renewal rate change of 24.2% for the quarter [5][6] - GATX Rail Europe had a utilization rate of 93.3% at quarter end, facing challenges due to macroeconomic headwinds and slower GDP in Germany, impacting fleet utilization [7] - GATX Rail India maintained high fleet utilization at 99.6% at quarter end, benefiting from ongoing infrastructure investments [8] - The engine leasing joint venture with Rolls Royce produced strong results, driven by robust demand for aircraft spare engines [8] Market Data and Key Metrics Changes - The secondary market in North America remains robust, generating over $34 million in remarketing income during the quarter, totaling approximately $65 million year-to-date [6] - The European railcar leasing market is facing challenges, but the long-term outlook remains positive despite current conditions [7] Company Strategy and Development Direction - GATX is increasing its 2025 full-year earnings guidance to a range of $8.5 to $8.9 per diluted share, excluding the impact of tax adjustments and the Wells Fargo transaction [10] - The company is optimistic about the pending Wells Fargo Rail transaction, which is currently undergoing regulatory reviews [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the market for existing railcars remains strong, with no significant changes expected in lease rates without external catalysts [13][14] - The company does not anticipate any near-term impacts on demand from the recent merger announcement in the rail industry, as capital continues to flow into the secondary market [39][42] Other Important Information - The company expects to see healthy investment activity in the engine leasing business in the second half of the year, with total investment volume anticipated to exceed $800 million [30] - The Rail International segment's profit is tracking at the lower end of expectations, primarily due to exchange rate impacts and challenges in the intermodal market [45] Q&A Session Summary Question: Impact of potential transcontinental merger on leasing business - Management stated it is difficult to assess the immediate impact due to timing and uncertainty, but long-term efficiency improvements could benefit railcar lessors [12] Question: Future lease renewal rates - Management indicated that the market remains strong, and absent any external stimulus, lease rates are expected to remain flattish [14][16] Question: Update on engine leasing profit mix - Operating income constituted about 85% of total income for the second quarter, with expectations for strong performance in the engine leasing business [22][23] Question: Investment volume in wholly owned portfolio - Management expects to see some investment volume in the second half of the year, with a target of around $200 million for the year [29] Question: Update on Wells Fargo transaction - Management confirmed that due diligence was largely completed prior to the announcement, and they remain positive about the transaction [51][52]

Business Overview - GATX has a long history of over 125 years in the railcar leasing business [8, 9] - As of December 31, 2024, GATX's assets totaled $123 billion, including approximately 152,000 wholly-owned railcars worldwide [9] - GATX operates through four main business segments: Rail North America, Rail International, Engine Leasing, and Trifleet [11] - GATX's Rail North America manages a fleet of over 111,300 railcars [12] - GATX Rail Europe (GRE) manages over 30,000 railcars [12] - GATX Rail India manages over 10,500 railcars [12] - RRPF owns 427 aircraft spare engines [12] - GEL owns 39 aircraft spare engines [12] - Trifleet manages over 25,000 tank containers [12] Financial Highlights - Over the past decade, GATX has returned more than $14 billion to shareholders through dividends and share repurchases [23] - GATX's Income Per Diluted Share, excluding tax adjustments and other items (non-GAAP) was $789 in 2024 [25] - GATX's Return on Equity, excluding tax adjustments and other items (non-GAAP) was 12% in 2024 [27] - GATX invested $1674 million in 2024 [29]

Financial Data and Key Metrics Changes - Net earnings for Q3 2025 were $60.1 million or $1.86 per share, showing an increase both sequentially and year-over-year [4] - Revenue reached $843 million, improving by 11% sequentially [21] - Aggregate gross margin remained robust at 18%, marking the seventh consecutive quarter at or above the mid-teens long-term target [4][22] - Return on invested capital (ROIC) was 12.9%, within the target range of 10% to 14% [23] Business Line Data and Key Metrics Changes - The manufacturing gross margin for Q3 was 13.6%, steady from Q2 [11] - Leasing and Fleet Management achieved nearly $165 million in recurring revenue over the last four quarters, representing nearly 50% growth from two years ago [12] - Fleet utilization remained high at 98%, with modest growth in the leased fleet [12] Market Data and Key Metrics Changes - Greenbrier secured orders for 3,900 new railcars worth over $500 million in the quarter, with a global new railcar backlog of nearly 19,000 units [15][16] - The average age of the North American railcar fleet exceeds 20 years, driving steady growth in the railcar maintenance market [17] - In Europe, railcar orders are driven by necessity, but overall activity is muted until economic conditions improve [18] Company Strategy and Development Direction - The company is focused on doubling recurring revenues by fiscal 2028 and has renewed two bank facilities totaling $850 million [7] - Greenbrier is investing in manufacturing and leasing, with expected investments of around $145 million in manufacturing and $270 million in leasing and fleet management [26] - The company is positioned to navigate various market conditions and capitalize on opportunities as they arise [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong finish to the fiscal year and medium to long-term market conditions [10] - The Senate's passage of a budget bill is expected to energize markets for capital goods like railcars [9] - Management is confident in the ability to manage production rates in response to market demand and backlog visibility [38][40] Other Important Information - The company repurchased approximately $22 million in shares during the quarter, reflecting confidence in its long-term strategy [10][25] - Liquidity reached nearly $770 million, the highest level since 2023, consisting of almost $300 million in cash and over $470 million in available borrowing capacity [23][24] Q&A Session Summary Question: Clarification on interest and FX line items - Management expects interest expense to be in the 22% to 25% range for the quarter, with FX having a significant impact [31][32] Question: Production rates and order levels - Management has been adjusting production rates based on market demand and has a strong backlog of 19,000 cars, indicating optimism for future orders [38][40] Question: Confidence in backlog and order conversion - Management expressed confidence in the commercial team and anticipates that clarity around tariffs and trade policy will lead to increased orders [50][51] Question: Mix of deliveries and leased cars - Management noted that while leased fleet growth has been modest, they are becoming more active in the used car market to balance fleet growth [59]

Financial Data and Key Metrics Changes - Net earnings for Q3 2025 were $60.1 million or $1.86 per share, showing an increase both sequentially and year-over-year [5] - Revenue reached $843 million, improving by 11% sequentially [22] - Aggregate gross margin remained robust at 18%, marking the seventh consecutive quarter at or above the mid-teens long-term target [5][22] - Return on invested capital (ROIC) was 12.9%, within the target range of 10% to 14% [24] Business Line Data and Key Metrics Changes - The company delivered 5,600 new railcars in Q3, with a manufacturing gross margin of 13.6% remaining steady from Q2 [13] - Recurring revenue from leasing and fleet management reached nearly $165 million over the last four quarters, representing nearly 50% growth from two years ago [14] - Fleet utilization remained high at 98%, with modest growth in the leased fleet [14] Market Data and Key Metrics Changes - The global new railcar backlog stood at nearly 19,000 units, providing strong visibility in new railcar markets [18] - In Europe, railcar orders are driven by necessity, but activity is expected to be muted until economic conditions improve [19] - Demand in Brazil is modestly increasing as customers complete infrastructure investments [20] Company Strategy and Development Direction - The company is focused on doubling recurring revenues by fiscal 2028 and has renewed two bank facilities totaling $850 million [8] - Strategic initiatives include European footprint rationalization and North American insourcing projects, expected to yield annual savings of at least $10 million [6][7] - The company aims to maintain a disciplined approach to growing its lease fleet, ensuring predictable revenue and cash flow [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market conditions in the medium to long term, anticipating a strong finish to the fiscal year [12] - The company is well-positioned to navigate various market conditions and capitalize on opportunities as liquidity is at its highest level since 2023 [9][11] - Management noted that the aging North American railcar fleet is a key driver for steady growth in the railcar maintenance market [18] Other Important Information - The company repurchased approximately $22 million of shares during the quarter, reflecting confidence in its long-term strategy [12] - The tax rate for the quarter was 23%, better than expected due to the strengthening Mexican peso [24] - The company updated its guidance, raising aggregate gross margin percent and operating margin percent for the remainder of fiscal 2025 [27] Q&A Session Summary Question: Guidance on interest and FX line items - Management expects interest expense to be in the 22% to 25% range for the quarter, with FX having a significant impact [31][32] Question: Production rates and order levels - Management has been adjusting production rates based on market demand and has a strong backlog of 19,000 cars, indicating future demand [38][40] Question: Confidence in order levels given low backlog - Management expressed confidence in converting demand into orders once trade policies stabilize, with several catalysts expected to drive demand [49][51] Question: Mix of deliveries and leased cars - The company is becoming more active in the used car market to balance its leasing business and is committed to growing the leasing fleet [58]