In This Article:
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Revenue: $96.3 million for Q1 2025, down from $161.1 million in Q1 2024.
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Gross Margin: 14.9% in Q1 2025, up from 7.1% in Q1 2024.
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Adjusted EBITDA: $7.3 million in Q1 2025, up from $6.1 million in Q1 2024.
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Adjusted Net Income: $1.6 million or $0.05 per diluted share in Q1 2025, compared to $1.4 million or a loss of $0.10 per share in Q1 2024.
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Operating Cash Flow: $12.8 million in Q1 2025, a $38.1 million improvement from Q1 2024.
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Adjusted Free Cash Flow: $12.5 million in Q1 2025, a $43 million improvement from Q1 2024.
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Cash Holdings: $54.1 million at the end of Q1 2025.
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Capital Expenditures: $0.3 million in Q1 2025.
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New Railcar Orders: 1,250 units valued at approximately $141 million in Q1 2025.
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Backlog: 3,337 railcars valued at $318 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FreightCar America Inc (NASDAQ:RAIL) achieved significant market share gains, expanding from 8% to 27% over the last 12 months.
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The company reported a robust backlog of 3,337 railcars valued at $318 million, providing excellent visibility into 2025.
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Gross margin expanded to 14.9%, up 780 basis points year over year, demonstrating improved profitability.
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FreightCar America Inc (NASDAQ:RAIL) secured 1,250 new railcar orders valued at approximately $141 million in the first quarter.
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The company generated $12.8 million in operating cash flow, marking its fourth consecutive quarter of positive cash flow from operations.
Negative Points
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First quarter revenues decreased to $96.3 million from $161.1 million in the same period last year due to lower deliveries.
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SG&A expenses increased to $10.5 million from $7.5 million in the first quarter of 2024, impacting profitability.
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The company faced a challenging comparison due to a timing benefit associated with railcar deliveries delayed by the US-Mexico border closure in late 2023.
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FreightCar America Inc (NASDAQ:RAIL) anticipates a slower industry order environment early in the year, with potential pent-up demand materializing later.
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The company has not yet committed to activating its fifth production line, which could limit capacity expansion in the short term.
Q & A Highlights
Q: Can you elaborate on which segments of your product suite are driving sales growth and in which products is the company picking up market share? A: Nicholas Randall, President and CEO, explained that FreightCar America is seeing orders across all segments of their product portfolio, including covered hoppers, open top hoppers, and gondolas. The company is experiencing a healthy mix of orders, which allows for efficient utilization of multiple production lines.