In This Article:
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Revenue: $762 million for the quarter.
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Core Net Earnings: $56 million or $1.73 per share, excluding convertible debt dilution.
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Aggregate Gross Margin: 18.2% for the quarter.
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Operating Income: Nearly $84 million or 11% of revenue.
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Core EBITDA: $124 million or 16.3% of revenue.
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Return on Invested Capital (ROIC): 12.4% for the 12 months ending February 28, 2025.
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Liquidity: Over $750 million, including $264 million in cash.
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Operating Cash Flow: Approximately $94 million for the quarter.
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New Railcar Deliveries: 5,500 units for the quarter.
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Global Backlog: 20,400 units valued at $2.6 billion.
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Quarterly Dividend: Increased by nearly 7% to $0.32 per share.
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Recurring Revenue: $157 million over the last four quarters, representing 39% growth.
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Guidance for Fiscal 2025: Revenue expected between $3.15 billion to $3.35 billion; new railcar delivery guidance narrowed to 21,500 to 23,500 units.
Release Date: April 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Greenbrier Companies Inc (NYSE:GBX) reported strong core net earnings of $56 million or $1.73 per share, reflecting improved operating efficiency.
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The company achieved an impressive aggregate gross margin of 18.2%, marking the sixth consecutive quarter at or above mid-teens target.
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Greenbrier Companies Inc (NYSE:GBX) increased its quarterly dividend by nearly 7% to $0.32 per share, demonstrating confidence in its long-term strategy.
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The global new railcar backlog remains robust at over 20,000 units, providing excellent visibility for managing production lines and revenue outlook.
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The leasing and fleet management operation continues to grow, with recurring revenue reaching $157 million, a 39% growth over two years.
Negative Points
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The company is experiencing reduced deliveries from European facilities due to the rationalization of a facility in Romania.
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There is a slight reduction in aggregate gross margin expected during the back half of the fiscal year.
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The macroeconomic landscape is challenging, with fluctuating trade policies and tariffs impacting input costs, particularly steel.
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Production rates in North America are being adjusted due to backlog management and customer delivery needs, impacting delivery expectations.
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The company is facing a higher tax rate of 32% due to discrete items related to the Mexican peso.
Q & A Highlights
Q: Can you explain the downshift in production and its impact on margins? A: Lorie Tekorius, CEO, explained that the reduction in production is partly due to the closure of a facility in Europe and adjustments in North American production rates based on customer needs. Despite this, the company is increasing its aggregate gross margin and operating margin expectations, focusing on driving more to the bottom line in various markets.