FreightCar America (RAIL) 17th Annual LD Micro Main Event Conference summary

Financial performance and growth

• Trailing 12-month revenue just under $500 million, with 2024 guidance midpoint at $580 million and EBITDA at $37 million.

• Shipments expected to reach 4,500 units in 2024, up from just over 3,200 prior year, utilizing 95% of 5,000-unit capacity.

• Revenue growth projected at 62% year-on-year, with EBITDA growth over 84% at midpoint.

• Industry-leading gross margin of 11.7% in 2023 and positive operating cash flow for three consecutive years.

• Transitioned from negative EBITDA per car in 2018 to over $7,200 per car in the last 12 months.

Market position and product portfolio

• Addresses 60% of the 40,000-unit annual North American freight car market, with 10% market share.

• Recent tank car contract expands addressable market to 80% by 2028, with recertification and new build approvals.

• Product portfolio diversified beyond coal cars to match broad U.S. economic needs, including conversions and modifications.

• CAGR of 9.4% over the last three years, expected to reach 17% with 2024 results, outpacing industry CAGR of 0.2%.

Operations and manufacturing

• Manufacturing consolidated to a vertically integrated campus in Mexico with 2,000 employees, enabling cost and margin improvements.

• Four operating lines now active, with option to expand capacity to 6,200 units if demand rises.

• CapEx maintained at 0.5%-0.75% of revenue, focused on plant sustainability.

• Recapitalization of debt structure underway to reduce cost of capital and leverage.