FreightCar America (RAIL) Investor presentation summary

Strategic positioning and growth opportunities

• Over 125 years of industry presence with a vertically integrated manufacturing campus and expanding modernization capabilities.

• Ability to flex across new builds, retrofits, conversions, and rebuilds, supporting a diverse product portfolio.

• Strong aftermarket business with high-margin, repeatable revenue and growing customer base.

• Addressable market includes open top hoppers, gondolas, flat cars, covered hoppers, and box cars, with potential expansion into tank cars.

• Market drivers include consistent replacement demand, intermodal growth, and regulatory investment in efficiency and safety.

Financial performance and outlook

• FY25 revenue was $501M, down 10.4% YoY, with 4,125 railcar deliveries and $31.4M in adjusted free cash flow, up 44.8% YoY.

• Gross margin expanded by 260bps YoY; cash and cash equivalents stood at $64.3M with modest net debt.

• 4Q25 revenues were $125.6M, down 8.8% YoY, with 1,172 railcar deliveries and 48.8% YoY aftermarket revenue growth.

• FY25 operating cash flow was $34.8M, marking the third consecutive year of positive cash flow.

• FY26 guidance targets 4,000–4,500 railcar deliveries, $500–$550M revenue, and $41–$50M adjusted EBITDA.

Operational strengths and capital allocation

• Vertically integrated, automated facility enables cost control, quality assurance, and production agility.

• Flexible manufacturing supports scalable production and industry-leading order fulfillment times.

• Disciplined capital allocation focuses on maintaining liquidity, pursuing accretive M&A, and investing in automation and process control.

• Recent acquisition of Carly Railcar Components expands aftermarket distribution and cross-selling opportunities.

• Optimized capital structure with retired preferred shares, lower-cost debt, and new working capital facility.