FreightCar America (RAIL) Q1 2026 earnings summary

Executive summary

• First quarter revenue was $64.3 million, down from $96.3 million year-over-year, primarily due to lower railcar deliveries and a lower average sales price mix, partially offset by an 86% increase in aftermarket sales.

• Net income was $41.6 million ($1.15 per share), driven by a $49.1 million non-cash gain from warrant liability remeasurement; adjusted net loss was $0.5 million ($0.04 per share).

• Gross margin improved to 16.8%, the highest in over a decade, up 190 basis points year-over-year, reflecting operational agility and favorable price mix.

• Backlog increased to 2,058 units valued at $156 million, up from 1,926 units ($137 million) at year-end, with performance expected to be weighted toward the second half of the year.

• Operational productivity improvements and commercial differentiation supported resilience despite lower production volumes.

Financial highlights

• Manufacturing segment revenues fell to $53.0 million (from $90.2 million), while Aftermarket revenues rose to $11.4 million (from $6.1 million) year-over-year.

• Gross profit was $10.8 million, with gross margin at 16.8%; consolidated gross profit declined from $14.4 million last year.

• Adjusted EBITDA was $3.2 million (4.9% margin), down from $6.4 million (6.7% margin) year-over-year.

• Operating loss was $0.6 million, compared to operating income of $3.9 million in Q1 2025.

• Ended the quarter with $52.8 million in cash, down from $64.3 million at year-end; capital expenditures were $147,000.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: 4,000–4,500 railcar deliveries, $500–$550 million revenue, $41–$50 million adjusted EBITDA, with expectations for a stronger second half driven by backlog and productivity gains.

• Capital expenditures for 2026 expected to be $7–$10 million, including $4–$5 million in maintenance and targeted investments in tank car manufacturing.

• Average selling price per railcar expected to rise above $100,000 in the second half as product mix shifts toward new builds.

• Delivery cadence is back-half weighted, with confidence in meeting guidance based on a strong and growing order pipeline.

• Management expects cash balances to be sufficient for at least the next twelve months, with long-term liquidity dependent on operating performance and access to additional financing if needed.