FreightCar America (RAIL) Q2 2024 earnings summary

Executive summary

• Achieved 66% year-over-year revenue growth in Q2 2024, reaching $147.4 million on 1,159 railcar deliveries, with record profitability at the Castaños facility.

• Net income was $8.2 million in Q2 2024, reversing a net loss of $18.9 million in Q2 2023.

• Secured a major multi-year tank car conversion order and delivered the 10,000th railcar from the Castaños facility.

• Raised full-year 2024 guidance for revenue, deliveries, and Adjusted EBITDA, reflecting strong order activity and operational execution.

• Backlog increased to 3,833 units valued at $382 million as of June 30, 2024.

Financial highlights

• Q2 2024 revenue reached $147.4 million on 1,159 railcar deliveries, up from $88.6 million and 760 deliveries in Q2 2023.

• Gross profit was $18.4 million with a 12.5% margin, compared to $13 million and 14.6% margin last year.

• Adjusted EBITDA was $12.1 million, up from $8 million in Q2 2023.

• Net income was $8.2 million ($0.11 per diluted share); Adjusted net income was $6.3 million ($0.05 per share).

• Operating cash flow for the first half of 2024 was $31.9 million; cash balance at $39.4 million with no outstanding revolver borrowings.

Outlook and guidance

• Raised 2024 revenue guidance to $560–$600 million, up 62% year-over-year at midpoint.

• Raised delivery guidance to 4,300–4,700 railcars, a 48.9% increase at midpoint.

• Raised Adjusted EBITDA guidance to $35–$39 million, up 84.1% year-over-year at midpoint.

• Management expects current cash balances to meet liquidity needs for at least the next 12 months.

• Capital expenditures for 2024 are anticipated at $5–$7 million, focused on maintenance at the Castaños Facility.