The Greenbrier Companies (GBX) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net earnings were $52 million ($1.56 per diluted share) on $762 million revenue, including $6 million in European facility rationalization costs; core net earnings were $56 million ($1.69 per share), with core EBITDA of $124 million (16% of revenue).

• Aggregate gross margin reached 18.2%, marking the sixth consecutive quarter at or above the mid-teens target, with margin percentage up 4.5% year-over-year due to manufacturing efficiencies.

• Lease fleet utilization remained strong at 98%, with the owned fleet at 16,600 units and a backlog of 20,400 units valued at $2.6 billion.

• Quarterly dividend increased by 7% to $0.32 per share, marking the 44th consecutive quarterly dividend.

• European operations are being consolidated, with a Romanian facility closure expected in 2025 to improve competitiveness and reduce costs.

Financial highlights

• Q2 FY25 revenue was $762 million, down from $875.9 million in Q1 FY25 and $862.7 million in Q2 FY24, mainly due to fewer deliveries and product mix changes.

• Core EBITDA for Q2 FY25 was $123.9 million (16% of revenue), and operating cash flow for the quarter was $94 million.

• Operating margin for Q2 FY25 was 11.0%, and aggregate gross margin was 18.2%.

• Net earnings attributable to Greenbrier for the quarter were $52 million, up from $33.4 million a year ago.

• Liquidity at quarter-end was $752 million, including $264 million in cash and $488 million in available borrowing.

Outlook and guidance

• FY25 revenue guidance is $3.15–$3.35 billion, with deliveries of 21,500–23,500 units, including ~1,600 in Brazil.

• Aggregate gross margin guidance raised to 17.0%–17.5%; operating margin guidance increased to 10.2%–10.7%.

• Capital expenditures for FY25 expected at $360 million, with $300 million for Leasing & Fleet Management and $120 million for Manufacturing.

• Proceeds from asset sales projected at $60 million for 2025.

• Management remains focused on increasing recurring revenue, expanding gross margin, and raising return on invested capital.