The Greenbrier Companies (GBX) Q3 2024 earnings summary

Executive summary

• Achieved highest EPS and EBITDA in over 4.5 years, with Q3 diluted EPS at $1.06 and EBITDA at $104 million, both representing multi-year highs.

• Net earnings attributable to the company were $34 million for Q3, with revenue of $820 million.

• Order performance steady, with 6,300 new railcar orders worth $830 million and a backlog of 29,400 units valued at $3.7 billion.

• Lease fleet expanded by 600 units to 15,200, with utilization near 99%.

• Recognized as one of America’s Climate Leaders for 2024 by USA TODAY for carbon reduction efforts.

Financial highlights

• Q3 consolidated revenue was $820 million, with a gross margin of 15.1% and gross profit of $123.8 million.

• Net earnings attributable to the company were $33.9 million; diluted EPS was $1.06.

• EBITDA reached $104 million, or 13% of revenue.

• Operating cash flow was $84 million for the quarter, with year-to-date total at $138.4 million.

• Liquidity improved to $605 million, including $271.6 million in cash and $333.7 million in available borrowings.

Outlook and guidance

• FY24 deliveries expected at 23,500–24,000 units, including 1,400 in Brazil.

• Revenue guidance narrowed to $3.5–$3.6 billion; full-year gross margin expected in the mid-teens (14%-16%).

• Capital expenditures projected at $150 million for Manufacturing, $15 million for Maintenance, and $340 million gross for Leasing and Management Services.

• Proceeds from sales of assets expected to be approximately $75 million for 2024.

• Backlog supports deliveries into 2027, with $2.2 billion of railcar sales expected to be recognized through 2025.