Freightcar America ( (RAIL) ) has released its Q1 earnings. Here is a breakdown of the information Freightcar America presented to its investors.
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FreightCar America, headquartered in Chicago, Illinois, is a prominent manufacturer and supplier of railroad freight cars, railcar parts, and components, specializing in railcar repairs and conversions to support the North American supply chain.
In its first quarter of 2025, FreightCar America reported a notable increase in gross profit and margin expansion, alongside a strong operating cash flow and reaffirmed full-year guidance, despite a significant drop in revenue compared to the previous year.
The company achieved revenues of $96.3 million, a 40.2% decrease from the previous year, with planned railcar deliveries of 710 units. However, the gross margin improved to 14.9% from 7.1%, and net income reached $50.4 million, primarily due to a non-cash adjustment. Adjusted EBITDA rose by 20.5% to $7.3 million, and operating cash flow increased significantly by $38.1 million year-over-year. The company ended the quarter with a backlog of 3,337 units valued at $318 million.
FreightCar America continues to capture market share through strong order intake and operational discipline, with 1,250 railcars ordered during the quarter. The company remains optimistic about ramping up deliveries for the rest of the year, maintaining its full-year guidance and focusing on profitable growth and market expansion.
Looking ahead, FreightCar America is poised for growth with a healthy backlog and a strong financial position, aiming to deliver between 4,500 and 4,900 railcars in 2025, with revenues projected between $530 and $595 million. The management remains committed to operational efficiency and sustainable value creation.