Freightcar America (RAIL)
NASDAQ:RAIL
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Freightcar America
(NASDAQ:RAIL)
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Rating:54Neutral
Price Target:
$8.00
▲(0.76% Upside)
Action:Reiterated
Date:05/09/26
The score is held back mainly by elevated financial risk from negative equity and meaningful debt, plus weakening price momentum (below key moving averages with negative MACD). These are partly offset by very low valuation (P/E ~1.53) and an earnings-call picture that supports the full-year outlook via a growing backlog and improved gross margins, though near-term results were weaker and execution is back-half weighted.
Positive Factors
Aftermarket revenue acceleration
A large 86% YoY increase in aftermarket sales reflects durable diversification beyond new-build cycles. Expanding retrofit/conversion and service offerings creates higher-margin, repeatable revenue streams that reduce top-line cyclicality and support steadier cash generation over the next 2–6 months.
Negative Factors
Negative equity and leverage
Persistently negative equity and meaningful debt materially constrain financial flexibility. This capital-structure weakness raises refinancing, covenant, and rating risks, limiting the company’s ability to absorb shocks or invest opportunistically without addressing leverage over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftermarket revenue acceleration
A large 86% YoY increase in aftermarket sales reflects durable diversification beyond new-build cycles. Expanding retrofit/conversion and service offerings creates higher-margin, repeatable revenue streams that reduce top-line cyclicality and support steadier cash generation over the next 2–6 months.
Read all positive factors
Freightcar America (RAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$150.61M
Dividend YieldN/A
Average Volume (3M)158.67K
Price to Earnings (P/E)1.5
Beta (1Y)2.45
Revenue Growth-4.92%
EPS GrowthN/A
CountryUS
Employees2,030
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)0.90
Shares Outstanding19,137,209
10 Day Avg. Volume150,405
30 Day Avg. Volume158,666
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)-3.28
Price to Sales (P/S)0.70
P/FCF Ratio11.21
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda4.92
Forecast
1Y Price Target
$16.00Price Target Upside101.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.48
Revenue Forecast (FY)$515.94M
Freightcar America Business Overview & Revenue Model
Company Description
FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars and railcar components for the transportation of bulk commodities and containerized freight products primarily in North America. It operates in two segme...
How the Company Makes Money
FreightCar America primarily makes money by selling newly manufactured freight railcars to customers such as railroads, leasing companies, and shippers that require rail equipment. Revenue is generally driven by the volume of railcars delivered an...
Freightcar America Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but fundamentally stable picture: operational and strategic progress (strong aftermarket growth, ~50% productivity improvement, higher gross margins, a larger and diversified backlog, and a solid cash position) are clear positives. These are offset by meaningful near-term declines in revenue, unit deliveries, and adjusted profitability (adjusted EBITDA and adjusted net income), and by reliance on second-half order conversions and retrofit program timing to meet full-year expectations. Management reaffirmed guidance and emphasized agility, backlog strength, and a growing pipeline as mitigating factors.Positive Updates
Aftermarket Revenue Acceleration
Aftermarket sales grew 86% year-over-year, reflecting meaningful expansion of the company's retrofit/conversion and service offerings and contributing to a more diversified revenue mix.
Negative Updates
Significant Revenue Decline
Revenue for the quarter was $64.3 million versus $96.3 million in Q1 2025, a decline of approximately 33.2% year-over-year, primarily due to lower railcar deliveries and expected timing.
Read all updates
Q1-2026 Updates
Positive
Negative
Aftermarket Revenue Acceleration
Aftermarket sales grew 86% year-over-year, reflecting meaningful expansion of the company's retrofit/conversion and service offerings and contributing to a more diversified revenue mix.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance and said results remain weighted to the back half of the year, citing a Q1 backlog of 2,058 units (~$156M, up $19M sequentially), expected tank‑car retrofit shipments beginning in H2 (initial activity in Q3, meaningful contribution in Q4) as part of a two‑year retrofit program (≈25% of that program in 2026, remainder in 2027), and a productive pipeline that supports the outlook. In Q1 the company delivered 577 units (vs. 710 LY), reported revenue of $64.3M, gross margin of 16.8% (+190 bps YoY), adjusted EBITDA $3.2M (4.9% margin), and an adjusted net loss of $0.5M ($0.04/sh) excluding a $49.1M non‑cash warrant remeasurement (reported net income $41.6M, $1.15/sh); cash was $52.8M. Management reiterated 2026 capex of $7–10M (including ~$4–5M maintenance), noted ~50% productivity improvement over 24 months, an estimated addressable new‑car market share of ~17% (industry Q1 orders 5,654 vs. 5,085 LY), and said these factors support meeting guidance (analysts have referenced an 8,000–8,500 unit annual delivery range and management expects industry deliveries in the ~25k–30k range).Freightcar America Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
24
Negative
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 469.01M | 500.99M | 559.42M | 358.09M | 364.75M | 203.05M |
| Gross Profit | 69.61M | 73.19M | 67.04M | 41.76M | 25.82M | 11.46M |
| EBITDA | 49.66M | 12.90M | 39.51M | 18.14M | -5.82M | -11.00M |
| Net Income | 29.30M | 38.10M | -75.82M | -23.59M | -38.85M | -41.45M |
Balance Sheet | ||||||
| Total Assets | 288.00M | 290.05M | 224.22M | 259.46M | 199.74M | 200.66M |
| Cash, Cash Equivalents and Short-Term Investments | 52.78M | 64.30M | 44.45M | 40.56M | 33.83M | 21.28M |
| Total Debt | 145.70M | 152.36M | 158.99M | 75.23M | 127.26M | 98.06M |
| Total Liabilities | 353.28M | 397.46M | 374.49M | 305.67M | 228.32M | 202.32M |
| Stockholders Equity | -65.28M | -107.41M | -150.27M | -46.21M | -28.58M | -1.66M |
Cash Flow | ||||||
| Free Cash Flow | 14.47M | 31.40M | 39.91M | -7.95M | 3.69M | -57.69M |
| Operating Cash Flow | 17.66M | 34.78M | 44.93M | 4.77M | 11.50M | -55.40M |
| Investing Cash Flow | -8.96M | -9.14M | -5.02M | -4.37M | -7.82M | -1.68M |
| Financing Cash Flow | -10.01M | -5.79M | -36.02M | 2.25M | 7.99M | 29.27M |
Freightcar America Technical Analysis
Negative
7.94
Price Trends
8.30
Negative
10.24
Negative
9.63
Negative
Market Momentum
-0.27
Negative
43.26
Neutral
34.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAIL, the sentiment is Negative. The current price of 7.94 is below the 20-day moving average (MA) of 8.05, below the 50-day MA of 8.30, and below the 200-day MA of 9.63, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 34.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAIL.
Freightcar America Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $43.51B | 29.34 | 10.94% | 0.46% | 9.59% | 10.69% | |
67 Neutral | $398.58M | 47.42 | 6.39% | ― | 11.73% | -68.10% | |
64 Neutral | $1.48B | 34.09 | 9.51% | 2.71% | -17.66% | -26.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.60B | 26.50 | 24.50% | 4.34% | -27.72% | 91.42% | |
54 Neutral | $150.61M | 1.53 | -33.78% | ― | -4.92% | ― | |
44 Neutral | $10.96M | ― | -59.72% | ― | 14.38% | 91.00% |
* Industrials Sector Average
RAIL
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Freightcar America Corporate Events
Executive/Board ChangesShareholder Meetings
FreightCar America Shareholders Back Directors and Executive Pay
Positive
Apr 15, 2026
On April 10, 2026, FreightCar America, Inc. held its Annual Meeting of Stockholders, where shareholders elected Class III directors Elizabeth K. Arnold, James R. Meyer, and Nicholas J. Randall to three-year terms on the board. The voting results s...
Shareholder Meetings
FreightCar America Sets Date for Virtual 2026 AGM
Neutral
Mar 4, 2026
On March 4, 2026, FreightCar America announced it will hold its 2026 annual general meeting of shareholders on April 10, 2026, at 10:00 a.m. Central Time. The meeting will be conducted exclusively in a virtual format via live internet webcast, and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.