Freightcar America (RAIL)
NASDAQ:RAIL
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Freightcar America
(NASDAQ:RAIL)
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Rating:54Neutral
Price Target:
$9.50
▼(-0.84% Downside)
Action:ReiteratedDate:04/15/26
The score is driven primarily by improving profitability and solid free cash flow, partially offset by a materially weak balance sheet with negative equity. Valuation appears supportive with a low P/E, but technical signals are mixed-to-bearish and the earnings outlook, while constructive, faces industry and backlog-conversion timing risks.
Positive Factors
Strong free cash flow generation
Sustained positive free cash flow and operating cash flow provide durable internal funding to support working capital, maintenance capex and debt paydown. This cash conversion strengthens financial flexibility, funds strategic initiatives, and reduces reliance on external financing in cyclic markets.
Negative Factors
Negative shareholders' equity
Persistently negative equity indicates a fragile capital structure that limits borrowing capacity, increases refinancing and covenant risk, and can amplify losses in downturns. It constrains strategic flexibility and raises the cost of capital for durable investments and growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained positive free cash flow and operating cash flow provide durable internal funding to support working capital, maintenance capex and debt paydown. This cash conversion strengthens financial flexibility, funds strategic initiatives, and reduces reliance on external financing in cyclic markets.
Read all positive factors
Freightcar America (RAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$158.31M
Dividend YieldN/A
Average Volume (3M)223.88K
Price to Earnings (P/E)9.2
Beta (1Y)2.46
Revenue Growth-10.22%
EPS GrowthN/A
CountryUS
Employees2,030
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)0.16
Shares Outstanding19,073,475
10 Day Avg. Volume149,967
30 Day Avg. Volume223,883
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 Cap1.56
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda55.78
Forecast
1Y Price Target
$16.00Price Target Upside67.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.49
Revenue Forecast (FY)$518.61M
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:Mar 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed resilient operational and financial performance despite a weak industry new-build market. Management emphasized margin expansion (260+ bps), strong cash generation (free cash flow up ~45%), market share gains (~300 bps), and strategic progress including an aftermarket acquisition and tank retrofit readiness. These positives were balanced against continued industry volume weakness (industry deliveries down ~26%), some quarter-over-quarter margin and adjusted EBITDA pressure in Q4, mix-driven revenue declines in the quarter, and timing risks around backlog conversion and infrastructure-driven demand. Overall, the company presented a constructive outlook with disciplined capital allocation and flexibility to capitalize on recovery, while acknowledging near-term industry headwinds and accounting-related earnings volatility.Positive Updates
Margin Expansion and Profitability Improvement
Full-year gross margin expanded by over 260 basis points year-over-year; adjusted EBITDA per car grew by roughly 10% year-over-year, reflecting improved mix, operating leverage and cost discipline.
Negative Updates
Industry New-Build Weakness
North American industry deliveries fell to ~31,000 railcars in 2025 from ~42,000 in 2024, a decline of roughly 26% year-over-year; industry new orders moderated to ~20,000 from ~25,000 (~20% decline), marking one of the weakest new-build markets in more than a decade.
Read all updates
Q4-2025 Updates
Positive
Negative
Margin Expansion and Profitability Improvement
Full-year gross margin expanded by over 260 basis points year-over-year; adjusted EBITDA per car grew by roughly 10% year-over-year, reflecting improved mix, operating leverage and cost discipline.
Read all positive updates
Company Guidance
The company guided full-year 2026 revenue of $500 million to $550 million (midpoint $525M, +4.8% year‑over‑year at the midpoint) on expected deliveries of 4,000–4,500 railcars (midpoint up ≈3%), adjusted EBITDA of $41 million to $50 million (midpoint up ~10.4% versus lease‑adjusted FY2025), and capital spending of $7–10 million (including $4–5M of maintenance capex); management expects a stronger second‑half cadence, will convert a year‑end backlog of 1,926 cars valued at $137.5M into 2026 production, and emphasizes embedded capacity (four production lines with a fifth activatable quickly). For context, FY2025 totaled $501M revenue on 4,125 units, gross margin expanded ~260 bps, adjusted free cash flow was $31.4M (up ~45% YoY) with operating cash flow of $34.8M and $64.3M of cash while net leverage sits at the low end of the ~1.0–2.5x target range.Freightcar America Financial Statement Overview
Summary
Income Statement
57
Neutral
Balance Sheet
28
Negative
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 500.99M | 559.42M | 358.09M | 364.75M | 203.05M |
| Gross Profit | 73.19M | 67.04M | 41.76M | 25.82M | 11.46M |
| EBITDA | 12.90M | 39.51M | 18.14M | -5.82M | -11.00M |
| Net Income | 38.10M | -75.82M | -23.59M | -38.85M | -41.45M |
Balance Sheet | |||||
| Total Assets | 290.05M | 224.22M | 259.46M | 199.74M | 200.66M |
| Cash, Cash Equivalents and Short-Term Investments | 64.30M | 44.45M | 40.56M | 33.83M | 21.28M |
| Total Debt | 152.36M | 158.99M | 75.23M | 127.26M | 98.06M |
| Total Liabilities | 397.46M | 374.49M | 305.67M | 228.32M | 202.32M |
| Stockholders Equity | -107.41M | -150.27M | -46.21M | -28.58M | -1.66M |
Cash Flow | |||||
| Free Cash Flow | 31.40M | 39.91M | -7.95M | 3.69M | -57.69M |
| Operating Cash Flow | 34.78M | 44.93M | 4.77M | 11.50M | -55.40M |
| Investing Cash Flow | -9.14M | -5.02M | -4.37M | -7.82M | -1.68M |
| Financing Cash Flow | -5.79M | -36.02M | 2.25M | 7.99M | 29.27M |
Freightcar America Technical Analysis
Neutral
9.58
Price Trends
10.67
Negative
10.49
Negative
9.93
Negative
Market Momentum
-0.28
Negative
49.73
Neutral
63.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAIL, the sentiment is Neutral. The current price of 9.58 is above the 20-day moving average (MA) of 8.46, below the 50-day MA of 10.67, and below the 200-day MA of 9.93, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $44.96B | 29.34 | 10.94% | 0.46% | 9.59% | 10.69% | |
65 Neutral | $1.55B | 34.09 | 9.51% | 2.71% | -17.66% | -26.36% | |
65 Neutral | $2.89B | 26.50 | 24.45% | 4.34% | -27.72% | 91.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $321.08M | 28.35 | 4.34% | ― | 1.74% | -81.66% | |
54 Neutral | $158.31M | 9.24 | -40.20% | ― | -10.22% | ― | |
50 Neutral | $16.44M | -1.58 | -59.72% | ― | 14.38% | 91.00% |
* Industrials Sector Average
RAIL
Freightcar America
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32.80%
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FSTR
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TRN
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WAB
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RVSN
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7.50
-4.70
-38.50%
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.