Maturities extended into 2030Facilities maintain favorable pricing and termsLAKE OSWEGO, Ore., May 27, 2025 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE: GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today announced the renewal and extension of two bank facilities totaling $850 million completed on May 21, 2025. Greenbrier renewed its $600 million domestic revolving facility and $250 million term loan, with favorable pricing ...

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving The Greenbrier Companies, Inc. and its officers or directors [1]. Financial Performance - On April 7, 2025, Greenbrier reported fiscal Q2 2025 results, with non-GAAP earnings per share of $1.69, missing consensus estimates by $0.09 [3]. - The company reported revenues of $762.1 million, which fell short of consensus estimates by $136.43 million and represented a year-over-year decline of 11.7% [3]. - Following the financial report, Greenbrier's stock price dropped by $5.11 per share, or 11.42%, closing at $39.63 per share on April 8, 2025 [3]. Operational Changes - Greenbrier announced the closure of a facility in Romania, attributing the decision to market conditions and a comprehensive analysis in Europe [3].

Core Insights - Pomerantz LLP is investigating claims on behalf of investors of The Greenbrier Companies, Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - Greenbrier reported fiscal second quarter 2025 results, with non-GAAP earnings per share of $1.69, missing consensus estimates by $0.09, and revenues of $762.1 million, missing estimates by $136.43 million, reflecting a year-over-year decline of 11.7% [3] - Following the financial report, Greenbrier's stock price dropped by $5.11, or 11.42%, closing at $39.63 per share on April 8, 2025 [3] Financial Performance - Non-GAAP earnings per share for Q2 2025 were reported at $1.69, which was $0.09 below consensus estimates [3] - Total revenues for the quarter were $762.1 million, missing consensus estimates by $136.43 million and showing an 11.7% decline year-over-year [3] Operational Changes - Greenbrier announced the closure of a facility in Romania, attributing the decision to market conditions and a comprehensive analysis in Europe [3]

Group 1: Company Challenges - Greenbrier Companies (GBX) is facing significant challenges that are negatively impacting its operational efficiency and liquidity, making it less attractive for investors [1] - The company's revenues decreased from $875.9 million in Q1 2025 to $762.1 million in Q2 2025, primarily due to fewer deliveries in North America and Europe [6] - The gross margin fell from 19.8% to 18.2% during the same period, influenced by lower revenues and $2.4 million in European rationalization costs [6] Group 2: Earnings Estimates and Performance - The Zacks Consensus Estimate for current-year earnings has been revised downward by 12.7% to $5.15 per share, with a 13.6% decline in the 2026 earnings estimate to $5.40 per share [2] - GBX has a mixed earnings surprise history, surpassing the Zacks Consensus Estimate in two of the last three quarters, but with an average negative surprise of 42.5% [4] - The company's stock price has decreased by 29.7% over the past year, compared to an 18.5% decline in the Transportation - Equipment and Leasing industry [3] Group 3: Financial Ratios and Industry Context - GBX's current ratio has deteriorated from 1.88 in 2022 to 1.50 in 2025, indicating growing liquidity concerns and a declining ability to cover short-term liabilities [9] - The industry to which Greenbrier belongs has a Zacks Industry Rank of 212 out of 247, placing it in the bottom 14% of Zacks Industries, which could impact GBX's stock performance [5] - The company's selling and administrative expenses rose from $62 million in Q1 2025 to $64.6 million in Q2 2025, including $4.2 million in restructuring costs, highlighting cost pressures amid declining sales [8]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving The Greenbrier Companies, Inc. following disappointing financial results and a significant stock price drop [1][3]. Financial Performance - Greenbrier reported non-GAAP earnings per share of $1.69 for fiscal Q2 2025, missing consensus estimates by $0.09 [3]. - The company generated revenues of $762.1 million, which fell short of consensus estimates by $136.43 million and represented an 11.7% year-over-year decline [3]. - Following the financial report, Greenbrier's stock price decreased by $5.11, or 11.42%, closing at $39.63 per share on April 8, 2025 [3]. Operational Changes - Greenbrier announced the closure of a facility in Romania, attributing the decision to market conditions and a comprehensive analysis in Europe [3].

Core Viewpoint - Greenbrier Companies is not a growth stock but is valued for its strategic business shift towards a diversified model with a growing recurring revenue stream, focusing on full services for railcar lifespan and leasing options [1] Financial Performance - The FQ2 2025 results showed weaker than expected top and bottom lines, with revenue falling more than anticipated while adjusted EPS grew by 65% to $1.69 compared to $1.03 in the prior year [3] - Cash flow is slightly down year-over-year but remains sufficient to sustain balance sheet health and capital returns [4] Dividend Information - Greenbrier has a dividend yield of 3.16% with an annual dividend of $1.28 and a 3-year annualized dividend growth of 3.57%, maintaining a payout ratio of 20.45% [5] - The company is expected to pay out only 25% of the 2025 earnings outlook in the next 12 months, indicating stability despite revenue guidance reduction [5] Business Strategy - The company has increased its margin forecast by 100 basis points, countering anticipated top-line weakness, and is focusing on its leasing segment which is expected to remain strong [6][7] - Revenue guidance was reduced due to a business rationalization, including the closure of a factory in Romania, which will impact revenue but improve operating margins and dividend sustainability [7] Market Position and Analyst Ratings - Greenbrier is viewed as a deep value stock with a 12-month price target of $57.00, indicating a potential upside of 40.64% from the current price of $40.53 [10] - Institutional ownership exceeds 90%, with consistent buying activity over the past seven quarters, indicating bullish sentiment despite recent price declines [12] Financial Health - The company’s balance sheet remains strong, with an 11% increase in shareholder equity and low leverage, as long-term debt is less than 1x [8]

Revenue Performance - Revenue for the three months ended February 28, 2025, was $762.1 million, a decrease of 11.6% compared to $862.7 million for the same period in 2024[17]. - Revenue for the six months ended February 28, 2025 decreased by 2.0% to $1,638.0 million, primarily due to a $30.4 million reduction in railcar maintenance services revenue[134]. - Manufacturing segment revenue decreased by $110.7 million or 13.6%, totaling $700.3 million for the three months ended February 28, 2025, primarily due to a 5.7% decrease in railcar deliveries[107]. - Leasing & Fleet Management segment revenue increased by $10.1 million or 19.5%, reaching $61.8 million for the three months ended February 28, 2025, driven by higher rents and improved lease rates[115]. - Manufacturing revenue for the six months ended February 28, 2025, was $1,520.7 million, down 3.2% from $1,570.7 million in the same period of 2024[17]. Earnings and Profitability - Net earnings attributable to Greenbrier for the three months ended February 28, 2025, were $51.9 million, up 55.1% from $33.4 million in the prior year[17]. - Basic earnings per common share increased to $1.66 for the three months ended February 28, 2025, compared to $1.08 for the same period in 2024, representing a 53.7% increase[17]. - Net earnings for the six months ended February 28, 2025, were $105.3 million, compared to $66.8 million for the same period in 2024, representing a 57.5% increase[21]. - Earnings from operations for the six months ended February 28, 2025, were $195.4 million, up from $128.4 million for the same period in 2024, representing an increase of approximately 52.2%[73]. - The company reported a margin of $138.6 million for the three months ended February 28, 2025, compared to $122.2 million in the prior year, indicating a margin increase of 13.1%[17]. Assets and Equity - Total assets as of February 28, 2025, were $4,267.0 million, slightly up from $4,254.5 million as of August 31, 2024[16]. - Total equity increased to $1,620.5 million as of February 28, 2025, compared to $1,536.6 million as of August 31, 2024, marking a growth of 5.5%[16]. - Total equity attributable to Greenbrier increased to $1,460.2 million as of February 28, 2025, up from $1,299.9 million as of February 29, 2024, reflecting a growth of 12.4%[20]. - The company's accounts receivable increased to $535.4 million as of February 28, 2025, from $523.8 million as of August 31, 2024, showing a growth of 2.9%[16]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $263.5 million from $351.8 million as of August 31, 2024, reflecting a decline of 25.0%[16]. - Cash flows from operating activities provided $28.5 million, a decrease from $54.4 million in the prior year[21]. - Capital expenditures for the six months ended February 28, 2025, were $126.4 million, down from $190.5 million in the prior year[21]. - The net cash used in investing activities was $65.0 million, a decrease from $163.1 million in the prior year[21]. Segment Performance - The Company operates in two reportable segments: Manufacturing and Leasing & Fleet Management, with segment results recast to reflect the new reportable segments effective September 1, 2024[70]. - The Manufacturing segment generated revenue of $1,520.7 million for the six months ended February 28, 2025, compared to $1,570.7 million for the same period in 2024, a decrease of about 3.2%[73]. - The Leasing & Fleet Management segment reported revenue of $117.3 million for the six months ended February 28, 2025, compared to $100.8 million for the same period in 2024, an increase of approximately 16.5%[73]. Debt and Financing - As of February 28, 2025, the Company had $1.3 billion in senior secured credit facilities, with $488.0 million available to draw down[39]. - The company has effectively converted $701.9 million of variable rate debt to fixed rate debt as of February 28, 2025[180]. - As of February 28, 2025, 87% of the company's outstanding debt had fixed rates, while 13% remained at variable rates[196]. - The company expects existing funds and cash generated from operations to be sufficient to fund expected debt repayments and working capital needs over the next twelve months[181]. Other Financial Metrics - The Company declared cash dividends of $19.8 million during the six months ended February 28, 2025, compared to $19.7 million in the same period of 2024[21]. - The accumulated other comprehensive loss (AOCL) balance as of February 28, 2025, was $(40.8) million, compared to $(34.0) million as of August 31, 2024[50]. - Interest and foreign exchange expenses decreased by $2.7 million to $45.1 million for the six months ended February 28, 2025, due to higher interest income, despite a $2.6 million increase in foreign exchange losses[152]. Operational Changes and Future Outlook - The Company combined the former Maintenance Services and Manufacturing segments into a single reportable segment, Manufacturing, effective September 1, 2024[25]. - The Company is consolidating its European operations and has approved the closure of a manufacturing facility in Romania, expected to be completed in 2025[95]. - The railcar backlog was 20,400 units with an estimated value of $2.6 billion as of February 28, 2025, with deliveries extending into 2026 and beyond[93].

Group 1 - The Greenbrier Companies, Inc. (NYSE: GBX) stock has been a long-term position for the company, initially purchased in the $26-$28 range and later rising to over $50 [1] - The company has successfully navigated the current market selloff, providing high-conviction picks and strategies to help members hedge their investments [1] - The company emphasizes a blended trading and income approach to enhance savings and retirement timelines, encouraging timely action for potential investors [1] Group 2 - A money-back guarantee is offered to ensure satisfaction with the investment ideas provided by the company, highlighting a commitment to client success [2]

Financial Data and Key Metrics Changes - Core net earnings for Q2 2025 reached $56 million or $1.73 per share, higher sequentially than Q1 despite $100 million less in revenue, reflecting improved operating efficiency with an aggregate gross margin of 18.2% [9][10][35] - Revenue for the quarter was $762 million, aligning with expectations, while operating income was nearly $84 million, representing 11% of revenue [36][38] - Core EBITDA was $124 million or 16.3% of revenue, with a return on invested capital (ROIC) of 12.4%, marking a 120 basis point sequential increase [39][40] Business Line Data and Key Metrics Changes - The company delivered 5,500 new railcars in Q2 with a manufacturing gross margin of 13.6%, reflecting a sequential decrease due to production changes and facility closures in Europe [21][36] - Recurring revenue reached $157 million over the last four quarters, representing a 39% growth from two years ago, with strong lease renewals and rate increases [23] - The leasing fleet size remained effectively unchanged from the prior quarter, with over 10% of leases up for renewal, successfully renewing more than half in the first two quarters [22][24] Market Data and Key Metrics Changes - The global backlog remains robust at over 20,000 units, valued at approximately $2.6 billion, providing significant revenue visibility [16][28] - In Brazil, demand is increasing as customers finalize infrastructure investments, benefiting from U.S. tariff activity [32] - The average age of the North American railcar fleet is over 20 years, indicating a need for maintenance services and potential demand for new railcars [30] Company Strategy and Development Direction - The company is focused on improving operating efficiency, reducing costs, and creating shareholder value, with a long-term strategy that includes rationalizing production capacity in Europe [8][15] - The insourcing initiatives in Mexico are progressing well, providing benefits across various demand environments [18] - The company plans to invest up to $300 million annually in its lease fleet, maintaining a disciplined approach to growth [23][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a noisy macroeconomic landscape influenced by trade policies and tariffs, but emphasized that their products have not been targeted by tariffs [11][12] - The company expects a slight reduction in aggregate gross margin in the second half of fiscal 2025 but anticipates remaining solidly in the mid-teens [17] - Management remains optimistic about future performance, citing strong leasing fundamentals and a disciplined approach to production and syndication [24][33] Other Important Information - The quarterly dividend was increased by nearly 7% to $0.32 per share, reflecting confidence in the long-term strategy [19][42] - The company has $100 million remaining in its share repurchase authorization, demonstrating a commitment to returning capital to shareholders [43] Q&A Session Summary Question: Can you talk about the downshift in production? - Management clarified that the downshift is due to short-term impacts from European deliveries and adjustments in North America based on customer needs [50][51] Question: Is there any impact on tariffs and leasing rates? - Management confirmed that they do not expect negative tariff implications on pricing and that lease rates remain stable [55][60] Question: How are customers reacting to the syndication channel? - Management indicated that the syndication market remains robust, with strong interest from investors in long-term assets [71][72] Question: Can you discuss the secondary market for lease attached cars? - Management reported that the secondary market is strong, with good renewal interest and no significant degradation in rates [75] Question: Can you elaborate on the CapEx adjustments? - Management explained that the adjustments reflect better visibility into production schedules and syndication, with continued investment in the lease fleet [80][84]

NYSE: GBX 2Q25 Earnings Slides & Supplemental Information InvestorRelations@gbrx.com www.gbrx.com Forward Looking Statements This presentation and the accompanying oral presentation contain forward-looking statements, including statements that are not purely statements of historical fact. The Greenbrier Companies, Inc. (the "Company," "we," "us" or "our") uses words, and variations of words, such as "backlog," "believe," "capacity," "commit," "continue," "drive," "estimate," "expect," "focus," "future," "gr ...