Financial Performance - GAAP diluted EPS for Q2 FY25 was $1.56, including $0.13 per share of European facility rationalization costs, while core diluted EPS was $1.69[3] - Net earnings attributable to Greenbrier reached $52 million on revenue of $762 million, with a gross margin of 18%[3] - 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[14] - Net earnings attributable to Greenbrier for the six months ended February 28, 2025, were $107.2 million, up 66.0% from $64.6 million in the same period of 2024[14] - 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[14] - The diluted earnings per share for the three months ended February 28, 2025, was $1.56, compared to $1.72 for the three months ended November 30, 2024[30] - The earnings from operations for fiscal 2024 totaled $324.5 million, with a margin of $558.5 million[22] - The net earnings attributable to Greenbrier for fiscal 2024 were $160.1 million, translating to a basic earnings per share of $5.15[22] Revenue and Orders - New railcar orders totaled 3,100 units valued at nearly $400 million, with deliveries of 5,500 units, resulting in a backlog of 20,400 units worth an estimated $2.6 billion[3] - Deliveries for FY25 are now projected to be between 21,500 and 23,500 units, revised from the initial guidance of 22,500 to 25,000 units[6] - The company delivered a total of 5,500 units in the three months ended February 28, 2025, including 4,700 direct sales and 800 leased railcars for syndication[26] - Total revenue for fiscal 2024 reached $3,544.7 million, with manufacturing contributing $3,312.4 million and leasing & fleet management contributing $232.3 million[22] Guidance and Projections - The updated guidance for FY25 includes revenue expectations of $3.15 billion to $3.35 billion, down from the initial guidance of $3.35 billion to $3.65 billion[6] - Aggregate gross margin percentage for FY25 is updated to a range of 17.0% to 17.5%, up from the initial guidance of 16.0% to 16.5%[6] - The company anticipates continued growth in leasing performance and backlog management, despite potential economic uncertainties[32] Dividends and Shareholder Returns - Greenbrier's board increased the quarterly dividend by 7% to $0.32 per share, marking the 44th consecutive quarterly dividend[3] - Dividends per common share remained stable at $0.30 for both the three months ended February 28, 2025, and February 29, 2024[14] Operational Metrics - The company reported a strong lease fleet utilization rate of 98% and a core EBITDA of nearly $124 million, representing 16% of revenue[3] - Core EBITDA for the three months ended February 28, 2025, was $123.9 million, compared to $145.1 million for the three months ended November 30, 2024[27] - The Leasing & Fleet Management segment reported revenue of $61.8 million for the three months ended February 28, 2025, up 19.6% from $51.7 million in the same period of 2024[14] Debt and Cash Position - Total consolidated debt was $1,756.9 million as of February 28, 2025, down from $1,839.4 million on November 30, 2024[31] - Total Leasing non-recourse debt was $1,011.1 million as of February 28, 2025, compared to $978.7 million in the previous quarter, indicating an increase in leverage[19] - Greenbrier's total cash and cash equivalents and restricted cash at the end of the period was $301.9 million, compared to $272.0 million at the end of the same period in 2024[16] - Net cash provided by operating activities for the six months ended February 28, 2025, was $28.5 million, down from $54.4 million in the same period of 2024[16] Facility and Cost Management - The company plans to close a manufacturing facility in Romania, incurring $6 million in rationalization costs, which includes $2 million in gross margin impact[3] - The effective tax rate for Q2 FY25 decreased to 32.3% from 37.8% in Q1 FY25, attributed to a decrease in discrete items in foreign jurisdictions[8] - The ending backlog as of February 28, 2025, was 20,400 units, down from a beginning backlog of 23,400 units[26] - The Greenbrier Lease Fleet had an ending balance of 16,600 units as of February 28, 2025, a decrease from 16,700 units at the end of the previous quarter[19]

Group 1 - The Greenbrier Companies, Inc. announced its fiscal second quarter 2025 financial results, which will be available through a Form 8-K filing with the SEC and on its investor website [1] - A live audio webcast is scheduled for today at 2:00 p.m. Pacific Time to discuss the financial results [1] Group 2 - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, headquartered in Lake Oswego, Oregon [2] - The company designs, builds, and markets freight railcars in North America, Europe, and Brazil, and is a major provider of freight railcar wheel services, parts, maintenance, and retrofitting services in North America [2] - Greenbrier owns a lease fleet of approximately 16,700 railcars, primarily originating from its manufacturing operations, and offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [2]

Company Overview - Greenbrier Companies is a leading international supplier of equipment and services to global freight transportation markets, headquartered in Lake Oswego, Oregon [2] - The company designs, builds, and markets freight railcars in North America, Europe, and Brazil, and provides freight railcar wheel services, parts, maintenance, and retrofitting services primarily in North America [2] - Greenbrier owns a lease fleet of approximately 16,700 railcars, mainly originating from its manufacturing operations, and offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [2] Financial Performance - Greenbrier announced a quarterly cash dividend of $0.32 per share, which is a 7% increase from the previous dividend of $0.30 per share [1] - This marks Greenbrier's 44th consecutive quarterly dividend, reflecting the company's commitment to returning capital to shareholders [1][2] Strategic Direction - The CEO, Lorie L. Tekorius, emphasized the company's balanced approach to capital allocation and the success of its strategic plan, which is evidenced by the dividend increase [2]

Core Viewpoint - Greenbrier Companies, Inc. (GBX) is set to release its second-quarter fiscal 2025 results on April 7, with expectations of mixed performance influenced by various market factors [1][2]. Financial Performance - GBX has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 31.9% [2]. - The company reported fiscal first-quarter 2025 earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.16, and total revenues of $875.9 million, reflecting a year-over-year increase of 28.3% [6]. Market Influences - Tariff-related uncertainties and supply-chain disruptions are anticipated to negatively impact GBX's second-quarter results, alongside increased operating costs [3]. - Conversely, low fuel costs due to declining oil prices are expected to positively influence the bottom line, as fuel expenses are a significant cost for transportation companies [4]. Industry Context - Crude oil prices are experiencing downward pressure in 2025, attributed to tariff concerns, weakening consumer confidence, and increased production by OPEC+ [5]. - Other transportation companies, such as Delta Air Lines and J.B. Hunt Transport Services, have reported varying earnings results, with Delta benefiting from low fuel costs and strong demand, while J.B. Hunt faced challenges due to lower fuel surcharge revenues [7][9].

Group 1 - The core investment thesis for Greenbrier (NYSE: GBX) highlights favorable external trends and solid internal metrics, indicating the company has transitioned into a growth phase regarding earnings [1] - Despite the positive earnings growth, revenue growth for Greenbrier is described as less impressive, suggesting potential concerns about overall sales performance [1]

Core Viewpoint - Greenbrier Companies (GBX) is currently positioned as a better value opportunity compared to Herc Holdings (HRI) based on various financial metrics and analyst outlooks [1]. Valuation Metrics - GBX has a forward P/E ratio of 10.34, while HRI's forward P/E is 12.95, indicating that GBX is more attractively priced [5]. - The PEG ratio for GBX is 0.88, suggesting it is undervalued relative to its expected earnings growth, whereas HRI has a PEG ratio of 1.01 [5]. - GBX's P/B ratio stands at 1.21, significantly lower than HRI's P/B of 3.76, further supporting GBX's valuation advantage [6]. Analyst Outlook - GBX holds a Zacks Rank of 1 (Strong Buy), reflecting a positive earnings estimate revision trend, while HRI has a Zacks Rank of 5 (Strong Sell), indicating a less favorable outlook [3]. - The strong earnings outlook for GBX, combined with its superior valuation metrics, positions it as the preferred choice for value investors [6].

Group 1: The Greenbrier Companies (GBX) - The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries [1] - The company has a Zacks Rank of 1 and has seen a 13.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Greenbrier has a PEG ratio of 0.94, which is lower than the industry average of 1.97, and possesses a Growth Score of A [1] Group 2: Pilgrim's Pride Corporation (PPC) - Pilgrim's Pride Corporation is a producer of fresh and frozen meat products [2] - The company holds a Zacks Rank of 1 and has experienced a nearly 2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Pilgrim's Pride has a PEG ratio of 0.21, significantly lower than the industry average of 0.58, and also has a Growth Score of A [2] Group 3: Pitney Bowes Inc. (PBI) - Pitney Bowes Inc. provides SaaS shipping solutions, mailing innovation, and financial services [3] - The company carries a Zacks Rank of 1 and has seen a 5.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Pitney Bowes has a PEG ratio of 0.51, compared to the industry average of 3.05, and possesses a Growth Score of A [3]

Group 1 - Greenbrier Companies (GBX) has reached a key level of support and recently broke out above the 50-day moving average, indicating a short-term bullish trend [1] - The 50-day simple moving average is considered important for establishing support and resistance levels, and GBX has moved 8.5% higher over the last four weeks, suggesting potential for further gains [2] - Positive earnings estimate revisions for GBX strengthen the bullish outlook, with no estimates decreasing in the past two months and one increasing, leading to a consensus estimate increase [3] Group 2 - GBX is currently ranked as a Zacks Rank 1 (Strong Buy) stock, indicating strong investor interest and potential for future performance [2]

Group 1 - Greenbrier Companies, Inc. will present at the Stifel 2025 Transportation & Logistics Conference on February 11, 2025, in Miami, Florida [1] - The presentation will be webcast live starting at 9:20 am ET, and will be available for 90 days after the event [2] - Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, with operations in North America, Europe, and Brazil [3] Group 2 - Greenbrier designs, builds, and markets freight railcars and provides wheel services, parts, maintenance, and retrofitting services primarily in North America [3] - The company owns a lease fleet of approximately 16,700 railcars, mainly originating from its manufacturing operations [3] - Greenbrier also offers railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America [3]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Greenbrier Companies (GBX) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 31.1%, with projected EPS growth of 19% this year, surpassing the industry average of 14.2% [5] Group 2: Financial Metrics - Greenbrier's year-over-year cash flow growth stands at 34.2%, significantly higher than the industry average of 14% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 7.3%, compared to the industry average of 6.8% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Greenbrier, with the Zacks Consensus Estimate for the current year increasing by 13.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Greenbrier favorably for potential outperformance, making it an attractive option for growth investors [11]