Greenbrier Earnings Fall To $79 Million As Railcar Backlog Rises For The First Time Since Fiscal 2024

Greenbrier, which builds freight railcars and leases them to railroads and shippers, said fiscal 2026 net earnings fell to $79 million, or $2.49 per diluted share, from $204.1 million, or $6.35 per share, a year earlier. Its railcar backlog rose for the first time since fiscal 2024, the company said in an 8-K filed Monday.

A smaller year, a growing backlog

Revenue for the year ended August 31 was $2.46 billion, against $3.24 billion in fiscal 2025. Manufacturing revenue fell to $2.27 billion from $3.05 billion, while leasing revenue edged up to $194.6 million from $193.3 million.

Fourth-quarter net earnings were $9 million, or $0.27 per share, including $0.12 per share of facility rationalization costs. Core earnings, which exclude those costs, were $0.39 per share. Core EBITDA, the company's adjusted operating earnings measure, was $72 million, or 12% of revenue.

Orders of 3,400 railcars worth $600 million and deliveries of 3,600 left backlog at 14,000 railcars, valued at an estimated $2.1 billion. It had stood at 13,800 at the end of the third quarter.

CEO and President Lorie L. Tekorius called it "a pivot by freight shippers toward moving goods by rail in North America," and said tariff uncertainty had delayed long-lived railcar investment decisions, particularly for tank cars.

Leasing cushions a weaker factory cycle

Greenbrier designs and builds railcars in North America, Europe and Brazil, and also leases and manages railcar fleets. Its owned lease fleet grew 23% in the year to 20,900 railcars, with 98% utilization.

The build-out used cash. Operating cash flow fell to $39.6 million from $265.7 million, as inventories and railcars held for syndication, meaning cars it holds before selling to investors, absorbed funds. The company returned $56 million to shareholders through dividends and buybacks.

Fiscal 2027 outlook

Greenbrier guided to fiscal 2027 revenue of $2.8 billion to $3.2 billion, an operating margin of 7.0% to 7.5% and earnings per share of $2.75 to $3.75. It estimates North American industry deliveries at 26,000 to 28,000 railcars and net capital spending of $225 million to $275 million.

Tekorius said rail traffic increases and elevated diesel prices have lifted North American inquiries early in the new fiscal year.

The board approved a $0.34 quarterly dividend, its 50th consecutive, payable December 2 to holders of record on November 11.

Sources

• 8-K Filing — GREENBRIER COMPANIES INC (GBX) — SEC EDGAR
• Exhibit gbx-ex99_1.htm — GREENBRIER COMPANIES INC 8-K exhibit — SEC EDGAR
• Greenbrier Announces Fourth Quarter Financial Results — prnewswire.com

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