News

FreightCar America (RAIL) – First Quarter Results Exceeded Our Estimates

Industrials
0 min read


Wednesday, May 07, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter financial results. FreightCar America reported net income of $1.604 million or $0.05 per share compared to our estimate of $1.223 million or $0.03 per share. The variances to our estimates were largely revenue and margin driven. As expected, revenue and rail car deliveries declined to $96.3 million and 710, respectively, compared to $161.1 million and 1,223 during the first quarter of 2024. Our estimates were $82.5 million and 700. During the quarter, a portion of RAIL’s railcar production capacity was utilized for custom fabrications by its Aftermarket segment. Management expected lower deliveries to be reflected in first quarter revenues. Gross profit and margin improved to $14.4 million and 14.9%, respectively, compared to $11.4 million and 7.1% during the prior year period. Adjusted EBITDA increased to $7.3 million compared to $6.1 million during the first quarter of 2024. RAIL generated free cash flow of $12.5 million and ended the quarter with $54.1 million in cash.

No Change to 2025 corporate guidance. Railcar deliveries are expected to be in the range of 4,500 to 4,900, revenue is expected to be in the range of $530 million to $595 million, and adjusted EBITDA is expected to be in the range of $43 to $49 million. Compared to 2024, railcar deliveries, revenue, and adjusted EBITDA are expected to increase 7.7%, 0.6%, and 7.0%, respectively, at the midpoints of guidance.


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