Tuesday, November 10, 2026
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Richard Magnusen, Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Third Quarter FY 2026 Financial Results. RAIL generated a 3Q FY26 adjusted net loss to common stockholders of $9.5 million, or $(0.28) per share, compared to adjusted net income of $7.8 million, or $0.24 per share, during the prior-year period. We had projected a net loss of $4.2 million, or ($0.13) per share. Gross margin as a percentage of revenue amounted to 8.8% compared to 15.1% in 3Q FY 2025. Revenue and rail car deliveries declined to $76.5 million and 662, compared to $160.5 million and 1,304 during the prior-year period. We had forecast revenue of $76.1 million and deliveries of 662. Adj. EBITDA amounted to $0.1 million compared to $15.9 million in 3Q FY 2025 and our estimate of $0.0 million. We had projected a higher gross margin. FCF for 3Q was $25.0 million compared to $2.2 million during the prior-year period.
Updated FY 2026 Guidance. Management reaffirmed its FY 2026 guidance provided on October 19. Railcar deliveries are expected to be in the range of 3,100 to 3,300, revenue in the range of $370 to $410 million, and adj. EBITDA in the range of $15 to $19 million. Reaffirmed guidance implies a meaningful fourth-quarter recovery in adjusted EBITDA to $10.5 million to $14.5 million, supported by higher deliveries and improved manufacturing profitability.
Get the Full Report
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
