Railcar Giant Greenbrier Faces Setback In Q3 - Can New Railcar Orders Turn the Tide?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 08 2024
0mins
Source: Benzinga
Greenbrier Companies Q3 FY24 Results:
- Revenue declined to $820.2 million, missing consensus.
- Lease fleet utilization was around 99%, with fleet size increasing by 600 units.
- Secured orders for 6,300 new railcars worth $830 million and delivered 5,400 units in the quarter.
- EBITDA was $104 million with a margin of 13%, while EPS of $1.06 missed expectations.
- Cash and equivalents stood at $291.8 million as of May end.
FY24 Outlook for Greenbrier Companies:
- Revised revenue guidance to $3.50 billion-$3.60 billion.
- Expects to deliver 23,500 – 24,000 units, including around 1,400 units in Brazil.
- Projects capital expenditures and gross leasing investments.
- Anticipates proceeds from equipment sales of around $75 million.
- CEO Lorie L. Tekorius highlighted strong EPS performance driven by efficiencies and execution.
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Analyst Views on GBX
Wall Street analysts forecast GBX stock price to fall
3 Analyst Rating
1 Buy
0 Hold
2 Sell
Moderate Sell
Current: 49.330
Low
38.00
Averages
46.33
High
52.00
Current: 49.330
Low
38.00
Averages
46.33
High
52.00
About GBX
The Greenbrier Companies, Inc. is an international supplier of equipment and services to global freight transportation markets. The Company designs, builds and markets freight railcars in North America, Europe and Brazil. It is a provider of freight railcar wheel services, parts component parts, maintenance and sustainable conversion services in North America. It owns a lease fleet of approximately 16,800 railcars that originate primarily from its manufacturing operations. The Company offers railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America. Its products include freight railcars, tank cars, intermodal railcars, automotive and sustainable conversions, and Component Parts. Its North American management services business offers a range of software and services that include railcar maintenance management, railcar accounting services, total fleet management, fleet logistics, administration and railcar re-marketing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Greenbrier Companies to Report Q3 2026 Results on July 1
- Earnings Release Schedule: Greenbrier Companies announced it will report its Q3 2026 financial results after market close on July 1, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Invitation: The company invites shareholders and interested parties to join its earnings conference call at 2:00 p.m. PDT, offering both internet streaming and dial-in options to ensure broad participation.
- Webcast Access: Investors can access the earnings release and webcast through the Greenbrier website, with the webcast archived for 30 days post-release, allowing those unable to attend live to catch up on the information.
- Company Background: Headquartered in Lake Oswego, Oregon, Greenbrier is a leading supplier of equipment and services to global freight transportation markets, owning a lease fleet of approximately 16,800 railcars, highlighting its significant position in the industry.
See More
Greenbrier Companies to Report Q3 2026 Results on July 1
- Earnings Release Schedule: Greenbrier Companies announced it will report its Q3 2026 financial results after market close on July 1, 2026, which is expected to provide investors with insights into the company's financial health and operational performance, aiding market analysis of future growth potential.
- Conference Call Invitation: The company invites shareholders and interested parties to join the earnings conference call at 2:00 p.m. PDT, offering both internet streaming and dial-in options to ensure timely access to financial information and facilitate discussion.
- Webcast Access: Investors can access the earnings release and webcast through Greenbrier's website, with the webcast archived for 30 days, allowing those unable to participate live to review the information later, thereby enhancing transparency.
- Company Background: Headquartered in Lake Oswego, Oregon, Greenbrier is a leading international supplier of equipment and services to the global freight transportation market, owning a lease fleet of approximately 16,800 railcars, showcasing its strong influence in North American and global markets.
See More
Three Profitable Companies to Avoid
- Greenbrier Concerns: Greenbrier (GBX) has a GAAP operating margin of 8.7%, yet declining unit sales over the past two years suggest it may need to invest in improvements to regain growth, while its low gross margin of 14.1% indicates fierce competition and high production costs, raising doubts about the long-term viability of its business model.
- MillerKnoll's Growth Issues: With a GAAP operating margin of 9.6%, MillerKnoll (MLKN) has only achieved 1.4% annual revenue growth over the last two years, significantly lagging behind peers, and its earnings per share have fallen by 7.9% annually over the past five years due to shareholder dilution, limiting its ability to invest or increase buybacks with a weak free cash flow margin of 2.4%.
- Encore Capital Group Risks: Encore Capital Group (ECPG) boasts a high GAAP operating margin of 36.8%, but its sales growth has been a modest 2.6% annually over the last five years, trailing the financial sector average, and its earnings per share have only grown by 3.7%, compounded by a high net-debt-to-EBITDA ratio of 5x that could necessitate unfavorable capital raising if market conditions worsen.
- Investment Caution Summary: While these companies are currently profitable, their growth potential and financial health raise significant concerns, prompting investors to carefully consider avoiding inclusion in their portfolios.
See More
Greenbrier Strongly Disagrees with Customs Determination on Rail Couplers
- Customs Dispute: Greenbrier strongly disagrees with the U.S. Customs and Border Protection's May 18, 2026 determination on freight rail couplers, asserting that it disconnects from the real-world functioning of the North American interchange system, potentially leading to uncertainty and increased costs in cross-border rail operations.
- Operational Impact Assessment: The determination risks disrupting efficient rail operations and increasing transportation costs, particularly for a wide range of commodities including energy, agriculture, and consumer goods, ultimately resulting in higher prices for American businesses and consumers.
- Legal Position Maintenance: Greenbrier is carefully evaluating all available options, including seeking further administrative and judicial review, to uphold its legal rights and ensure the efficiency of the U.S. supply chain.
- Commitment to Ongoing Cooperation: Greenbrier will continue to cooperate with Customs and other agencies while advocating for the preservation of long-standing legal interpretations that support the efficient operation of the U.S. supply chain and its global competitiveness.
See More
Greenbrier Strongly Disagrees with Customs Ruling on Rail Couplers
- Customs Ruling Dispute: Greenbrier strongly disagrees with the U.S. Customs and Border Protection's ruling on freight rail couplers issued on May 18, 2026, arguing that it disconnects from over 80 years of real-world North American interchange system operations, potentially raising transportation costs and impacting cross-border trade.
- Operational Impact Assessment: The ruling recharacterizes railcars and their components, risking disruption of efficient rail operations, increasing supply chain costs, and leading to higher transportation fees for a range of commodities, which could ultimately raise prices for American businesses and consumers.
- Firm Legal Position: Greenbrier is carefully evaluating all available options, including seeking further administrative and judicial review, to advocate for its shareholders, customers, and employees while ensuring the efficiency of the U.S. supply chain and economic growth.
- Ongoing Cooperation and Advocacy: Greenbrier will continue to cooperate with Customs and other agencies while advocating for the preservation of long-standing legal interpretations that support an efficient U.S. supply chain and global competitiveness.
See More
Cash Flow and Investment Value Analysis
- Greenbrier Performance Decline: Greenbrier (GBX) has a trailing 12-month free cash flow margin of 11.5%, but declining unit sales over the past two years may necessitate price cuts to stimulate growth, resulting in a low gross margin of 14.1%, raising concerns about sustainable long-term growth.
- Kodiak Gas Service Challenges: Kodiak Gas Services (KGS) has a free cash flow margin of 15.1%, yet its revenue base of $1.32 billion puts it at a disadvantage against larger competitors, with costs rising faster than revenue over the past five years, leading to a 3.7 percentage point decline in EBITDA margin and limited opportunities for reinvestment due to lack of free cash flow.
- Reddit Investment Opportunity: Reddit (RDDT) boasts a high free cash flow margin of 35.1%, with domestic daily active users growing at an average of 14.4% annually and average revenue per user increasing by 34.8%, indicating strong growth potential for reinvestment or capital return.
- Market Performance Comparison: While Greenbrier and Kodiak Gas face challenges, Reddit's stock price of $156.30 per share implies a valuation ratio of 18.7x, highlighting its competitive advantage and investment appeal in the market.
See More
Greenbrier Companies to Report Q3 2026 Results on July 1
- Earnings Release Schedule: Greenbrier Companies announced it will report its Q3 2026 financial results after market close on July 1, 2026, providing investors with insights into its latest financial health and operational performance.
- Conference Call Invitation: The company invites shareholders and interested parties to join its earnings conference call at 2:00 p.m. PDT, offering both internet streaming and dial-in options to ensure broad participation.
- Webcast Access: Investors can access the earnings release and webcast through the Greenbrier website, with the webcast archived for 30 days post-release, allowing those unable to attend live to catch up on the information.
- Company Background: Headquartered in Lake Oswego, Oregon, Greenbrier is a leading supplier of equipment and services to global freight transportation markets, owning a lease fleet of approximately 16,800 railcars, highlighting its significant position in the industry.
See More
Greenbrier Companies to Report Q3 2026 Results on July 1
- Earnings Release Schedule: Greenbrier Companies announced it will report its Q3 2026 financial results after market close on July 1, 2026, which is expected to provide investors with insights into the company's financial health and operational performance, aiding market analysis of future growth potential.
- Conference Call Invitation: The company invites shareholders and interested parties to join the earnings conference call at 2:00 p.m. PDT, offering both internet streaming and dial-in options to ensure timely access to financial information and facilitate discussion.
- Webcast Access: Investors can access the earnings release and webcast through Greenbrier's website, with the webcast archived for 30 days, allowing those unable to participate live to review the information later, thereby enhancing transparency.
- Company Background: Headquartered in Lake Oswego, Oregon, Greenbrier is a leading international supplier of equipment and services to the global freight transportation market, owning a lease fleet of approximately 16,800 railcars, showcasing its strong influence in North American and global markets.
See More
Three Profitable Companies to Avoid
- Greenbrier Concerns: Greenbrier (GBX) has a GAAP operating margin of 8.7%, yet declining unit sales over the past two years suggest it may need to invest in improvements to regain growth, while its low gross margin of 14.1% indicates fierce competition and high production costs, raising doubts about the long-term viability of its business model.
- MillerKnoll's Growth Issues: With a GAAP operating margin of 9.6%, MillerKnoll (MLKN) has only achieved 1.4% annual revenue growth over the last two years, significantly lagging behind peers, and its earnings per share have fallen by 7.9% annually over the past five years due to shareholder dilution, limiting its ability to invest or increase buybacks with a weak free cash flow margin of 2.4%.
- Encore Capital Group Risks: Encore Capital Group (ECPG) boasts a high GAAP operating margin of 36.8%, but its sales growth has been a modest 2.6% annually over the last five years, trailing the financial sector average, and its earnings per share have only grown by 3.7%, compounded by a high net-debt-to-EBITDA ratio of 5x that could necessitate unfavorable capital raising if market conditions worsen.
- Investment Caution Summary: While these companies are currently profitable, their growth potential and financial health raise significant concerns, prompting investors to carefully consider avoiding inclusion in their portfolios.
See More
Greenbrier Strongly Disagrees with Customs Determination on Rail Couplers
- Customs Dispute: Greenbrier strongly disagrees with the U.S. Customs and Border Protection's May 18, 2026 determination on freight rail couplers, asserting that it disconnects from the real-world functioning of the North American interchange system, potentially leading to uncertainty and increased costs in cross-border rail operations.
- Operational Impact Assessment: The determination risks disrupting efficient rail operations and increasing transportation costs, particularly for a wide range of commodities including energy, agriculture, and consumer goods, ultimately resulting in higher prices for American businesses and consumers.
- Legal Position Maintenance: Greenbrier is carefully evaluating all available options, including seeking further administrative and judicial review, to uphold its legal rights and ensure the efficiency of the U.S. supply chain.
- Commitment to Ongoing Cooperation: Greenbrier will continue to cooperate with Customs and other agencies while advocating for the preservation of long-standing legal interpretations that support the efficient operation of the U.S. supply chain and its global competitiveness.
See More
Greenbrier Strongly Disagrees with Customs Ruling on Rail Couplers
- Customs Ruling Dispute: Greenbrier strongly disagrees with the U.S. Customs and Border Protection's ruling on freight rail couplers issued on May 18, 2026, arguing that it disconnects from over 80 years of real-world North American interchange system operations, potentially raising transportation costs and impacting cross-border trade.
- Operational Impact Assessment: The ruling recharacterizes railcars and their components, risking disruption of efficient rail operations, increasing supply chain costs, and leading to higher transportation fees for a range of commodities, which could ultimately raise prices for American businesses and consumers.
- Firm Legal Position: Greenbrier is carefully evaluating all available options, including seeking further administrative and judicial review, to advocate for its shareholders, customers, and employees while ensuring the efficiency of the U.S. supply chain and economic growth.
- Ongoing Cooperation and Advocacy: Greenbrier will continue to cooperate with Customs and other agencies while advocating for the preservation of long-standing legal interpretations that support an efficient U.S. supply chain and global competitiveness.
See More
Cash Flow and Investment Value Analysis
- Greenbrier Performance Decline: Greenbrier (GBX) has a trailing 12-month free cash flow margin of 11.5%, but declining unit sales over the past two years may necessitate price cuts to stimulate growth, resulting in a low gross margin of 14.1%, raising concerns about sustainable long-term growth.
- Kodiak Gas Service Challenges: Kodiak Gas Services (KGS) has a free cash flow margin of 15.1%, yet its revenue base of $1.32 billion puts it at a disadvantage against larger competitors, with costs rising faster than revenue over the past five years, leading to a 3.7 percentage point decline in EBITDA margin and limited opportunities for reinvestment due to lack of free cash flow.
- Reddit Investment Opportunity: Reddit (RDDT) boasts a high free cash flow margin of 35.1%, with domestic daily active users growing at an average of 14.4% annually and average revenue per user increasing by 34.8%, indicating strong growth potential for reinvestment or capital return.
- Market Performance Comparison: While Greenbrier and Kodiak Gas face challenges, Reddit's stock price of $156.30 per share implies a valuation ratio of 18.7x, highlighting its competitive advantage and investment appeal in the market.
See More
