FreightCar America Confirms FY25 Adjusted EBITDA Forecast
2025 Financial Projections: FreightCar America anticipates adjusted EBITDA between $43 - $49 million, with revenue expected to be in the range of $500 - $530 million and railcar deliveries between 4,500 - 4,900 units.
Third Quarter Performance: The company reported a net loss of $7.4 million for Q3, a significant improvement from a loss of $107.1 million the previous year, with adjusted EPS rising to $0.24 from $0.08.
Revenue and Deliveries Growth: Revenues increased to $160.5 million from $113.3 million year-over-year, and railcar deliveries rose to 1,304 units compared to 961 units in the same period last year.
Market Reaction: Shares of FreightCar America saw a 4% increase in pre-market trading following the earnings report.
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Metals & Mining Shares Rise, Led by American Resources Up 6.4%
- Sector Performance: Metals and mining stocks collectively rose by approximately 1.1%, indicating relative strength in the sector and reflecting a renewed market confidence in resource stocks.
- American Resources Leads: American Resources saw its stock price increase by about 6.4%, making it one of the best performers of the day, suggesting optimistic investor sentiment regarding its future growth potential.
- Largo Also Shines: Largo's stock price rose by approximately 4.3%, further enhancing market interest in the mining sector and potentially attracting more investor attention.
- Market Trend Analysis: The rise in metals and mining stocks may signal economic recovery, prompting investors to consider the potential implications of this trend on the overall market.
FreightCar America finalizes acquisition of Carly Railcar
Acquisition Announcement: FreightCar America has completed the acquisition of Carly Railcar Components, a leading distributor of railcar components known for its core-exchange program and strong reputation in North America.
Strategic Benefits: The acquisition enhances FreightCar America's aftermarket distribution business, focusing on running-repair components, which are frequently replaced and complement the company's existing product offerings.
CEO Statement: CEO Nicholas Randall emphasized that Carly Railcar Components' capabilities and regional presence will improve customer service through increased speed, reliability, and product availability.
Market Reaction: Following the acquisition news, FreightCar America's shares rose by 2.0% in premarket trading, reflecting positive investor sentiment and a forward price-to-earnings ratio of 16.5.
