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Introduction & Market Context
Greenbrier Companies (NYSE:GBX), a leading railcar manufacturer and lessor, released its third-quarter fiscal 2025 earnings presentation on July 1, 2025, highlighting sequential improvement in key financial metrics despite ongoing industry challenges. The company reported net earnings of $60 million, or $1.86 per diluted share, on revenue of $843 million, showing recovery from the previous quarter while maintaining strong margins and operational efficiency.
The presentation comes as Greenbrier continues to navigate a complex market environment characterized by fluctuating demand for new railcars across its global operations in North America, Europe, and South America. Despite a declining backlog, the company has maintained its industry-leading position while focusing on profitability, cash flow generation, and shareholder returns.
Quarterly Performance Highlights
Greenbrier delivered solid financial results for the third quarter of fiscal 2025, with several key metrics showing improvement over the previous quarter. The company achieved an aggregate gross margin of 18% and an operating margin of 11% of revenue, demonstrating effective cost management and operational efficiency.
The company’s EBITDA reached $129 million, representing 15% of revenue, while operating cash flow approached $140 million. Greenbrier maintained an impressive lease fleet utilization rate of 98%, reflecting strong demand for its leasing services. During the quarter, the company received new railcar orders for 3,900 units valued at more than $500 million and delivered 5,600 units, resulting in a backlog of 18,900 units with an estimated value of $2.5 billion.
Other notable achievements in the quarter included the renewal and extension of $850 million in bank facilities into 2030, the repurchase of 507,000 shares for nearly $22 million, and the approval of a quarterly dividend of $0.32 per share. The company also closed one manufacturing facility in Europe as part of its ongoing efficiency initiatives and added two new independent directors to its board.
Detailed Financial Analysis
Greenbrier’s financial performance over the past five quarters reveals a company effectively managing through market fluctuations. Revenue, which peaked at $1,053 million in Q4 2024, has stabilized at $842.7 million in Q3 2025, showing recovery from the $762.1 million reported in Q1 2025. Similarly, Core EBITDA and Core Diluted EPS have recovered from recent lows, demonstrating the company’s resilience and operational strength.
As shown in the following income statement metrics chart, Greenbrier has maintained strong profitability despite revenue fluctuations:
The company’s backlog, while declining from 29,400 units a year ago to 18,900 units in Q3 2025, still represents a substantial $2.5 billion in future business. This backlog provides visibility into future earnings and helps stabilize operations through market cycles. The following chart illustrates Greenbrier’s industry-leading railcar backlog over recent years:
Greenbrier’s investment highlights underscore its strong market position and financial stability. The company maintains leading positions in its end markets, has a long track record of growth and increasing through-cycle profitability, and offers strong visibility with its substantial backlog and growing stream of recurring revenue.
Strategic Initiatives
Greenbrier continues to strengthen its lease fleet, which now comprises approximately 16,800 railcars with an average age of 6.8 years and an impressive 98.2% utilization rate. The lease fleet has a net book value of approximately $1.5 billion and serves 154 customers with an average remaining lease term of 4.0 years. The company is committed to investing up to $300 million per year on a net basis over the next several years to grow this business segment.
The following chart provides a detailed overview of Greenbrier’s lease fleet foundation:
The company’s balance sheet and cash flow trends demonstrate its financial strength and liquidity position. With available liquidity of $770 million, the highest level in over two years, Greenbrier is well-positioned to pursue strategic growth initiatives while continuing to return value to shareholders through dividends and share repurchases.
Forward-Looking Statements
Greenbrier has updated its fiscal 2025 outlook and guidance, projecting revenues between $3.15 billion and $3.35 billion, down from $3.54 billion in fiscal 2024. However, the company expects improved profitability, with aggregate gross margin projected at 17.7% to 18.3% (up from 15.8% in FY24) and operating margin at 10.6% to 11.0% (up from 9.2% in FY24). Deliveries are expected to range from 21,500 to 23,500 units, compared to 23,700 units in fiscal 2024.
The following table details Greenbrier’s fiscal 2025 outlook and guidance compared to fiscal 2024 results:
Greenbrier’s focus on operational efficiency and margin improvement is evident in its updated guidance. Despite projecting lower revenues and deliveries compared to the previous fiscal year, the company anticipates higher profitability metrics, reflecting its strategic emphasis on high-margin business and cost optimization.
As Greenbrier navigates the remainder of fiscal 2025, it continues to leverage its diverse business model, strong market position, and financial flexibility to create value for shareholders while positioning itself for future growth opportunities across its global operations.
Full presentation:
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