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CHICAGO, IL – FreightCar America, Inc. (NASDAQ:RAIL), a manufacturer in the railroad equipment sector with a market capitalization of $131 million, disclosed in a recent SEC filing that William D. Gehl, a long-standing member of the company’s Board of Directors, has decided not to seek re-election and will retire at the upcoming 2025 Annual Meeting of Stockholders. According to InvestingPro data, the company has shown strong revenue growth of 56% over the last twelve months. The company clarified that Gehl’s departure is not due to any disagreements with FreightCar America’s operations, policies, or practices.
Gehl, who joined the board in May 2007 and has served as the Lead Independent (LON:IOG) Director since May 2024, will continue his duties until the annual meeting. Following his departure, the board will reduce its size from nine to eight directors. Travis D. Kelly is set to take over Gehl’s responsibilities on the Audit Committee, and Malcolm F. Moore will assume the role of Lead Independent Director.
The company expressed its appreciation for Gehl’s contributions and the insights he provided during his tenure on the board. This transition comes as part of the natural cycle of board renewal and governance.
The information regarding these corporate governance changes is based on an 8-K filing with the SEC. Investors and stakeholders of FreightCar America are advised to consider these developments in light of the upcoming annual meeting and the company’s continued commitment to effective board leadership and oversight.
In other recent news, FreightCar America reported a notable earnings surprise for the fourth quarter of 2024, with earnings per share (EPS) reaching $0.21, significantly surpassing the expected $0.07. Despite this earnings beat, the company faced a revenue shortfall, with actual revenue at $137.7 million compared to a forecast of $143.61 million. For the full year 2024, FreightCar America achieved a 56% increase in revenue, totaling $559.4 million, and saw a 114% rise in adjusted EBITDA to $43 million. The company also expanded into new product lines, including Tank Cars, and secured a multi-year recertification agreement, enhancing its market position. Looking ahead, FreightCar America has projected railcar deliveries between 4,500 and 4,900 units for 2025, with revenue guidance set between $530 million and $595 million. Analysts from NOBLE Capital Markets and Sidoti and Company have shown interest in the company’s strategic growth opportunities and its ability to navigate potential tariff impacts. FreightCar America remains optimistic about its prospects, emphasizing operational efficiency and strategic expansion as key drivers for future growth.
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