CHICAGO, IL – FreightCar America, Inc. (NASDAQ:RAIL), a manufacturer of railroad equipment with a market capitalization of $182 million, has regained compliance with Nasdaq's compensation committee requirements after a period of non-compliance, as per a recent 8-K filing with the Securities and Exchange Commission (SEC). The company has shown remarkable growth, with revenue increasing by 52% over the last twelve months according to InvestingPro data.
On Monday, the company received a notification from Nasdaq following a self-reported discrepancy that occurred between March and October 2024. During this period, FreightCar America's compensation committee charter did not meet the Nasdaq Listing Rule 5605(d)(1)(B), which mandates that the charter must outline the committee's role in determining or recommending the compensation for the CEO and all other executive officers.
Following these changes, Nasdaq staff concluded that FreightCar America has regained compliance with the Rule, contingent upon the company meeting the disclosure obligations by filing this current report. FreightCar America, headquartered in Chicago, Illinois, and incorporated in Delaware, has a primary business focus in the railroad equipment manufacturing sector.
In other recent news, FreightCar America recently reported significant growth in its third-quarter revenues and raised its adjusted EBITDA forecast for 2024, indicative of robust financial health and market confidence. The company's revenue soared by 83% to $113.3 million, a figure attributed to the delivery of 961 railcars. Maintaining solid gross margins at 14.3%, FreightCar America's adjusted EBITDA rose to $10.9 million, a substantial increase from the $3.5 million reported in the corresponding quarter of the previous year.
In spite of a 20% industry decline in orders, the company managed to capture 22% of industry orders over the last year. The company remains debt-free, with a strong cash position of $44.8 million. FreightCar America's executives expect continued high demand for railcars and project a positive growth trajectory into 2025.
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