Greenbrier Posts Strong Q3 Earnings, Revenue $843M, Backlog $2.5B

Greenbrier Companies reported strong third-quarter fiscal 2025 results, with revenue reaching approximately $843 million and net income rising to $60 million, or $1.86 per share, significantly surpassing analyst expectations. The company delivered 5,600 railcars and received 3,900 new orders worth over $500 million, maintaining a robust backlog valued at $2.5 billion, while lease fleet utilization remained high at 98.2%. Operational efficiencies, including cost controls and streamlined manufacturing in North America and Mexico, helped Greenbrier achieve an 18% gross margin and an 11% operating margin, with operating cash flow nearing $140 million. CEO Lorie Tekorius emphasized the company's focus on efficiency, agility, and strategic investments to offset trade policy changes and economic uncertainty, including optimizing its European footprint and expanding insourcing in Mexico. Greenbrier reaffirmed its fiscal year delivery guidance of 21,500 to 23,500 units and raised its margin outlook, supported by an $850 million credit facility extension to 2030, share repurchases, and a quarterly dividend of $0.32 per share. Despite some industry headwinds and a recent decline in long-term revenue growth, Greenbrier’s strong quarterly performance and improved margins underscore its resilience in the freight rail equipment sector.