Strong gross margins of 15.1%, expansion of 80 basis points
Reaffirming Adjusted EBITDA guidance for full year
CHICAGO, Nov. 10, 2025 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ:RAIL) ("FreightCar America" or the "Company"), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
Revenues of $160.5 million, compared to $113.3 million in the third quarter of 2024, with railcar deliveries of 1,304 units compared to 961 units in the prior year period
Gross margin of 15.1% with gross profit of $24.2 million, compared to gross margin of 14.3% with gross profit of $16.2 million in the third quarter of 2024
Recorded a $17.6 million non-cash adjustment due to share price appreciation resulting in a Net loss of $(7.4) million, or $(0.23) per share, and Adjusted net income of $7.8 million, or $0.24 per share
Adjusted EBITDA was $17.0 million, representing a margin of 10.6%, compared to $10.9 million and a margin of 9.6% in the third quarter of 2024
Ended the quarter with a backlog of 2,750 units valued at $222.0 million, reflecting a diversified mix of railcar conversion programs and new railcar builds
Well-positioned to deploy capital for growth, with $62.7 million in cash and equivalents and no borrowings under the company's revolving credit facility
"Our third quarter results highlight the strength of our operating platform and the continued execution of our commercial strategy," said Nick Randall, President and Chief Executive Officer of FreightCar America. "We delivered record third quarter Adjusted EBITDA at our new facility, reflecting the benefits of improved production efficiency and favorable product mix. Our team continues to demonstrate manufacturing flexibility which, coupled with our customer-centric approach, differentiates FreightCar America in the market. While overall industry demand remains subdued, we continue to support customers by leveraging our expertise in conversions and customized solutions to create value for our customers."
Randall continued, "This quarter's strong bottom line performance reflects our manufacturing discipline and commercial excellence. By building for value and meeting complex customer requirements instead of commoditized throughput, we delivered exceptional Adjusted EBITDA performance and strengthened the Company's financial position. With this momentum, we enter the final quarter well-positioned to deliver profitable growth, generate positive free cash flow and advance our long-term growth initiatives."
Fiscal Year 2025 Outlook
The Company has updated its outlook for fiscal year 2025 as follows:
Fiscal 2025 Outlook
Year-over-Year Change at Midpoint of Range
Railcar Deliveries
4,500, 4,900 Railcars
7.7
%
Revenue
$500 - $530 million
(7.9
)%
Adjusted EBITDA1
$43 - $49 million
7.0
%
1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.
Mike Riordan, Chief Financial Officer of FreightCar America, added, "We delivered another quarter of solid financial results, including strong deliveries, margin performance and operating cash flow. Looking ahead, while our change in revenue guidance reflects product mix as we saw a larger number of conversion railcars compared to new railcars in the second half of 2025, our profitability and positive cash performance remain on track, underscoring the resilience of our business model, which fuels our capital strength and positions us to drive long-term sustainable growth."
Third Quarter 2025 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Monday, November 10, at 11:00 a.m. (Eastern Time) to discuss its third quarter 2025 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:
November 10, 2025
11:00 a.m. Eastern Time
Phone: 1-877-407-0789 or 1-201-689-8562
Webcast access: https://viavid.webcasts.com/starthere.jsp?ei=1738819&tp_key=ac6dd57ff0
An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Monday, November 10, 2025, until 11:59 p.m. (Eastern Time) on Monday, November 24, 2025. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13756539. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); the scope and duration of the government shutdown; and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release includes measures not derived in accordance with generally accepted accounting principles ("GAAP"), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages.
Investor Contact:
FreightCar America, Inc. Condensed Consolidated Balance Sheets(In thousands, except for share data)(Unaudited)
September 30,2025
December 31,2024
Assets
Current assets
Cash, cash equivalents and restricted cash equivalents
$
62,743
$
44,450
Accounts receivable
32,514
12,506
VAT receivable
5,677
3,851
Inventories, net
104,243
75,281
Assets held for sale
—
629
Prepaid expenses and other current assets
15,948
8,314
Total current assets
221,125
145,031
Property, plant and equipment, net
28,147
30,107
Right of use asset operating lease
2,086
2,423
Right of use asset finance lease
38,650
45,081
Deferred income taxes
49,520
1,024
Other long-term assets
1,229
550
Total assets
$
340,757
$
224,216
Liabilities and Stockholders' Deficit
Current liabilities
Accounts and contractual payables
$
98,579
$
49,574
Accrued payroll and other employee costs
9,633
6,286
Accrued warranty
1,997
2,389
Customer deposits
8,176
—
Deferred revenue
506
8,556
Current portion of long-term debt
2,875
2,875
Lease liability finance lease, current
1,277
1,256
Other current liabilities
9,804
9,889
Total current liabilities
132,847
80,825
Long-term debt, net of current portion
104,679
105,540
Warrant liability
148,650
136,319
Accrued pension costs
1,268
1,073
Lease liability operating lease, long-term
2,220
2,645
Lease liability finance lease, long-term
41,259
46,678
Other long-term liabilities
708
1,409
Total liabilities
431,631
374,489
Stockholders' deficit
Preferred stock
—
—
Common stock
221
221
Additional paid-in capital
72,006
69,404
Accumulated other comprehensive income
2,836
721
Accumulated deficit
(165,937
)
(220,619
)
Total stockholders' deficit
(90,874
)
(150,273
)
Total liabilities and stockholders' deficit
$
340,757
$
224,216
FreightCar America, Inc. Condensed Consolidated Statements of Operations(In thousands, except for share and per share data)(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Revenues
$
160,511
$
113,255
$
375,424
$
421,729
Cost of sales
136,306
97,059
319,004
375,700
Gross profit
24,205
16,196
56,420
46,029
Selling, general and administrative expenses
9,647
7,538
30,284
23,541
Litigation settlement
—
—
—
