FreightCar America, Inc. Reports Second Quarter 2025 Results
Delivered Gross Margin of 15%, Expansion of 250 Basis PointsOperating Cash Flow of $8.5 Million and Adjusted Free Cash Flow of $7.9 MillionStrong Order Intake Driven by Operational Flexibility, Reaffirmed Full Year Guidance
CHICAGO, Aug. 04, 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 second quarter ended June 30, 2025.
Second Quarter 2025 Highlights
Revenues of $118.6 million, compared to $147.4 million in the second quarter of 2024, with railcar deliveries of 939 units compared to 1,159 units in the prior year period
Gross margin of 15.0% with gross profit of $17.8 million, compared to gross margin of 12.5% with gross profit of $18.4 million in the second quarter of 2024
Net income of $11.7 million, or $0.34 per share, and Adjusted net income of $3.8 million, or $0.11 per share, reflecting a $51.9 million benefit from a valuation allowance release, partially offset by a $47.6 million non-cash adjustment from the change in warrant liability due to share price appreciation
Adjusted EBITDA was $10.0 million, representing a margin of 8.4%, compared to $12.1 million and a margin of 8.2% in the second quarter of 2024
Received new orders for 1,226 railcars within the quarter valued at $106.9 million
Ended the quarter with a backlog of 3,624 units valued at $316.9 million, up approximately 300 units from prior quarter, reflecting strong order activity and healthy demand
"In the second fiscal quarter, we delivered on our commercial excellence initiatives across the business, supported by strong order intake and healthy customer demand," said Nick Randall, President and Chief Executive Officer of FreightCar America. "We increased utilization across our four production lines, delivered improved productivity, and benefited from a richer product mix from disciplined pricing. Our ability to remain agile and responsive to customer needs continues to be a key differentiator, particularly in rebuilds and conversions, enabling us to capture meaningful opportunities in a dynamic market."
Randall continued, "While broader market uncertainty earlier in the year delayed some order activity, we believe the underlying fundamentals point to a meaningful replacement cycle ahead. As that takes shape, our agile manufacturing presence positions us well to capture incremental demand and grow our share. At the same time, we continue to advance our growth strategy by investing in our tank car capabilities, which we expect will strengthen our cost position and support long-term value creation."
Fiscal Year 2025 Outlook
The Company has reaffirmed outlook for fiscal year 2025 as follows:
Fiscal 2025 Outlook
Year-over-Year Growth at Midpoint
Railcar Deliveries
4,500, 4,900 Railcars
7.7%
Revenue
$530 - $595 million
0.6%
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're pleased to reaffirm our full-year guidance, supported by strong margin performance and continued commercial execution across the business, with order activity supporting our healthy backlog. In addition, this quarter marked our fifth consecutive quarter of positive operating cash flow, reflecting the consistency and sustainability of our cash generation engine. Our focus on working capital discipline and operational efficiency has positioned us well to maintain momentum and invest in growth opportunities as we deliver strong performance in the second half of the year."
Second Quarter 2025 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Tuesday, August 5, at 11:00 a.m. (Eastern Time) to discuss its second 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:
August 5, 2025
11:00 a.m. Eastern Daylight Time
Phone: 1-877-407-0789 or 1-201-689-8562
Webcast access: https://viavid.webcasts.com/starthere.jsp?ei=1727351&tp_key=3e2183bfb0
An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, August 5, 2025, until 11:59 p.m. (Eastern Time) on Tuesday, August 19, 2025. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13754875. 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); 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.
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FreightCar America, Inc. Condensed Consolidated Balance Sheets(In thousands, except for share data) (Unaudited)
June 30,2025
December 31,2024
Assets
Current assets
Cash, cash equivalents and restricted cash equivalents
$
61,353
$
44,450
Accounts receivable, net of allowance for credit losses of $131 and $47, respectively
16,204
12,506
VAT receivable
6,243
3,851
Inventories, net
107,102
75,281
Assets held for sale
—
629
Prepaid expenses and other current assets
13,122
8,314
Total current assets
204,024
145,031
Property, plant and equipment, net
28,254
30,107
Right of use asset operating lease
2,200
2,423
Right of use asset finance lease
38,675
45,081
Deferred income taxes
53,671
1,024
Other long-term assets
1,269
550
Total assets
$
328,093
$
224,216
Liabilities and Stockholders' Deficit
Current liabilities
Accounts and contractual payables
$
89,404
$
49,574
Accrued payroll and other employee costs
5,955
6,286
Accrued warranty
1,665
2,389
Customer deposits
17,611
—
Deferred revenue
—
8,556
Current portion of long-term debt
2,875
2,875
Lease liability finance lease, current
834
1,256
Other current liabilities
11,411
9,889
Total current liabilities
129,755
80,825
Long-term debt, net of current portion
104,991
105,540
Warrant liability
131,061
136,319
Accrued pension costs
1,203
1,073
Lease liability operating lease, long-term
2,364
2,645
Lease liability finance lease, long-term
41,233
46,678
Other long-term liabilities
948
1,409
Total liabilities
411,555
374,489
Stockholders' deficit
Common stock
222
221
Additional paid-in capital
71,572
69,404
Accumulated other comprehensive income
3,236
721
Accumulated deficit
(158,492
)
(220,619
)
Total stockholders' deficit
(83,462
)
(150,273
)
Total liabilities and stockholders' deficit
$
328,093
$
224,216
FreightCar America, Inc. Condensed Consolidated Statements of Operations(In thousands, except for share and per share data)(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Revenues
$
118,623
$
147,416
$
214,913
$
308,474
Cost of sales
100,802
128,986
182,698
278,641
Gross profit
17,821
18,430
32,215
29,833
Selling, general and administrative expenses
10,114
8,510
20,637
16,003
Litigation settlement
—
(3,214
)
—
(3,214
)
Operating income
7,707
13,134
11,578
17,044
Interest expense
(4,382
)
(1,847
)
