FreightCar America, Inc.: Achievements in 2024 and Future Outlook

FreightCar America, Inc. Reports Impressive 2024 Results

FreightCar America, Inc. (NASDAQ: RAIL), a prominent manufacturer and supplier of railroad freight cars, revealed its impressive results for the fourth quarter and full year which ended on December 31, 2024. The company experienced a significant boost in both revenue and gross profit, showcasing a robust operational performance throughout the year.

Fourth Quarter 2024 Highlights

In the fourth quarter, FreightCar generated revenues of $137.7 million, marking an 8.8% increase compared to the $126.6 million reported in the same quarter of the previous year. This growth was achieved on stable railcar deliveries of 1,019 units, slightly down from 1,021 in the last year.

The company also reported a gross margin of 15.3%, resulting in a gross profit of $21.0 million, up from $12.1 million and a gross margin of 9.6% for the fourth quarter in 2023.

Net income stood at $34.6 million, which equates to $1.01 per share. Moreover, adjusted net income was $8.0 million, or $0.21 per share, greatly influenced by a substantial non-cash adjustment on warrant liability, amounting to $26.1 million.

The adjusted EBITDA reached $13.9 million, showcasing a remarkable 113.8% increase year-over-year from $6.5 million in Q4 2023, while the backlog at the end of the quarter was an impressive 2,797 railcars, valued at approximately $266.5 million.

Fiscal Year 2024 Overview

In 2024, FreightCar achieved total revenues of $559.4 million, reflecting a significant year-over-year growth of 56.2%, driven by deliveries of 4,362 railcars, an increase of 44.3% compared to the previous year. The gross profit for the year reached $67.0 million, supported by a gross margin of 12.0%, compared with a gross margin of 11.7% in 2023.

Despite a reported net loss of ($75.8 million), approximately ($3.12 per share), the adjusted net income showed promise at $24.5 million, or $0.15 per share. This disparity stemmed from numerous non-cash items, notably a ($99.5 million) adjustment tied to the warrant liability impacted by share price shifts.

The company's adjusted EBITDA totaled $43.0 million, which marked an increase of 113.9% from the previous fiscal year.

FreightCar also reported positive free cash flow and advanced in optimizing its balance sheet through lower-cost refinancing, projected to save around $9.2 million in the first year. Additionally, the company has marked its entry into the tank car segment with a significant multi-year conversion order.

Strategic Outlook for Fiscal Year 2025

As FreightCar America transitions into 2025, it aims for sustained growth across key performance indicators, including railcar deliveries, revenue, and adjusted EBITDA. The company projects railcar deliveries ranging between 4,500 and 4,900 units with revenue estimates between $530 million and $595 million. Expected adjusted EBITDA is forecasted to fall within the range of $43 million to $49 million.

Leadership Insights

“Our strong operational performance this year reflects our commitment to executing strategic initiatives aimed at profitable growth,” stated Nick Randall, President and CEO of FreightCar America, emphasizing the company's dedication to capturing market share and enhancing cash generation with a fortified capital structure.

Randall added, “With an optimized cost structure and a firm market presence, we are positioned to amplify our momentum, ensuring sustainable profit growth while enhancing long-term value for our stakeholders.”

Upcoming Conference Call

FreightCar America is scheduled to host a conference call and live webcast to discuss its financial results on March 13 at 11:00 a.m. Eastern Time. Interested parties are encouraged to join via the company's investor relations website.

Frequently Asked Questions

What were the key financial highlights for FreightCar America in 2024?

FreightCar reported $559.4 million in revenue for 2024, with a 56.2% year-over-year increase, alongside $67 million in gross profit.

How many railcars did FreightCar America deliver in 2024?

The company delivered 4,362 railcars, reflecting a growth of 44.3% compared to the previous year.

What is the company's outlook for 2025?

FreightCar America is forecasting railcar deliveries between 4,500 and 4,900 units, with revenue estimates between $530 and $595 million.

Who is the current CEO of FreightCar America?

Nick Randall serves as the President and CEO, leading the company through its strategic initiatives.

When will the next earnings call take place?

The next earnings call is scheduled for March 13, with a live webcast available for shareholders and interested parties.

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