FreightCar America Sees Strong Earnings Growth in Recent Quarter

FreightCar America Reports Impressive Q3 Financial Results

FreightCar America, Inc. (NASDAQ: RAIL), a leading manufacturer and supplier of railroad freight cars and components, has announced its financial results for the third quarter of 2024. The company delivered an outstanding 83% year-over-year revenue increase, demonstrating its robust business model and operational prowess.

Third Quarter Highlights

In the third quarter, the company's revenue reached $113.3 million, driven by a substantial 961 railcar deliveries. This marks a significant rise from the $61.9 million and 503 deliveries recorded during the same period the previous year. The gross margin was reported at 14.3%, with a gross profit of $16.2 million compared to $9.2 million in the prior year.

Net Income and EBITDA

Despite experiencing a net loss of $107 million, or $3.57 per share, adjusted net income was reported at $7.3 million, equating to $0.08 per share. This contrast was primarily attributed to a $110 million non-cash loss stemming from warrant liability adjustments due to shifting share prices. In terms of profitability, the Adjusted EBITDA soared to $10.9 million, a notable 211% increase from $3.5 million in the same quarter last year.

Operational Excellence and Market Position

Nick Randall, President and CEO, expressed pride in the company's accomplishments, remarking that the results highlight their disciplined approach towards growth and operational excellence. The company has realized robust product shipments and has maintained adaptable operational capabilities, strengthening their market position.

Strong Backlog and Future Order Pipeline

As of the end of the quarter, FreightCar America boasted a backlog of 3,611 railcar units valued at approximately $372 million. This strong backlog reflects the continuous demand across various railcar types, positioning the company well as it heads into future quarters.

Outlook for Fiscal Year 2024

In light of the strong results and market conditions, FreightCar America has updated its full fiscal year 2024 guidance:

• Projected Revenue: $560 million to $600 million, representing a potential year-over-year growth of approximately 62%.
• Adjusted EBITDA Outlook: Expectation of $37 million to $39 million, reflecting an 89% increase from last year.
• Estimated Railcar Deliveries: Between 4,300 and 4,700 units, indicating a growth of about 48.9% year-over-year.

Conference Call and Strategic Plans

FreightCar America hosted a conference call to detail its financial performance and strategic plans moving forward. The management team emphasized their commitment to innovation and operational flexibility as fundamental components for ensuring sustained long-term value for customers and shareholders alike.

About FreightCar America

Founded in 1901, FreightCar America has evolved into a premier designer, producer, and supplier of railroad freight cars, rail parts, and components. Their services also extend to railcar repairs and conversions, showcasing the ability to repurpose idle rail assets into productive revenue streams.

Frequently Asked Questions

What were the key financial results for FreightCar America in Q3 2024?

FreightCar America reported revenues of $113.3 million with an impressive EBITDA of $10.9 million for Q3 2024.

How much did the company grow compared to the previous year?

The company achieved an 83% increase in revenue compared to Q3 2023, showcasing significant growth.

What is the outlook for FreightCar America for the fiscal year 2024?

The company expects revenues between $560 and $600 million, with Adjusted EBITDA projected at $37 to $39 million.

What challenges did the company face in Q3 2024?

FreightCar America faced a net loss primarily due to a substantial non-cash loss related to warrant liability adjustments.

What are the company's main strengths in the market?

FreightCar America's strong backlog, innovative product offerings, and operational flexibility position it favorably within the competitive landscape.

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