Greenbrier profit falls as railcar demand weighs on sales

Revenue fell short of analysts’ expectations of about $605 million, while core earnings missed the 80-cent analysts’ consensus of MarketBeat.

Greenbrier received orders for 3,400 new railcars valued at $600 million during the quarter and delivered 3,600 units. Its backlog stood at 14,000 railcars worth an estimated $2.1 billion at fiscal year-end, marking the first sequential increase since fiscal 2024.

Retiring Chief Executive Lorie Tekorius said tariff uncertainty continued to delay customers’ investment decisions, particularly for tank cars, even as order activity improved.

“Rail traffic increases and elevated diesel prices have boosted inquiries in North America early in fiscal 2027, as freight shippers seek increased access to rail,” Tekorius said in the earnings release.

The stronger order picture did not translate into improved profitability during the quarter. Greenbrier’s operating margin narrowed to 4.3% from 5.5% in the preceding quarter, reflecting facility-related costs and lower gross margins. Manufacturing gross margin slipped to 9.2% from 9.9%, which the company attributed to the timing of railcar syndication activity and operational inefficiencies.

Greenbrier operates three railcar manufacturing plants in Mexico.

Greenbrier continued expanding its leasing business, which management views as a source of recurring revenue across industry cycles. Its owned fleet grew 23% during fiscal 2026 to approximately 20,900 railcars, with utilization of 98% at year-end.

Quarterly leasing and fleet-management revenue rose to $52.1 million from $47.4 million in the preceding quarter. The segment’s operating earnings increased to $30.4 million from $29.2 million, although higher maintenance expenses weighed on margins.

For the full fiscal year, Greenbrier’s net earnings fell to $79 million, or $2.49 a diluted share, from $204.1 million, or $6.35 a share. Revenue declined to $2.46 billion from $3.24 billion. Operating cash flow dropped to $39.6 million from $265.7 million.

Greenbrier projected fiscal 2027 revenue of $2.8 billion to $3.2 billion and earnings of $2.75 to $3.75 a share. It expects an operating margin of 7% to 7.5% and net capital expenditures of $225 million to $275 million.

The company also approved a quarterly dividend of 34 cents a share, payable Dec. 2 to shareholders of record Nov. 11. Greenbrier said it returned $56 million to shareholders through dividends and share repurchases during fiscal 2026.

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