FreightCar America, Inc. reported a decline in financial performance for the second quarter of 2025, with revenues of $118.6 million, down from $147.4 million in the same period last year. The decrease in revenue was primarily attributed to a reduction in the volume of railcar units delivered, which fell from 1,159 units in Q2 2024 to 939 units in Q2 2025. The company's Manufacturing segment generated $110.7 million in revenue, a decrease from $142.5 million, while the Aftermarket segment saw an increase in revenue to $7.9 million from $4.9 million, driven by higher parts sales.
In terms of profitability, FreightCar America reported a net income of $11.7 million for the quarter, compared to $8.2 million in Q2 2024. The company’s gross profit for the quarter was $17.8 million, slightly lower than the $18.4 million reported in the previous year, but the gross margin improved to 15.0% from 12.5%. The increase in gross margin was attributed to a strategic shift towards higher-margin railcars, despite the overall decrease in unit volume. Selling, general, and administrative expenses rose to $10.1 million from $8.5 million, largely due to increased professional services costs.
FreightCar America also experienced significant changes in its balance sheet, with total assets increasing to $328.1 million as of June 30, 2025, up from $224.2 million at the end of 2024. Current assets rose to $204.0 million, driven by increases in cash, accounts receivable, and inventories. The company reported a total stockholders' deficit of $83.5 million, an improvement from $150.3 million at the end of 2024, primarily due to the net income generated during the first half of 2025.
Operationally, the company reported a total of 2,476 net railcar orders for the first half of 2025, a decrease from 3,301 orders in the same period of 2024. The backlog of unfilled orders increased to 3,624 units, with an estimated sales value of $317 million, reflecting ongoing demand despite broader market uncertainties. The company’s employee headcount remained stable, and it continues to focus on enhancing operational efficiencies and product offerings.
Looking ahead, FreightCar America anticipates that its cash balances will be sufficient to meet liquidity needs for at least the next twelve months. The company is actively monitoring market conditions and trade policies that could impact its operations. Management remains focused on strategic initiatives to drive growth, including potential investments in new machinery and equipment to enhance production capabilities. However, the company acknowledges the risks associated with fluctuating market conditions and customer demand, which could affect future performance.
About FreightCar America, Inc.
FreightCar America, Inc. designs and manufactures a wide range of railcars for transporting bulk commodities and containerized freight primarily in North America. The company offers railcar rebody, repair, and conversion services, along with railcar parts supply. With a focus on innovation, quality, and long-term customer relationships, it serves railroads, shippers, and financial institutions through a diversified product portfolio and global manufacturing facilities.
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