FreightCar America Reports Revenue Decline but Significant Net Income Recovery in Q1 2025

FreightCar America, Inc. reported a significant decline in revenue for the first quarter of 2025, with total revenues of $96.3 million, down from $161.1 million in the same period of 2024. The decrease was primarily attributed to a reduction in the volume of railcar units delivered, which fell from 1,223 to 710 units year-over-year. Despite the drop in revenue, the company achieved a gross profit of $14.4 million, an increase from $11.4 million in the prior year, driven by a favorable product mix. The operating income remained relatively stable at $3.9 million for both periods, reflecting the impact of increased selling, general, and administrative expenses, which rose to $10.5 million from $7.5 million.

FreightCar's net income for the quarter was reported at $50.4 million, a notable recovery from a net loss of $11.6 million in the first quarter of 2024. This turnaround was significantly influenced by a gain of $52.9 million on the change in fair market value of warrant liabilities, compared to a loss of $15.7 million in the previous year. The company’s basic earnings per share were $1.54, compared to a loss of $0.54 per share in the prior year, indicating a strong recovery in profitability.

Operationally, FreightCar received 1,250 net railcar orders during the first quarter, a substantial increase from 384 orders in the same period last year. The backlog of unfilled orders also grew to 3,337 units, with an estimated sales value of $318 million, up from 2,797 units valued at $267 million as of December 31, 2024. This increase in orders reflects the company's enhanced production capacity and strategic focus on meeting customer demand.

The company has also made strategic moves to strengthen its financial position, including entering into a term loan agreement of $115 million in December 2024, which was used to redeem all outstanding shares of Series C Preferred Stock. As of March 31, 2025, FreightCar reported total debt of $108.2 million, with a compliance status on all financial covenants. The company anticipates that its cash balances and credit facilities will be sufficient to meet liquidity needs for at least the next twelve months, although it may require additional capital for future growth initiatives.

Looking ahead, FreightCar America remains focused on operational efficiencies and adapting to market conditions, including potential impacts from geopolitical factors and fluctuating raw material costs. The company is committed to monitoring these dynamics while pursuing opportunities for growth in both its manufacturing and aftermarket segments.