FreightCar America, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2025. The company achieved consolidated revenues of $160.5 million for the third quarter, a 42% increase from $113.3 million in the same period last year. This growth was primarily driven by a rise in railcar deliveries, which increased from 961 units in Q3 2024 to 1,304 units in Q3 2025. However, for the nine months ended September 30, 2025, total revenues decreased to $375.4 million from $421.7 million in the prior year, reflecting a decline in the volume of railcar units delivered.
The company's gross profit for the third quarter was $24.2 million, up from $16.2 million a year earlier, resulting in a gross margin of 15.1%, compared to 14.3% in Q3 2024. The Manufacturing segment contributed $22.2 million to gross profit, while the Aftermarket segment saw an increase in revenues to $6.6 million from $4.2 million. Despite these gains, FreightCar reported a net loss of $7.4 million for the quarter, an improvement from a loss of $107.0 million in Q3 2024. The loss was attributed to a $17.6 million change in the fair market value of warrant liabilities, which was significantly lower than the $110.0 million loss recorded in the previous year.
Operationally, FreightCar's total net railcar orders for the first nine months of 2025 were 2,906 units, down from 4,040 units in the same period of 2024. The backlog of unfilled orders stood at 2,750 units as of September 30, 2025, with an estimated sales value of $222 million, compared to $267 million at the end of 2024. The decrease in orders was largely due to a large multi-year order received in 2024 for a tank car retrofit program scheduled for 2026 and 2027. The company also reported an increase in customer deposits to $8.2 million, reflecting a growing demand for its products.
FreightCar's financial position improved, with total current assets rising to $221.1 million from $145.0 million at the end of 2024, driven by increases in cash, accounts receivable, and inventories. The company’s total liabilities increased to $431.6 million, up from $374.5 million, primarily due to higher accounts payable and accrued expenses. The stockholders' deficit narrowed to $90.9 million from $150.3 million, reflecting a reduction in the accumulated deficit and an increase in additional paid-in capital.
Looking ahead, FreightCar America anticipates continued challenges in the railcar market, influenced by economic conditions and customer demand. The company remains focused on operational efficiencies and strategic initiatives to enhance its market position. With a current cash balance of $62.7 million and available credit under its revolving credit facility, FreightCar believes it has sufficient liquidity to meet its operational needs for the foreseeable future.
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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