Greenbrier Companies Reports 8.3% Revenue Growth and 77.2% Increase in Net Earnings

Greenbrier Companies Inc. reported a notable increase in financial performance for the three months ending November 30, 2024, with total revenue reaching $875.9 million, an 8.3% rise from $808.8 million in the same period last year. The Manufacturing segment contributed significantly to this growth, generating $820.4 million in revenue, up from $759.7 million. The company’s net earnings attributable to Greenbrier also saw a substantial increase, rising to $55.3 million from $31.2 million, marking a 77.2% improvement. Basic earnings per share increased to $1.77, compared to $1.00 in the prior year.

The company experienced a 72.3% increase in earnings from operations, which totaled $111.8 million, up from $64.9 million a year earlier. This growth was attributed to higher railcar deliveries, which increased by 7.7%, and improved operating efficiencies within the Manufacturing segment. The margin percentage also improved to 19.8%, the highest in over seven years, reflecting a favorable product mix and operational efficiencies. However, the Leasing & Fleet Management segment reported a decrease in margin percentage due to lower syndication activity and higher sales of lower-margin railcars.

In terms of strategic developments, Greenbrier combined its former Maintenance Services and Manufacturing segments into a single Manufacturing reportable segment effective September 1, 2024. This restructuring aims to streamline production processes and enhance customer service. The company also renamed its Leasing & Management Services segment to Leasing & Fleet Management. As of November 30, 2024, Greenbrier's railcar backlog stood at 23,400 units, valued at approximately $3.0 billion, with deliveries extending into 2026 and beyond.

Operationally, Greenbrier's total assets increased to $4.29 billion from $4.25 billion at the end of the previous fiscal period. The company reported a cash and cash equivalents balance of $300.0 million, down from $351.8 million. The total employee headcount remained stable, with no significant changes reported. The company continues to focus on increasing recurring revenue and expanding its gross margin, with expectations of approximately $360 million in capital expenditures for 2025, primarily for leasing fleet additions and facility improvements.

Looking ahead, Greenbrier remains optimistic about its growth trajectory, citing steady demand for its products and services. The company plans to continue leveraging its integrated business model to enhance operational efficiencies and profitability. However, management cautioned that various risks and uncertainties could impact future performance, as detailed in their risk factors section. The company is also monitoring potential impacts from new tax legislation in Europe and other jurisdictions.