Greenbrier Companies Reports Q3 Fiscal 2025 Revenue Growth to $842.7 Million

Greenbrier Companies, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a revenue increase to $842.7 million, up 2.7% from $820.2 million in the same period last year. The company's net earnings attributable to Greenbrier surged to $60.1 million, a 77.3% increase compared to $33.9 million in the prior year. This growth was primarily driven by a 4.0% rise in railcar deliveries and improved operating efficiencies within the Manufacturing segment, which contributed to a margin percentage increase of 2.9% to 18.0%.

For the nine months ending May 31, 2025, Greenbrier's total revenue decreased slightly to $2.480 billion from $2.492 billion in the previous year. The decline was attributed to a $26.6 million reduction in railcar maintenance services revenue and a shift in the product mix. However, the Leasing & Fleet Management segment saw a revenue increase of $15.8 million, reflecting higher rents from an expanded fleet and improved lease rates. The company's net earnings for this period rose significantly to $167.3 million, a 69.8% increase from $98.5 million in the prior year.

Strategically, Greenbrier has made significant organizational changes, including the consolidation of its Maintenance Services and Manufacturing segments into a single Manufacturing reportable segment, effective September 1, 2024. This restructuring aims to streamline production processes and enhance operational efficiency. Additionally, the company has extended its $600 million domestic revolving credit facility and $250 million term loan, both maturing in 2030, to support its ongoing operations and growth initiatives.

Operationally, Greenbrier's owned lease fleet increased by 1,300 railcars, representing an 8.4% growth since August 31, 2024. The company reported a backlog of 18,900 railcar units valued at approximately $2.5 billion as of May 31, 2025, with deliveries expected to extend into 2027 and beyond. The company also noted a decrease in selling and administrative expenses, which rose to $65.9 million from $59.3 million, primarily due to higher employee-related costs.

Looking ahead, Greenbrier remains focused on navigating macroeconomic uncertainties and geopolitical challenges while continuing to execute its strategic plan. The company anticipates that its backlog and operational efficiencies will support future revenue growth, although it acknowledges potential risks related to economic downturns, changes in demand, and supply chain disruptions.