RAIL · FreightCar America, Inc.

FreightCar America reported first quarter 2026 results in line with expectations amid a challenging industry environment, with revenues declining to $64.3 million from $96.3 million in the prior year due to lower railcar deliveries of 577 units versus 710. Despite the revenue drop, gross profit margin expanded 190 basis points to 16.8%, generating $10.8 million in gross profit—the company's highest quarterly margin in over a decade—driven by continued aftermarket revenue growth of 86%, railcar conversion programs, and operational efficiencies. Operating loss was $0.6 million after $11.4 million in SG&A expenses, compared to operating income of $3.9 million last year. A $49.1 million non-cash gain on warrant liability valuation propelled GAAP net income to $41.6 million ($1.15 diluted EPS), though adjusted net loss was $0.04 per share. Adjusted EBITDA of $3.2 million (4.9% margin) reflected pressure from lower volumes but underscored margin resilience. Backlog expanded 14% sequentially to 2,058 units valued at $156 million, supported by a diversified mix of conversions and new builds, with management highlighting aging fleets and pent-up replacement demand. The company reaffirmed its fiscal 2026 outlook, expecting 4,000-4,500 railcar deliveries, $500-550 million revenue, and $41-50 million Adjusted EBITDA, signaling confidence in tank car retrofits, aftermarket growth, productivity gains, and flexible manufacturing. Balance sheet remained solid with $52.8 million in cash despite a $4.3 million operating cash outflow, and debt reduction efforts continued, positioning the company for organic investments and shareholder value creation across market cycles.