The Greenbrier Companies, Inc. (NYSE: GBX) is an international supplier of equipment and services to global freight transportation markets. Headquartered in Lake Oswego, Oregon, it designs, builds, and markets freight railcars across North America, Europe, and Brazil. The company operates a lease fleet of approximately 16,700 railcars, providing railcar management and leasing services.

In the first quarter of fiscal 2025, Greenbrier reported a stable performance, achieving net earnings of $55 million, or $1.72 per diluted share, on revenue of $876 million. This represented a decrease in revenue compared to the previous quarter, primarily due to timing issues related to syndication activity, with Q4 recorded at $1.053 billion. Greenbrier’s aggregate gross margin improved by 160 basis points to 19.8%, marking the third consecutive quarter of margin expansion. The gross margin increase is attributed to a favorable product mix and robust operating efficiencies.

EBITDA for Q1 was reported at $145 million, representing 16.6% of revenue. Greenbrier’s operating income reached $112 million, equivalent to 12.8% of revenue. The company delivered 6,000 new railcars during the quarter and recorded new railcar orders of 3,800 units with a value of $520 million. The backlog at the end of the quarter was 23,400 units, resulting in an estimated value of $3 billion.

Recurring revenue, calculated on a trailing four-quarter basis, was reported at $148 million, an increase of 32% compared to the starting point. The lease fleet grew by 1,200 units, maintaining high utilization rates of nearly 99%.

The company’s quarterly tax rate was recorded at 37.8%, higher than the previous quarter due to geographic earnings mix and the impact of foreign currency exchange rates. Cash flow from operations was a net use of approximately $65 million, primarily due to leased assets placed on the balance sheet during the quarter.

Greenbrier also declared a quarterly dividend of $0.30 per share, marking its 43rd consecutive quarterly dividend. The company’s Q1 liquidity was reported at $549 million, made up of $300 million in cash and $249 million in available borrowing capacity.

Current capital expenditures guidance for fiscal 2025 remains at approximately $480 million, with manufacturing expenditures anticipated to be around $120 million. The board renewed a $100 million share repurchase program through January 31, 2027.

Despite a slight decrease in total deliveries and a reduction in backlog, Greenbrier remains focused on enhancing operational efficiency and sustaining profitability amid less than optimal market conditions, affirming its fiscal 2025 revenue, deliveries, and margin guidance as unchanged.