FreightCar America, Inc. announced on December 22, 2025 that it has completed the acquisition of Carly Railcar Components, LLC, a family‑owned distributor of railcar parts and components. The deal adds a Houston‑area facility in Orange, Texas, and a catalog of ready‑to‑ship components that complement FreightCar America’s existing railcar manufacturing and conversion capabilities.
The transaction is positioned to strengthen FreightCar America’s high‑margin, recurring aftermarket segment. By adding Carly’s established customer relationships and core‑exchange program for reconditioned parts, the company expects to reduce lead times and broaden product availability for repair shops, railroads, private car owners and other industrial customers. Management described the acquisition as immediately accretive to the aftermarket business and consistent with its disciplined capital allocation framework.
President and CEO Nicholas Randall said the deal brings “highly complementary capabilities that strengthen our position in the railcar aftermarket.” He added that Carly’s long‑standing presence in component distribution and its regional footprint “enhance our ability to serve customers with greater speed, reliability, and product availability.” Chief Financial Officer Mike Riordan noted that the acquisition aligns with FreightCar America’s focus on high‑margin recurring revenue and is expected to be immediately accretive as the aftermarket business scales.
Investors welcomed the acquisition, reflecting confidence in the expanded aftermarket footprint and the company’s strategy to deliver enhanced value to customers through faster service and broader product availability.
The move underscores FreightCar America’s shift toward a more balanced business mix, reducing exposure to the cyclical new‑railcar manufacturing market. The aftermarket segment, which benefits from recurring demand for replacement parts, offers a more stable revenue stream. By integrating Carly’s catalog and distribution network, FreightCar America can offer a wider range of components, including reconditioned parts, and improve inventory turnover, thereby lowering lead times and increasing customer satisfaction.
The acquisition is expected to create operational synergies across the combined supply chain, further enhancing cost efficiencies and service quality. With the expanded footprint and product portfolio, FreightCar America is positioned to capture additional market share in the aftermarket, reinforcing its competitive advantage in a sector where recurring revenue is increasingly valued by customers.
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