FreightCar America (NASDAQ: RAIL) reported third‑quarter 2025 results that included a $160.51 million revenue figure and an adjusted earnings‑per‑share of $0.24, beating the consensus estimate of $0.16 by $0.08 or 50%. The company’s gross margin expanded to 15.1% from 14.3% in the same quarter a year earlier, while adjusted EBITDA rose to $17.0 million, a 10.6% margin versus 9.6% in Q3 2024.
Revenue growth was driven by a 42% year‑over‑year increase in railcar deliveries, from 961 units in Q3 2024 to 1,304 units in Q3 2025. The higher mix of conversion railcars, which command a premium, helped lift revenue even as overall freight demand remained modest. Compared with Q2 2025, revenue grew from $118.6 million to $160.5 million, reflecting a strong rebound in the manufacturing segment that accounts for the bulk of the company’s top line.
Margin expansion stemmed from several operational gains. Production efficiency at the new facility reduced per‑unit costs, while the shift toward higher‑margin conversion railcars improved the product mix. These factors offset modest increases in raw‑material costs, allowing the company to lift both gross and adjusted EBITDA margins without raising selling prices.
The company lowered its full‑year 2025 revenue outlook to $500‑$530 million, down from a prior consensus of $569 million, citing a strategic shift toward conversion railcars that are less sensitive to freight volume swings. FreightCar America reaffirmed its full‑year adjusted EBITDA guidance, signaling confidence that the company can maintain profitability even with the lower revenue target. Management expects fiscal 2025 railcar deliveries to total 4,500‑4,900 units.
President and CEO Nick Randall said the quarter “highlights the strength of our operating platform and the continued execution of our commercial strategy.” He added that the company’s record adjusted EBITDA at the new facility demonstrates the benefits of improved production efficiency and a favorable product mix. FreightCar America’s backlog of 2,750 units, valued at $222 million, and a cash balance of $62.7 million provide a solid foundation, though a negative debt‑to‑equity ratio and a low Altman Z‑score signal potential financial stress if market conditions deteriorate.
Investors reacted positively to the results, with the EPS beat, robust revenue growth, and margin expansion standing out as key drivers. The reaffirmation of adjusted EBITDA guidance and the company’s strong backlog and cash position reinforced confidence in its operational resilience, while the lowered revenue outlook highlighted a cautious view of near‑term freight demand.
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