Greenbrier Restores Railcar Backlog After Fiscal 2024
Fourth-quarter orders of 3,400 railcars valued at $600 million lifted backlog to 14,000 units, or an estimated $2.1 billion, as net earnings were $9 million, or $0.27 a share.
The Greenbrier Companies (GBX), an international supplier of freight railcars and leasing services, booked 3,400 new railcar orders valued at $600 million in the fiscal fourth quarter ended August 31, 2026, and delivered 3,600 units. New railcar backlog rose to 14,000 units with an estimated value of $2.1 billion, the first sequential increase in backlog since fiscal 2024, the company said.
Chief Executive Lorie L. Tekorius said order activity improved despite tariff uncertainty in North America, particularly in tank cars, which she said triggered delays in long-lived railcar investment decisions. She described the backlog increase as a pivot by freight shippers toward moving goods by rail in North America.
Revenue was $591.0 million, up from $576.5 million in the third quarter, which the company attributed to favorable product mix and higher leasing revenue. Aggregate gross margin was $79.8 million, or 13.5% of revenue, reversing the prior quarter’s 230-basis-point sequential increase in the margin rate. The company cited syndication timing and operational inefficiencies.
Net earnings attributable to Greenbrier were $9 million, or $0.27 a share, including $4 million, or $0.12 a share, of facility-related rationalization costs, net of tax and noncontrolling interest. Core net earnings were $12 million, or $0.39 a share, compared with $0.60 core diluted earnings a share in the third quarter. Core EBITDA was $72.3 million, or 12% of revenue.
Manufacturing revenue was $538.9 million. Manufacturing deliveries held at 3,200 units. Manufacturing gross margin compressed to 9.2% from 9.9%, and manufacturing earnings from operations fell to $21.1 million, or a 3.9% operating margin, from $30.4 million, or 5.7%, on the lower gross margin and the $4 million of facility-related rationalization costs.
Leasing & Fleet Management revenue increased to $52.1 million from $47.4 million on lease-fleet growth, partially offset by lower interim rent on railcars held for syndication. Segment earnings from operations rose to $30.4 million from $29.2 million. Leasing gross margin declined to 57.6% from 60.3% and operating margin to 58.3% from 61.6%, on higher fleet maintenance expense. The owned lease fleet grew to 20,900 units from 20,600, with utilization at 98.0%.
For the full fiscal year ended August 31, 2026, revenue was $2,461.1 million, down from $3,240.2 million in fiscal 2025. Manufacturing revenue was $2,266.5 million and Leasing & Fleet Management revenue was $194.6 million. Net earnings attributable to Greenbrier were $79 million, or $2.49 a share, versus $204.1 million, or $6.35 a share, a year earlier. Core net earnings were $83 million, or $2.60 a share. Fiscal 2026 Core EBITDA was $300 million, or 12% of revenue. The company completed programmatic restoration work on approximately 2,200 railcars during the year, units it said are not included in backlog and support plant volume and fixed-cost absorption.
The owned lease fleet grew 23% in fiscal 2026 to 20,900 units, with utilization of 98%. Greenbrier returned $56 million to shareholders through dividends and share repurchases. The board approved a quarterly dividend of $0.34 a share, payable December 2, 2026, the 50th consecutive quarterly dividend.
Tekorius said rail traffic increases and elevated diesel prices have boosted inquiries in North America early in fiscal 2027 as freight shippers seek increased access to rail. The company is providing fiscal 2027 guidance of 26,000 to 28,000 industry deliveries, total revenue of $2.8 billion to $3.2 billion, operating margin of 7.0% to 7.5%, earnings of $2.75 to $3.75 a share, and net capital expenditures of $225 million to $275 million.
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