Greenbrier Reports Strong Q2 Earnings

By Bobby Samwell • Friday, April 05 15:15 • Permanent Link

Greenbrier Companies, Inc. has reported its second fiscal quarter results for the period ended February 29, 2024. The company achieved a GAAP EPS of $1.03, reflecting net earnings of $33 million on revenue of $863 million. This marks a sequential increase from the first fiscal quarter of 2024 when the company reported a GAAP EPS of $0.96 on revenue of $808.8 million.

The company's lease fleet grew by 500 units to 14,600 units with steady lease fleet utilization of nearly 99%. Greenbrier obtained new railcar orders for 5,900 units valued at nearly $690 million and delivered 5,600 units, resulting in a new railcar backlog of 29,200 units with an estimated value of $3.6 billion. The gross margin for the second quarter stood at 14%, a slight decrease from the 15% reported in the first quarter.

In terms of segment performance, the manufacturing segment's revenue was $735.8 million, a sequential increase from $675.9 million in the first quarter. However, the gross margin percentage for this segment decreased slightly from 11.1% in the first quarter to 10.8% in the second quarter. The maintenance services segment saw a decrease in revenue from $83.8 million in the first quarter to $75.2 million in the second quarter, with a corresponding decrease in gross margin percentage from 14.6% to 8.0%. The leasing and management services segment's revenue increased from $49.1 million in the first quarter to $51.7 million in the second quarter, with a gross margin percentage increase from 69.5% to 70.8%.

Based on the current trends and production schedules, Greenbrier updated its guidance for fiscal 2024, projecting deliveries of 23,500 – 25,000 units, including approximately 1,400 units in Brazil, and revenue of $3.5 – $3.7 billion. The company expects capital expenditures of approximately $140 million in manufacturing and $15 million in maintenance services.

The company's consolidated balance sheet showed total assets of $4,043.6 million as of February 29, 2024, compared to $3,952.5 million as of February 28, 2023. Additionally, the consolidated statements of income revealed net earnings attributable to Greenbrier of $33.4 million for the reported quarter, a slight increase from $31.2 million in the previous quarter.

Following these announcements, the company's shares moved 2.3%, and are now trading at a price of $53.59. For more information, read the company's full 8-K submission here.

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