Quarterly earnings for rail car manufacturer Greenbrier got a boost from higher revenue in all three of its operating segments, according to a Monday release discussing financial results for the company’s second fiscal quarter, which ended Feb. 28.
The Lake Oswego, Oregon-based company reported adjusted basis net earnings of $34 million, or 99 cents per diluted share, in the second fiscal quarter of 2023. This is compared with $1.6 million, or 5 cents per diluted share, in the first fiscal quarter of 2023 and $12.8 million, or 38 cents per diluted share, in the second fiscal quarter of 2022.
Revenue was $1.1 billion, compared with $766.5 million sequentially amid a 60% increase in rail car deliveries.
Of Greenbrier’s operating segments, revenue for its manufacturing segment rose to $555.7 million compared with $452.5 in the first fiscal quarter of 2023 on increased deliveries, primarily to North America, according to the company.
Greenbrier’s maintenance services segment saw revenue grow to $86.6 million from $72.4 million on increased volumes due to winter seasonality. And leasing and management services, which includes GBX Leasing, reported revenue growth of $40.5 million compared with $25.8 million on increased syndication activity.
Meanwhile, rail car deliveries were 7,600 units in the second fiscal quarter, compared with deliveries of 4,800 units in the first fiscal quarter and 4,800 units in the second fiscal quarter of 2022.
New rail car orders totaled 4,500 units valued at $580 million. In the first fiscal quarter, new rail car orders totaled 5,600 units and were valued at $700 million.
Greenbrier has a new rail car backlog of 25,900 units, with an estimated value of $3.1 billion, while its fleet utilization rate rose to 99%.
“Greenbrier’s strong performance in the second quarter is the result of ongoing operational initiatives and robust syndication activity,” said Greenbrier President and CEO Lorie Tekorius in a news release. “Railcar orders remained stable throughout the quarter, comprised of a broad range of railcar types. Business improved across the company as revenue and margin increased sequentially in each operating segment.”
Greenbrier did not hold an earnings call for its quarterly results since its investors day is this coming Wednesday.
“We are excited to share our multi-year strategy to optimize our future performance as we will describe in detail at our Investor Day on April 12, 2023,” Tekorius said. “While outcomes won’t be linear, we are already seeing progress in our manufacturing and services businesses and expect margin to improve on a steady or increasing revenue base in future periods.”
Subscribe to FreightWaves’ e-newsletters and get the latest insights on freight right in your inbox.
Click here for more FreightWaves articles by Joanna Marsh.
