Greenbrier Reports Net Earnings of $61.6 Million in Second Quarter

The Greenbrier Companies, Inc. has reported financial results for its second fiscal quarter ending February 28, 2018, with net earnings of $61.6 million, or $1.91 per diluted share, on revenue of $629.3 million. The second quarter adjusted EBITDA was $79.1 million, or 12.6 percent of revenue. 

"The North American railcar market is improving but remains competitive,” said William A. Furman, Greenbrier chairman and CEO. “Greenbrier's performance reflects the creativity and flexibility of its people and the strength of our strategy in North America and around the world. Greenbrier's international expansion now meaningfully contributes each quarter with new sources of revenue and diversification of backlog. Nearly half of year-to-date order activity was generated in markets outside of North America. We are replicating Greenbrier's core business model as part of the railcar renewal cycles in Braziland parts of Europe."

"For the quarter we secured orders for 3,400 units globally, ending the quarter with 24,100 units in backlog, valued at $2.3 billion,” added Furman. “At the midpoint of the fiscal year we are confident of achieving full year guidance; a validation of the strength and value of Greenbrier's market approach. Cash flow remains strong, enabling us to continue a balanced capital allocation strategy. The Board of Directors approved a 9 percent increase in quarterly dividend to $0.25 per share, part of Greenbrier's ongoing commitment to returning capital to shareholders in a prudent and efficient manner." 

During the second fiscal quarter, Greenbrier received orders for 3,400 diversified railcars, which are valued at more than $265 million. Deliveries of new railcars in the quarter totaled 4,900 units. As of February 28, 2018, Greenbrier’s railcar backlog was 24,100 units with an estimated value of $2.3 billion. 

"Greenbrier's strong backlog, driven by a broad product line and innovative service offerings, allows discipline in the current competitive environment,” concluded Furman. “Growing customer confidence and increased utilization of the North American rail fleet is generating increased demand for Greenbrier products and services. Greenbrier creates transactions tailored for customers' success. Our strategy remains to grow the business, domestically and internationally, well beyond the current fiscal year."

Based on current business trends, industry forecasts and production schedules for fiscal 2018, Greenbrier believes that revenue will be $2.4 to $2.6 billion and deliveries will be approximately 20,000 to 22,000 units, including Greenbrier-Maxion (Brazil), which will account for up to 10 percent of deliveries. Guidance for annual diluted EPS is expected to be $5.00.