Operating cash flow of $35 million and Adjusted Free Cash Flow of $31 million, up 45% year over year
Projecting growth in 2026
CHICAGO, March 09, 2026 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ:RAIL) ("FreightCar America" or the "Company"), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the fourth quarter and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Highlights
Revenues of $125.6 million, compared to $137.7 million in the fourth quarter of 2024, with railcar deliveries of 1,172 units compared to 1,019 units in the prior year period
Gross margin of 13.4% with gross profit of $16.8 million, compared to gross margin of 15.3% with gross profit of $21.0 million in the fourth quarter of 2024
Recorded $19.9 million of non-cash adjustments related to share price appreciation accounting, partially offset by a $2.1 million non-cash acquisition-related gain, resulting in a net loss of $16.6 million, or $0.52 per share, and adjusted net income of $4.9 million, or $0.16 per share
Adjusted EBITDA was $10.4 million, representing a margin of 8.3%, compared to $13.9 million and a margin of 10.1% in the fourth quarter of 2024
Ended the quarter with a backlog of 1,926 units valued at $137.5 million, reflecting a diversified mix of railcar conversion programs and new railcar builds
Completed the acquisition of Carly Railcar Components, LLC, a leading distributor of railcar components, to strengthen aftermarket footprint
Fiscal Year 2025 Highlights
Revenues of $501.0 million, compared to $559.4 in fiscal year 2024, with railcar deliveries of 4,125 units compared to 4,362 units in the prior year
Gross margin of 14.6% with gross profit of $73.2 million, compared to gross margin of 12.0% with gross profit of $67.0 million in fiscal year 2024
Net income of $38.1 million, or $1.09 per share, and Adjusted net income of $18.1 million, or $0.50 per share, after adjusting primarily for non-cash items including a $51.9 million release of valuation allowance on deferred taxes, offset by a $32.2 million non-cash adjustment warrant liability due to share price appreciation
Adjusted EBITDA of $44.8 million, representing a margin of 8.9%, compared to Adjusted EBITDA of $43.0 million and a margin of 7.7% in fiscal year 2024
Delivered operating cash flow of $34.8 million and $31.4 million in adjusted free cash flow, up 44.8% year-over-year, and optimized balance sheet through lower cost refinancing
"In 2025, FreightCar America executed with discipline amid a challenging industry environment, delivering revenue in line with our expectations while producing exceptional profitability," said Nick Randall, President and Chief Executive Officer of FreightCar America. "During the year, we capitalized on demand by leveraging our customer-centric approach of tailored solutions, including conversions and customized offerings, while also growing market share in new car deliveries. This execution, combined with our manufacturing flexibility and ongoing implementation of operational initiatives such as our TruTrack program, contributed to improved Adjusted EBITDA margins and strong free cash flow generation, further strengthening our financial position."
Randall continued, "As we enter 2026, we remain focused on converting backlog into profitable deliveries while continuing to invest for growth. We are deploying capital effectively to diversify our revenue base, expand our aftermarket business and presence in the tank car market to further strengthen our offerings and capture demand, while continuing to evaluate strategic opportunities that fuel future growth. Overall, with a strong commercial strategy, a lean and flexible operating model, and an efficient manufacturing footprint, we are well positioned to perform in the current environment and to accelerate as industry fundamentals improve.
Fiscal Year 2026 Outlook
The Company has issued outlook for fiscal year 2026 as follows:
Fiscal 2026 Outlook
Year-over-YearChange at Midpointof Range
Railcar Deliveries
4,000, 4,500 Railcars
3.0%
Revenue
$500 - $550 million
4.8%
Adjusted EBITDA1
$41 - $50 million
10.4%
1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results. Adjusted EBITDA guidance for 2026 is compared, year-over-year, to Lease-Adjusted EBITDA for 2025.
Mike Riordan, Chief Financial Officer of FreightCar America, added, "2025 demonstrated the durability of our operating model. We made continued progress strengthening the quality and consistency of our cash flows while maintaining a disciplined approach to capital allocation. During the year, we also advanced our aftermarket strategy, including the addition of Carly Railcar Components, which enhances this growing part of our business and supports more stable, recurring revenue across market cycles. Looking ahead to 2026, our guidance reflects ongoing industry uncertainty while reinforcing our confidence in the underlying strength and resilience of the business."
Fourth Quarter and Full Year 2025 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Tuesday, March 10, at 11:00 a.m. (Eastern Time) to discuss its fourth quarter and full year 2025 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:
March 10, 2026
11:00 a.m. Eastern Time
Phone: 1-877-407-0789 or 1-201-689-8562
Webcast access: https://viavid.webcasts.com/starthere.jsp?ei=1750668&tp_key=019ec51a78
An audio replay of the conference call will be available beginning at 3:00 p.m. An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, March 10, 2026, until 11:59 p.m. (Eastern Time) on Monday, March 24, 2026. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13758379. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); the scope and duration of the government shutdown; and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release includes measures not derived in accordance with generally accepted accounting principles ("GAAP"), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages.
Investor Contact:
[email protected]
FreightCar America, Inc.Condensed Consolidated Balance Sheets(In thousands, except for share data)(Unaudited)
December 31,2025
December 31,2024
Assets
Current assets
Cash, cash equivalents and restricted cash equivalents
$
64,295
$
44,450
Accounts receivable, net of allowance for credit losses
12,443
12,506
VAT receivable
6,097
3,851
Inventories, net
68,295
75,281
Assets held for sale
—
629
Prepaid expenses and other current assets
8,875
8,314
Total current assets
160,005
145,031
Property, plant and equipment, net
30,969
30,107
Right of use asset operating lease
40,281
2,423
Right of use asset finance lease
—
45,081
Intangibles, net
4,877
300
Deferred income taxes
52,970
1,024
Other long-term assets
947
250
Total assets
$
290,049
$
224,216
Liabilities and Stockholders' Deficit
Current liabilities
Accounts and contractual payables
$
55,671
$
49,574
Accrued payroll and other employee costs
7,120
6,286
Accrued warranty
2,050
2,389
Deferred revenue
539
8,556
Current portion of long-term debt
9,728
2,875
Lease liability operating lease, current
1,888
519
Lease liability finance lease, current
—
1,256
Other current liabilities
8,601
9,370
Total current liabilities
85,597
80,825
Long-term debt, net of current portion
97,514
105,540
Warrant liability
168,529
136,319
Accrued pension costs
1,256
1,073
Lease liability operating lease, long-term
43,233
2,645
Lease liability finance lease, long-term
—
46,678
Other long-term liabilities
1,333
1,409
Total liabilities
397,462
374,489
Stockholders' deficit
Preferred stock
—
—
Common stock
221
221
Additional paid-in capital
72,557
69,404
Accumulated other comprehensive income
2,324
721
Accumulated deficit
(182,515
)
(220,619
)
Total stockholders' deficit
(107,413
)
(150,273
)
Total liabilities and stockholders' deficit
$
290,049
$
224,216
FreightCar America, Inc.Condensed Consolidated Statements of Operations(In thousands, except for share and per share data)(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
$
125,567
$
137,696
$
500,991
$
559,425
Cost of sales
108,794
116,683
427,798
492,383
Gross profit
16,773
21,013
73,193
67,042
Selling, general and administrative expenses
8,989
9,374
39,273
32,915
Litigation settlement
—
—
—
(3,214
)
Operating income
7,784
11,639
33,920
37,341
Interest expense
(4,204
)
(1,035
)
(17,560
)
(6,850
)
Loss on change in fair market value of Warrant liability
(19,879
)
26,063
(32,210
)
