GREENBRIER COMPANIES (GBX) Company Report

Greenbrier is strategically growing its North American lease fleet with an annual investment of $300 million, aiming to add approximately 2,000 railcars and double recurring revenue over five years. This initiative targets mid-teen returns and provides predictable revenue.
The company achieved record financial performance in FY 2025 despite delivering 2,000 fewer rail cars, with aggregate gross margins reaching 19%, driven by manufacturing excellence, insourcing initiatives, and footprint reductions.
The current railcar backlog stands at just under 17,000 cars, compared to a normal level of 20,000 cars, with about one-third attributed to Brazil and Europe.
While steel tariffs have increased railcar costs and created a demand headwind, Greenbrier sees Brazil as a strong growth market and is optimizing its European operations amidst challenging conditions.

Dec 4, 2025, 2:20 PM

Transcript

Greenbrier Highlights Leasing Growth and Operational Improvements at Industrials Conference

GBX

New Projects/Investments

Revenue Acceleration/Inflection

Demand Weakening

Greenbrier is strategically growing its lease fleet, targeting $300 million in annual investment (approximately 2,000 railcars per year) to double recurring revenue over five years and achieve mid-teen returns.
The company reported record financial performance in FY25 despite delivering 2,000 fewer rail cars, attributing this to manufacturing excellence, insourcing initiatives, and footprint reductions. Aggregate gross margins exited FY25 around 19%, exceeding their mid-teens target.
While steel tariffs and economic uncertainty have increased railcar costs and created a headwind to demand, Greenbrier anticipates a pickup in demand during the second half of the year.
The current backlog is just under 17,000 cars, with a normal backlog considered to be around 20,000 cars, and approximately one-third of the current backlog is from Brazil and Europe.

Dec 4, 2025, 2:20 PM

Transcript

Greenbrier Discusses Strategic Shift to Leasing, FY25 Performance, and Market Outlook

GBX

New Projects/Investments

Demand Weakening

Revenue Acceleration/Inflection

Greenbrier is strategically expanding its lease fleet, targeting $300 million in annual investment to add approximately 2,000 railcars per year, aiming for mid-teen returns and increased recurring revenue.
The company reported record financial performance in FY 2025 despite delivering 2,000 fewer railcars, driven by manufacturing excellence, insourcing initiatives, and footprint reductions, resulting in aggregate gross margins of approximately 19%.
The current railcar backlog is just under 17,000 cars, with a normal backlog target of 20,000 cars. Rising steel costs and economic uncertainty are headwinds to demand, but Greenbrier anticipates a pickup in demand in the second half of the current year and into 2026 and 2027.
Brazil is identified as a significant growth market due to government support for rail transport and improved operational efficiency, while European operations are optimizing their footprint amidst a challenging demand environment.

Dec 4, 2025, 2:20 PM

Transcript

Greenbrier Reports Record Fiscal 2025 Performance and Strategic Growth in Leasing

GBX

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

Greenbrier achieved a record year for EPS and EBITDA in fiscal 2025, with approximately $3.2 billion in revenue, and met its strategic targets by exiting the year with an aggregate gross margin of just under 19% and a return on invested capital of about 12%.
The company's strategic focus on growing its leasing business, which generated $170 million in revenue in fiscal 2025, aims to increase recurring revenue and normalize volatility, with plans to invest up to $300 million annually in its lease fleet of just under 17,000 cars.
An insourcing initiative is projected to deliver a $50 million improvement in aggregate gross margin dollars.
Despite 2025 being a weaker year for North American railcar deliveries, Greenbrier is seeing increased order conversions for calendar 2026 as customers move off the sidelines, with typical lead times of 3 to 6 months.
Capital allocation prioritizes investments in the lease fleet, quick-payback manufacturing projects, and strategic acquisitions, alongside returning capital to shareholders through dividends and opportunistic share buybacks, having spent $30 million on buybacks in the past fiscal year from a $100 million board approval.

Nov 19, 2025, 7:00 PM

Transcript

Greenbrier Discusses Record 2025 Performance, Strategic Growth, and Market Outlook

GBX

Guidance Update

New Projects/Investments

Demand Weakening

Greenbrier achieved record earnings per share and EBITDA in 2025, with $3.2 billion in revenue, and exited the fourth quarter with just under 19% aggregate gross margin and about 12% return on invested capital, meeting its 2023 strategic targets.
The company is strategically growing its recurring revenue through its leasing business, which generated $170 million in revenue in 2025 and has grown 50% in two years. Greenbrier plans to invest up to $300 million annually in its lease fleet, which currently comprises just under 17,000 cars.
Greenbrier expects a $50 million improvement in aggregate gross margin dollars from its insourcing initiative, which involves bringing more manufacturing in-house.
Despite a "not terrific" railcar delivery year in 2025 and projections for 2026 to be below replacement levels (estimated at 26,000 railcars compared to annual replacement demand of 35,000-45,000), the company observes "green shoots" in orders as customers begin to place orders due to long lead times.
Capital allocation priorities include investments in the lease fleet and manufacturing projects with quick paybacks. The board approved $100 million for share buybacks, with about $30 million spent in the past fiscal year, and management highlights that a significant portion of the company's debt is non-recourse and tied to the leasing business.

Nov 19, 2025, 7:00 PM

Transcript

Greenbrier Reports Record FY2025 Performance and Outlines Strategic Growth in Leasing

GBX

Earnings

New Projects/Investments

Demand Weakening

Greenbrier achieved a record fiscal year 2025, with revenue just over $3.2 billion, record EPS and EBITDA, and strong financial targets met, including an aggregate gross margin of just under 19% in Q4 and return on invested capital of about 12%.
The company's strategic focus on growing its recurring revenue leasing business has been successful, exiting FY2025 with about $170 million in leasing revenue and a lease fleet of just under 17,000 cars. Greenbrier plans to invest up to $300 million annually in the lease fleet, which is financed with non-recourse debt.
Despite a "not fantastic" North American railcar delivery market in 2025 due to uncertainty and rising steel prices, Greenbrier saw record performance. The company anticipates 2026 industry deliveries to be below 26,000 railcars, significantly lower than the annual replacement demand of 35,000 to 45,000 railcars.
Greenbrier's insourcing initiative is expected to yield approximately $50 million in aggregate gross margin improvement. The company also has a $100 million share buyback program, with about $30 million executed in the past fiscal year.

Nov 19, 2025, 7:00 PM

Transcript

Greenbrier Reports Record FY 2025 Performance and Issues FY 2026 Guidance

GBX

Earnings

Guidance Update

New Projects/Investments

The Greenbrier Companies reported a record-setting Fiscal 2025, achieving record full-year diluted earnings per share and core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow.
For Q4 2025, revenue was nearly $760 million, with an aggregate gross margin of 19%, core diluted earnings per share of $1.26, and core EBITDA of $115 million.
The company provided Fiscal 2026 guidance, expecting new railcar deliveries between 17,500 and 20,500 units, revenue between $2.7 billion and $3.2 billion, and earnings per share between $3.75 and $4.75.
Strategic initiatives, including the completion of insourcing capacity expansion in Mexico and ongoing European footprint rationalization, are expected to yield $20 million in annualized savings. The lease fleet grew by approximately 10% in Fiscal 2025 to over 17,000 units with 98% utilization.
Greenbrier declared its 46th consecutive quarterly dividend of $0.32 per share and repurchased approximately $22 million in shares during Fiscal 2025.

Oct 28, 2025, 9:00 PM

Transcript

Greenbrier Reports Record Fiscal 2025 Performance and Issues Fiscal 2026 Guidance

GBX

Earnings

Guidance Update

New Projects/Investments

Greenbrier reported a record-setting Fiscal 2025, achieving record full-year diluted earnings per share and record core EBITDA, with an aggregate gross margin of nearly 19% and over $265 million in operating cash flow.
For Q4 2025, the company posted revenue of nearly $760 million, core diluted EPS of $1.26, and core EBITDA of $115 million, while liquidity reached over $800 million.
The company issued Fiscal 2026 guidance, projecting new railcar deliveries between 17,500 and 20,500 units, revenue between $2.7 billion and $3.2 billion, and earnings per share between $3.75 and $4.75.
Strategic operational improvements include the completion of a Mexico insourcing capacity expansion and European footprint rationalization expected to generate $20 million in annualized savings. The leasing business saw recurring revenue of nearly $170 million over the last four quarters, with the lease fleet growing about 10% to over 17,000 units and maintaining 98% utilization.

Oct 28, 2025, 9:00 PM

Transcript

Greenbrier Reports Record Fiscal 2025 Results and Provides Fiscal 2026 Guidance

GBX

Earnings

Guidance Update

Dividends

Greenbrier achieved a record full-year diluted earnings per share and record core EBITDA for fiscal year 2025, with an aggregate gross margin of nearly 19% and generating more than $265 million in operating cash flow.
In Q4 2025, the company reported revenue of nearly $760 million, core diluted EPS of $1.26, and core EBITDA of $115 million.
The company concluded fiscal 2025 with a backlog of 16,600 units valued at $2.2 billion and robust liquidity of over $800 million, its highest in 10 quarters.
For fiscal year 2026, Greenbrier projects new railcar deliveries of 17,500-20,500 units, revenue between $2.7 billion and $3.2 billion, and EPS ranging from $3.75 to $4.75.
The company declared its 46th consecutive quarterly dividend of $0.32 per share and expects $20 million in annualized savings from European footprint rationalization.

Oct 28, 2025, 9:00 PM

Transcript

Greenbrier Announces Q4 and Full Year FY 2025 Results and FY 2026 Guidance

GBX

Earnings

Guidance Update

Share Buyback

Greenbrier reported Q4 2025 core diluted EPS of $1.26 on $759.5 million in revenue, and fiscal year 2025 core diluted EPS of $6.59 with a record Core EBITDA of $512 million.
As of August 31, 2025, the new railcar backlog stood at 16,600 units with an estimated value of $2.2 billion.
For fiscal year 2026, Greenbrier projects revenues between $2.7 billion and $3.2 billion and CORE diluted EPS between $3.75 and $4.75.
In fiscal 2025, the lease fleet grew by nearly 10% to 17,000 units with 98% utilization.
The Board approved a quarterly dividend of $0.32 per share, and the company repurchased 517,000 shares for $22 million in fiscal 2025.