Cash and cash equivalents (USD, millions)

Restricted cash (USD, millions)

Accounts receivable, net (USD, millions)

Income tax receivable (USD, millions)

Inventories (USD, millions)

Leased railcars for syndication (USD, millions)

Equipment on operating leases, net (USD, millions)

Property, plant and equipment, net (USD, millions)

Investment in unconsolidated affiliates (USD, millions)

Intangibles and other assets, net (USD, millions)

Goodwill (USD, millions)

Total Assets (USD, millions)

Revolving notes (USD, millions)

Accounts payable and accrued liabilities (USD, millions)

Deferred income taxes (USD, millions)

Deferred revenue (USD, millions)

Notes payable, net (USD, millions)

Contingently redeemable noncontrolling interest (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total equity - Greenbrier (USD, millions)

Noncontrolling interest (USD, millions)

Total equity (USD, millions)

Total Liabilities and Equity (USD, millions)

ed4772ab8c99e1e1e6d1e0c871186b8a93d11869ed5d4fffddf22f30b30ac00d

The dramatic increase in operating cash flow in FY 2024 was primarily driven by a **change in leased railcars for syndication**, which positively impacted cash flows, and a significant **increase in net earnings**—rising by **$97.1 million**, from **$75.6 million in FY 2023 to $172.7 million in FY 2024**—which further strengthened the operating cash flow.  **[0000950170-24-117047_gbx-20240831.htm:55]** **[0000950170-24-117047_gbx-20240831.htm:49]** **[0000950170-24-117047_gbx-20240831.htm:70]** 

What drove the dramatic increase in operating cash flow in FY 2024?

The **operating cash flow** in Q4 2024 nearly tripled compared to Q4 2023 because the company experienced a significant boost in **net earnings**—an increase of **$97.1 million**—and made notable improvements in **working capital management** by reducing inventory and optimizing leased railcars for syndication, which helped lower the assets held for syndication.  **[0000950170-23-055208_gbx-20230831.htm:67]** **[0000950170-24-117047_gbx-20240831.htm:70]** **[0000950170-24-117047_gbx-20240831.htm:55]** **[0000950170-24-117047_gbx-20240831.htm:49]** **[0001193125-24-241871_d896656dex991.htm:0]** **[GBX_3403413_4]** **[0000950170-25-003839_gbx-20241130.htm:25]** 

Why did Q4 2024 operating cash flow nearly triple compared to Q4 2023?

The significant jump in Q3 2024 capital expenditures was primarily driven by **increased investments in Leasing & Management Services**, **higher manufacturing investments**, **maintenance services expansion**, and **fleet additions and optimization**. Specifically, the Leasing & Management Services segment saw an increase from **$205.4 million** to **$241.1 million** over the nine months ended May 31, 2024, while manufacturing and maintenance services also received substantial investments to enhance production capabilities and operational efficiency, supporting the growth of recurring revenues and optimal fleet management.  **[0000950170-24-082097_gbx-20240531.htm:37]** 

What caused the significant jump in capital expenditures in Q3 2024?

The sharp increase in Q1 2025 manufacturing capital expenditures is explained by the company’s updated outlook and focus on fiscal year 2025. The guidance indicates that the capital expenditures were guided at **$120 million**, reflecting **better visibility into fiscal year 2025 plans**. This adjustment is part of a broader strategy that includes **streamlining production processes, optimizing resources, and enhancing manufacturing efficiencies** through in-sourcing initiatives, all contributing to the jump from Q1 2024 levels.  **[GBX_3412216_4]** **[0001193125-25-003515_d923742dex991.htm:1]** **[GBX_3412216_5]** **[0000950170-25-003839_gbx-20241130.htm:22]** 

What explains the sharp increase in manufacturing capital expenditures in Q1 2025?

dd5b4ec872d609bf261b71c83ede200416f63d4437556163cdf200b003e05a62

The significant revenue increase in Q4 2024 was driven by several factors including **strong manufacturing performance** with increased production and deliveries (from **5,400** railcars in Q3 to **7,000** railcars in Q4) and a substantial jump in the Manufacturing segment's external revenue (from **$685.1M** to **$916.8M**), robust **syndication activity** that bolstered liquidity and margins, an **improved product mix and higher manufacturing gross margins** (reaching **14.8%**, the highest in over six years), and incremental growth contributions from both the **Leasing & Management Services** and **Maintenance Services** segments.  **[0001193125-24-241871_d896656dex991.htm:10]** **[GBX_3403413_3]** 

What drove the significant revenue increase in Q4 2024?

Margin expanded noticeably in Q4 2024 due to a combination of factors including **increased railcar deliveries** (7,000 versus 5,400 in the previous quarter), **strong syndication activity** with 1,600 units syndicated, a **favorable product mix** and **operating efficiencies** that elevated the manufacturing gross margin to **14.8%**—the highest in over six years—as well as **recurring revenue growth** from the leasing platform and targeted **strategic initiatives** to improve efficiencies.  **[GBX_3403413_3]** **[0001193125-24-241871_d896656dex991.htm:0]** **[GBX_3403413_3]** 

Why did margin expand noticeably in Q4 2024?

The boost in **Earnings from Operations** in **Q4 2024** was driven by several factors. **Higher manufacturing revenue and improved margins** played a key role, with manufacturing revenue increasing significantly due to higher railcar deliveries (7,000 units vs. 5,400 units) and robust syndication activity, coupled with an improved manufacturing gross margin resulting from a favorable product mix and efficiency gains.  **[0001193125-24-241871_d896656dex991.htm:10]** **[GBX_3403413_3]**  Additionally, the **aggregate gross margin** expanded to **18.2%**, reflecting enhanced operational efficiencies and recurring revenue growth.  **[GBX_3403413_1]**  The **Leasing and Management Services** segment also contributed substantially by generating **$39.0 million** in earnings, supported by a nearly 99% lease fleet utilization and significant syndication activity.  **[0001193125-24-241871_d896656dex991.htm:10]** **[GBX_3403413_2]**  Finally, ongoing **cost management and efficiency initiatives**, including in-sourcing activities and improved working capital management, further bolstered operating profitability.  **[GBX_3403413_3]** **[GBX_3403413_1]** 

What factors boosted earnings from operations in Q4 2024?

The strong **Basic EPS** performance in **FY 2024** was driven by several factors. **Net earnings** surged from **$62.5 million** to **$160.1 million**, while **gross margins** improved from **11.2%** to **15.8%** due to efficiency initiatives and a shift in revenue mix. Additionally, the company reduced its **weighted average basic shares outstanding** from **31.983 million** to **31.102 million**, which amplified the EPS. The absence of a substantial **$46.7 million** asset impairment, disposal, and exit cost that affected the prior year, along with better management of **interest and foreign exchange costs**, also contributed to the higher EPS.  **[0000950170-24-117047_gbx-20240831.htm:93]** **[0001193125-24-241871_d896656dex991.htm:0]** **[0001193125-24-241871_d896656dex991.htm:4]** 

What contributed to the high Basic EPS in FY 2024?

Based on the available documents, **Q1 2025 revenue increased by 8.3% compared to Q1 2023**, reaching **$875.9 million**.  **[0000950170-25-003839_gbx-20241130.htm:21]**  The documents attribute this growth to factors such as a **7.7% increase in railcar deliveries**, a favorable product mix, and enhanced operating efficiencies, as well as a **13.0% rise in Leasing & Fleet Management revenue**.  **[0000950170-25-003839_gbx-20241130.htm:21]** **[0000950170-25-003839_gbx-20241130.htm:23]**  While Q4 2024 revenue was higher at **$1,053.00 million**  **[0000950170-24-117047_gbx-20240831.htm:67]** , no specific explanation is provided for any sequential decline from Q4 2024 to Q1 2025. Thus, if the question refers to a sequential quarter change, the documents do not offer a definitive reason for the decline.

Why did revenue decline in Q1 2025?

84777a6fb4a5b030cb84d043796a865706b3daded6c0c45535e8c2f4b015a2f7

Revenue (USD, millions)

Cost of Revenue (USD, millions)

Margin (USD, millions)

Selling and Administrative Expense (USD, millions)

Net Gain on Disposition of Equipment (USD, millions)

Earnings from Operations (USD, millions)

Interest and Foreign Exchange (USD, millions)

Earnings Before Income Tax and Earnings from Unconsolidated Affiliates (USD, millions)

Income Tax Expense (USD, millions)

Earnings Before Earnings from Unconsolidated Affiliates (USD, millions)

Earnings from Unconsolidated Affiliates (USD, millions)

Net Earnings (USD, millions)

Net Earnings Attributable to Noncontrolling Interest (USD, millions)

Net Earnings Attributable to Greenbrier (USD, millions)

Basic Earnings per Common Share (USD)

Diluted Earnings per Common Share (USD)

8049729e7db5fb6a928be1d24c1dc713fd502ec5d690d9a67c00495ace76df7e

Net earnings [USD, millions]

Depreciation and amortization [USD, millions]

Net (gain) loss on disposition of equipment [USD, millions]

Stock based compensation expense [USD, millions]

Noncontrolling interest adjustments [USD, millions]

Other adjustments to net earnings [USD, millions]

Decrease (increase) in Accounts receivable, net [USD, millions]

Increase (decrease) in Accounts payable and accrued liabilities [USD, millions]

Net cash provided by operating activities [USD, millions]

Proceeds from sales of assets [USD, millions]

Capital expenditures [USD, millions]

Cash distribution from unconsolidated affiliates and other [USD, millions]

Net cash used in investing activities [USD, millions]

Net change in revolving notes with maturities of 90 days or less [USD, millions]

Proceeds from revolving notes with maturities longer than 90 days [USD, millions]

Repayments of revolving notes with maturities longer than 90 days [USD, millions]

Proceeds from issuance of notes payable [USD, millions]

Repayments of notes payable [USD, millions]

Debt issuance costs [USD, millions]

Repurchase of stock [USD, millions]

Dividends [USD, millions]

Cash distribution to joint venture partner [USD, millions]

Tax payments for net share settlement of restricted stock [USD, millions]

Net cash provided by financing activities [USD, millions]

Effect of exchange rate changes [USD, millions]

Increase (decrease) in Cash and cash equivalents and Restricted cash [USD, millions]

Deferred income taxes [USD, millions]

Beginning of period Cash and cash equivalents and Restricted cash [USD, millions]

End of period Cash and cash equivalents and Restricted cash [USD, millions]

Cash and cash equivalents [USD, millions]

Restricted cash [USD, millions]

Total Cash and cash equivalents and Restricted cash as presented above [USD, millions]

b0441c35b917bb8ba2c6dc948e30ad418e2c76deee1645233ef6e9c62ec0933e

Number of railcars in backlog (units)

Number of railcars delivered (units)

Number of railcars in lease fleet (units)

Remaining performance obligations for manufacturing – railcar sales (USD millions)

Remaining performance obligations for manufacturing – sustainable conversions (USD millions)

Remaining performance obligations for fleet management (USD millions)

Remaining performance obligations for other (USD millions)

724d80282e87fc05ff0e4aea7d251a6aeb550b433d19487e6074263a299962f5

163715b07f7f1211739b999a5505bd994243bce8f3b6dd86ef49af42ef9f6e56

e5324579a61ec5c852ea6880da3129e4091a07a74dd7777bdf691de44df9d204

057ba7eac453ad0108044f04d1c479e664744263324d4726ef7e0219b978b7a2

GREENBRIER COMPANIES (GBX)

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