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Feb 28
Greenbrier Q2 2025 Earnings Report
Greenbrier reported strong profitability in Q2 FY25 with healthy margins and consistent railcar demand despite lower volumes.
Key Takeaways
Greenbrier delivered solid financial results in Q2 FY25, achieving high gross margins and core earnings growth, while managing a strategic facility closure in Europe.
Greenbrier
Greenbrier
Greenbrier Revenue by Segment
Forward Guidance
Greenbrier updated its FY25 guidance, increasing gross and operating margin expectations while adjusting revenue and delivery forecasts downward.
Positive Outlook
- Gross margin guidance raised to 17.0% - 17.5%
- Operating margin guidance raised to 10.2% - 10.7%
- Strong backlog of 20,400 railcars provides revenue visibility
- Continued optimization in manufacturing supports profitability
- Dividend increased by 7%, indicating confidence in future cash flows
Challenges Ahead
- FY25 delivery guidance reduced to 21,500 – 23,500 units
- Revenue outlook lowered to $3.15B - $3.35B
- European facility closure introduces short-term restructuring costs
- Fleet utilization slightly decreased from 98.6% to 98.3%
- Higher effective tax rate at 32.3% impacts net earnings
Revenue & Expenses
Visualization of income flow from segment revenue to net income