Q3 2024 Greenbrier Companies Inc Earnings Call Transcript
Key Points
- Greenbrier Companies Inc (GBX) reported its highest earnings per share and EBITDA in over 4.5 years, reaching pre-pandemic levels.
- The company generated over $820 million in revenue during the third quarter, with a consolidated gross margin of 15.1%.
- Greenbrier secured new railcar orders of 6,300 units worth $830 million, with a strong backlog of 29,400 units valued at $3.7 billion.
- The company was honored by USA TODAY as one of America's Climate Leaders for 2024 due to its successful carbon reduction efforts.
- Greenbrier's lease fleet utilization remained stable at 99%, and the company expects to invest approximately $265 million on a net basis in the fleet this year.
- Third quarter manufacturing gross margin of 10.9% showed only a modest increase from Q2, indicating room for improvement.
- Production rates were impacted by a few production line changeovers and ongoing border congestion, causing delays.
- The company faces challenges in maintaining stable production and meeting customer needs amid economic and geopolitical uncertainties.
- Greenbrier's leasing segment experienced lower margins due to externally sourced railcars intended for syndication.
- The North American railcar market remains stable but is subject to economic and geopolitical uncertainties, which could impact future demand.
Hello, and welcome to the Greenbrier Companies' third quarter of fiscal 2024 earnings conference call. (Operator Instructions)
The request of The Greenbrier Companies, this conference call is being recorded for instant replay purposes. At this time, I'd like to turn the floor over to Mr. Justin Roberts, Vice President and Treasurer. Mr. Roberts, you may begin.
Thank you, Jamie. Good morning, everyone, and welcome to our third quarter of fiscal 2024 conference calls. Today, I am joined by Lorie Tekorius, Greenbrier's CEO and President; Brian Comstock, President of the Americas; and Michael Donfris, Senior Vice President, Finance, and soon-to-be CFO. Following our update on Greenbrier's Q3 performance and an update on our outlook for the remainder of fiscal '24, we will open up the call for questions.
In addition to the press release issued this morning, additional financial information and key metrics can be found in a slide presentation posted today
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