Q1 2025 Greenbrier Companies Inc Earnings Call Transcript
Key Points
- Greenbrier Companies Inc (GBX) reported a strong EBITDA of $145 million and an aggregate gross margin of 19.8% for Q1, reflecting a 480 basis points year-over-year improvement.
- The company delivered 6,000 new railcars in Q1, with a strong manufacturing gross margin of 17.1%, benefiting from a profitable product mix and optimized manufacturing processes.
- Greenbrier's lease fleet grew by 1,200 units in the quarter, maintaining a stable fleet utilization of approximately 99%.
- The company secured global orders of 3,800 units worth $520 million in Q1, with lease originations accounting for about 45% of this order activity.
- Greenbrier's backlog remains strong at 23,400 units with an estimated value of $3 billion, providing significant revenue visibility.
- The company's quarterly tax rate was higher at 37.8%, mainly due to the geographic mix of earnings and unfavorable foreign currency exchange rates.
- Greenbrier's cash flow from operations was a use of cash of approximately $65 million, primarily due to leased assets placed on the balance sheet awaiting syndication or capitalization.
- The backlog decreased from previous quarters, indicating potential tentativeness in demand for certain railcar types and markets.
- There is some open production space in the July-August timeframe, which could indicate potential challenges in filling orders at expected rates.
- The company did not raise its fiscal 2025 guidance despite a strong first quarter performance, suggesting caution due to potential uncertainties in the market.
Hello and welcome to the Greenbrier Companies' first quarter of fiscal 2025 earnings conference call.
Following today's presentation, we will conduct a question-and-answer session. Each analyst should limit themselves to one question with a follow up if needed. Until that time, all lines will be in a listen-only mode. At the request of the Greenbrier Companies, this conference call is being recorded for instant replay purposes.
At this time, I would like to turn the conference over to Mr. Justin Roberts, Vice President and treasurer, Mr Roberts. You may begin.
Thank you, Gary. Good afternoon and welcome to our first quarter of 2025 conference call. Today, I'm joined by Lorie Tekorius, Greenbrier's CEO and President; Brian Comstock, Executive Vice President and President of the Americas; and I'm Michael Donfris, Senior Vice President and CFO.
Following our update on Greenbrier's Q1 performance and our outlook for the remainder of fiscal '25,
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