Greenbrier Companies NYSE: GBX reported fiscal 2026 results that reflected weak railcar demand and customer caution over macroeconomic and trade-policy uncertainty, while highlighting growth in its leasing business, a fourth-quarter improvement in orders and a fiscal 2027 outlook calling for higher revenue and earnings.
Chief Executive Officer and President Lorie Tekorius said geopolitical uncertainty, wars, shifting tariffs and trade policies, and higher interest costs caused many customers to delay investment decisions involving long-lived freight railcars. Greenbrier delivered 15,400 railcars during fiscal 2026, generated $2.5 billion in revenue and posted core earnings per share of $2.60. Aggregate gross margin was 13.6%.
“While these results were below what we expected at the start of the year and fourth quarter, given the market conditions, our performance remained quite resilient,” Tekorius said.
Leasing Growth Supports Recurring Revenue
Greenbrier expanded its owned lease fleet by roughly 4,000 railcars, or 23%, to approximately 21,000 railcars during fiscal 2026. The company maintained 98% fleet utilization, while renewal rates remained above expiring rates, according to Brian Comstock, executive vice president and president of the Americas.
Recurring revenue reached $175 million for the year, up from $113 million when Greenbrier set its goal of doubling recurring revenue. Tekorius said the company was on track toward that five-year goal, with recurring revenue increasing 55% in fiscal 2026.
Lease originations represented about 40% of the company’s annual orders, underscoring the role of Greenbrier’s model offering both direct railcar sales and leasing solutions. Comstock said the company expects its owned lease fleet to grow to between 22,000 and 23,000 railcars in fiscal 2027.
During the fourth quarter, leasing margins were affected by the timing of railcars entering the fleet and maintenance activity, Comstock said. Tekorius said Greenbrier expects leasing gross margins to generally fall in the mid-50% to low-60% range, while noting that secondary-market acquisitions can include older cars requiring more maintenance.
Orders and Backlog Improve in Fourth Quarter
Fourth-quarter orders totaled 3,400 railcars valued at about $600 million, the company’s highest quarterly order value of the fiscal year. The orders produced a book-to-bill ratio of nearly one, Greenbrier’s highest since the third quarter of fiscal 2024.
For the full year, the company received orders for 12,200 railcars valued at $1.9 billion. Backlog increased sequentially for the first time since fiscal 2024, reaching 14,000 railcars valued at $2.1 billion, with deliveries extending into fiscal 2028.
Comstock said customer inquiries have increased across railcar types and are converting into orders at a higher rate. He pointed to increased rail traffic, elevated fuel prices that have improved rail’s competitiveness with trucking, reduced railcar storage levels and fleet scrapping that has exceeded new North American builds over the past two years.
FTR projects North American railcar deliveries of 23,000 units in 2026 and 31,400 in 2027, a 37% increase, according to Comstock. Greenbrier expects demand and deliveries during its fiscal 2027 to be stronger in the second half of the year.
The company also performed programmatic railcar restoration work on about 2,200 railcars during fiscal 2026. This work is excluded from orders, backlog and delivery figures.
Fourth-Quarter Results and Cost Actions
Fourth-quarter revenue was $591 million, up about 3% sequentially, driven primarily by lease-fleet growth and favorable manufacturing mix. Aggregate gross margin was 13.5%, while operating earnings were $26 million, or 4.3% of revenue.
Senior Vice President and Chief Financial Officer Michael Donfris said fourth-quarter results included $4 million of facility-related rationalization costs. Diluted earnings per share were $0.27, while core earnings per share, excluding approximately $0.12 per share of rationalization costs, were $0.39. Core EBITDA was $72 million, or 12% of revenue.
For the full fiscal year, core EBITDA totaled $300 million, or 12% of revenue. Diluted earnings per share were $2.49.
Tekorius said the company has adjusted production rates and headcount to match demand, while continuing to evaluate its manufacturing and service footprint. She said the fourth-quarter charge was mainly related to exiting an Omaha maintenance and repair facility, which was sold to another party that continues to operate the business. The company also recorded a small gain associated with exiting a dormant joint venture with Amsted in Ohio Castings.
Greenbrier ended fiscal 2026 with $962 million of liquidity, including $235 million in cash and $727 million in available borrowing capacity. About 85% of debt was fixed at year-end, with a weighted average interest rate of just over 4%, Donfris said.
Fiscal 2027 Outlook and Trade Matters
For fiscal 2027, Greenbrier forecast total revenue of $2.8 billion to $3.2 billion, operating margin of 7% to 7.5%, and earnings per share of $2.75 to $3.75. It expects North American industry deliveries of 26,000 to 28,000 railcars, leasing and fleet-management revenue growth of 12% to 15%, manufacturing gross margin in the low double digits and aggregate gross margin of 14% to 15%.
Capital expenditures, net of equipment-sale proceeds, are projected at $225 million to $275 million, with roughly 70% allocated to lease-fleet growth. The company said it will no longer provide a company-specific delivery outlook because production retained for leasing and manufacturing revenue from maintenance and restoration services can make deliveries less indicative of its financial performance.
Tekorius also addressed trade matters involving freight rail couplers and tank cars. Greenbrier is appealing a U.S. Customs and Border Protection determination involving certain couplers to the Court of International Trade. A competitor has also filed petitions seeking duties on certain tank cars.
Tekorius said Greenbrier builds tank cars in Arkansas and employs more than 2,000 people in the United States. Comstock said any duties affecting tank cars would be an industry-wide issue and could raise prices for customers.
Tekorius said the call would be her final earnings call as CEO. Comstock said he expects continuity in the company’s strategy, with increased focus on operating performance, cost and overhead structures, and growth in leasing.
About Greenbrier Companies (NYSE:GBX)
Greenbrier Companies, Inc is a transportation equipment company that designs, manufactures and supplies freight railcars and related services. Its products include covered hopper cars, tank cars, gondolas, boxcars, intermodal equipment and railcars used to transport automobiles and other specialized cargo.
The company also provides railcar leasing and management services, maintenance, refurbishment, wheel services and parts. Through its manufacturing and service operations, Greenbrier supports railroads, leasing companies, shippers and other participants in the North American freight transportation industry.
Founded in 1974 and headquartered in Lake Oswego, Oregon, Greenbrier has expanded its operations beyond the United States, with manufacturing and service activities serving customers in North America and international markets.
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