Greenbrier Companies (NYSE:GBX) Posts Earnings Results, Misses Expectations By $0.41 EPS

Greenbrier Companies (NYSE:GBX) posted its quarterly earnings results on Monday. The transportation company reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.41), FiscalAI reports. Greenbrier Companies had a net margin of 4.07% and a return on equity of 6.49%. The company had revenue of $591.00 million during the quarter, compared to analysts’ expectations of $605.10 million. During the same quarter last year, the company earned $1.26 earnings per share. Greenbrier Companies’s revenue for the quarter was down 22.2% on a year-over-year basis.

Here are the key takeaways from Greenbrier Companies’ conference call:

• Fourth-quarter orders and backlog improved: Greenbrier booked 3,400 railcars worth approximately $600 million, lifting backlog to 14,000 cars valued at $2.1 billion—the first sequential increase since fiscal 2024.
• The leasing business continues to expand, with the owned fleet growing 23% to roughly 21,000 railcars, utilization at 98%, and recurring revenue reaching $175 million. Management expects the fleet to reach approximately 22,000–23,000 cars in fiscal 2027.
• Management cited improving industry fundamentals, including stronger rail traffic, reduced cars in storage, scrapping exceeding new builds, and rising intermodal activity. Fiscal 2027 guidance calls for North American industry deliveries of 26,000–28,000 cars, revenue of $2.8–$3.2 billion, and EPS of $2.75–$3.75.
• Fiscal 2026 results were pressured by weak demand and low production volumes, with revenue of $2.5 billion, core EPS of $2.60, and aggregate gross margin of 13.6%. Greenbrier continues to reduce headcount and optimize its footprint, including exiting its Omaha maintenance facility.
• Trade disputes involving tank cars and freight-car couplers remain an uncertainty and have weighed on tank-car demand, although management expects any eventual duties to be passed through to customers rather than materially affect long-term financial performance. CEO Lorie Tekorius will also retire after the call, with Brian Comstock expected to continue the existing strategy while increasing focus on operating efficiency and leasing growth.

Greenbrier Companies Price Performance

NYSE:GBX opened at $38.27 on Tuesday. The firm has a market capitalization of $1.18 billion, a price-to-earnings ratio of 11.36 and a beta of 1.45. The company’s 50-day moving average is $42.09 and its two-hundred day moving average is $48.47. Greenbrier Companies has a 1-year low of $37.02 and a 1-year high of $59.19.

Greenbrier Companies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 2nd. Shareholders of record on Wednesday, November 11th will be issued a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 3.6%. The ex-dividend date is Monday, November 9th. Greenbrier Companies’s payout ratio is presently 40.36%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on GBX. Weiss Ratings lowered Greenbrier Companies from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, September 1st. Wall Street Zen cut Greenbrier Companies from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Susquehanna downgraded Greenbrier Companies from a “positive” rating to a “neutral” rating and set a $52.00 target price for the company. in a research note on Thursday, July 2nd. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $45.00.

Key Stories Impacting Greenbrier Companies

Here are the key news stories impacting Greenbrier Companies this week:

• Positive Sentiment: Management forecasts fiscal 2027 revenue of $2.8 billion to $3.2 billion and adjusted EPS of $2.75 to $3.75, supported by growth in its railcar leasing business. The outlook suggests earnings could improve meaningfully from the latest quarter if freight demand and fleet utilization recover. Greenbrier fiscal 2027 outlook
• Positive Sentiment: Greenbrier indicated that its backlog is beginning to improve, while expansion of leasing operations could provide a steadier and potentially higher-margin revenue stream. These comments may temper investor concerns about the current downturn. Greenbrier fourth-quarter earnings analysis
• Neutral Sentiment: Greenbrier elected Emanuel “Manny” Pearlman as a Class III director, effective October 27. The appointment may bring additional board and industry expertise, but it is unlikely to materially affect near-term earnings. Greenbrier elects Emanuel Pearlman
• Negative Sentiment: Fiscal fourth-quarter revenue was $591.0 million, below estimates of roughly $605 million to $611 million, and declined 22.2% year over year. Reported diluted EPS was approximately $0.27 (or $0.39 on the company’s cited measure), substantially below the consensus estimate of $0.80 and versus $1.26 a year earlier. Net income fell to $8.7 million, while operating profit declined to $25.5 million. Greenbrier fourth-quarter financial results
• Negative Sentiment: Cash flow and balance-sheet trends also warrant caution: operating cash flow was $31.5 million, capital expenditures reached $132.1 million, and total liabilities increased to $2.71 billion. GBX is trading near its 52-week low and below both its 50-day and 200-day moving averages, reflecting weak investor sentiment.

About Greenbrier Companies

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.