FreightCar America (RAIL) Q2 2024 earnings summary

Executive summary

• Achieved 66% year-over-year revenue growth in Q2 2024, reaching $147.4 million on 1,159 railcar deliveries, with record Adjusted EBITDA of $12.1 million and profitability at the Castaños facility.

• Secured a major multi-year tank car conversion order and delivered the 10,000th railcar from the Castaños facility, expanding product offerings and marking operational milestones.

• Net orders for Q2 reached 2,916–3,000 units valued at $285 million, the highest since Q4 2014, with backlog at 3,833 units ($382 million) as of June 30, 2024.

• Six-month revenues reached $308.5 million, up from $169.6 million, with a net loss of $3.4 million, a significant improvement from a $23.9 million loss in the prior year period.

Financial highlights

• Q2 2024 revenue: $147.4 million on 1,159 deliveries, up from $88.6 million and 760 deliveries in Q2 2023.

• Gross profit: $18.4 million (12.5% margin) vs. $13 million (14.6% margin) year-over-year; Adjusted EBITDA: $12.1 million, up from $8 million in Q2 2023.

• Net income was $8.2 million ($0.11 per diluted share); Adjusted net income was $6.3 million ($0.05 per share), up from $2.1 million ($0.02 per share) in Q2 2023.

• Operating income for Q2 2024 was $13.1 million, up from $7.7 million in Q2 2023.

• Operating cash flow for H1 2024: $31.9 million; cash balance at $39.4 million, no outstanding revolver borrowings.

Outlook and guidance

• Raised 2024 revenue guidance to $560–$600 million, up 62% year-over-year at midpoint.

• Raised delivery guidance to 4,300–4,700 railcars, up 48.9% at midpoint.

• Raised Adjusted EBITDA guidance to $35–$39 million, up 84.1% year-over-year at midpoint.

• Expect positive operating cash flow for the third consecutive year; management expects current cash balances to meet liquidity needs for at least the next 12 months.

• Capital expenditures for 2024 are anticipated at $5–$7 million, focused on maintenance at the Castaños Facility.