FreightCar America (RAIL) Q2 2026 earnings summary

Executive summary

• Achieved exceptional order intake, driving a 121% sequential increase in backlog to 3,972 units valued at $344 million, with strong aftermarket growth supported by acquisitions.

• Q2 2026 revenues were $113.1 million, down from $118.6 million in Q2 2025, mainly due to lower Manufacturing segment sales and margins.

• Gross profit for Q2 2026 was $6.2 million (5.5% margin), down from $17.8 million (15.0% margin) in Q2 2025, impacted by lower volumes and $2.2 million in realignment costs.

• Net loss for Q2 2026 was $30.1 million, driven by a $24.9 million non-cash warrant liability loss; adjusted net loss was $0.8 million.

• Completed two aftermarket acquisitions in the past year, broadening product and customer reach.

Financial highlights

• Q2 2026 revenue was $113.1 million with 927 railcars delivered; gross profit was $6.2 million (5.5% margin).

• Adjusted EBITDA was $1.2 million (1% margin), compared to $9.3 million (7.8% margin) last year.

• Free cash flow for Q2 2026 was $11.3 million, up 43% year-over-year.

• Cash and cash equivalents at quarter-end were $63 million; total debt was $104.8 million at 9.7% interest.

• Market capitalization as of June 30, 2026, was $319.5 million, with share price growth of 359% over five years.

Outlook and guidance

• FY2026 guidance: 3,500–3,900 railcar deliveries, $410–$460 million revenue, and $36–$44 million adjusted EBITDA, reflecting year-over-year declines.

• Second half expected to see higher deliveries and improved profitability as cost savings take effect.

• Capital expenditures for 2026 expected at $7–$10 million, focused on machinery and tank car production.

• Management expects cash balances to be sufficient for at least the next 12 months.