The Greenbrier Companies (GBX) Q2 2026 earnings summary

Executive summary

• Delivered resilient Q2 FY26 results with net earnings of $15 million ($0.47 per diluted share), EBITDA of $61 million (10% of revenue), and strong operating cash flow of $159 million, despite lower deliveries and revenues due to production timing shifts and macroeconomic uncertainty.

• Maintained a robust backlog of 15,200 railcars valued at $2.1 billion, with new orders for 2,900 units and deliveries of 3,800 units in Q2 FY26.

• Increased quarterly dividend by 6% to $0.34 per share, marking the 48th consecutive quarterly dividend.

• Proactive actions included manufacturing footprint rationalization in Europe, a full exit from Turkey, and workforce alignment with demand.

• Strategic focus remains on recurring revenue growth, margin expansion, and return on invested capital.

Financial highlights

• Q2 FY26 revenue was $587.5 million, down from $706.1 million in Q1 FY26 and $762.1 million in Q2 FY25, reflecting lower deliveries and an unfavorable product mix.

• Aggregate gross margin was 11.8%; operating margin was 4.3%; EBITDA reached $61 million (10% of revenue); diluted EPS was $0.47.

• Operating cash flow for Q2 FY26 was $159 million, with cash and cash equivalents at $521.8 million and total liquidity near $1.1 billion.

• Net funded debt was $1,258 million, and total consolidated debt stood at $1,762.7 million as of February 28, 2026.

• Lease fleet utilization remained above 98%, with recurring revenue up 53% year-over-year.

Outlook and guidance

• FY26 guidance: deliveries of 15,350–16,350 units (including ~1,500 from Brazil), revenue of $2.4–$2.5 billion, aggregate gross margin of 14.8%–15.2%, operating margin of 7.0%–7.8%, and EPS of $3.00–$3.50.

• Guidance revised downward from prior estimates due to order timing and a more gradual production ramp-up, not demand changes.

• Capital expenditures for FY26: $80 million for manufacturing, $300 million for lease fleet, and $175 million in expected proceeds from asset sales.

• Q3 expected to be similar to Q2 with modest margin improvement; Q4 to see further sequential improvement.

• Some deliveries and revenue are shifting into fiscal 2027.