• Announces orders of 6,000 railcars valued at over $600 million
  • Backlog grows; Book-to-bill of 1.1x
  • Reaffirms FY 2018 earnings guidance

LAKE OSWEGO, Ore. - The Greenbrier Companies, Inc. (NYSE: GBX) today reported financial results for its third fiscal quarter ended May 31, 2018.

Third Quarter Highlights

  • Net earnings attributable to Greenbrier for the quarter were $33.0 million, or $1.01 per diluted share, on revenue of $641.4 million.  Quarterly results include $9.5 million, net of tax, ($0.29 per share) impact associated with a non-cash goodwill impairment charge recorded by GBW, our 50/50 joint venture with Watco Companies, LLC. 
  • Adjusted net earnings attributable to Greenbrier for the quarter were $42.4 million, or $1.30 per diluted share. 
  • Adjusted EBITDA for the quarter was $86.9 million, or 13.6% of revenue. 
  • Orders for 6,000 diversified railcars were received during the quarter, valued at over $600 million. Book-to-bill of 1.1x is the highest since May 2017. 
  • New railcar backlog as of May 31, 2018 was 24,200 units with an estimated value of $2.3 billion. 
  • New railcar deliveries totaled 5,600 units for the quarter. 
  • Board declares quarterly dividend of $0.25 per share, payable on August 9, 2018 to shareholders as of July 19, 2018. 
  • Cash provided by operating activities was $87.3 million for the quarter. 
  • Annual earnings guidance of $5.00 per diluted share is reaffirmed.  Guidance excludes $0.29 per share related to the goodwill impairment and includes the Q2 $0.70 per share non-recurring net benefit from the 2017 Tax Cut and Jobs Act ("Tax Act"). 

William A. Furman, Chairman and CEO, said, "Greenbrier produced strong operating and financial results in the third fiscal quarter, highlighted by healthy gross margins, a strong balance sheet and the highest quarterly order activity this fiscal year.  Greenbrier's strategy is to strengthen core North American markets while making demonstrable advancements in international railcar markets.  This strategy is succeeding.  With North American railcar loadings increasing and improving indicators for the U.S. and global economies, current industry fundamentals remain favorable for most of Greenbrier's business segments. GBW continues to underperform expectations.  We intend to eliminate this headwind to Greenbrier's financial performance and will soon share plans to resolve GBW's challenges."

Furman continued, "We are encouraged by the 6,000 new railcar orders we received in the third quarter.  Order activity continues to be broad-based and diversified, originating primarily in the improving North American market.  Looking forward, we expect to see continued order strength in North America and internationally, but do not expect order activity to be linear.  Backlog is a key indicator of future earnings and cash flow generation.  At quarter-end, Greenbrier had diversified backlog of 24,200 units with an estimated value of $2.3 billion."

Furman concluded, "Greenbrier's flexibility and creativity allow us to navigate the current market environment successfully.  We remain confident in our long-term strategy and integrated business model.  We are narrowing and reaffirming the guidance targets laid out earlier in the year."