Open the filing on EDGARFreightCar America, Inc. Reports Third Quarter 2026 Results
Backlog Value Up 28% Year over Year Aftermarket Revenue Growth of 65% Year over Year
Reaffirms Fiscal Year 2026 Outlook Provided on October 19
CHICAGO, November 9, 2026 - FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the third quarter ended September 30, 2026. Third quarter results were consistent with the preliminary results the Company announced on October 19, 2026.
Third Quarter 2026 Highlights
Revenues of $76.5 million, compared to $160.5 million in the third quarter of 2025, with railcar deliveries of 662 units compared to 1,304 units in the prior year period
Aftermarket revenues grew 65% year over year, reflecting continued organic growth in parts and components and the contribution from our recent acquisitions
Gross margin of 8.8% with gross profit of $6.7 million, compared to gross margin of 15.1% with gross profit of $24.2 million in the third quarter of 2025
Recorded a $4.7 million non-cash gain related to the change in fair market value of the warrant liability, resulting in net income of $8 thousand, or $0.00 per diluted share, and adjusted net loss of $9.5 million, or $(0.28) per diluted share, compared to adjusted net income of $7.8 million, or $0.24 per diluted share, in the prior year period
Adjusted EBITDA of $0.1 million, representing a margin of 0.2%, compared to $15.9 million and a margin of 9.9% in the third quarter of 2025
Ended the quarter with a backlog of 2,660 units valued at $284.5 million, up 28% from $222.0 million at September 30, 2025
Completed the acquisition of Trinity Equipment Company following quarter end, expanding our aftermarket platform and marking our third transaction in less than a year
“While our third quarter results reflect a challenging period for the business, they were consistent with the preliminary figures we reported in October,” said Nick Randall, President and Chief Executive Officer of FreightCar America. “We continued to make progress on our commercial priorities, with order intake through the first nine months exceeding our total for all of 2025 and backlog value up 28% year over year. Following quarter end, we completed our third aftermarket acquisition, further expanding our parts and components offering.”
Randall continued, “Looking ahead, some industry indicators are improving, although we have yet to see that translate into broader growth in railcar demand. Our backlog provides visibility into planned production, and our focus remains on disciplined execution, cost control and converting orders into profitable deliveries. We continue to integrate our acquisitions and grow our aftermarket business, while maintaining the manufacturing flexibility to respond to changes in customer demand.”
Fiscal Year 2026 Outlook
The Company is reaffirming its outlook for fiscal year 2026, as provided on October 19, 2026:
| Fiscal 2026 Outlook |
|---|
| Railcar Deliveries | 3,100 - 3,300 railcars |
| Revenue | $370 - $410 million |
| Adjusted EBITDA1 | $15 - $19 million |
1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.
Mike Riordan, Chief Financial Officer of FreightCar America, added, “Our balance sheet remains solid, with no borrowings under our revolving credit facility. Our cost structure has improved, and our aftermarket business is contributing a growing share of our results. Integration of our acquired businesses is on track, and our most recent acquisition is expected to be immediately accretive, consistent with our capital allocation priorities. With our full-year outlook unchanged, our focus is on converting our backlog into profitable deliveries.”
Third Quarter 2026 Conference Call & Webcast Information
The Company will host a conference call and live webcast on Tuesday, November 10, 2026, at 11:00 a.m. (Eastern Time) to discuss its third quarter 2026 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:
November 10, 2026
11:00 a.m. Eastern Time
Phone: 1-877-407-0789 or 1-201-689-8562
Webcast access: FreightCar America Third Quarter 2026 Earnings Conference Call - 1778357
An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, November 10, 2026, until 11:59 p.m. (Eastern Time) on Tuesday, November 24, 2026. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13763137. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.
About FreightCar America
FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.
Forward-Looking Statements
Forward-looking statements notice
This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; our ability to successfully integrate acquired businesses and realize the anticipated benefits of acquisitions; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, and Free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.
Condensed Consolidated Balance Sheets
(In thousands, except for share data)
(Unaudited)
| September 30, 2026 | December 31, 2025 |
|---|
| Assets | |
| Current assets | | |
| Cash, cash equivalents and restricted cash equivalents | $86,759 | $64,295 |
| Accounts receivable, net | 19,055 | 12,443 |
| VAT receivable | 6,007 | 6,097 |
| Inventories, net | 80,408 | 68,295 |
| Prepaid expenses and other current assets | 11,671 | 8,875 |
| Total current assets | 203,900 | 160,005 |
| Property, plant and equipment, net | 27,117 | 30,969 |
| Right of use asset lease | 38,913 | 40,281 |
| Intangibles, net | 5,035 | 4,877 |
| Deferred income taxes | 53,200 | 52,970 |
| Other long-term assets | 823 | 947 |
| Total assets | $328,988 | $290,049 |
| Liabilities and Stockholders’ Equity (Deficit) | | |
| Current liabilities | | |
| Accounts and contractual payables | $108,709 | $55,671 |
| Accrued payroll and other employee costs | 5,715 | 9,110 |
| Accrued warranty | 957 | 2,050 |
| Customer deposits | 15,658 | - |
| Deferred revenue | - | 539 |
| Current portion of long-term debt | 2,875 | 9,728 |
| Lease liability, current | 1,945 | 1,888 |
| Other current liabilities | 6,003 | 6,611 |
| Total current liabilities | 141,862 | 85,597 |
| Long-term debt, net of current portion | 97,538 | 97,514 |
| Warrant liability | 9,306 | 168,529 |
| Accrued pension costs | 877 | 1,256 |
| Lease liability, long-term | 41,775 | 43,233 |
| Other long-term liabilities | 1,301 | 1,333 |
| Total liabilities | 292,659 | 397,462 |
| Stockholders’ equity (deficit) | | |
| Common stock | 358 | 221 |
| Additional paid-in capital | 205,364 | 72,557 |
| Accumulated other comprehensive income | 1,568 | 2,324 |
| Accumulated deficit | (170,961) | (182,515) |
| Total stockholders’ equity (deficit) | 36,329 | (107,413) |
| Total liabilities and stockholders’ equity (deficit) | $328,988 | $290,049 |
Condensed Consolidated Statements of Operations
(In thousands, except for share and per share data)
(Unaudited)
| Three Months Ended | Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Revenues | $76,488 | $160,511 | $253,934 | $375,424 |
| Cost of sales | 69,792 | 136,306 | 230,257 | 319,004 |
| Gross profit | 6,696 | 24,205 | 23,677 | 56,420 |
| Selling, general and administrative expenses | 9,752 | 9,647 | 31,623 | 30,284 |
| Operating (loss) income | (3,056) | 14,558 | (7,946) | 26,136 |
| Interest expense | (3,136) | (4,638) | (9,557) | (13,356) |
| Gain (loss) in fair market value of warrant liability | 4,671 | (17,589) | 28,886 | (12,331) |
| Other (expense) income | (54) | 78 | (78) | 3,235 |
| (Loss) income before income taxes | (1,575) | (7,591) | 11,305 | 3,684 |
| Income tax benefit | (1,583) | (146) | (249) | (50,998) |
| Net income (loss) | $8 | $(7,445) | $11,554 | $54,682 |
| Net earnings (loss) per common share - basic | $0.00 | $(0.23) | $0.35 | $1.66 |
| Net earnings (loss) per common share - diluted | $0.00 | $(0.23) | $0.32 | $1.57 |
| Weighted average common shares outstanding - basic | 32,094,098 | 31,887,926 | 31,987,628 | 31,778,768 |
| Weighted average common shares outstanding - diluted | 35,214,095 | 31,887,926 | 35,459,764 | 33,738,478 |
Condensed Consolidated Segment Information
(In thousands)
(Unaudited)
| Three Months Ended | Three Months Ended |
|---|
| September 30, 2026 | September 30, 2025 |
|---|
| Manufacturing | Aftermarket | Total | Manufacturing | Aftermarket | Total |
|---|
| Revenues | $65,687 | $10,801 | $76,488 | $153,956 | $6,555 | $160,511 |
| Cost of sales | 63,798 | 5,994 | | 131,789 | 4,517 | |
| Segment gross profit | $1,889 | $4,807 | $6,696 | $22,167 | $2,038 | $24,205 |
| Other segment items | 348 | 833 | | 437 | 554 | |
| Segment income | $1,541 | $3,974 | $5,515 | $21,730 | $1,484 | $23,214 |
Other segment items in Manufacturing and Aftermarket segments include selling, general and administrative expenses.
| Nine Months Ended | Nine Months Ended |
|---|
| September 30, 2026 | September 30, 2025 |
|---|
| Manufacturing | Aftermarket | Total | Manufacturing | Aftermarket | Total |
|---|
| Revenues | $222,926 | $31,008 | $253,934 | $354,888 | $20,536 | $375,424 |
| Cost of sales | 210,435 | 19,822 | | 305,685 | 13,319 | |
| Segment gross profit | $12,491 | $11,186 | $23,677 | $49,203 | $7,217 | $56,420 |
| Other segment items | 1,311 | 2,728 | | 1,196 | 1,630 | |
| Segment income | $11,180 | $8,458 | $19,638 | $48,007 | $5,587 | $53,594 |
Other segment items in Manufacturing and Aftermarket segments include selling, general and administrative expenses.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Nine Months Ended September 30, |
|---|
| 2026 | 2025 |
|---|
| Cash flows from operating activities | |
| Net income | $11,554 | $54,682 |
| Adjustments to reconcile net income to net cash flows provided by operating activities: | | |
| Depreciation and amortization | 5,599 | 4,598 |
| Non-cash lease expense on right of use assets | 1,368 | 2,320 |
| (Gain) loss on change in fair market value for Warrant liability | (28,886) | 12,331 |
| Stock-based compensation recognized | 2,862 | 3,134 |
| Bargain purchase gain | (152) | - |
| Deferred income taxes | (230) | (48,496) |
| Other non-cash items, net | 434 | 6,655 |
| Changes in operating assets and liabilities: | | |
| Accounts receivable | (6,612) | (20,008) |
| VAT receivable | 329 | (1,538) |
| Inventories | (9,853) | (27,906) |
| Accounts and contractual payables | 50,997 | 47,702 |
| Income taxes payable, net | (1,792) | (7,478) |
| Customer deposits | 15,658 | 8,176 |
| Other assets and liabilities | (8,154) | (9,440) |
| Net cash flows provided by operating activities | 33,122 | 24,732 |
| Cash flows from investing activities | | |
| Acquisitions | (945) | - |
| Purchase of property, plant and equipment | (1,228) | (2,102) |
| Proceeds from sale of assets held for sale, net of selling costs | - | 585 |
| Net cash flows used in investing activities | (2,173) | (1,517) |
| Cash flows from financing activities | | |
| Deferred financing costs | - | (1,336) |
| Borrowings on revolving line of credit | 8,000 | - |
| Repayments on revolving line of credit | (8,000) | - |
| Repayments on term loan | (8,049) | (2,156) |
| Employee stock settlement | (436) | (487) |
| Financing lease payments | - | (943) |
| Net cash flows used in financing activities | (8,485) | (4,922) |
| Net increase in cash and cash equivalents | 22,464 | 18,293 |
| Cash, cash equivalents and restricted cash equivalents at beginning of period | 64,295 | 44,450 |
| Cash, cash equivalents and restricted cash equivalents at end of period | $86,759 | $62,743 |
| Supplemental cash flow information | | |
| Interest paid | $8,284 | $7,196 |
| Income taxes paid | $1,381 | $5,143 |
| Change in unpaid construction in process | $(47) | $597 |
| Contingent consideration recognized in connection with acquisition | $344 | $ - |
| Exercise of warrants | $130,337 | $ - |
Reconciliation of (Loss) income before taxes to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (Loss) income before income taxes | $(1,575) | $(7,591) | $11,305 | $3,684 |
| Depreciation & Amortization | 1,887 | 1,552 | 5,599 | 4,598 |
| Interest Expense, net | 3,136 | 4,638 | 9,557 | 13,356 |
| EBITDA | 3,448 | (1,401) | 26,461 | 21,638 |
| Change in Fair Value of Warrant | (4,671) | 17,589 | (28,886) | 12,331 |
| Productivity Initiatives | - | - | 2,202 | - |
| Professional Services | 415 | 477 | 1,286 | 477 |
| Acquisition & Integration Costs | 97 | - | 458 | - |
| Lease payments in Interest | - | (1,149) | - | (2,788) |
| Stock Based Compensation | 790 | 433 | 2,862 | 3,134 |
| Other, net | 54 | (78) | 78 | (3,235) |
| Adjusted EBITDA | $133 | $15,871 | $4,461 | $31,557 |
EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.
Adjusted EBITDA represents EBITDA before the following charges:
(a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment.
(c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
(d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
(e) Represents lease payments recorded within Interest expense due to certain leases previously classified as financing prior to December 2025.
We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.
Reconciliation of Net (Loss) income and Adjusted net income (loss)
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Net (loss) income | $8 | $(7,445) | $11,554 | $54,682 |
| Change in Fair Value of Warrant | (4,671) | 17,589 | (28,886) | 12,331 |
| Productivity Initiatives | - | - | 2,202 | - |
| Professional Services | 415 | 477 | 1,286 | 477 |
| Acquisition & Integration Costs | 97 | - | 458 | - |
| Stock Based Compensation | 790 | 433 | 2,862 | 3,134 |
| Release of Valuation Allowance | - | - | - | (51,872) |
| Other, net | 54 | (78) | 78 | (3,235) |
| Total non-GAAP adjustments | (3,315) | 18,421 | (22,000) | (39,165) |
| Income tax impact on non-GAAP adjustments | (6,222) | (3,184) | (382) | (2,279) |
| Adjusted net (loss) income | $(9,529) | $7,792 | $(10,828) | $13,238 |
Adjusted net (loss) income represents net (loss) income before the following charges:
(a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment.
(c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
(d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
(e) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
(f) Income tax impact on non-GAAP adjustments represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.
We believe that Adjusted net income is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net income is not necessarily comparable to that of other similarly titled measures reported by other companies.
Reconciliation of Diluted EPS and Adjusted EPS
(In dollars per share)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Diluted EPS | $0.00 | $(0.23) | $0.32 | $1.57 |
| Change in Fair Value of Warrant | $(0.13) | $0.55 | $(0.81) | $0.37 |
| Productivity Initiatives | - | - | 0.06 | - |
| Professional Services | 0.01 | 0.01 | 0.04 | 0.01 |
| Acquisition & Integration Costs | - | - | 0.01 | - |
| Stock Based Compensation | 0.02 | 0.01 | 0.08 | 0.09 |
| Release of Valuation Allowance | - | - | - | (1.54) |
| Other, net | - | - | - | (0.10) |
| Total non-GAAP adjustments pre-tax per-share | (0.10) | 0.57 | (0.62) | (1.17) |
| Income tax impact on non-GAAP adjustments per share | (0.18) | (0.10) | (0.01) | (0.07) |
| Adjusted EPS | $(0.28) | $0.24 | $(0.31) | $0.33 |
Adjusted EPS represents diluted EPS before the following charges:
(a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment.
(c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
(d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
(e) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
(f) Income tax impact on non-GAAP adjustments per share represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.
We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.
Reconciliation of Cash flows provided by operating activities and Free cash flow
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Cash flows provided by operating activities | $ 25,356 | $ 3,410 | $ 33,122 | $ 24,732 |
| Purchase of property, plant and equipment | (345) | (1,164) | (1,228) | (2,102) |
| Free cash flow | 25,011 | 2,246 | 31,894 | 22,630 |
Free cash flow represents the amount of Cash flows provided by operating activities less capital expenditures.
We believe that Free cash flow is useful to investors evaluating our operating performance compared to that of other companies in our industry because these metrics provide key insights into the potential for growth and ability to generate returns for investors. Free cash flow is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Free cash flow in isolation or as a substitute for Cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Free cash flow is not necessarily comparable to that of other similarly titled measures reported by other companies.
Contacts
chris@jbgcapadvisory.com