The Greenbrier Companies, Inc. — Fourth Quarter and Fiscal 2026 Earnings Summary

Financial Performance:

• Q4 FY26 revenue was $591.0 million, up from $576.5 million in Q3 FY26, driven by favorable product mix and higher leasing revenue.
• Fiscal 2026 total revenue was $2,461.1 million, down from $3,240.2 million in Fiscal 2025.
• Q4 FY26 aggregate gross margin was $79.8 million (13.5% of revenue), compared to $81.1 million (14.1%) in Q3 FY26, impacted by syndication timing and operational inefficiencies.
• Fiscal 2026 aggregate gross margin was $333.7 million.
• Q4 FY26 earnings from operations were $25.5 million, down from $31.9 million in Q3 FY26, due to facility-related rationalization costs of $4 million and lower aggregate gross margin.
• Fiscal 2026 earnings from operations were $143.6 million, down from $360.1 million in Fiscal 2025.
• Q4 FY26 net earnings attributable to Greenbrier were $9 million ($0.27 per diluted share), including $4 million ($0.12 per share) of facility rationalization costs.
• Q4 FY26 Core net earnings attributable to Greenbrier were $12 million ($0.39 per diluted share).
• Fiscal 2026 net earnings attributable to Greenbrier were $79 million ($2.49 per diluted share), including $4 million ($0.11 per share) of facility rationalization costs.
• Fiscal 2026 Core net earnings attributable to Greenbrier were $83 million ($2.60 per diluted share).
• Q4 FY26 Core EBITDA was $72.3 million (12% of revenue), up from $69.1 million in Q3 FY26.
• Fiscal 2026 Core EBITDA was $300 million (12% of revenue).
• Q4 FY26 operating margin was 4.3%, down from 5.5% in Q3 FY26.
• Fiscal 2026 operating margin was 5.8% (calculated from $143.6M earnings on $2,461.1M revenue).
• Cash and cash equivalents were $235.1 million as of August 31, 2026, down from $273.7 million as of May 31, 2026.
• Total debt was $1,837.4 million as of August 31, 2026, consisting of $771.9 million recourse and $1,065.5 million non-recourse debt.
• Deferred revenue was $64.5 million as of August 31, 2026, up from $61.1 million as of May 31, 2026.
• Net cash provided by operating activities for Fiscal 2026 was $39.6 million, down from $265.7 million in Fiscal 2025.
• Net cash used in investing activities for Fiscal 2026 was $91.1 million.
• Net cash used in financing activities for Fiscal 2026 was $31.3 million.

Guidance and Future Outlook:

• Fiscal 2027 Industry Deliveries guidance is 26,000 to 28,000 units.
• Fiscal 2027 Total Revenue guidance is $2.8 billion to $3.2 billion.
• Fiscal 2027 Operating Margin % guidance is 7.0% to 7.5%.
• Fiscal 2027 EPS guidance is $2.75 to $3.75.
• Fiscal 2027 Total Capital Expenditures, net guidance is $225 million to $275 million.
• Management noted rail traffic increases and elevated diesel prices have boosted inquiries in North America early in Fiscal 2027.
• Management expects order activity to improve despite tariff uncertainty in North American markets, particularly in tank cars.
• The first sequential increase in backlog since Fiscal 2024 represents a pivot by freight shippers toward moving goods by rail in North America.

Business Segments and Product Lines:

• Manufacturing Segment:
  • Q4 FY26 revenue was $538.9 million, up from $529.1 million in Q3 FY26, driven by favorable product mix.
  • Q4 FY26 gross margin % was 9.2%, down from 9.9% in Q3 FY26, due to syndication timing and operational inefficiencies.
  • Q4 FY26 earnings from operations were $21.1 million, down from $30.4 million in Q3 FY26, impacted by $4 million in facility rationalization costs and lower gross margin.
  • Fiscal 2026 Manufacturing revenue was $2,266.5 million.
  • Q4 FY26 deliveries were 3,200 units.
• Leasing & Fleet Management Segment:
  • Q4 FY26 revenue was $52.1 million, up from $47.4 million in Q3 FY26, driven by lease fleet growth, partially offset by lower interim rent on railcars held for syndication.
  • Q4 FY26 gross margin % was 57.6%, down from 60.3% in Q3 FY26, due to higher fleet maintenance expense, partially offset by lease fleet growth.
  • Q4 FY26 earnings from operations were $30.4 million, up from $29.2 million in Q3 FY26.
  • Owned lease fleet grew 23% in Fiscal 2026 to 20,900 units, maintaining 98% utilization.
  • Fiscal 2026 Leasing & Fleet Management revenue was $194.6 million.
• Backlog and Orders:
  • Q4 FY26 new railcar orders were 3,400 units valued at $600 million.
  • Q4 FY26 deliveries were 3,600 units.
  • New railcar backlog was 14,000 units with an estimated value of $2.1 billion as of August 31, 2026.
  • Approximately 2,200 railcars underwent programmatic restoration work during Fiscal 2026, supporting volume and fixed cost absorption (not included in backlog).
• Syndication:
  • Effective September 1, 2025, syndication activity is reflected in the Manufacturing segment.

Market and Competitive Landscape:

• Tariff uncertainty in North American markets, particularly in tank cars, triggered delays in long-lived railcar investment decisions.
• Freight shippers are pivoting toward moving goods by rail in North America.
• Elevated diesel prices are boosting inquiries for rail access.
• Greenbrier is a leading international supplier of equipment and services to global freight transportation markets, operating in North America, Europe, and Brazil.

Risks and Challenges:

• Tariff uncertainty and potential changes to import duties, including retaliatory tariffs.
• Economic downturns and macroeconomic uncertainty.
• Inflation, including rising energy prices, interest rates, and wages.
• Supply chain disruptions for materials and components.
• Labor disputes.
• Loss of market share to other freight shipment modes.
• Geopolitical unrest, including the war in Ukraine and conflict in the Middle East.
• Backlog orders are subject to customary documentation which may not occur.

Management Commentary and Tone:

• CEO Lorie L. Tekorius stated that order activity improved in Q4 despite tariff uncertainty.
• Management highlighted the first sequential backlog increase since Fiscal 2024 as a sign of shippers moving goods by rail.
• Tekorius noted the lease fleet growth to nearly 21,000 units with 98% utilization establishes a recurring revenue base supporting results across market conditions.
• Management emphasized a focus on operational execution, cost management, and disciplined growth of the lease fleet to improve through-cycle performance and drive long-term shareholder value.

Other Key Points:

• Returned $56 million to shareholders in Fiscal 2026 through dividends and share repurchases.
• Board approved a quarterly dividend of $0.34 per share, payable on December 2, 2026, to shareholders of record as of November 11, 2026.
• This dividend represents Greenbrier's 50th consecutive quarterly dividend.
• Fiscal 2026 Capital Expenditures were $279.3 million.
• Fiscal 2026 Stock repurchases totaled $13.4 million.
• Fiscal 2026 Dividends paid totaled $42.6 million.
• Fiscal 2026 Net gain on disposition of equipment was $38.4 million.
• Fiscal 2026 Depreciation and amortization was $130.3 million.
• Fiscal 2026 Effective tax rate was 6.5% for Q4 and 21.7% for the full year (calculated from $17.4M tax on $78.6M pre-tax earnings).