FreightCar America, Inc., the Chicago-based manufacturer known for its innovative solutions and strong presence in the freight transportation industry, recently released its financial results for the third quarter of 2024, showcasing significant growth. The company reported extraordinary revenue growth, marking an impressive 83% increase compared to the same quarter last year, driven by heightened production and sales.
Specifically, FreightCar America generated revenues of $113.3 million through the delivery of 961 railcars during the quarter. This is up from $61.9 million on 503 railcar deliveries recorded during the same period in 2023, indicating nearly doubling their operations year-over-year. Notably, this performance highlights the solid demand for their products amid the broader market conditions.
Despite the remarkable revenue growth, the company did experience some financial setbacks. FreightCar America reported a net loss of $107 million, equated to about $3.57 per share. This loss was significantly influenced by a non-cash loss on warrant liability, which totaled approximately $110 million, attributed to the recent increase in the company's share price. This non-recurring expense overshadowed the otherwise positive financial metrics.
On the brighter side, FreightCar America’s adjusted net income stood at $7.3 million, leading to adjusted earnings per share of $0.08. This points to improved operational efficiency and highlights the company's capacity to generate profit under adverse conditions.
The gross profit for the third quarter reached $16.2 million with margins slightly adjusting to 14.3%, down from 14.9% when compared to the same quarter last year. This decline, albeit minor, reflects the challenges posed by fluctuated operational costs and the competitive nature of manufacturing within the railroad industry.
FreightCar America also reported heightened adjusted EBITDA of $10.9 million, which is more than triple the figure from the previous year's third quarter, which was recorded at $3.5 million. This achievement indicates the company's ability to effectively manage its operational expenses and drive profitability.
Ending the quarter with strong momentum, FreightCar America has established a substantial backlog comprising 3,611 units valued at approximately $372 million, signifying solid demand and future revenue potential. This backlog is pivotal as it not only reflects existing demand but also suggests the company's capacity to continue ramping up production to meet market needs.
Nick Randall, the President and CEO of FreightCar America, expressed enthusiasm about the organization's performance and growth strategy by stating, "We again demonstrate the power of our disciplined approach to growth and operational excellence. Delivering another solid quarter for our operating facility reinforces our ability to meet our customers’ needs."
Randall highlighted the operational capabilities and product shipment achievements, crediting the team's commitment to adapting and delivering quality solutions. He is optimistic about the company's standing as it gears up for the fourth quarter, emphasizing their innovative offerings and strategies.
Accompanying this positive outlook, Mike Riordan, the Chief Financial Officer, stated, "Given our strong order activity and delivery performance year to date, we are narrowing and raising the mid-point of our previously issued full-year EBITDA guidance to between $37 million and $39 million."
This update expresses confidence within the company concerning its financial health and performance for the remainder of the fiscal year. Despite the challenges they faced this quarter, the management believes they are positioned well for continued growth and profitability.
FreightCar America’s commitment to innovation and flexibility within manufacturing operations is expected to sustain its growth momentum. With demand across various railcar types continuing to be strong, the company is optimistic about its current and future offerings, emphasizing customer service as pivotal to their operational success.
FreightCar America, established since 1901, has built its reputation on quality railcar production and service. The company specializes not only in the manufacturing of rail cars but also provides repair services, rebody services, and conversions for idled rail assets. This extensive range of services reinforces the company's integral role within the North American supply chain, as rail transport remains one of the primary means of sustaining large-scale goods movement.
The third quarter performance results affirm FreightCar America’s solidified place in the market, illustrating their resilience and adaptability amid fluctuated economic landscapes. The upcoming months are anticipated to be fruitful as they continue to capitalize on existing demand and optimize production capabilities.
With the third quarter of 2024 now behind them, FreightCar America is set to hold their quarterly conference call, inviting stakeholders and interested parties to discuss the details of their earnings report. This call is expected to provide additional insights and details about their ambitions going forward, scheduled to occur on November 12, 2024 at 11:00 AM ET. Investors and analysts can participate through live webcasts available on the company’s official website and will have access to recorded versions afterward.
