Greenbrier trims FY26 gross margin outlook amid deferred North American railcar demand

The Greenbrier Companies

01/07/2026 21:39

Overview
U.S. railcar supplier's fiscal Q3 revenue fell and missed analyst expectations
Aggregate gross margin rose to 14.1% sequentially, driven by improved manufacturing efficiency
Company narrowed FY26 delivery guidance and lowered gross margin outlook

Outlook
Greenbrier now expects FY26 railcar deliveries of 15,650-15,850 units
Company maintains FY26 revenue guidance at $2.4 bln-$2.5 bln
Greenbrier lowers FY26 aggregate gross margin guidance to 13.8%-14.2%

Result Drivers
FEWER DELIVERIES - Revenue decline was primarily due to fewer new railcar deliveries, partly offset by higher maintenance program work
MANUFACTURING EFFICIENCY - Aggregate gross margin rose due to improved manufacturing efficiency and positive product mix
LEASE FLEET GROWTH - Strategic growth of owned lease fleet and strong utilization supported Leasing & Fleet Management segment

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$576.5 mln
$612.69 mln (3 Analysts)
Q3 EPS
 
$0.60
 
Q3 Net Income
 
$19 mln
 
Q3 Gross Margin
 
14.1%
 
Q3 EBITDA
 
$69.1 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."
Wall Street's median 12-month price target for Greenbrier Companies Inc is $43.00, about 12.3% below its June 30 closing price of $49.01
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)