Greenbrier Companies (NYSE:GBX) reported what executives described as “resilient” fiscal second-quarter 2026 results, emphasizing improved profitability at lower delivery volumes and a strengthened balance sheet, while also updating its full-year outlook to reflect a slower production ramp due to delivery timing shifts into early fiscal 2027.
Management cites “higher lows” as deliveries shift out
CEO and President Lorie Tekorius said sequential deliveries and revenue fell as expected, consistent with production schedules exiting the first quarter. “Notably, though, aggregate gross margin and earnings exceeded prior periods with similar delivery levels,” Tekorius said, adding that structural operational improvements over the past several years are helping the company deliver “better financial performance on lower volumes and achieve what we like to call higher lows.”
Tekorius said longer customer decision-making in North America and Europe has shifted production timing, pushing some deliveries from the second half of fiscal 2026 into fiscal 2027. She said the company remains “confident in market fundamentals” and expects order constraints to loosen in the near term, noting that customer commitments increased as the company entered March.
Orders, backlog, and leasing activity
Executive Vice President and President of the Americas Brian Comstock said Greenbrier received “broad-based orders for approximately 2,900 new railcars globally,” with demand concentrated in North America and supported by leasing activity. He said the company ended the quarter with a backlog of approximately 15,200 railcars valued at $2.1 billion.
Comstock highlighted the contribution of leasing to order flow. “Importantly, more than half of our orders in the quarter were driven by lease originations,” he said, describing lease originations as key to lease fleet growth and manufacturing stability.
Leasing and fleet management remained strong, according to Comstock, with fleet utilization above 98% and “strong” retention and renewal rates. He also pointed to a $300 million ABS financing completed in February that he said drew “incredibly strong demand from investors, resulting in favorable terms.”
Comstock said Greenbrier continues to optimize its portfolio via asset sales, supported by what he called a strong secondary market for railcar equipment. While the lease fleet was “modestly lower” than the first quarter due to timing of asset sales and new additions, he said the company expects to finish fiscal 2026 with “over 20,000 railcars” in its lease fleet.
Manufacturing adjustments and European footprint changes
Comstock said manufacturing results were affected by a planned two-week holiday shutdown for maintenance. He added that Greenbrier is moderating production and “rightsiz[ing]” parts of its workforce to align capacity with demand while maintaining flexibility.
In Europe, Tekorius said the operating environment is driving footprint rationalization in Poland and Romania and includes “a full exit from Turkey.” She later explained that, after evaluating the company’s capabilities across its existing footprint, Turkey was “not necessary” and that “the logistics transportation distance just made it not be feasible anymore in support of our operations in Romania and Poland.”
Comstock said the European optimization actions are expected to generate about $20 million in annualized savings once completed.
Quarterly financial results and liquidity
Senior Vice President and CFO Michael Donfris reported second-quarter revenue of $588 million, which he attributed to the timing of deliveries in North America and Europe. Aggregate gross margin was 11.8%, and earnings from operations were $25 million, or 4.3% of revenue. Donfris said leasing and fleet management and syndication activity “partially offset” lower fixed overhead absorption and a less favorable manufacturing product mix.
The effective tax rate was 14.9%, which Donfris said was driven primarily by discrete items related to foreign exchange impacts, “particularly the strengthening of the Mexican peso.” Diluted earnings per share were $0.47, and EBITDA was $61 million, or 10.3% of revenue.
Donfris said Greenbrier ended the quarter with total liquidity of over $1 billion—“the highest level in Greenbrier history”—including approximately $520 million in cash and $560 million in available borrowing capacity. Operating cash flow was approximately $159 million, supported by earnings and working capital management.
The company also increased its quarterly dividend 6% to $0.34 per share, which Donfris said marked its 48th consecutive quarterly dividend. Through the first half of fiscal 2026, Greenbrier repurchased $13 million of common stock, with about $65 million remaining under authorization at quarter-end.
Updated fiscal 2026 guidance and cadence expectations
Donfris said the company updated its fiscal 2026 outlook to reflect “a more gradual production ramp-up,” driven by order timing and delivery shifts into early fiscal 2027 rather than a change in underlying demand. He said aggregate gross margin performance remains aligned with long-term targets.
Greenbrier’s updated fiscal 2026 guidance includes:
- New railcar deliveries: 15,350 to 16,350 units (including ~1,500 units from Greenbrier-Maxion Brazil)
- Total revenue: $2.4 billion to $2.5 billion
- Aggregate gross margin: 14.8% to 15.2%
- Operating margin: 7% to 7.8%
- EPS: $3.00 to $3.50
Donfris said the company continues to anticipate about a $30 million reduction in SG&A versus the prior year, and that manufacturing capital expenditures remain unchanged at $80 million.
He also raised the company’s forecast for gross investment in leasing and fleet management to roughly $300 million from $205 million, citing secondary market opportunities. Proceeds from equipment sales are forecast at $175 million as Greenbrier continues to optimize its lease fleet.
On quarterly cadence, Donfris said the third quarter is expected to be similar to the second quarter in deliveries, with “modest sequential improvement” in aggregate gross margin. He said the fourth quarter is expected to improve sequentially in both deliveries and gross margin.
During Q&A, management addressed questions about market share and backlog levels. Tekorius and Comstock said they are not seeing share decline, but are seeing timing delays amid uncertainty. Comstock described some projects being pushed back “about 4-6 weeks,” moving into “late August” and “early September.” He also said order cadence has been relatively consistent in recent quarters and that the company has already seen “a significant uptick in March.”
Executives also discussed leasing margins and secondary market gains. Donfris said leasing margins should “continue in that low 60% range,” and Tekorius said gains on sale are a normal part of maintaining a lease fleet, but that the second half is expected to be “more of an investment in our lease fleet as opposed to secondary market sales,” with gains likely “less than in the first half.”
Tekorius also briefly commented on rail industry merger discussions, saying that if mergers benefit shippers and grow freight rail’s modal share, “it’s a bigger pie for all of us.”
About Greenbrier Companies (NYSE:GBX)
The Greenbrier Companies, headquartered in Lake Oswego, Oregon, is a leading supplier of freight transportation equipment and services. The company designs, engineers and manufactures railroad freight cars—such as intermodal well cars, covered hoppers, tank cars and double-stack cars—as well as marine barges for domestic and international customers. Beyond original equipment production, Greenbrier provides aftermarket services including maintenance, repair, refurbishment and mechanical overhauls under long-term service agreements.
Greenbrier’s operations are organized into OEM and aftermarket segments, with manufacturing facilities and engineering centers across North America, Europe and Russia.
