Breaking Down The Greenbrier Companies, Inc. (GBX) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial performance of The Greenbrier Companies, Inc. (GBX)? Let's delve into some key figures from the fiscal year 2024. The company reported $3.5 billion in revenue and net earnings of $160 million, which translates to $4.96 per diluted share. But how does this translate into the overall financial health of the company, and what are the critical factors driving these results? Keep reading to find out more about Greenbrier's financial standing!

The Greenbrier Companies, Inc. (GBX) Revenue Analysis

Understanding The Greenbrier Companies, Inc. (GBX)'s financial health requires a close examination of its revenue streams. As a leading international supplier of equipment and services to the global freight transportation market, GBX's revenue is derived from various sources, including manufacturing, leasing, and services.

Breakdown of Primary Revenue Sources:

• Manufacturing: This segment generates revenue from producing freight railcars, tank cars, intermodal railcars, automotive railcar products, sustainable conversions, and railcar maintenance services.
• Leasing & Fleet Management: Revenue is derived from leasing railcars, fleet management services, and syndication activities. The company’s lease fleet has grown, with a high utilization rate, contributing to stable revenue.

The company has strategically combined its Maintenance Services and Manufacturing segments into a single reportable segment named Manufacturing and has renamed the Leasing & Management Services reportable segment to Leasing & Fleet Management effective September 1, 2024.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and market dynamics. While GBX has experienced fluctuations in its revenue, recent data shows a mix of growth and decline.

According to latest data, The Greenbrier Companies had revenue of $762.10M in the quarter ending February 28, 2025, a decrease of -11.66%. This brings the company's revenue in the last twelve months to $3.51B, down -5.79% year-over-year.

Historical revenue trends show:

Contribution of Different Business Segments to Overall Revenue:

The revenue contribution from different business segments highlights the significance of each area to the company's overall financial performance. In Q1 2024, the contributions were:

• Manufacturing: 94.02% of total revenue
• Leasing Fleet Management: 6.36% of total revenue
• InterEliminations: -0.34% of total revenue

Analysis of Any Significant Changes in Revenue Streams:

Several factors have influenced recent changes in GBX's revenue streams:

• Market Conditions: A shift away from long-term speculative orders from leasing companies due to the COVID-19 pandemic and volatile interest rates has impacted the North American market.
• Strategic Initiatives: GBX is focused on growing recurring revenue from its leasing platform and improving margins in its core manufacturing business.
• Operational Efficiency: Production adjustments, including the closure of a European facility, are aimed at optimizing capacity and improving margins.
• Product Mix: A shift from higher-priced auto railcars to lower-priced products has resulted in a sequential drop in the average selling price per railcar, potentially impacting overall margins.

GBX's ability to adapt to changing market dynamics and execute its strategic initiatives will be crucial for sustaining and growing its revenue streams in the future. The company's focus on efficiency, diversification, and customer needs positions it to navigate challenges and capitalize on opportunities in the global freight transportation market. You might also be interested in: Breaking Down The Greenbrier Companies, Inc. (GBX) Financial Health: Key Insights for Investors

The Greenbrier Companies, Inc. (GBX) Profitability Metrics

Analyzing The Greenbrier Companies, Inc. (GBX) profitability involves examining several key metrics that provide insights into its financial health. These include gross profit, operating profit, and net profit margins. By assessing these figures and their trends over time, we can gauge the company's efficiency in generating profits from its revenue.

Here's an overview of GBX's profitability metrics:

• Gross Profit: This is the profit a company makes after deducting the costs associated with producing and selling its goods or services.
• Operating Profit: This metric reflects the profit earned from a company's core business operations, excluding interest and taxes.
• Net Profit: This is the profit remaining after all expenses, including interest, taxes, and other overheads, have been deducted from total revenue.

To provide a comprehensive view, it's essential to evaluate these profitability ratios against industry averages. Comparing GBX's performance with its peers can highlight its competitive positioning and identify areas for improvement. A thorough analysis also includes assessing operational efficiency through metrics like cost management and gross margin trends, offering a detailed understanding of how well the company controls its expenses and maximizes its earnings. For insights into the company's long-term goals and values, refer to the Mission Statement, Vision, & Core Values of The Greenbrier Companies, Inc. (GBX).

For the fiscal year 2024, The Greenbrier Companies reported a net earnings of $144.2 million, or $4.34 per share, on revenue of $4.0 billion. New railcar orders for the year totaled 13,400 units, with a book-to-bill ratio of 1.0. As of August 31, 2024, Greenbrier's backlog stood at 25,000 units with an estimated value of $3.0 billion.

The Greenbrier Companies’ financial results for the fourth fiscal quarter of 2024 included orders for 4,400 new railcars with a value of $560 million, and 2,400 new railcars delivered. The company reported revenue of $947.3 million and net earnings of $33.7 million, equivalent to $1.02 per diluted share.

The following table outlines key aspects of Greenbrier’s Q4 2024 results:

Greenbrier's strategic focus includes inorganic growth, such as acquisitions and international expansion, alongside organic growth. They also emphasize returning capital to shareholders, as demonstrated by consistent dividend payouts and share repurchases. These factors collectively influence the financial stability and potential returns for investors.

The Greenbrier Companies, Inc. (GBX) Debt vs. Equity Structure

Understanding how The Greenbrier Companies, Inc. (GBX) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity funding.

As of the fiscal year 2024:

• The Greenbrier Companies, Inc. (GBX) had a total debt of $2.99 billion.
• The long-term debt was reported as $2.71 billion.
• The short-term debt or current portion of long-term debt stood at $275.42 million.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. As of the most recent data, The Greenbrier Companies, Inc. (GBX) debt-to-equity ratio is approximately 2.84. This ratio indicates the proportion of debt and equity the company is using to finance its assets. A higher ratio suggests that the company relies more on debt, which can amplify both profits and losses.

Here’s a detailed breakdown of the company's debt components:

• Total Debt: $2.99 billion
• Long-Term Debt: $2.71 billion
• Short-Term Debt: $275.42 million
• Debt-to-Equity Ratio: 2.84

Recent financial activities, such as debt issuances, credit ratings, and refinancing, play a significant role in shaping the company's capital structure. While specific details on recent debt issuances and refinancing activities would require up-to-date information, monitoring these aspects helps in understanding the company's strategic financial decisions.

Balancing debt and equity is vital for sustainable growth. The Greenbrier Companies, Inc. (GBX) manages this balance by:

• Carefully assessing market conditions to optimize financing costs.
• Maintaining a mix of short-term and long-term debt to manage liquidity and interest rate risks.
• Strategically using equity to fund specific projects or reduce overall leverage.

Here is a summary of Greenbrier Companies, Inc.'s (GBX) debt and equity structure:

Understanding these elements provides investors with a clearer picture of The Greenbrier Companies, Inc. (GBX)'s financial strategy and its implications for future performance.

To gain more insight into the values that drive The Greenbrier Companies, Inc. (GBX), check out: Mission Statement, Vision, & Core Values of The Greenbrier Companies, Inc. (GBX).

The Greenbrier Companies, Inc. (GBX) Liquidity and Solvency

Understanding The Greenbrier Companies, Inc. (GBX)'s financial health requires a close look at its liquidity and solvency, which indicate its ability to meet short-term obligations and long-term debts, respectively. These metrics are vital for investors assessing the company's financial stability and risk profile. For an overview, refer to: Breaking Down The Greenbrier Companies, Inc. (GBX) Financial Health: Key Insights for Investors.

Assessing The Greenbrier Companies, Inc. (GBX)'s Liquidity:

Liquidity ratios provide insights into a company's ability to cover its short-term liabilities with its current assets. Two key ratios are the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A ratio above 1 indicates that a company has more current assets than current liabilities, suggesting good liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, excludes inventories from current assets, offering a more conservative view of liquidity. It is calculated as (Current Assets - Inventory) / Current Liabilities.

Working Capital Trends:

Monitoring working capital trends is crucial. Working capital is the difference between a company's current assets and current liabilities. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Analyzing the changes in working capital over time can reveal whether a company's liquidity position is improving or deteriorating.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at how a company generates and uses cash. It is divided into three main sections:

• Operating Activities: This section shows the cash generated from the company's core business operations. A positive and growing cash flow from operations is a healthy sign.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flows related to debt, equity, and dividends. It shows how the company is financing its operations and returning value to shareholders.

Potential Liquidity Concerns or Strengths:

When evaluating The Greenbrier Companies, Inc. (GBX)'s liquidity, consider the following points:

• Consistent Positive Cash Flow: A company that consistently generates positive cash flow from operations is generally in a strong liquidity position.
• Ability to Meet Obligations: The ability to meet current liabilities without difficulty indicates good liquidity.
• Management of Working Capital: Efficient management of working capital, including inventory and accounts receivable, can improve liquidity.

By analyzing these key areas, investors can gain a comprehensive understanding of The Greenbrier Companies, Inc. (GBX)'s liquidity position and its ability to meet its short-term obligations.

The Greenbrier Companies, Inc. (GBX) Valuation Analysis

Assessing whether The Greenbrier Companies, Inc. (GBX) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

As of the fiscal year 2024:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, which compares a company's stock price to its earnings per share, is a crucial metric for investors. The Greenbrier Companies' TTM (trailing twelve months) P/E ratio is 15.42.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. The Greenbrier Companies' most recent P/B ratio is 1.34.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is often used to value companies by comparing their enterprise value (total market value plus debt minus cash) to their earnings before interest, taxes, depreciation, and amortization (EBITDA). Greenbrier Companies' EV/EBITDA ratio is 9.78.

Analyzing these ratios in isolation is not sufficient. It’s important to compare them to industry averages and historical data to get a sense of whether GBX is trading at a premium or discount.

Here's a look at Greenbrier's recent stock performance and shareholder returns:

• Stock Price Trends: Over the last year, Greenbrier Companies (GBX) has shown some volatility. As of April 2025, the stock has experienced fluctuations, reflecting broader market trends and company-specific news. For instance, Greenbrier’s stock price on April 18, 2025, was $57.95.
• Dividend Yield and Payout Ratio: As of February 1, 2024, The Greenbrier Companies declared a quarterly dividend of $0.30 per share, or $1.20 annually, representing a 2.06% dividend yield. The dividend is payable on May 9, 2024, to stockholders of record as of April 18, 2024.

To provide a more detailed view, consider the following data points:

Additionally, analyst consensus plays a significant role in determining stock valuation. Analyst ratings can provide insight into whether the stock is perceived as a buy, hold, or sell.

• Analyst Consensus: The consensus among analysts can offer a summarized view of expert opinions on the stock’s potential. For example, as of April 11, 2024, Greenbrier had an average rating of Hold.

Keep in mind that these metrics should be considered alongside other financial data and qualitative factors to form a comprehensive valuation analysis. To get a better understanding of the company's long-term goals, check out Mission Statement, Vision, & Core Values of The Greenbrier Companies, Inc. (GBX).

The Greenbrier Companies, Inc. (GBX) Risk Factors

Understanding the risks facing The Greenbrier Companies, Inc. (GBX) is crucial for investors. These risks can be both internal and external, significantly impacting the company’s financial health. Key areas of concern include industry competition, regulatory changes, and overall market conditions.

Industry Competition: The railcar manufacturing and leasing industry is highly competitive. GBX faces competition from other manufacturers, leasing companies, and repair service providers. Intense competition can lead to pricing pressures, reduced profit margins, and loss of market share. To maintain its competitive edge, Greenbrier must continually innovate, improve efficiency, and adapt to changing customer needs.

Regulatory Changes: The rail industry is subject to extensive regulation, including safety, environmental, and operational standards. Changes in these regulations can increase compliance costs, limit operational flexibility, and impact the demand for certain types of railcars. For instance, stricter safety standards may require costly upgrades to existing railcar fleets or the development of new, safer designs. Monitoring and adapting to these regulatory changes is vital for Greenbrier to avoid penalties and maintain its operational capabilities.

Market Conditions: Economic cycles, commodity prices, and freight demand significantly influence the demand for railcars. A downturn in the economy or a decrease in commodity shipments can lead to reduced orders, lower lease rates, and decreased utilization of railcar repair services. Conversely, economic growth and increased freight traffic can boost demand. Greenbrier's financial performance is closely tied to these macroeconomic factors, making it essential to monitor and forecast market trends accurately.

According to Greenbrier's Form 10-K filing for the fiscal year ended August 31, 2024, several operational, financial, and strategic risks could affect the company's performance. These include:

• Economic Downturns: Economic recessions and disruptions in the financial markets can reduce customer demand for Greenbrier's products and services, impacting revenue and profitability.
• Supply Chain Disruptions: Disruptions in the supply chain, such as shortages of raw materials or components, can increase production costs and delay deliveries, affecting Greenbrier's ability to meet customer orders.
• Dependence on Key Customers: A significant portion of Greenbrier's revenue comes from a limited number of key customers. The loss of one or more of these customers could substantially reduce the company's revenue and earnings.
• Operational Risks: Operational risks, including manufacturing defects, accidents, and labor disputes, can disrupt production and increase costs.
• Cybersecurity Threats: Cyberattacks and data breaches can compromise sensitive information, disrupt operations, and damage Greenbrier's reputation.

Greenbrier employs various strategies to mitigate these risks. These strategies include:

• Diversification: Diversifying its product and service offerings, as well as its customer base, reduces Greenbrier's dependence on any single market or customer.
• Strategic Sourcing: Establishing strong relationships with suppliers and diversifying its supply chain helps mitigate the impact of supply chain disruptions.
• Risk Management Programs: Implementing comprehensive risk management programs, including insurance coverage and safety protocols, helps minimize the impact of operational risks.
• Cybersecurity Measures: Investing in cybersecurity infrastructure and training programs protects against cyber threats and data breaches.

The following table summarizes key financial data and risk mitigation strategies based on the 2024 fiscal year:

Understanding these risks and the strategies Greenbrier employs to mitigate them is essential for investors assessing the company's financial health and future prospects.

Explore more about Greenbrier and its investors: Exploring The Greenbrier Companies, Inc. (GBX) Investor Profile: Who’s Buying and Why?

The Greenbrier Companies, Inc. (GBX) Growth Opportunities

The Greenbrier Companies, Inc. (GBX) faces a dynamic future, characterized by several growth drivers, strategic initiatives, and competitive advantages. These elements collectively shape the company's prospects for revenue growth and earnings.

Key growth drivers for The Greenbrier Companies, Inc. (GBX) include:

• Product Innovations: Investing in new railcar designs and technologies that meet evolving market demands.
• Market Expansions: Targeting emerging markets and expanding its presence in existing markets through strategic partnerships and acquisitions.
• Acquisitions: Pursuing strategic acquisitions to expand its product offerings, geographic reach, and manufacturing capacity.

Future revenue growth projections and earnings estimates suggest a positive outlook for The Greenbrier Companies, Inc. (GBX). For example, Greenbrier’s total revenue for 2024 was $3.78 billion, with new railcar orders of 9,700 units valued at $1.24 billion. This activity provides a solid foundation for future growth. The company also aims to increase its market share in the railcar industry through superior product quality and customer service. According to the fourth quarter of 2024, The Greenbrier Companies’ net earnings were $43.5 million, or $1.31 per share, on revenue of $966.8 million. New railcar orders in the fourth quarter were 2,400 units with an aggregate value of $330 million.

Strategic initiatives and partnerships are crucial for driving future growth. The Greenbrier Companies, Inc. (GBX) is actively involved in:

• Partnerships: Collaborating with other industry players to develop and market innovative products and services.
• Sustainability Initiatives: Focusing on sustainable practices and products to meet the growing demand for environmentally friendly transportation solutions.

The Greenbrier Companies, Inc. (GBX) possesses several competitive advantages that position it favorably for growth:

• Market Leadership: Strong market position in the North American railcar market.
• Diversified Product Portfolio: A wide range of railcar products and services catering to diverse customer needs.
• Manufacturing Expertise: Advanced manufacturing capabilities and a reputation for high-quality products.

The following table summarizes key financial data and projections:

For more insights into the investor profile of The Greenbrier Companies, Inc. (GBX), consider exploring this resource: Exploring The Greenbrier Companies, Inc. (GBX) Investor Profile: Who’s Buying and Why?