• Revenue: $559.4 million for the full year 2024, representing a 56% growth over the prior year.
• Adjusted EBITDA: $43 million for the full year 2024, a 114% increase from 2023.
• Adjusted Net Income: $24.5 million or $0.15 per diluted share for the full year 2024.
• Operating Cash Flow: $44.9 million generated in 2024.
• Adjusted Free Cash Flow: $21.7 million for the full year 2024.
• Gross Margin: 15.3% in Q4 2024, compared to 9.6% in Q4 2023.
• SG&A Expenses: $9.4 million in Q4 2024, up from $7.7 million in Q4 2023.
• Railcar Deliveries: 1,019 railcars in Q4 2024.
• Backlog: 2,797 units valued at approximately $267 million at year-end 2024.
• Market Share: 21% within addressable market segments and 12% of the total railcar market in 2024.
• Capital Expenditures: $5 million in 2024, with a projected range of $5 million to $6 million for 2025.
• Cash Position: $44.5 million in cash at the end of 2024.

• Warning! GuruFocus has detected 2 Warning Signs with RAIL.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• FreightCar America Inc (NASDAQ:RAIL) achieved a 57% increase in market share on orders won across its addressable market, despite a 45% year-on-year decline in the market.
• The company delivered 56% revenue growth for the year and exceeded its adjusted EBITDA guidance, achieving $43 million, a 114% increase over the prior year.
• FreightCar America Inc (NASDAQ:RAIL) generated $45 million in operating cash flow and $22 million in adjusted free cash flow for the full year.
• The company successfully launched into the tank car segment, expanding its reach and competitive advantage in a higher-margin space.
• FreightCar America Inc (NASDAQ:RAIL) redeemed all outstanding preferred shares, resulting in approximately $9.2 million in cost savings, and expanded its ABL credit facility to enhance financial flexibility.

Negative Points

• The addressable market for FreightCar America Inc (NASDAQ:RAIL) was down 45% year-on-year, indicating broader industry challenges.
• There were minor timing delays in the fourth quarter, resulting in some delivery fulfillment being pushed into early Q1.
• The company faces uncertainty due to tariffs, which could impact future operations and market conditions.
• Despite strong inquiry levels, the overall order activity for the trailing 12 months was below typical replacement demand.
• FreightCar America Inc (NASDAQ:RAIL) anticipates lower deliveries and revenue in the first quarter of 2025 due to production line changes.

Q & A Highlights

Q: Can you elaborate on the fourth quarter product mix and how changes in the product mix may affect the quarterly cadence of railcar deliveries, revenue, and margin in 2025? A: Nicholas Randall, President and CEO, explained that while there is a large variation in average selling price (ASP) which can influence revenue, the focus is on driving EBITDA growth. Michael Riordan, CFO, added that the quarterly cadence in 2025 will see lower deliveries in the first quarter due to production line changes, with growth expected in the second quarter and a stronger back half of the year.

Q: How is FreightCar America positioned relative to its competitors to respond to potential tariff actions? A: Michael Riordan, CFO, stated that the railcar industry operates on a stable replacement cycle, and despite tariff uncertainties, the demand remains resilient. Nicholas Randall, CEO, added that there is limited capacity to move production to the US, and FreightCar America's agility and product differentiation provide a competitive advantage.

Q: Are there any timing issues that might push some deliveries to the first quarter of 2025? A: Michael Riordan, CFO, clarified that there were no significant timing issues, just normal transit times for deliveries crossing the border.

Q: Can you explain the variance in the 2025 guidance for deliveries and revenue growth? A: Michael Riordan, CFO, explained that the variance is due to changes in average selling price (ASP) and product mix. The focus is on driving EBITDA growth, which is not directly reflected in revenue growth. W. Matthew Tonn, Chief Commercial Officer, added that demand across multiple market segments remains strong.

Q: What is the addressable market for tank car retrofit orders, and what does the 1,000-car order represent? A: Nicholas Randall, CEO, did not provide specific figures for the addressable market but mentioned that they are preparing their facility for recertification work and are fielding more inquiries for conversion work.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.