Supply Side: Greenbrier, KBS, Quality Turbo

Greenbrier

Greenbrier on May 5 reported that subsidiary Greenbrier Leasing Company “has entered into a new $425 million term loan, with improved pricing and terms, to finance the continued growth of its lease fleet.” The new loan, it said, is “non-recourse” to Greenbrier; replaces the existing leasing term loan set to mature in August 2027; and extends the maturity to May 2032.

At closing, $300 million of the term loan will be drawn, according to Lake Oswego, Ore.-based Greenbrier, which said it “intends to use $125 million of delayed draw commitments to purchase railcars in the secondary market during fiscal 2026.”

“This debt replacement provides efficient, long-term funding to support the continued growth of our lease fleet,” Greenbrier President and CEO Lorie Tekorius said. “Expanding our leasing platform is a strategic priority, enabling us to increase recurring revenue and generate attractive, tax-advantaged cash flows through our disciplined approach to capital allocation and leverage. We appreciate the continued support of our banking partners, which demonstrates confidence in Greenbrier’s strategy and business model.”

Greenbrier designs, builds, and markets freight railcars in North America, Europe, and Brazil. It is also a provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America; owner of a lease fleet comprising approximately 16,800 railcars that originate primarily from its manufacturing operations; and provider of railcar management, regulatory compliance services, and leasing services to railroads and other railcar owners in North America.

The company in February completed an offering of railcar asset-backed securities, securing long-term financing for its leasing business. It also completed a railcar asset-backed securities issuance in 2023; Greenbrier’s first was in 2022.

KB Signaling

Grain Valley, Mo.-based KBS on May 5 reported reaching a deployment milestone for its AFTC5™ digital Audio Frequency Track Circuit, with more than 800 track circuits now operating in revenue service across major U.S. transit systems.

“The milestone reflects AFTC5’s evolution to a field-proven signaling platform now supporting daily passenger operations,” said KBS, which has been a member of Munich, Germany-based Knorr-Bremse Group since 2024, and develops and supplies end-to-end wayside and onboard conventional signaling, Control, Command, and Signaling (CCS) platforms and solutions. “That level of deployment points to the way in which many transit agencies are approaching modernization today: updating aging, analog, fixed-block systems without full shutdowns or wholesale replacement. The AFTC5 platform is being installed as part of long-term signal upgrade programs that allow agencies to move toward digital architectures while maintaining day-to-day service and operational continuity.”

According to KBS, the approach is visible in the ongoing signal modernization of the Red and Orange lines operated by Massachusetts Bay Transportation Authority. AFTC5 track circuits are being commissioned location by location, it said, “putting upgraded sections into revenue service well before the full program is complete.” Phased work is continuing across both lines, which include a total of 26 stations, with full completion targeted for the end of this year, according to public project timelines, KBS said.

“Surpassing 800 track circuits in revenue service is a marker of trust and an important validation point,” KBS Product Director Aric Weingartner said. “It shows that AFTC5 is not only deployable at scale, but that it’s also delivering reliable, daily performance in some of the most complex operating environments in North American transit.”

AFTC5™ is also operating in revenue service in Chicago and Los Angeles, “supporting multiyear fixed-block modernization programs delivered in phases while service continues,” KBS said.

Once modernization programs move into phased execution, KBS noted, the benefits extend beyond schedule flexibility. “Incremental cutovers allow agencies to test and validate segments independently to help reduce technical risk, limit service exposure, and commission upgrades in manageable pieces rather than tying performance to a single, high-stakes activation,” the company reported. “The approach simplifies commissioning, shortens feedback loops, and allows lessons learned at one location to be applied to the next.”

“From an execution standpoint, phased cutover is the only viable way to modernize signaling on systems of this size,” commented Richard Smith, Project Director at KBS. “AFTC5 is built to support that reality. Each cutover is a contained, manageable event—and each one adds value the moment it enters service.”

Over the life of a multiyear program, KBS said, that structure gives agencies “tighter control over cost, schedule, and operational impact, while steadily advancing modernization without disrupting daily service.”

According to KBS, the phased approach is possible “because AFTC5 was built as a fully digital evolution of Audio Frequency Track Circuit technology, while preserving the fixed-block signaling framework most U.S. transit agencies already operate and maintain.” It supports train detection and, in cab-signaling applications, transmits speed commands via the rails to onboard systems, KBS said.

“From a hardware standpoint, AFTC5 replaces legacy analog designs that relied on large numbers of discrete components with a streamlined configuration built around three programmable hardware elements: a transmitter/receiver, a processor, and a power supply,” KBS said. “Earlier generations of analog systems often required 10 to 15 times more circuit boards to deliver comparable functionality. That reduction in hardware complexity has direct operational consequences. Agencies see lower maintenance demands, simpler troubleshooting, smaller spare-parts inventories, and easier training for maintenance personnel. Digital processing also keeps operating frequencies stable over time, eliminating the drift and seasonal recalibration common with analog track circuits. Those gains are paired with the same safety expectations transit systems require. The AFTC5™ platform is fully compliant with AREMA and CENELEC SIL4 safety standards, ensuring these gains are achieved without compromising the safety requirements governing passenger rail operations.”

“The goal is faster troubleshooting and more predictable maintenance,” Aric Weingartner noted, “so the technology holds up under everyday operating conditions.”

According to KBS, modernization for many transit agencies “is as much about what can be preserved as what must change.” KBS’s AFTC5 platform is said to be “designed to support that balance, allowing agencies to upgrade signaling capability without abandoning existing infrastructure that continues to perform well.” According to KBS, the system integrates with installed track bonds, loops, communications equipment, and control room architectures, and can operate alongside legacy track circuits during transition periods. “This approach is especially important for agencies managing constrained capital budgets and complex asset portfolios,” it noted. “By targeting upgrades where they deliver the greatest benefit, AFTC5 helps align modernization efforts with available funding and long-term capital plans. The platform’s software-driven design further supports long-range planning. New capabilities and performance enhancements can be introduced through software updates rather than hardware replacement, reducing the risk of obsolescence over time. Once installed, agencies typically expect 20 or more years of service life from an AFTC5 deployment—consistent with the long investment horizons common in passenger rail signaling.”

Quality Turbo

Quality Turbo has launched Quality Locomotive, expanding its turbocharger remanufacturing and locomotive components business to include buying and selling locomotives for commercial, industrial, and military use.

“Since its founding, Quality Turbo has built a strong reputation for high-quality turbocharger products and field service support for rail, marine, and power generation industries and has steadily grown its offerings in parts supply and international sales,” Quality Turbo reported May 5. “The company has also secured federal contracts to provide technical support services for locomotive operations including maintenance and field support for the U.S. Army’s full fleet including the government’s ultra-low emission locomotives demonstrating its capabilities in complex rail support work.”

Quality Turbo’s facilities in Houston, Tex., and Paducah, Ky., are said to be “strategically located for rapid deployment and logistics support, enabling the company to serve customers across North America and around the globe with built-to-suit locomotive solutions and long term service.” Quality Turbo and Quality Locomotive “will maintain and expand the locomotive servicing and field deployment teams to keep customers’ rail lines moving efficiently,” according to the company.

Quality Locomotive “was the next logical step in our growth,” Quality Turbo CEO and Founder Eric Baldaccini said. “After our recent award of locomotive support work with Volpe/the U.S. Army, we recognized a strong demand from operators for a trusted partner who can not only service locomotives and components but also acquire and sell complete units tailored to customer needs. We’re proud to announce Quality Locomotive as that solution.”

Brandon Schwartz, CCO, added: “Every one of us comes from locomotive and rail backgrounds and carries a wealth of knowledge that we feel can truly help our customers succeed. That has always been and will continue to be our number one goal. And we know when it comes to being a quality source for locomotives we can continue that success.”

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Supply Side: Greenbrier, KBS, Quality Turbo

Greenbrier

Further Reading:

KB Signaling

Further Reading:

Quality Turbo