“Our first quarter results were in line with expectations and reflective of the current industry environment,” FreightCar America, Inc. President and CEO Nick Randall said in a financial report released May 4. “Despite this environment, we continue to win high quality commercial opportunities, create new efficiencies and grow our aftermarket parts business. This represents our highest quarterly gross margin in over a decade and demonstrates that we are well positioned across the cycle.”
“Fleets continue to age and deferred replacement needs are contributing to pent-up demand across the industry,” Randall continued. “As replacement demand materializes, FreightCar America is well positioned to respond quickly and capitalize in a shorter lead-time environment, supported by scalable capacity and strong operational flexibility. At the same time, our differentiated full-service railcar offering, including retrofits, conversions and an expanding aftermarket presence, positions us well to drive growth and create value across a range of market conditions.”
FreightCar America in late 2025 completed the acquisition of Carly Railcar Components, a move that it said would strengthen its “aftermarket distribution business with a focus on running-repair components” and offer customers “reduced lead times and a larger catalog of ready-to-ship railcar components.”
First-Quarter 2026 Highlights:
- For the three months ending March 31, 2026, FreightCar America revenues came in at $64.3 million, which the Chicago-based designer, producer, and supplier of railroad freight cars, railcar parts, and components said was “consistent with expectations,” compared with $96.3 million in the prior-year period. Railcar deliveries came in at 577 units compared with 710 units in first-quarter 2025.
- Freightcar America had a gross margin of 16.8% with a gross profit of $10.8 million in first-quarter 2026, vs. a gross margin of 14.9% with a gross profit of $14.4 million in first-quarter 2025.
- The supplier said it recorded $49.1 million of non-cash adjustments “related to warrant liability, resulting in net income of $41.6 million, or $1.15 per share, and adjusted net loss of $479 thousand, or $(0.04) per share.”
- Adjusted EBITDA was $3.2 million for first-quarter 2026, which FreightCar Amerca said represented a margin of 4.9%, compared with $6.4 million and a margin of 6.7% at the same point last year.
- FreightCar America said it ended the quarter with a backlog of 2,058 units valued at $156 million, “reflecting a diversified mix of railcar conversion programs and new railcar builds.” Sequential backlog growth was 14%, the company noted.
Fiscal Year 2026 Outlook
The company said it is reaffirming the outlook for fiscal year 2026:
“Looking ahead, we remain focused on disciplined execution against the opportunities we see across our business as the year progresses,” Randall said. “Our tank car retrofit program remains on track, and we expect continued growth in our aftermarket program. Together, our total backlog, productivity improvements, flexible manufacturing footprint and disciplined commercial approach provide visibility into our full-year expectations and reinforce our ability to perform across a range of market conditions.”
Added FreightCar America Chief Financial Officer Mike Riordan: “During the quarter, we continued to grow our backlog and maintained solid balance sheet flexibility, enabling us to further reduce debt and preserve financial strength. We are well positioned to continue executing on our capital allocation priorities, including targeted organic investments that expand our capabilities and disciplined selective opportunities that strengthen our platform. Looking ahead, we expect these investments to support profitable growth across the business and drive long-term value for our shareholders.”
For more financial information, visit FreightCar America’s Investor Relations webpage.
Further Reading:
- Engineering Reliability in a Changing Rail Industry
- FreightCar America ‘Projecting Growth in 2026’
- Not Your ‘Run of the Mill’ Gondolas
The post For FreightCar America 1Q26, ‘Continued Aftermarket Revenue Growth’ appeared first on Railway Age.