FreightCar America Revenue Falls to $76.5 Million as Deliveries and Margins Decline
Key Facts
FreightCar America reported on November 9 results for the quarter ended September 30, 2026, with revenue of $76.5 million, compared with $160.5 million in the third quarter of 2025. Railcar deliveries fell to 662 from 1,304 a year earlier, alongside a decline in operating profitability. The company said gross margin was 8.8%, with gross profit of $6.7 million, compared with a margin of 15.1% and gross profit of $24.2 million in the year-earlier period. The results showed a widening gap between weaker deliveries and revenue and forward-looking demand indicators, as the company ended the quarter with a backlog above its level a year earlier. Aftermarket revenue also grew, but that increase did not prevent a decline in overall profitability measures during the quarter.
Net income was $8,000, or $0.00 per diluted share, following a non-cash gain of $4.7 million from a change in the fair value of a warrants liability, according to the company’s filing with the U.S. Securities and Exchange Commission. By contrast, the company reported an adjusted net loss of $9.5 million, or a loss of $0.28 per diluted share. This means reported net income was affected by a non-cash accounting gain, while the adjusted measure showed a quarterly loss. Adjusted EBITDA fell to $0.1 million, with a margin of 0.2%. The company reported $15.9 million and a margin of 9.9% in the third quarter of 2025, highlighting the sharp year-over-year decline in the measure.
By contrast, the backlog totaled $284.5 million for 2,660 railcars as of September 30, 2026, up 28% from $222.0 million on the comparable date in 2025. CEO Nick Randall said orders received during the first nine months of 2026 exceeded the total orders received throughout 2025. He added that "some industry indicators are improving, although we have not yet seen that translate into broader growth in railcar demand." The figures reflect continued order flow into the company’s backlog, but came as quarterly deliveries fell to 662 railcars from 1,304 a year earlier. Randall said the quarter’s results reflected a challenging period, linking improvement in some industry indicators with the lack of a broader effect on actual railcar demand so far.
Aftermarket revenue grew 65% year over year in the third quarter, which the company attributed to continued organic growth in parts and components and contributions from recent acquisitions. The business was a bright spot in results that combined aftermarket growth with a decline in total company revenue to $76.5 million from $160.5 million a year earlier. The finance chief also said the cost structure had improved and that the latest acquisition was expected to be immediately accretive to earnings. The company said its balance sheet had no borrowings under its revolving credit facility. The company is focused on converting its backlog into profitable deliveries, as industry improvements have not translated into broader railcar demand growth, according to the CEO.
The company cut its fiscal 2026 guidance in October from the ranges announced on August 3. Expected deliveries were set at 3,100 to 3,300 railcars, down from 3,500 to 3,900, while revenue guidance was cut to $370–410 million from $410–460 million. The adjusted EBITDA range was also narrowed to $15–19 million, compared with $36–44 million in the previous guidance. The company reaffirmed these ranges in its third-quarter results filing. The quarterly results therefore came within the context of previously reduced annual guidance, while the backlog and the company’s ability to deliver against it profitably remain areas of management focus.
FreightCar America scheduled a conference call and live webcast to discuss its third-quarter results for November 10, 2026, at 11:00 a.m. Eastern time. The same day, the U.S. Bureau of Labor Statistics was scheduled to release the October Consumer Price Index at 08:30 a.m. Eastern time. The company’s call follows the release of its results on November 9 and is expected to give management an opportunity to discuss quarterly performance and fiscal-year expectations. The announced guidance includes deliveries of 3,100 to 3,300 railcars and revenue of $370 to $410 million, alongside adjusted EBITDA of $15 to $19 million. These figures are the company’s stated framework for fiscal 2026 as it discusses its results on the call.