FreightCar America reported a sharp year-over-year decline in third-quarter revenue and adjusted earnings as railcar deliveries fell by nearly half. Growth in its aftermarket business and a larger order backlog offered some counterpoints, while the company reaffirmed its full-year 2026 outlook.
The railcar maker also completed its third aftermarket acquisition in less than a year after the quarter ended. It says the purchase expands its parts-and-components business and is expected to be immediately accretive, though it did not provide financial terms.
Third-quarter results
- Revenue was $76.5 million, down from $160.5 million a year earlier. FreightCar delivered 662 railcars, compared with 1,304 in the third quarter of 2025.
- Aftermarket revenue grew 65% year over year, reflecting organic growth in parts and components as well as contributions from recent acquisitions.
- Gross profit fell to $6.7 million from $24.2 million, and gross margin narrowed to 8.8% from 15.1%.
- The company recorded net income of $8,000, or break-even per diluted share. That figure included a $4.7 million non-cash gain from a change in the value of a warrant liability.
- On an adjusted basis, FreightCar posted a net loss of $9.5 million, or 28 cents per diluted share, compared with adjusted net income of $7.8 million, or 24 cents per share, a year earlier. Adjusted EBITDA was $0.1 million, versus $15.9 million in the prior-year quarter.
Orders, acquisition and outlook
- Backlog stood at 2,660 railcars, valued at $284.5 million at September 30. Its value was up 28% from $222.0 million a year earlier. FreightCar said orders received in the first nine months of 2026 exceeded the total for all of 2025.
- After quarter-end, FreightCar completed its acquisition of Trinity Equipment Company, its third acquisition in less than a year. The company said the deal broadens its aftermarket offering and is expected to be immediately accretive. No purchase price or other transaction terms were provided.
- FreightCar reaffirmed its 2026 outlook: deliveries of 3,100 to 3,300 railcars, revenue of $370 million to $410 million, and adjusted EBITDA of $15 million to $19 million.
- Management said some rail-industry indicators are improving but that this has not yet translated into broader growth in railcar demand. The company said it is focused on controlling costs and converting its backlog into profitable deliveries.
- The chief financial officer said the company had no borrowings under its revolving credit facility, and that its cost structure had improved. Management also said integration of acquired businesses was on track.
The results show the contrast between a weak quarter for railcar manufacturing and continued expansion in aftermarket operations. The larger backlog provides visibility into planned production, but the company’s comments indicate that broader railcar demand has not yet strengthened.