FreightCar America (RAIL) Q2 2026 earnings summary

Executive summary

• Achieved exceptional order intake, driving a 121% sequential increase in backlog to 3,972 units valued at $344 million.

• Aftermarket revenue grew 13% year-over-year, supported by organic growth and acquisitions, including Carly Railcar Components and Southern Parts & Equipment.

• Completed structural optimization and realignment of manufacturing operations, locking in productivity gains and lowering cost base, with $12 million in annualized savings expected.

• Production ramp began later than planned, shifting some 2026 deliveries into early 2027.

• Operating cash flow reached $12.1 million and free cash flow $11.3 million, up 43% year-over-year.

Financial highlights

• Q2 2026 revenues were $113.1 million, down from $118.6 million in Q2 2025; delivered 927 railcars versus 939 prior year.

• Gross profit was $6.2 million (5.5% margin), down from $17.8 million (15% margin) year-over-year.

• Adjusted EBITDA was $1.2 million (1% margin), compared to $9.3 million (7.8% margin) year-over-year.

• Net loss of $30.1 million, or $0.94 per diluted share, including a $24.9 million non-cash warrant liability loss; adjusted net loss was $0.8 million, or $0.02 per share.

• Operating cash flow was $12.1 million, up 43% year-over-year; free cash flow was $11.3 million.

Outlook and guidance

• Updated FY2026 guidance: 3,500–3,900 railcar deliveries, $410–$460 million in revenue, and $36–$44 million in adjusted EBITDA, reflecting year-over-year declines.

• Second half expected to see higher deliveries and improved profitability as cost savings take effect.

• Aftermarket business expected to remain a growing and meaningful contributor.

• Capital expenditures for the year expected at $7–$10 million, focused on machinery and tank car production.

• Management expects cash balances to be sufficient for at least the next 12 months, with long-term liquidity dependent on operating performance and covenant compliance.