FreightCar America said net income totaled $50.4 million in the first quarter while revenue of $96.3 million fell 40.2% from the year-ago period.
The Chicago-based railcar builder (NASDAQ: RAIL) delivered 710 units in the quarter ended March 31, down from 1,223 units in the previous-year quarter.
Adjusted net income was $1.6 million, or 5 cents per share, primarily reflecting a $52.9 million noncash adjustment due to a change in warrant liability.
Adjusted earnings before interest, taxes, depreciation and amortization was $7.3 million, from $6.1 million in the first quarter of 2024.
Gross margin was 14.9% with gross profit of $14.4 million, compared to gross margin of 7.1% with gross profit of $11.4 million.
The company said it ended the quarter with a backlog of 3,337 units valued at $318 million.
“In line with our expectations for the first quarter, we achieved robust margins, once again outperforming our industry peers, reflecting our commitment to differentiated product offerings and exceptional commercial discipline,” said Nick Randall, president and chief executive of FreightCar America, in a release. “Order activity remained strong, with 1,250 railcars ordered during the quarter valued at approximately $141 million, underscoring our ongoing momentum and expanding market share.”
While noting that the industry has experienced delays in freight car orders, Randall said “our healthy backlog and growing inquiry pipeline position us for a meaningful ramp up in deliveries for the remainder of the year.”
The company reaffirmed its full-year guidance of delivery of 4,500-4,900 railcars, up 7.7%, revenue of $530 million-$595 million, up 0.6%, and adjusted EBITDA of $43 million-$49 million, an increase of 7%.
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