Greenbrier Reports First Quarter Results

Lake Oswego, Oregon

January 6, 2023

Greenbrier Reports First Quarter Results

Lake Oswego, Oregon, January 6, 2023 – The Greenbrier Companies, Inc. (NYSE: GBX) (“Greenbrier”), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its first fiscal quarter ended November 30, 2022.

First Quarter Highlights 

  • Diversified new railcar orders for 5,600 units valued at $700 million and deliveries of 4,800 units.  Deliveries exclude 2,300 leased railcars produced onto the Balance Sheet to either be syndicated in future quarters or capitalized into the long-term lease fleet.
  • New railcar backlog of 28,300 units with an estimated value of $3.4 billion as of November 30, 2022; excludes railcar conversion backlog of 1,800 units valued at $150 million.
  • Liquidity of $477 million, including $263 million in cash and $214 million of available borrowing capacity at quarter end.
  • Ceasing railcar manufacturing at Portland, Oregon facility following completion of current production commitment and undertaking a strategic evaluation of Marine business, resulting in a non-cash charge of $24 million related to the impairment of long-lived assets.
  • Net loss attributable to Greenbrier for the quarter was $17 million, or $0.51 per diluted share, on revenue of $767 million.  Results include $18 million charge ($0.56 per share), net of tax, related to the non-cash asset impairment.
  • Adjusted net earnings attributable to Greenbrier was $1.6 million or $0.05 per diluted share.
  • Adjusted EBITDA for the quarter was $49 million, or 6.4% of revenue.
  • Board declares a quarterly dividend of $0.27 per share, payable on February 16, 2023 to shareholders of record as of January 26, 2023 representing Greenbrier’s 35th consecutive quarterly dividend.
  • Board renews and extends $100 million share repurchase program through January 2025.
  • Subsequent to quarter end, Greenbrier acquired the minority interest in the GBX Leasing joint venture and now owns 100% to further support our leasing strategy.

“Greenbrier’s business momentum continued in our fiscal first quarter, driven by a strong commercial performance that led to a book-to-bill of 1.2x. However, as new railcar production ramped, manufacturing margins were impacted by higher costs for outsourced parts, material shortages, supplier issues and lingering supply chain complications. We have been executing a plan to source key components internally, which we expect will be completed by the fourth quarter of this fiscal year. This will meaningfully reduce our input costs and provide us greater control over our supply chains. Likewise, concluding manufacturing activity at our Portland facility will drive higher performance by optimizing production capacity and reducing our cost structure.” said Lorie Tekorius, Chief Executive Officer & President.

“Additionally, Greenbrier’s recent agreement to purchase the outstanding interest in GBX Leasing demonstrates our commitment to grow the leasing business. We are developing our railcar leasing platform and increased the owned fleet to 14,100 units, or nearly 65% since April 2021. Rising lease rates and high fleet utilization support our confidence in the value of leasing to our overall business. Managing through near-term economic uncertainty, we remain focused on execution and are confident in our outlook as railcar demand and our production efficiency normalizes through the fiscal year. In the meantime, Greenbrier is well-positioned with strong liquidity and a $3.4 billion manufacturing backlog.”

Business Update & Outlook

Based on current trends and production schedules, Greenbrier expects the following performance in fiscal 2023:

  • Deliveries of 22,000 – 24,000 units including approximately 1,000 units in Greenbrier-Maxion (Brazil)
  • Revenue at $3.2 – $3.6 billion
  • Capital expenditures at approximately $240 million in Leasing & Management Services, $80 million in Manufacturing and $10 million in Maintenance Services
    – Proceeds of equipment sales are expected to be approximately $110 million
    – Build and capitalize into the lease fleet approximately 2,000 units. These units are not included in the delivery guidance.

Financial Summary

Q1 FY23Q4 FY22 Sequential Comparison – Main Drivers
Revenue $766.5M $950.7M ~2,300 units produced onto the Balance Sheet and timing of syndication activity
Gross margin $69.5M $127.3M Manufacturing margin and margin % impacted by increased costs related to outsourced components, material shortages, supplier issues and other supply chain complications
Gross margin % 9.1% 13.4%
Selling and administrative $53.4M $68.8M Lower employee-related costs, consulting and incentive compensation expense
Adjusted EBITDA $48.7M $88.8M Lower gross margin
Net (earnings) loss attributable to noncontrolling interest $0.6M ($9.2M) Operating challenges and fewer units delivered at GIMSA joint venture
Adjusted Net earnings attributable to Greenbrier $1.6M(1) $20.2M Lower gross margin partially offset by lower selling & administrative expense
Adjusted diluted EPS $0.05(1) $0.60

(1) Excludes $18.3 million ($0.56 per share), net of tax, of non-cash asset impairment.


Segment Summary

Q1 FY23 Q4 FY22 Sequential Comparison – Main Drivers
Revenue $646.5M $817.5M ~2,300 units produced onto the Balance Sheet to either be syndicated or capitalized into the long-term lease fleet
Gross margin $42.0M $84.5M Impacted by increased costs related to outsourced components, material shortages, supplier issues and other supply chain complications
Gross margin % 6.5% 10.3%
Operating margin %(1)(0.5%) 7.6% Includes the $24 million non-cash asset impairment; excluding the impairment, operating margin would be 3.2%
Deliveries(2)4500.005700.00More units produced onto the Balance Sheet
Maintenance Services
Revenue $85.5M $87.2M Modestly lower volumes of wheelsets
Gross margin % 6.9% 10.6% Increased labor and transportation costs for wheelsets; certain costs expected to be passed through to customers going forward
Operating margin %(1)(3)6.4% 13.0% Prior quarter included gain on dissolution of axle joint venture
Maintenance Services
Revenue $34.5M $46.0M Lower volume of syndication activity
Gross margin % 62.6% 73.0%
Operating margin(1)(3)45.2% 53.0%
Fleet utilization 97.9% 98.4%

(1) See supplemental segment information on page 10 for additional information.
(2) Excludes Brazil deliveries which are not consolidated into Manufacturing revenue and margins.
(3) Includes Net gain on disposition of equipment, which is excluded from gross margin.
Conference Call
Greenbrier will host a teleconference to discuss its first quarter of 2023 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows:
  • January 6, 2023
  • 8:00 a.m. Pacific Standard Time
  • Phone: 1-888-317-6003 (Toll Free) 1-412-317-6061 (International), Entry Number “4920914”
  • Real-time Audio Access: (“Newsroom” at

Please access the site 10-15 minutes prior to the start time.

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through our maintenance services business unit. Greenbrier manages 408,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier’s manufacturing operations. GBXL and Greenbrier own a lease fleet of approximately 14,100 railcars. Learn more about Greenbrier at