The Greenbrier Companies, Inc announced that it had received orders for 15,300 new freight railcars with a total value of USD 1.9 billion during its fiscal fourth quarter ended on August 31, 2023.
“Greenbrier continued its solid operational execution, and our Commercial team performed exceptionally in our fiscal fourth quarter. Our backlog and this order activity provide clear visibility through fiscal 2024, increasing our confidence in our operating expectations. Further, our leasing and aftermarket services businesses will provide additional stability and balance through economic cycles,” Lorie L. Tekorius, CEO and President, said.
Orders for the quarter demonstrate Greenbrier’s lease origination capabilities balanced with its direct sale expertise. The 15,300 freight railcars were ordered by customers operating in various commercial sectors and spanned a range of railcar types, yielding Greenbrier’s highest quarterly order count in nearly a decade. Railcar orders announced do not include any multi-year order activity.
“The diverse range of orders across railcar types exceeded Greenbrier’s expectations for the quarter. It also indicates Greenbrier’s strength in our North American and European markets. Order levels are distinct from the high demand seen during the crude-by-rail era of the 2010s. Today, one or two railcar types are not powering the market. Although railcar loadings are not fully back at pre-pandemic levels, we believe that growth in key commodity markets will keep railcar demand steady and above replacement levels in future periods,” Brian J. Comstock, EVP Chief Commercial and Leasing Officer said.
Greenbrier expects to announce fiscal fourth-quarter and fiscal year 2023 earnings on Wednesday, October 25. Certain orders referenced in this release are subject to customary documentation and completion of terms.
In the third fiscal quarter ended May 31, Greenbrier Companies signed contracts for 4,600 new freight wagons valued at USD 650 million and delivered 6,600 units. Subsequent to the end of the quarter, received orders for 7,900 freight railcars valued at USD 975 million.
The company says that the new railcar backlog is of 23,400 units with an estimated value of USD 2.9 billion as of May 31, 2023, excluding the orders received subsequent to the end of the quarter and railcar conversion backlog of 1,000 units.