FreightCar America Inc. (RAIL) reported fourth‑quarter 2025 results that fell short of consensus estimates, with revenue of $125.6 million and adjusted earnings per share of $0.16, compared with analyst expectations of roughly $0.18–$0.19. The miss was driven by a $12 million shortfall in revenue and a $0.02–$0.03 gap in EPS, reflecting weaker demand and a shift in the mix of railcars delivered.
In the quarter, revenue declined 9.1% from $137.7 million in Q4 2024, while gross margin contracted from 15.3% to 13.4%. Adjusted net income dropped from $8.0 million to $4.9 million, and adjusted EBITDA fell from $13.9 million to $10.4 million. The company also reported a net loss of $16.6 million for the quarter, a reversal of the $34.6 million net income recorded in Q4 2024.
On a full‑year basis, FreightCar America turned a $38.1 million net income in 2025, a turnaround from the $75.82 million loss in 2024. Revenue for the year was $501.0 million, down 10.4% from $559.4 million in 2024, but the company’s gross margin improved to 14.6% from 12.0% the prior year. Adjusted EBITDA for the year rose to $44.8 million, up from $43.0 million, and adjusted net income reached $18.1 million versus $8.0 million in 2024.
Management guided for fiscal 2026 revenue of $500 million to $550 million, adjusted EBITDA of $41 million to $50 million, and railcar deliveries of 4,000 to 4,500 units. The revenue guidance is below the consensus estimate of $625.6 million, signaling caution about near‑term demand. The company also highlighted its backlog of 1,926 units valued at $137.5 million, underscoring the pipeline that will support future revenue.
The company completed the acquisition of Carly Railcar Components, a distributor of railcar parts, to strengthen its aftermarket business. The acquisition is expected to provide more stable, recurring revenue across market cycles and support the company’s strategy to diversify its revenue base and expand its presence in the tank car market.
"In 2025, FreightCar America executed with discipline amid a challenging industry environment, delivering revenue in line with our expectations while producing exceptional profitability," said President and CEO Nick Randall. "As we enter 2026, we remain focused on converting backlog into profitable deliveries while continuing to invest for growth. We are deploying capital effectively to diversify our revenue base, expand our aftermarket business and presence in the tank car market to further strengthen our offerings and capture demand, while continuing to evaluate strategic opportunities that fuel future growth." CFO Mike Riordan added, "2025 demonstrated the durability of our operating model. We made continued progress strengthening the quality and consistency of our cash flows while maintaining a disciplined approach to capital allocation. During the year, we also advanced our aftermarket strategy, including the addition of Carly Railcar Components, which enhances this growing part of our business and supports more stable, recurring revenue across market cycles." Investors reacted negatively, citing the revenue miss and weaker‑than‑expected guidance.
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