FreightCar America, Inc. Reports Third Quarter 2026 Results
FreightCar America, Inc. (RAIL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Press Release FreightCar America, Inc. Reports Third Quarter 2026 Results Backlog Value Up 28% Year over Year Aftermarket Revenue Growth of 65% Year over Year Reaffirms Fiscal Year 2026 Outlook Provided on October 19 CHICAGO, November 9, 2026 – FreightCar America, In
How this was made
The 30-second read
Why it matters
The company posted a sharp revenue decline year‑over‑year, modest gross margin, and a $4.7M non‑cash gain, while backlog rose 28% and aftermarket revenue grew 65% YoY.
Market read
The filing offers fresh quarterly data and a reaffirmation of guidance, giving traders a concrete basis for short‑term positioning in the industrials sector.
What to watch
Potential cost‑control improvements and upcoming integration of recent acquisitions may improve margins later in FY.
FreightCar America Q3 2026 revenue of $76.5 million vs $160.5 million a year earlier, GAAP net income of $8 thousand, backlog value up 28%, FY2026 outlook reaffirmed
Q3 revenue fell to $76,488 thousand from $160,511 thousand, deliveries fell to 662 units from 1,304, gross margin fell to 8.8% from 15.1%, operating loss was $(3,056) thousand, and adjusted EBITDA was $133 thousand. GAAP net income of $8 thousand relied on a $4,671 thousand warrant fair value gain. Offsets are backlog value up 28% and aftermarket revenue growth of 65%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues (Q3 2026, three months ended Sept 30)GAAP | $76.49M | – | – |
| Railcar deliveries (Q3 2026)other | 662 units | – | – |
| Cost of sales (Q3 2026)GAAP | $69.79M | – | – |
| Gross profit (Q3 2026)GAAP | $6.70M | – | – |
| Gross margin (Q3 2026)GAAP | 8.8% | – | – |
| Selling, general and administrative expenses (Q3 2026)GAAP | $9.75M | – | – |
| Operating (loss) income (Q3 2026)GAAP | −$3.06M | – | – |
| Interest expense (Q3 2026)GAAP | −$3.14M | – | – |
| Gain (loss) in fair market value of warrant liability (Q3 2026)GAAP | $4.67M | – | – |
| Other (expense) income (Q3 2026)GAAP | −$54K | – | – |
| (Loss) income before income taxes (Q3 2026)GAAP | −$1.57M | – | – |
| Income tax benefit (Q3 2026, as printed in the statement of operations)GAAP | −1.58M | – | – |
| Net income (loss) (Q3 2026)GAAP | $8K | – | – |
| Diluted EPS (Q3 2026)GAAP | $0.00 | – | – |
| Adjusted net (loss) income (Q3 2026)non-GAAP | −$9.53M | – | – |
| Adjusted EPS (Q3 2026)non-GAAP | $(0.28) | – | – |
| EBITDA (Q3 2026)non-GAAP | $3.45M | – | – |
| Adjusted EBITDA (Q3 2026, margin 0.2%)non-GAAP | $133K | – | – |
| Adjusted EBITDA margin (Q3 2026)non-GAAP | 0.2% | – | – |
| Net cash flows provided by operating activities (Q3 2026)GAAP | $25.36M | – | – |
| Free cash flow (Q3 2026)non-GAAP | $25.01M | – | – |
| Backlog units (at Sept 30, 2026)other | 2,660 units | – | – |
| Backlog value (at Sept 30, 2026)other | $284.5M | – | 28% |
| Revenues (nine months ended Sept 30, 2026)GAAP | $253.9M | – | – |
| Cost of sales (nine months ended Sept 30, 2026)GAAP | $230.3M | – | – |
| Gross profit (nine months ended Sept 30, 2026)GAAP | $23.68M | – | – |
| Selling, general and administrative expenses (nine months ended Sept 30, 2026)GAAP | $31.62M | – | – |
| Operating (loss) income (nine months ended Sept 30, 2026)GAAP | −$7.95M | – | – |
| Interest expense (nine months ended Sept 30, 2026)GAAP | −$9.56M | – | – |
| Gain (loss) in fair market value of warrant liability (nine months ended Sept 30, 2026)GAAP | $28.89M | – | – |
| Net income (nine months ended Sept 30, 2026)GAAP | $11.55M | – | – |
| Diluted EPS (nine months ended Sept 30, 2026)GAAP | $0.32 | – | – |
| Adjusted net (loss) income (nine months ended Sept 30, 2026)non-GAAP | −$10.83M | – | – |
| Adjusted EPS (nine months ended Sept 30, 2026)non-GAAP | $(0.31) | – | – |
| Adjusted EBITDA (nine months ended Sept 30, 2026)non-GAAP | $4.46M | – | – |
| Net cash flows provided by operating activities (nine months ended Sept 30, 2026)GAAP | $33.12M | – | – |
| Free cash flow (nine months ended Sept 30, 2026)non-GAAP | $31.89M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Manufacturing (Q3 2026)Prior-year Q3 2025 Manufacturing revenue was $153,956 thousand. Segment gross profit was $1,889 thousand vs $22,167 thousand. Segment income was $1,541 thousand vs $21,730 thousand. The filing does not state a cause for the decline. Railcar deliveries were 662 units vs 1,304 units. | $65.69M | – | – |
| Aftermarket (Q3 2026)The filing states aftermarket revenues grew 65% year over year, reflecting continued organic growth in parts and components and the contribution from recent acquisitions, as the company explains it. Prior-year Q3 2025 Aftermarket revenue was $6,555 thousand. Segment gross profit was $4,807 thousand vs $2,038 thousand. Segment income was $3,974 thousand vs $1,484 thousand. | $10.80M | – | 65% |
| Manufacturing (nine months ended Sept 30, 2026)Prior-year nine-month Manufacturing revenue was $354,888 thousand. Segment gross profit was $12,491 thousand vs $49,203 thousand. Segment income was $11,180 thousand vs $48,007 thousand. The filing identifies workforce realignment costs in Q2 2026 as a result of sustained productivity gains in Manufacturing. | $222.9M | – | – |
| Aftermarket (nine months ended Sept 30, 2026)Prior-year nine-month Aftermarket revenue was $20,536 thousand. Segment gross profit was $11,186 thousand vs $7,217 thousand. Segment income was $8,458 thousand vs $5,587 thousand. The company states acquisition and integration costs of $458 thousand in 2026 were incurred in this segment. | $31.01M | – | – |
FY2026 outlook
- Revenue$370 - $410 million
- NoteRailcar deliveries 3,100 - 3,300 railcars
- NoteAdjusted EBITDA $15 - $19 million (non-GAAP; the company does not provide a reconciliation of forward-looking Adjusted EBITDA)
- NoteOutlook reaffirmed in the November 9, 2026 release, as provided on October 19, 2026
Capital returns
- No share repurchases or dividends are reported in the documents.
- Exercise of warrants of $130,337 thousand is shown as a supplemental non-cash item in the nine-month cash flow statement.
What drove it
- Company explanation: aftermarket revenues grew 65% year over year, reflecting continued organic growth in parts and components and the contribution from recent acquisitions.
- Company explanation: the Q3 2026 results were consistent with preliminary results announced on October 19, 2026.
- Company explanation: the warrant liability fair value change was a $4,671 thousand gain in Q3 2026, which the company states resulted in net income of $8 thousand.
- Company explanation: a Q2 2026 workforce realignment was incurred as a result of sustained productivity gains in Manufacturing; $2,202 thousand is shown in the nine-month non-GAAP reconciliation.
- Company states that order intake through the first nine months exceeded its total for all of 2025 and that backlog value was up 28% year over year.
- Company states the Trinity Equipment Company acquisition was completed after quarter end and that its most recent acquisition is expected to be immediately accretive.
Concerns
- Q3 2026 revenue fell to $76,488 thousand from $160,511 thousand, and deliveries fell to 662 units from 1,304 units.
- Gross margin fell to 8.8% from 15.1%, and gross profit fell to $6,696 thousand from $24,205 thousand.
- Operating loss was $(3,056) thousand in Q3 2026, compared with operating income of $14,558 thousand in the prior-year quarter.
- Adjusted EBITDA was $133 thousand, a 0.2% margin, vs $15,871 thousand and 9.9% a year earlier.
- Adjusted EPS was $(0.28), and adjusted net loss was $(9,529) thousand, vs adjusted net income of $7,792 thousand.
- GAAP net income of $8 thousand depended on the $4,671 thousand warrant fair value gain, and the company's own adjusted figures exclude it.
- The company states that it has yet to see improving industry indicators translate into broader growth in railcar demand.
- Nine-month revenue was $253,934 thousand vs $375,424 thousand, and nine-month operating loss was $(7,946) thousand vs operating income of $26,136 thousand.
What to watch
- Whether Q4 2026 revenue and deliveries are sufficient to reach the FY2026 outlook of 3,100 to 3,300 railcars and $370 to $410 million of revenue.
- Whether the FY2026 Adjusted EBITDA outlook of $15 to $19 million can be reached, given nine-month Adjusted EBITDA of $4,461 thousand.
- Conversion of the 2,660-unit backlog valued at $284.5 million into deliveries and margin.
- Gross margin trajectory from the 8.8% reported in Q3 2026.
- Aftermarket growth and the margin contribution from the Trinity Equipment Company acquisition.
- Warrant liability movements, which drove the GAAP results in both periods.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash equivalents were $86,759 thousand at Sept 30, 2026, vs $64,295 thousand at Dec 31, 2025.
- Total assets were $328,988 thousand at Sept 30, 2026, vs $290,049 thousand at Dec 31, 2025.
- Total stockholders' equity was $36,329 thousand at Sept 30, 2026, vs a deficit of $(107,413) thousand at Dec 31, 2025.
- Warrant liability was $9,306 thousand at Sept 30, 2026, vs $168,529 thousand at Dec 31, 2025.
- Long-term debt, net of current portion, was $97,538 thousand, and current portion of long-term debt was $2,875 thousand at Sept 30, 2026.
- The company states its balance sheet remains solid, with no borrowings under its revolving credit facility. The cash flow statement shows borrowings and repayments of $8,000 thousand each on the revolving line in the nine months.
- Nine-month operating cash flow was $33,122 thousand, including a $50,997 thousand increase from accounts and contractual payables and $15,658 thousand of customer deposits.
- Nine-month capital expenditures were $(1,228) thousand, and acquisitions were $(945) thousand.
Analysis
FreightCar America reported third quarter 2026 revenue of $76,488 thousand, down from $160,511 thousand a year earlier, on 662 railcar deliveries compared with 1,304. Manufacturing revenue was $65,687 thousand against $153,956 thousand, while Aftermarket revenue was $10,801 thousand against $6,555 thousand, and the company states Aftermarket revenues grew 65% year over year, citing organic growth in parts and components and recent acquisitions. The release does not state a cause for the Manufacturing decline. Nine-month revenue was $253,934 thousand against $375,424 thousand, and Manufacturing revenue was $222,926 thousand against $354,888 thousand.
Margins compressed sharply. Q3 gross margin was 8.8% against 15.1%, and gross profit was $6,696 thousand against $24,205 thousand. SG&A was $9,752 thousand against $9,647 thousand, so the operating line moved from operating income of $14,558 thousand to an operating loss of $(3,056) thousand. Q3 Adjusted EBITDA was $133 thousand, a 0.2% margin, against $15,871 thousand and 9.9%. On the Manufacturing segment, Q3 segment gross profit was $1,889 thousand against $22,167 thousand. Aftermarket segment gross profit was $4,807 thousand against $2,038 thousand, so the segment mix shifted toward a higher-margin business while total gross profit fell.
GAAP net income of $8 thousand, or $0.00 per diluted share, depended on a $4,671 thousand non-cash gain on the warrant liability. Excluding the warrant and other items the company adjusts for, adjusted net loss was $(9,529) thousand, or $(0.28) per diluted share, against adjusted net income of $7,792 thousand, or $0.24. For the nine months, GAAP net income was $11,554 thousand, or $0.32 diluted, against $54,682 thousand, or $1.57, while adjusted net loss was $(10,828) thousand, or $(0.31), against adjusted net income of $13,238 thousand, or $0.33.
Cash generation was stronger than earnings. Q3 operating cash flow was $25,356 thousand and free cash flow was $25,011 thousand, against $3,410 thousand and $2,246 thousand a year earlier. Nine-month operating cash flow was $33,122 thousand, with a $50,997 thousand increase from accounts and contractual payables and $15,658 thousand of customer deposits. Cash was $86,759 thousand at September 30, 2026, and the company states there were no borrowings under its revolving credit facility. Warrant liability fell to $9,306 thousand from $168,529 thousand at year end, and stockholders' equity moved to $36,329 thousand from a deficit of $(107,413) thousand. The release does not describe the warrant exercise cause beyond the $130,337 thousand supplemental line.
Backlog was 2,660 units valued at $284.5 million, up 28% from $222.0 million at September 30, 2025, and order intake through nine months exceeded all of 2025, according to management. The FY2026 outlook of 3,100 to 3,300 railcars, $370 to $410 million of revenue and $15 to $19 million of Adjusted EBITDA was reaffirmed. Nine-month revenue of $253,934 thousand and Adjusted EBITDA of $4,461 thousand sit well below those ranges' full-year scale, so the outlook depends on a substantially stronger fourth quarter. The reaffirmed outlook is the figure to watch against Q4 delivery and margin results.
Management, verbatim
While our third quarter results reflect a challenging period for the business, they were consistent with the preliminary figures we reported in October
Nick Randall, President and Chief Executive Officer
some industry indicators are improving, although we have yet to see that translate into broader growth in railcar demand.
Nick Randall, President and Chief Executive Officer
Our balance sheet remains solid, with no borrowings under our revolving credit facility.
Mike Riordan, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year percentage changes for revenue, gross profit, operating income, net income, EPS and cash flow lines are not printed in the release, so yoy_change is null.
- Prior-quarter (Q2 2026) figures are not printed in the release, so qoq_change and prior_quarter are null for all metrics.
- Nine-month gross margin is not printed.
- Previous outlook document was not provided, so vs_prior_guidance is empty. The release states the FY2026 outlook was provided on October 19, 2026 and is reaffirmed.
- Guidance for gross margin, operating expenses and tax rate is not provided.
- Income tax benefit is printed as (1,583) in Q3 2026 and (249) in nine months 2026 in the statement of operations, and the label is 'Income tax benefit'. The sign convention is kept as printed.
- Consensus estimates, analyst expectations and share price reaction are not in the documents.
- Aftermarket 65% growth is stated for aftermarket revenues in the release text. The filing does not print a prior-year percentage for the Manufacturing segment.
- The reason for the Manufacturing revenue decline is not stated in the release.
- Q3 operating cash flow line detail beyond totals is not separately broken out for the quarter.
- Q3 2026 and nine-month 2026 segment figures for the Manufacturing and Aftermarket cost of sales lines are partially printed; only segment gross profit is copied where printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FreightCar America (NASDAQ: RAIL) filed a Form 8‑K reporting its Q3 2026 results and reaffirming FY guidance.
Ticker impact
FreightCar America reaffirmed its FY 2026 outlook and disclosed Q3 results, including revenue of $76.5M and a backlog up 28% YoY.
likely limited pressure as investors digest lower revenue and flat earnings while noting backlog growth.
The 8‑K release provides the first public numbers for the quarter and confirms prior guidance, giving traders a clear data point but no surprise catalyst.
Market effects
Railcar manufacturing sector may see modest sentiment due to lower revenue but stronger aftermarket growth.
North American industrials could face slight downside pressure pending further guidance.
Limited; impact confined to transportation equipment niche.
Counterpoint
Backlog expansion and aftermarket momentum could support a short‑term bounce despite revenue decline.
Key entities
- companyFreightCar America
Manufacturer and supplier of railroad freight cars and components.
- executiveNick Randall
President and CEO who provided commentary on the results.
