Fourth quarter and fiscal 2026
Filed Oct 26, 2026Greenbrier reported fourth-quarter net earnings attributable to Greenbrier of $8.7 million, or $0.27 per diluted share, and fiscal 2026 net earnings attributable to Greenbrier of $79.0 million, or $2.49 per diluted share.
Fourth-quarter revenue increased sequentially to $591.0M and the lease fleet expanded to 20,900 units with 98.0% utilization, while earnings from operations, aggregate gross margin and Core diluted EPS declined from the third quarter. Fiscal 2026 revenue, margin, earnings and diluted EPS were below fiscal 2025 levels, although fiscal 2027 guidance calls for $2.8B - $3.2B of revenue and a 7.0% - 7.5% operating margin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 FY26 total revenueGAAP | $591M | – | – |
| FY2026 total revenueGAAP | $2.46B | – | – |
| Q4 FY26 aggregate gross marginGAAP | $79.8M | – | – |
| Q4 FY26 aggregate gross margin %GAAP | 13.5% | – | – |
| FY2026 marginGAAP | $333.7M | – | – |
| Q4 FY26 selling and administrative expenseGAAP | $56M | – | – |
| FY2026 selling and administrative expenseGAAP | $228.5M | – | – |
| Q4 FY26 net gain on disposition of equipmentGAAP | $1.7M | – | – |
| FY2026 net gain on disposition of equipmentGAAP | $38.4M | – | – |
| Q4 FY26 earnings from operationsGAAP | $25.5M | – | – |
| Q4 FY26 operating margin %GAAP | 4.3% | – | – |
| FY2026 earnings from operationsGAAP | $143.6M | – | – |
| Q4 FY26 interest and foreign exchangeGAAP | $19.3M | – | – |
| FY2026 interest and foreign exchangeGAAP | $65M | – | – |
| Q4 FY26 income tax expenseGAAP | $400K | – | – |
| Q4 FY26 effective tax rateGAAP | 6.5% | – | – |
| FY2026 income tax expenseGAAP | $17.4M | – | – |
| Q4 FY26 net earningsGAAP | $12.9M | – | – |
| FY2026 net earningsGAAP | $81.6M | – | – |
| Q4 FY26 net earnings attributable to GreenbrierGAAP | $8.7M | – | – |
| FY2026 net earnings attributable to GreenbrierGAAP | $79M | – | – |
| Q4 FY26 diluted earnings per common shareGAAP | $0.27 | – | – |
| FY2026 diluted earnings per common shareGAAP | $2.49 | – | – |
| FY2026 basic earnings per common shareGAAP | $2.55 | – | – |
| Q4 FY26 Core EBITDAnon-GAAP | $72.3M | – | – |
| FY2026 Core EBITDAnon-GAAP | $299.8M | – | – |
| Q4 FY26 Core EBITDA as a percentage of revenuenon-GAAP | 12% | – | – |
| FY2026 Core EBITDA as a percentage of revenuenon-GAAP | 12% | – | – |
| Q4 FY26 Core net earnings attributable to Greenbriernon-GAAP | $12.3M | – | – |
| FY2026 Core net earnings attributable to Greenbriernon-GAAP | $82.6M | – | – |
| Q4 FY26 Core diluted earnings per sharenon-GAAP | $0.39 | – | – |
| FY2026 Core diluted earnings per sharenon-GAAP | $2.60 | – | – |
| FY2026 net cash provided by operating activitiesGAAP | $39.6M | – | – |
| FY2026 capital expendituresGAAP | $279.3M | – | – |
| Cash and cash equivalents as of August 31, 2026GAAP | $235.1M | – | – |
| Total consolidated debt as of August 31, 2026GAAP | $1.84B | – | – |
| New railcar backlog as of August 31, 2026other | 14,000 units with an estimated value of $2.1 billion | – | – |
| Q4 FY26 new railcar ordersother | 3,400 units valued at $600 million | – | – |
| Q4 FY26 total deliveriesother | 3,600 units | – | – |
| Owned fleet as of August 31, 2026other | 20,900 units | – | 23% in fiscal 2026 |
| Fleet utilization as of August 31, 2026other | 98.0% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Manufacturing (Q4 FY26)Favorable product mix | $538.9M | – | – |
| Leasing & Fleet Management (Q4 FY26)Growth of lease fleet, partially offset by lower interim rent on railcars held for syndication | $52.1M | – | – |
| Manufacturing (FY2026)Not separately stated. | $2.27B | – | – |
| Leasing & Fleet Management (FY2026)Not separately stated. | $194.6M | – | – |
FY27 Guidance outlook
- Revenue$2.8B - $3.2B
- NoteIndustry Deliveries (1): 26,000 - 28,000 units
- NoteOperating Margin %: 7.0% - 7.5%
- NoteEPS: $2.75 - $3.75
- NoteTotal Capital Expenditures, Net (2): $225M - $275M
- Note(1) Greenbrier's estimate for North American Industry Railcar Deliveries during the fiscal period.
- Note(2) Total capital expenditures, net of equipment sales proceeds.
Capital returns
- Returned $56 million to shareholders in fiscal 2026 through dividends and share repurchases.
- Repurchase of stock, including excise tax: $13.4 million in fiscal 2026.
- Dividends: $42.6 million in fiscal 2026.
- Board approved quarterly dividend of $0.34 per share, payable on December 2, 2026 to shareholders of record as of November 11, 2026.
- Fiscal 2026 dividends per common share: $1.32.
What drove it
- Q4 total revenue reflected favorable product mix and higher leasing revenue.
- Manufacturing gross margin reflected syndication timing and operational inefficiencies.
- Leasing & Fleet Management gross margin reflected higher fleet maintenance expense, partially offset by lease fleet growth.
- Q4 earnings from operations reflected facility-related rationalization costs of $4 million and lower aggregate gross margin.
- The effective tax rate reflected mix of income in operating jurisdictions and foreign currency impact.
- The company completed programmatic restoration work on approximately 2,200 railcars during fiscal 2026; these units were not included in backlog and supported manufacturing-plant volume and fixed-cost absorption.
Concerns
- Tariff uncertainty in North America markets, particularly in tank cars, triggered delays in long-lived railcar investment decisions, according to the CEO.
- Q4 aggregate gross margin was $79.8M and 13.5%, compared with $81.1M and 14.1% in Q3 FY26.
- Q4 earnings from operations were $25.5M, compared with $31.9M in Q3 FY26.
- Fiscal 2026 total revenue was $2,461.1 million, compared with $3,240.2 million in fiscal 2025.
- Fiscal 2026 net cash provided by operating activities was $39.6 million, compared with $265.7 million in fiscal 2025.
- Inventories were $742.1 million as of August 31, 2026, compared with $688.3 million as of August 31, 2025.
What to watch
- FY27 industry-delivery guidance of 26,000 - 28,000 units.
- FY27 revenue guidance of $2.8B - $3.2B and operating-margin guidance of 7.0% - 7.5%.
- The conversion of the 14,000-unit backlog with an estimated value of $2.1 billion.
- Order activity in North American tank cars amid tariff uncertainty.
- Lease-fleet growth, utilization and fleet leverage, which was 78% as of August 31, 2026.
- Execution against facility rationalization costs and manufacturing operational inefficiencies.
Balance sheet and cash flow
- Cash and cash equivalents were $235.1 million as of August 31, 2026.
- Restricted cash was $22.1 million as of August 31, 2026.
- Total cash and cash equivalents and restricted cash were $257.2 million as of August 31, 2026.
- Debt, net was $1,837.4 million as of August 31, 2026, including $771.9 million of recourse debt and $1,065.5 million of non-recourse debt.
- Net cash provided by operating activities was $39.6 million in fiscal 2026.
- Proceeds from sales of assets were $192.8 million and capital expenditures were $279.3 million in fiscal 2026.
- Net cash used in investing activities was $91.1 million in fiscal 2026.
- Equipment on operating leases, net was $1,395.2 million as of August 31, 2026.
- Total Lease fleet and other non-recourse debt was $1,079.0 million and Total Corporate and other recourse debt was $776.3 million as of August 31, 2026.
Analysis
Greenbrier's fourth-quarter revenue was $591.0M, up from $576.5M in Q3 FY26, with favorable product mix and higher leasing revenue cited as the main drivers. Manufacturing revenue was $538.9M and Leasing & Fleet Management revenue was $52.1M. Q4 orders of 3,400 units valued at $600 million and deliveries of 3,600 units resulted in backlog of 14,000 units with an estimated value of $2.1 billion as of August 31, 2026. Management characterized this as the first sequential increase in backlog since fiscal 2024.
The sequential revenue increase did not translate into higher profitability. Aggregate gross margin was $79.8M, or 13.5%, versus $81.1M, or 14.1%, in Q3 FY26. Manufacturing gross margin was 9.2%, compared with 9.9% in Q3, due to syndication timing and operational inefficiencies. Leasing & Fleet Management gross margin was 57.6%, compared with 60.3%, as higher fleet maintenance expense more than offset part of the benefit from fleet growth. Q4 earnings from operations were $25.5M, compared with $31.9M in Q3, and included facility-related rationalization costs of $4 million.
Q4 net earnings attributable to Greenbrier were $8.7 million, or $0.27 per diluted share, while Core net earnings attributable to Greenbrier were $12.3 million and Core diluted EPS was $0.39. Core EBITDA increased to $72.3M from $69.1M in Q3, representing 12% of revenue. For fiscal 2026, total revenue was $2,461.1 million, margin was $333.7 million, earnings from operations were $143.6 million, and net earnings attributable to Greenbrier were $79.0 million, compared with $3,240.2 million, $607.5 million, $360.1 million, and $204.1 million, respectively, in fiscal 2025.
The lease fleet remained a central offset to manufacturing-cycle pressure. Owned fleet reached 20,900 units as of August 31, 2026, from 20,600 units as of May 31, 2026, and utilization was 98.0%. The company completed programmatic restoration work on approximately 2,200 railcars during fiscal 2026, supporting manufacturing volume and fixed-cost absorption outside backlog. Cash flow was modest relative to the prior year, with fiscal 2026 operating cash flow of $39.6 million and capital expenditures of $279.3 million. Cash and cash equivalents were $235.1 million, while total consolidated debt was $1,837.4 million.
For fiscal 2027, Greenbrier guided to $2.8B - $3.2B of revenue, a 7.0% - 7.5% operating margin, EPS of $2.75 - $3.75, and total capital expenditures, net of equipment sales proceeds, of $225M - $275M. Management also projected North American industry deliveries of 26,000 - 28,000 units. The guide places attention on recovery in manufacturing margin, conversion of the expanded backlog, and sustained lease-fleet utilization amid tariff uncertainty and delayed tank-car investment decisions.
Management, verbatim
Order activity improved in the fourth quarter despite tariff uncertainty in our North America markets, particularly in tank cars, triggering delays in long-lived railcar investment decisions.
Lorie L. Tekorius, CEO and President
The first sequential increase in backlog since fiscal 2024 represents a pivot by freight shippers toward moving goods by rail in North America. Our lease fleet grew by 23% to nearly 21,000 railcars at year end, with utilization of 98%, further establishing a recurring revenue base supporting results across market conditions and industry cycles.
Lorie L. Tekorius, CEO and President
Rail traffic increases and elevated diesel prices have boosted inquiries in North America early in fiscal 2027, as freight shippers seek increased access to rail.
Lorie L. Tekorius, CEO and President
Not in the filing
stated, not guessed- Prior fiscal-year and prior-quarter Core EBITDA comparisons were not reported.
- Prior-year Q4 effective tax rate was not reported.
- A fiscal 2027 gross-margin, operating-expense and tax-rate guidance range was not reported.
- A free cash flow measure was not reported.
- A prior outlook section was not provided, so no actual-versus-prior-guidance comparisons are available.
- The filing did not state whether fiscal 2027 EPS guidance is GAAP or non-GAAP.
- Year-over-year and sequential percentage changes were not printed for most reported income-statement metrics.
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.