third quarter 2026
Filed Oct 19, 2026FreightCar America removed a 1,285-railcar tank car retrofit order from backlog, reported sharply lower preliminary third-quarter deliveries and revenue, and reduced full-year 2026 outlook across deliveries, revenue and Adjusted EBITDA.
Preliminary third-quarter railcar deliveries, revenue and Adjusted EBITDA were below the prior-year quarter, while the Company removed 1,285 railcars from backlog and cut fiscal 2026 deliveries, revenue and Adjusted EBITDA outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Preliminary third quarter 2026 railcar deliveriesother | 662 units | – | – |
| Preliminary third quarter 2026 revenueother | $75 million to $77 million | – | – |
| Preliminary third quarter 2026 Adjusted EBITDAnon-GAAP | $(0.3) million to $0.3 million | – | – |
| Backlog as of September 30, 2026other | 2,660 units valued at $284.5 million | – | – |
| Tank car retrofit order removed from backlogother | 1,285 railcars | – | – |
| Preliminary third quarter 2026 loss before income taxes, lowGAAP | $(1.9) | – | – |
| Preliminary third quarter 2026 loss before income taxes, highGAAP | $(1.3) | – | – |
| Preliminary third quarter 2026 depreciation and amortizationother | $1.9 | – | – |
| Preliminary third quarter 2026 interest expense, netGAAP | $3.1 | – | – |
| Preliminary third quarter 2026 EBITDA, lownon-GAAP | $3.1 | – | – |
| Preliminary third quarter 2026 EBITDA, highnon-GAAP | $3.7 | – | – |
| Preliminary third quarter 2026 change in fair value of warrant liability and other adjustmentsnon-GAAP | $(4.7) | – | – |
| Preliminary third quarter 2026 stock-based compensationnon-GAAP | $0.8 | – | – |
| Preliminary third quarter 2026 other non-recurring itemsnon-GAAP | $0.5 | – | – |
| Preliminary third quarter 2026 Adjusted EBITDA, lownon-GAAP | $(0.3) | – | – |
| Preliminary third quarter 2026 Adjusted EBITDA, highnon-GAAP | $0.3 | – | – |
Fiscal 2026 outlook
- Revenue$370 – $410 million
- NoteRailcar Deliveries: 3,100 – 3,300 railcars
- NoteAdjusted EBITDA: $15 – $19 million
What drove it
- The Company removed 1,285 railcars related to a tank car retrofit order from backlog because it believes the customer is unlikely to meet its obligations under the associated customer contract.
- The removed order had been scheduled to begin delivery in the second half of 2026 and continue through 2027.
- The updated 2026 outlook excludes deliveries associated with the tank car retrofit order that had been scheduled for 2026.
- The Company stated that no other orders in its backlog are affected and that remaining backlog is supported by firm customer commitments.
- Management cited a lower cost base, expected conversion of backlog into deliveries in 2027, and continued growth in the aftermarket business.
Concerns
- Preliminary third-quarter 2026 railcar deliveries were 662 units, compared to 1,304 units in the third quarter of 2025.
- Preliminary third-quarter 2026 revenue was $75 million to $77 million, compared to $160.5 million in the third quarter of 2025.
- Preliminary third-quarter 2026 Adjusted EBITDA was $(0.3) million to $0.3 million, compared to $17.0 million in the third quarter of 2025.
- Fiscal 2026 outlook was reduced for railcar deliveries, revenue and Adjusted EBITDA.
- The preliminary figures are unaudited, subject to quarter-end closing procedures and may differ from final third-quarter results.
What to watch
- Final third-quarter 2026 results, which the Company expects to report on Monday, November 9, 2026 after the market close.
- Execution against the revised fiscal 2026 outlook of 3,100 – 3,300 railcars, $370 – $410 million of revenue, and $15 – $19 million of Adjusted EBITDA.
- Conversion of the remaining 2,660-unit backlog valued at $284.5 million into deliveries.
- Commercial progress in railcar types where the Company says it has a proven record and continues to gain share.
- Growth in the aftermarket business and the expected backlog conversion into deliveries in 2027.
Analysis
FreightCar America issued preliminary third-quarter 2026 results alongside a material backlog adjustment and a reduced fiscal 2026 outlook. The Company removed 1,285 railcars tied to one tank car retrofit customer from backlog because it believes that customer is unlikely to meet its contract obligations. The order had been expected to start deliveries in the second half of 2026 and continue through 2027. Following the removal, backlog stood at 2,660 units valued at $284.5 million as of September 30, 2026.
The preliminary quarter reflects substantially lower activity than the prior-year period. Railcar deliveries were 662 units versus 1,304 units in the third quarter of 2025. Revenue was $75 million to $77 million versus $160.5 million, and Adjusted EBITDA was $(0.3) million to $0.3 million versus $17.0 million. The reconciliation indicates preliminary loss before income taxes of $(1.9) to $(1.3), while depreciation and amortization, net interest expense, warrant-liability adjustments, stock-based compensation and other non-recurring items bridge to the preliminary Adjusted EBITDA range.
Management revised fiscal 2026 expectations to 3,100 – 3,300 railcar deliveries, $370 – $410 million of revenue and $15 – $19 million of Adjusted EBITDA. The prior outlook issued August 3, 2026 had called for 3,500 – 3,900 railcars, $410 – $460 million of revenue and $36 – $44 million of Adjusted EBITDA. The reduced outlook explicitly excludes 2026 deliveries associated with the removed tank car retrofit order.
The central operating issue is the loss of the retrofit order and its near-term impact on backlog conversion, deliveries and profitability. Management characterized the action as isolated to one customer order, said no other backlog orders were affected, and cited firm customer commitments for the remaining backlog. It also emphasized a lower cost base, growth in aftermarket operations, and expected backlog conversion into deliveries in 2027. The reported third-quarter figures remain preliminary and unaudited pending completion of closing and review procedures.
Management, verbatim
We have elected to remove the customer’s contractually committed tank car retrofit order from our reported backlog in full.
Nick Randall, President and Chief Executive Officer
Our remaining backlog continues to be supported by firm customer commitments, and no other orders are affected by this adjustment.
Nick Randall, President and Chief Executive Officer
With a lower cost base in place, we are positioned to deliver stronger results as our backlog converts into deliveries in 2027, along with continued growth in our aftermarket business.
Mike Riordan, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP net income or loss attributable to FreightCar America
- GAAP diluted earnings or loss per share
- Non-GAAP earnings per share
- Gross profit and gross margin
- Operating income or loss and operating margin
- Operating expenses
- Income tax expense or benefit and tax rate
- Cash, cash equivalents and restricted cash
- Debt balances
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividends
- Segment revenue and segment profitability
- Prior-quarter comparisons for reported third-quarter metrics
- Prior-year or prior-quarter backlog comparison
- Fiscal 2026 gross margin, operating expenses and tax-rate guidance
- Reconciliation of forward-looking Adjusted EBITDA guidance to GAAP measures
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.