FreightCar America Inc (RAIL) Reports Q3 2023 Earnings: Gross Margin Expands Despite Revenue Decline
FreightCar America Inc (NASDAQ:RAIL) reported Q3 2023 revenues of $61.9 million, a decrease of 27.8% compared to Q3 2022
The company's gross margin increased to 14.9% with a gross profit of $9.2 million, compared to a gross margin of 5.3% in Q3 2022
Net income for Q3 2023 was $3.2 million
FreightCar America Inc (NASDAQ:RAIL) reaffirmed its FY23 Adjusted EBITDA guidance of $18 to $22 million but adjusted its full-year revenue and railcar delivery guidance down
FreightCar America Inc (NASDAQ:RAIL), a diversified manufacturer of railroad freight cars, released its earnings report for the third quarter ended September 30, 2023, on November 6, 2023. Despite facing unique challenges, including the disruptive impacts of the migrant issue and subsequent rail service interruption, the company reported a significant increase in gross margin and Adjusted EBITDA.
Financial Highlights
FreightCar America Inc (NASDAQ:RAIL) reported revenues of $61.9 million on 503 railcar deliveries for Q3 2023, a decrease of 27.8% compared to revenues of $85.7 million on 783 railcar deliveries in Q3 2022. Despite the decrease in revenues, the company's gross margin increased to 14.9% with a gross profit of $9.2 million, compared to a gross margin of 5.3% with a gross profit of $4.6 million in Q3 2022. The company's net income for Q3 2023 was $3.2 million.
Company Performance and Outlook
FreightCar America Inc (NASDAQ:RAIL) has updated its outlook for fiscal year 2023. The company now expects a revenue range of $365 to $380 million and 3,150 to 3,300 railcar deliveries. However, the company reaffirmed its FY23 Adjusted EBITDA guidance of $18 to $22 million.
Jim Meyer, President and Chief Executive Officer of FreightCar America, commented, Our results this quarter underscore the power of disciplined commercial decision making combined with running the most efficient manufacturing operation in the industry. Although top-line results were pressured, gross margin increased substantially with Adjusted EBITDA increasing to approximately $7,000 per railcar during the quarter, compared to approximately $2,000 in the prior year."
Balance Sheet and Cash Flow Statement
As of September 30, 2023, FreightCar America Inc (NASDAQ:RAIL) reported total assets of $229.3 million, including cash and cash equivalents of $15.4 million. The company's total liabilities amounted to $190.3 million. The company's net cash used in operating activities for the nine months ended September 30, 2023, was $22.5 million.
FreightCar America Inc (NASDAQ:RAIL) continues to navigate through the challenges while operating efficiently. The company remains confident in its direction, the strength and quality of the business it continues to build, and its ability to deliver results.
Explore the complete 8-K earnings release (here) from FreightCar America Inc for further details.
This article first appeared on GuruFocus.
