Greenbrier Companies Inc (GBX) Reports Record Revenue and Strong Backlog in Fiscal 2023
Greenbrier Companies Inc (NYSE:GBX) reports record revenue for fiscal 2023
New railcar backlog value of $3.8 billion, the highest in almost 8 years
Full year operating cash flow stands at $71 million
Company expects improved performance in fiscal 2024
On October 25, 2023, Greenbrier Companies Inc (NYSE:GBX), a leading international supplier of equipment and services to global freight transportation markets, released its financial results for the fourth fiscal quarter and year ended August 31, 2023. The company reported record revenue and a strong backlog, reflecting solid execution and strategic advancements.
Company Performance and Challenges
Greenbrier's CEO and President, Lorie L. Tekorius, commented on the company's performance, stating,
During the fiscal year, Greenbrier met the evolving needs of our customers to maintain our market-leading position. At the same time, we advanced our strategy to drive operational improvements and realize margin enhancement."
Tekorius also highlighted the company's strong commercial performance against a dynamic economic backdrop throughout the year.
Financial Achievements
Greenbrier reported a record revenue for fiscal 2023, driven by solid execution. The company's new railcar backlog value reached $3.8 billion, the highest in almost eight years. This provides excellent near-term revenue visibility and further confidence in the company's strategy. The full year operating cash flow stood at $71 million.
Income Statement, Balance Sheet, Cash Flow Statement Details
Greenbrier's Q4 FY23 revenue was $1,017.4M, with a gross margin of $126.7M. The gross margin percentage was 12.5%. Selling and administrative costs were $59.6M, and adjusted EBITDA was $96.8M. Adjusted net earnings attributable to Greenbrier were $29.7M, with adjusted diluted EPS of $0.92.
Financial Tables Summary
The company's Manufacturing segment reported revenue of $872.4M in Q4 FY23, with a gross margin of $81.2M. The Maintenance Services segment reported revenue of $100.0M, with a gross margin percentage of 15.0%. The Leasing & Management Services segment reported stable fleet activity and performance, with revenue of $45.0M.
Company's Performance Analysis
Greenbrier's robust financial performance in fiscal 2023 reflects its strategic advancements and solid execution. The company's record revenue and strong backlog provide excellent near-term revenue visibility. With its largest backlog value in almost eight years, Greenbrier is well-positioned for continued growth in fiscal 2024.
Other Pertinent Details
Greenbrier expects to improve performance in fiscal 2024, with deployed capital enhancing operational efficiencies and growing the lease fleet. The company is ambitiously pursuing its goal to increase recurring revenue.
This article first appeared on GuruFocus.
