FreightCar America, Inc.

Revenue was $113.1 million versus $118.6 million in Q2 2025, with 927 railcars delivered versus 939 a year ago. Gross profit was $6.2 million and gross margin was 5.5%, compared with $17.8 million and 15% in the prior-year quarter. Net loss was $30.1 million, or $0.94 per diluted share, including a $24.9 million non-cash warrant remeasurement loss; adjusted net loss was $0.8 million, or $0.02 per diluted share, versus adjusted net income of $3.8 million, or $0.11 per diluted share last year. Adjusted EBITDA was $1.2 million, or 1% margin, versus $9.3 million and 7.8% last year. Cash from operations was $12.1 million, free cash flow was $11.3 million, cash and equivalents were $63 million, debt was reduced by about $7.3 million since year-end, and capex was $0.7 million. Full-year 2026 guidance was cut to 3,500 to 3,900 railcar deliveries, $410 million to $460 million of revenue, and adjusted EBITDA of $36 million to $45 million. The company also reiterated full-year capex of $7 million to $10 million, including about $4 million to $5 million of maintenance capital and tank car manufacturing investments.

Nick Randall framed the quarter as a mix of commercial strength and operational reset. He emphasized record-like order momentum, broad customer reach, and the strategic buildout of aftermarket and future tank car capabilities, while noting that the delayed ramp pushed some deliveries into 2027. His tone was confident and execution-focused, repeatedly stressing that FreightCar America is gaining share because it is creating value, not competing on price.

Mike Riordan focused on the financial impact of lower deliveries and the benefits of the cost actions. He said the quarter’s gross margin was pressured by fixed cost absorption and $2.2 million of workforce realignment costs, but those actions should yield about $12 million of annualized savings beginning in Q3. He also highlighted $12.1 million of operating cash flow, $11.3 million of free cash flow, $63 million of cash, reduced debt, and the warrant-liability reclassification that left stockholders’ equity positive at $36.2 million.

Analysts pressed on what drives the lower-to-upper end of guidance, and management said the main variable is whether more 2026 orders can be pulled into the current year without building too far ahead of customer need. Questions on aftermarket margins were answered with an expectation of a long-term 32% to 33% gross margin range, with quarterly mix causing some variation. Analysts also asked about pricing pressure and market share; management said it did not need to discount heavily because it wins on engineered, customer-specific products and service, and it said year-to-date market share is over 27% of order intake. On tank cars and Section 232 tariffs, management said the retrofit program is not affected and that any new-build tank car entry remains a late-2027 to 2028 decision.