Freightcar America (NASDAQ:RAIL) Announces Earnings Results

Freightcar America (NASDAQ:RAIL) posted its earnings results on Monday. The transportation company reported ($0.02) earnings per share (EPS) for the quarter, FiscalAI reports. Freightcar America had a net margin of 6.25% and a negative return on equity of 15.56%. The company had revenue of $113.14 million for the quarter, compared to the consensus estimate of $110.41 million.

Freightcar America Trading Up 3.4%

Freightcar America stock opened at $8.24 on Tuesday. Freightcar America has a 12-month low of $7.27 and a 12-month high of $14.90. The firm has a market capitalization of $157.71 million, a price-to-earnings ratio of 11.14 and a beta of 1.48. The firm has a 50 day moving average of $8.36 and a 200 day moving average of $9.54.

Hedge Funds Weigh In On Freightcar America

Several large investors have recently added to or reduced their stakes in RAIL. Barclays PLC increased its stake in Freightcar America by 541.0% in the 4th quarter. Barclays PLC now owns 19,185 shares of the transportation company’s stock worth $212,000 after buying an additional 16,192 shares in the last quarter. Hudson Bay Capital Management LP bought a new stake in Freightcar America during the fourth quarter valued at about $248,000. PharVision Advisers LLC purchased a new position in shares of Freightcar America in the third quarter valued at about $288,000. Qube Research & Technologies Ltd purchased a new position in shares of Freightcar America in the third quarter valued at about $321,000. Finally, Centiva Capital LP bought a new position in shares of Freightcar America in the third quarter worth about $135,000. Hedge funds and other institutional investors own 31.96% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of Freightcar America in a research note on Friday, June 5th. Zacks Research downgraded shares of Freightcar America from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Freightcar America currently has a consensus rating of “Reduce”.

Freightcar America News Summary

Here are the key news stories impacting Freightcar America this week:

• Positive Sentiment: Backlog value increased 121% sequentially to 3,972 railcars valued at $344 million, while the company estimated it captured approximately 45% of industry new-railcar orders. This points to strong demand and potentially better future production visibility. FreightCar America, Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Aftermarket revenue grew 13% year over year, and FreightCar America completed a second aftermarket acquisition after quarter-end. Management expects the acquisition and operational changes to broaden revenue sources and support growth.
• Positive Sentiment: Operating cash flow reached $12.1 million and free cash flow rose 43% year over year to $11.3 million. The company also expects approximately $12 million in annualized structural savings from its workforce and facility realignment.
• Positive Sentiment: Warrant exercises reduced the warrant liability from $119.4 million to $14.0 million and moved stockholders’ equity to a positive $36.2 million, improving the balance-sheet presentation.
• Neutral Sentiment: Quarterly revenue of $113.1 million declined from $118.6 million a year earlier but exceeded the reported analyst consensus of $110.4 million. Railcar deliveries were 927 units, compared with 939 units in the prior-year quarter.
• Negative Sentiment: FreightCar America reported a $30.1 million GAAP net loss, or $0.94 per share, including a $24.9 million non-cash warrant-liability loss. On an adjusted basis, the company still posted a $0.02-per-share loss versus adjusted earnings of $0.11 a year earlier.
• Negative Sentiment: Gross margin fell to 5.5% from 15.0%, and adjusted EBITDA dropped to $1.2 million from $9.3 million, signaling substantial near-term pressure on manufacturing efficiency and profitability.
• Negative Sentiment: The company cut its fiscal 2026 outlook to revenue of $410 million-$460 million, well below the $507.2 million consensus estimate, and expects 3,500-3,900 deliveries. Management attributed the reduction to delayed production ramp-up and deliveries shifting into early 2027.

About Freightcar America

FreightCar America, Inc is a designer and manufacturer of specialized railroad freight cars, offering a diverse range of products that include tank cars, open and covered hoppers, gondolas, boxcars and centerbeam lumber cars. The company supports both new car construction and the rebuilding of existing fleets, providing custom engineering solutions to meet customer specifications and industry regulations. FreightCar America also supplies aftermarket parts, maintenance services and component remanufacturing for its own fleet and for third-party car owners.

Headquartered in Chicago, Illinois, FreightCar America traces its origins to early 20th-century railcar builders and began trading as an independent, publicly-listed company on the NASDAQ under the ticker RAIL following a spin-off in 2010.