The following is a summary of the FreightCar America, Inc. (RAIL) Q2 2024 Earnings Call Transcript:

Financial Performance:

• FreightCar America reported a significant year-over-year revenue increase to $147.4 million in Q2 2024, up from $88.6 million.

• Q2 adjusted EBITDA was a record $12.1 million, reflecting robust profitability.

• Adjusted net income for the quarter reached $6.3 million, equating to $0.05 per diluted share.

• The company is raising its full-year revenue forecast to between $560 million and $600 million, indicating a robust year-over-year growth of approximately 62% at the midpoint.

• Adjusted EBITDA guidance for the full year has also been raised to between $35 million and $39 million, showing an anticipated year-over-year increase of 84.1% at the midpoint.

Business Progress:

• FreightCar America achieved a milestone with the delivery of the 10,000th railcar from its Castanos facility.

• Secured a significant multiyear tank car conversion order, expanding its product offerings and market presence in the tank car segment.

• Achieved historically high levels of orders and inquiries, with net orders of 2,916 units valued at $285 million in Q2.

• Expanded manufacturing capabilities and strategic focus led to marked improvements in operational performance and market presence.

• Planned substantial tank car conversion work starting substantially in 2026, with an intent to also prepare for new tank car production post-2026.

Opportunities:

• Continued healthy demand in the railcar market, supported by industry forecasts of 40,000 to 42,000 railcar deliveries annually.

• The significant multiyear tank car conversion order aligns with the federally mandated time frame and enhances FreightCar America's position in the tank car market.

Risks:

• The necessity to manage the transition and scaling of manufacturing capabilities to meet the new demands of tank car conversion and production.

• Potential challenges in maintaining operational efficiency and profitability amidst expansions and increased production targets.

More details: FreightCar America IR

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