Headquartered in Chicago, IL Fiscal year ends December NASDAQ: RAIL freightcaramerica.com
FreightCar America, Inc. (NASDAQ: RAIL) designs, manufactures and supplies railroad freight cars, railcar parts and components for the North American market.
It reports two segments:
- **Manufacturing:** new railcar production, plus railcar rebody services and conversions that return idled rail assets to revenue service.
- **Aftermarket:** railcar parts, components and repairs. The company is building this segment through acquisitions, completing its third deal in less than a year with the post-quarter purchase of Trinity Equipment Company.
Revenue depends heavily on railcar delivery volumes and a small number of large customers, which makes the business cyclical. The company has been growing its higher-margin aftermarket business to diversify its results. It traces its railcar-building history to 1901. Updated
Deliveries halved to 662 railcars from 1,304 a year ago, doubling the expected loss and cutting gross margin to 8.8% from 15.1%. Management still reaffirmed full-year guidance of 3,100 to 3,300 deliveries, which means a very loaded fourth quarter for a $146 million company. With backlog value up 28% year over year, conversion is the open question.
The railroad industry is a logistics artery, but the companies supplying the equipment that moves freight are where the real money gets made. Locomotives, railcars, tank cars, and digital rail systems are…
FreightCar America, Inc. (NASDAQ: RAIL) designs, manufactures and supplies railroad freight cars, railcar parts and components for the North American market.
The Wall Street consensus 12-month price target for RAIL is $10.67.
