Greenbrier Reports Q3 Revenue Increase Of 52% Sequentially

Greenbrier Companies Inc GBX reported a Q3 revenue decline of 41% year-over-year to $450.1 million, missing the consensus of $489.44 million.
Adjusted net earnings were $23.3 million or $0.69.
Revenues increased by 52.3% Q/Q, reflecting 65% higher deliveries.
Revenue by segments: Manufacturing $341.94 million (-47.7% Y/Y); Wheels, Repair & Parts $80.87 million (-1.4% Y/Y); and Leasing & Services $27.33 million (-0.7% Y/Y).
Q3 Gross margin was 16.7%, up by 260 bps, and operating margin declined by 305 bps to 5.7%.
Q3 Adjusted EBITDA was $52.9 million compared to $(1.3) million loss in Q2.
The company used $123.84 million in net cash from operating activities year-to-date compared to $89 million in cash generated a year ago.
New railcar orders for 3,800 units valued at $400M and deliveries of 3,300 units, with a 1.2x book-to-bill ratio.
Diversified new railcar backlog was 24,800 units, valued at ~$2.6 billion, as of May 31, 2021.
GBX liquidity stands at ~$850 million, with $628 million in cash and $221 million in available borrowing capacity.
The company expects commercial activity to remain strong as a $2.6 billion backlog provides a baseload of orders to support the expanded operation of production lines and leasing business.
Price action: GBX shares are trading higher by 4.93% at $42.02 in the premarket session on the last check Friday.

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