Greenbrier Q1 Earnings Beat Estimates, Clocks 37% Revenue Growth

Greenbrier Companies Inc GBX reported first-quarter FY22 revenue growth of 36.7% year-over-year to $550.7 million, beating the consensus of $532.55 million.

• Revenue by segments: Manufacturing $452.5 million (+48.6% Y/Y); Maintenance Services $72.4 million (+10.4% Y/Y); and Leasing & Management Services $25.8 million (-21.6% Y/Y).
• Net earnings for the quarter were $10.8 million versus a loss of $(10) million a year ago. EPS of $0.32 beat the consensus of $0.21.
• Q1 EBITDA was $42.2 million compared to $70.5 million in 4Q21. 
• As of November 30, 2021, the diversified new railcar backlog was 28,000 units with a value of $3 billion.
• The company recorded new railcar orders for 6,300 units valued at $685 million and deliveries of 4,100 units resulting in a 1.5x book-to-bill.
• Additionally, as part of the railcar refurbishment program, the company received orders to rebody 1,400 units.
• At the end of the quarter, liquidity stood at $610 million, including $410 million in cash and ~$200 million of available borrowing capacity.
• The company declared a quarterly dividend of $0.27 per share, payable on February 17, 2022, to shareholders of record as of January 27, 2022.
• Greenbrier's cash used from operating activities was $196.7 million, compared to cash provided of $8.6 million a year ago.
• Outlook: Based on current business trends and production schedules for FY22, the company expects increased deliveries of 17,500 – 19,500 units, including ~1,500 units in Greenbrier-Maxion (Brazil).
• Price Action: GBX shares are trading higher by 1.98% at $48.40 during the premarket session on Friday.