Greenbrier Registers 39% Revenue Growth In Q1; Shares Cost Control Plans

Greenbrier Companies Inc GBX reported first-quarter revenue growth of 39.2% year-over-year to $766.5 million, beating the consensus of $747.1 million.
The company reported $950.7 million in revenue in Q4 FY22.
Revenue by segments: Manufacturing $646.5 million (+42.9% Y/Y); Maintenance Services $85.5 million (+18.1% Y/Y); and Leasing & Management Services $34.5 million (+33.7% Y/Y).
Adjusted EPS of $0.05 missed the consensus of $0.50.
GBX recorded new railcar orders for 5,600 units valued at $700 million, and deliveries of 4,800 units resulted in a 1.2x book-to-bill.
The gross margin expanded by 50 bps to 9.1%.
Greenbrier used $(255.5) million in operating cash flow versus $(196.7) million a year ago.
As of November 30, 2022, the new railcar backlog was 28,300 units with a value of $3.4 billion.
Greenbrier's liquidity stood at $477 million at the end of the quarter, including $263 million in cash and $214 million of available borrowing capacity.
Dividend: The board declared a quarterly dividend of $0.27 per share, payable on February 16, 2023, to shareholders of record as of January 26, 2023.
Buyback: The board renewed and extended the $100 million share repurchase program through January 2025.
After quarter end, Greenbrier acquired the minority interest in the GBX Leasing joint venture and now owns 100% to support its leasing strategy further.
"Greenbrier's business momentum continued in our fiscal first quarter, driven by a strong commercial performance that led to a book-to-bill of 1.2x. However, as new railcar production ramped, manufacturing margins were impacted by higher costs for outsourced parts, material shortages, supplier issues and lingering supply chain complications," CEO Lorie Tekorius said.
"We have been executing a plan to source key components internally, which we expect will be completed by the fourth quarter of this fiscal year. This will meaningfully reduce our input costs and provide us greater control over our supply chains," Tekorius added.
FY23 outlook: Greenbrier expects revenue of $3.20 billion – $3.60 billion versus the consensus of $3.33 billion.
Greenbrier expects deliveries of 22,000 – 24,000 units, including ~1,000 units in Greenbrier-Maxion (Brazil).
Price Action: GBX shares closed higher by 0.90% at $34.91 on Thursday.

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