Why Rail Transport Company Greenbrier's Shares Are Diving Today

Greenbrier Companies Inc GBX shares are trading lower by around 16% after the company reported Q4 FY23 results.

Revenue rose to $1.017 billion from $950.7 million a year ago and above the consensus of $990.34 million. The company's high lease fleet utilization stood at 98.3% on a 13,400-unit fleet.

GBX has secured orders for 15,300 new railcars, totaling $1.9 billion in value in Q4. 

The company delivered 7,000 units in Q4 and 26,000 units in FY23. As of August 31, 2023, the diversified new railcar backlog stood at 30,900 units with an estimated value of $3.8 billion.

Adjusted EBITDA came in at $97 million, with a margin of 9.5%.

Adjusted EPS of $0.92 missed the consensus of $1.00.

As of August 31, cash and cash equivalents stood at $302.7 million.

The company repurchased 0.2 million shares for around $8 million in Q4. The company has $46 million worth of shares remaining under the current share repurchase program.

The company's quarterly dividend per share of $0.30 is payable on November 29, 2023, to shareholders of record as of November 8, 2023.

Lorie L. Tekorius, CEO and President, said, "Importantly, we delivered an outstanding commercial performance against a dynamic economic backdrop throughout the year. Greenbrier enters fiscal 2024 with our largest backlog value in almost 8 years. This provides excellent near-term revenue visibility and further confidence in our strategy. As we continue to execute the strategic plan we shared at our Investor Day in April, we expect to improve performance in fiscal 2024. Deployed capital will enhance operational efficiencies and grow our lease fleet as we ambitiously pursue our goal to increase recurring revenue."  

FY24 Outlook: GBX expects revenue of $3.40 billion – $3.70 billion vs. consensus of $3.72 billion. 

The company targets to deliver 22,500 – 25,000 units, including around 1,000 units in Brazil.

GBX projects capital expenditures of around $190 million in Manufacturing and $15 million in Maintenance Services and sees gross leasing investment of around $335 million in Leasing & Management Services. The company anticipates proceeds from equipment sales of around $80 million.

Price Action: GBX shares are down 15.86% at $34.38 on the last check Wednesday.